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Issue - meetings

York Central Enterprise Zone Funding Agreement

Meeting: 21/04/2022 - Executive (Item 117)

117 York Central Enterprise Zone Funding Agreement pdf icon PDF 752 KB

The Corporate Director of Place to present a report which sets out proposals to enter into a funding agreement with land-owning partners to draw down Enterprise Zone funding to deliver the enabling infrastructure for York Central.

 

Additional documents:

Decision:

Resolved:  (i)      That authority be delegated to the Chief Finance Officer, in consultation with the Director of Governance or her delegated officers, to enter into an Enterprise Zone (EZ) funding agreement with Homes England to reimburse infrastructure costs to enable the delivery of York Central.

 

                   (ii)      That the previously approved £35m capital budget funded from future EZ receipts be allocated as a contribution to the enabling infrastructure, to be used after all other grant funding has been exhausted.

 

                   (iii)     That up to £2.7m of previously approved CYC borrowing be allocated to fund the Technical Assurance work to enable the highways infrastructure to be adopted.

 

                   (iv)    That up to £500k of previously approved CYC borrowing be allocated to deliver the Jubilee Terrace to Scarborough Bridge Riverside Path improvement scheme.

 

                   (v)     That up to £250k of EZ revenue receipts be allocated to fund inward investment activity in the council’s economic development team, specifically to promote York Central and to attract occupiers.

 

                   (vi)    That authority be delegated to the Director of Transport, Environment & Planning to agree technical assurance arrangements for the adoption of the highways infrastructure for York Central as set out in the report.

 

                   (vii)    That authority be delegated to the Director of Transport, Environment & Planning (in consultation with the Director of Governance or her delegated officers) to enter into S278/38 Agreements with York Central landowners.

 

                   (viii)   That authority be delegated to the Director of Transport, Environment & Planning (in consultation with the Director of Governance or her delegated officers) to enter into the Bridge Agreements with Network Rail and Homes England.

 

                   (ix)    That authority be delegated to the Director of Transport, Environment & Planning, in consultation with the Executive Member for Transport, to certify the discharge of conditions to permit the Stopping Up of Leeman Road.

 

                   (x)     That approval be given to dispose of the former Canteen Building on Chancery Rise to Network Rail in order to facilitate the removal of their operational uses from the York Central site, and delegate to the Director of Housing Economy and Place to agree the final value, following an independent valuation exercise.

 

Reason:     To ensure the delivery of York Central and to provide funding for enabling infrastructure including a new access route to York Central, and to support the commercial development of the scheme to generate EZ income to fund that infrastructure.

 

Minutes:

The Director of Housing, Economy & Regeneration presented a report which set out proposals to enter into a funding agreement with land-owning partners to draw down Enterprise Zone (EZ) funding to deliver the enabling infrastructure for York Central, along with other proposed funding allocations to progress the scheme.

 

The requirement to call upon EZ funding had been generated earlier than anticipated, because the overall cost of the infrastructure was now likely to exceed the initial estimate of £155m.  Revised modelling of the EZ income, based on first commercial occupation in 2027, indicated that a borrowing level of £35m remained affordable (paragraphs 26-33, including the table at paragraph 30).  Funding inward investment from early EZ receipts would increase the occupancy on which the success of the model depended. 

 

Further proposals in the report related to associated matters including: technical assurance work for adoption of the highway; agreements to permit construction of bridges over the railway (paragraph 70); discharge of conditions of the Leeman Road Stopping Up Order (paragraphs 71-75); disposal of the Canteen building to free up the site (paragraphs 77-78); and delivery of the Jubilee Terrace to Scarborough Bridge Riverside Path improvement scheme (paragraphs 79-82).

 

In supporting the proposals, the Chair welcomed the progress made to date in unlocking the York Central site and highlighted the importance of the scheme to the development of the city.  In response to matters raised under Public Participation, it was agreed to amend recommendation (x) (Resolution (ix)) by inserting the words ‘in consultation with the Executive Member for Transport’.

 

Resolved:  (i)      That authority be delegated to the Chief Finance  Officer, in consultation with the Director of Governance  or her delegated officers, to enter into an Enterprise  Zone (EZ) funding agreement with Homes England to  reimburse infrastructure costs to enable the delivery of  York Central.

 

                   (ii)      That the previously approved £35m capital  budget funded from future EZ receipts be allocated as  a contribution to the enabling infrastructure, to be used  after all other grant funding has been exhausted.

 

                   (iii)     That up to £2.7m of previously approved CYC  borrowing be allocated to fund the Technical  Assurance work to enable the highways infrastructure to be adopted.

 

                   (iv)    That up to £500k of previously approved CYC  borrowing be allocated to deliver the Jubilee Terrace to  Scarborough Bridge Riverside Path improvement  scheme.

 

                   (v)     That up to £250k of EZ revenue receipts be  allocated to fund inward investment activity in the  council’s economic development team, specifically to  promote York Central and to attract occupiers.

 

                   (vi)    That authority be delegated to the Director of  Transport, Environment & Planning to agree technical  assurance arrangements for the adoption of the  highways infrastructure for York Central as set out in  the report.

 

                   (vii)    That authority be delegated to the Director of  Transport, Environment & Planning (in consultation  with the Director of Governance or her delegated  officers) to enter into S278/38 Agreements with York  Central landowners.

 

                   (viii)   That authority be delegated to the Director of  Transport, Environment & Planning (in consultation  with the Director of Governance or her  ...  view the full minutes text for item 117


 

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