Issue - meetings

The Corporate Director of Economy & Place and the Director of Corporate & Customer Services to present a report which sets out the investment case for the York Central Enterprise Zone and recommends that a capital budget be established to deliver the enabling infrastructure for York Central.

Resolved:  (i)      That £1m of additional business rates income from the 2018/19 business rates pilot be allocated to the Venture Fund.

                   (ii)      That approval be given to use up to £3m of the Venture Fund to finance early years deficits on the revenue costs of borrowing related to the £35m City of York Council contribution, to be repaid from future Enterprise Zone receipts.

                   (iii)     That prudential borrowing of £35m be agreed, financed from future retained business rates as part of the York Central Enterprise Zone, plus in early years the use of Venture Fund referred to in (ii) above.

Reason:     To ensure the delivery of York Central and to provide funding for enabling infrastructure, including a new access route to York Central, within the timescale of available grant funding.

[See also under Part B]

The Corporate Director of Economy & Place, the Director of Customer & Corporate Services and the Assistant Director for Regeneration & Asset Management presented a report which set out the investment case for the York Central Enterprise Zone and recommended the creation of a capital budget to fund the infrastructure costs for York Central and allow development to proceed.

Details of funding approvals to date, plus actual and forecast expenditure in the current financial year, were set out in paragraphs 13 to 18 of the report.  A detailed appraisal had now been undertaken of the abnormal infrastructure costs which had inhibited the ability of the market to deliver the scheme in the past; this had determined a cost of £155m, as indicated in Table 3 at paragraph 20.  The proposed funding sources for this sum, including a £35m contribution from the council, were outlined in Table 4 at paragraph 24 and detailed in paragraphs 25 to 35.

In response to questions from Members and matters raised under Public Participation, Officers confirmed that:

·        The report proposed establishing an overarching budget for the infrastructure; a further report on spending proposals would be brought to Executive in January 2019.

·        The proposals would be subject to planning consent and approval of funding bids in February / March 2019.

·        It was planned to contract with construction partners in July 2019, with construction to begin in the 3^rd quarter of the year.

·        Matters relating to affordable housing would form part of the planning process.

·        All the YCP partners had invested heavily in the development; the January report would explain how these investments would be treated.

Members expressed approval for the proposals in terms of moving the project forward.  Having noted the comments made under Public Participation, it was

Resolved:  (i)      That £1m of additional business rates income from the 2018/19 business rates pilot be allocated to the Venture Fund.

                   (ii)      That approval be given to use up to £3m of the Venture Fund to finance early years deficits on the revenue costs of borrowing related to the £35m City of York Council contribution, to be repaid from future Enterprise Zone receipts.

                   (iii)     That prudential borrowing of £35m be agreed, financed from future retained business rates as part of the York Central Enterprise Zone, plus in early years the use of Venture Fund referred to in (ii) above.

Reason:     To ensure the delivery of York Central and to provide funding for enabling infrastructure, including a new access route to York Central, within the timescale of available grant funding.