Issue - meetings

The Director of People to present a report which proposes a series of actions to respond to a request from Make It York for financial support to mitigate the impact of Covid-19 on the company. 

Resolved:  (i)      That the requirement for Make It York (MIY) to make a revenue return to the council in 2020/21 in respect of trading activity across the city be waived.

                   (ii)      That the first two quarters’ rent due from MIY in 2020/21 for use of premises on Museum Street and the Silver Street offices be deferred.

                   (iii)     That a loan facility of £300k from the council be accessed by MIY only if necessary.

                   (iv)    That officers provide a letter of guarantee to MIY with access to a maximum of £1m over the next two years should it be required.

Reason:     To secure the future of Make It York.

The Assistant Director of Communities & Culture and the Finance Manager presented a report which proposed a series of actions in response to a request from Make It York (MIY) for financial support to mitigate the impact of Covid-19 on the company.  Sean Bullick, the MD of MIY, was also in attendance to answer any questions.

The report reflected work carried out by the MD to strengthen the evidence for the future financial projections for MIY in the light of Covid-19, following a report to Shareholder Committee on 5 November 2020.  This indicated that, if no action was taken, the company would soon become insolvent, with severe consequences for the council and the city as outlined in paragraph 7.  The Board of MIY had therefore requested that the council provide a revenue contribution, rent deferrals and a loan facility to enable it to return to profitability in 2022/23. 

Officers corrected an error in the report – the reference to the ‘25/26’ financial year in paragraph 16d) should read ‘24/25.’  In response to matters raised under Public Participation, it was noted that the future contract with MIY would be the subject of a further report to Executive in early 2021.

Resolved:  (i)      That the requirement for Make It York (MIY) to make a revenue return to the council in 2020/21 in respect of trading activity across the city be waived.

                   (ii)      That the first two quarters’ rent due from MIY in 2020/21 for use of premises on Museum Street and the Silver Street offices be deferred.

                   (iii)     That a loan facility of £300k from the council be accessed by MIY only if necessary.

                   (iv)    That officers provide a letter of guarantee to MIY with access to a maximum of £1m over the next two years should it be required.

Reason:     To secure the future of Make It York.