19/05/2014 – DECISION WITHDRAWN (Also 13/00035 and 13/00036)
REASON: Initial applications for Growing Places Fund were submitted for this project and projects at Southfleet Road, Ebbsfleet and Sturry Road, Canterbury but it has been determined on further investigation and appraisal that the projects either do not require GPF funding in order to proceed or that the risk for KCC was not proportionate to the benefits sought from the proposals.
Growing Places Fund (GPF) is a Government scheme which provides loan finance to unlock development sites where these will create new jobs and homes. In the South East, the Fund is administered by the South East Local Enterprise Partnership (LEP), for which Essex County Council acts as the accountable body.
Following a call for projects and appraisal, the LEP has given indicative approval to allocate up to £2.95 million to deliver Phase 2 of The Base.
In order to secure this funding, it is proposed that KCC will enter into a credit agreement with Essex County Council to draw down the GPF funding.
In addition, KCC will enter into an agreement with the Homes and Communities Agency, which owns the freehold of the site, to enable the development to proceed.
This shall be subject to final due diligence.
This Decision contributes to delivery of the following Delivering Bold Steps priorities:
· Priority 8: Respond to key regeneration challenges, working with our partners. This specifically prioritises actions to unlock key sites, where these will lead to jobs and housing
Impact/costs and risks of proposed decision
The proposed Decision will mean that KCC will be able to draw down Growing Places Fund investment of up to £2.95 million. It is anticipated that this will deliver 108 jobs (gross).
GPF funding is repayable. The primary risk is that KCC will be liable to repay the GPF loan to the Accountable Body, even if rental incomes from the completed scheme or the capital receipt from the scheme on its eventual sale are less than anticipated. This will be mitigated through due diligence, the robust drafting of the credit agreements, and project monitoring.
There will be some costs to KCC in managing the credit agreement. These will be recovered through interest payments and/ or through recharges to the central GPF fund, with costs and recovery mechanisms considered in development of the credit agreement.
Decision type: Key
Decision status: Withdrawn
Division affected: Dartford West;
Notice of proposed decision first published: 26/06/2013
Department: Strategic & Corporate Services
KCC has taken the advice of the members of the South East Local Enterprise Partnership Board, who have been involved to Level 3 (Make Choices).
Other key consultee groups
South East Local Enterprise Board members (including business representatives and local authority leaders).
In addition, Dartford Borough Council has been consulted as part of the project appraisal process.
Start and finish dates of consultation.
Summer 2012 – March 2013
Equalities Impact Assessment included in the consultation documentation. Please state where this can be found.
No – an Equalities Impact Assessment has not yet been prepared. It is anticipated that there will be few equalities impacts arising from this Decision. However, there may be combined impacts arising from the series of proposed Decisions to enter into credit agreements for GPF for a number of projects. It is therefore proposed that a single Equalities Impact Assessment will be undertaken for all related Decisions prior to the proposed Decision for this project being taken.
Date of publication of consultation outcomes and updated Equalities Impact Assessment
There is no separate consultation outcomes report. However, the discussion at the South East LEP Board has been published at www.southeastlep.com.
Has the matter already been discussed by a Cabinet Committee? If not when will be it discussed by the Cabinet Committee and the date of the meeting
Yes. KCC’s approach to Growing Places Fund has been discussed by the Economic Development Cabinet Committee on 5 July 2012 and 21 September 2012.
In addition, the proposed Decision will be discussed by ED Cabinet Committee on 14 June.
Is the matter referred to in your Business Plan or Medium Term Capital Programme?
Yes – Growing Places Fund investment is referred to in Economic Development Unit Divisional Business Plan 2013/14
Which Members and electoral Divisions are affected by this proposed decision? Is it All Members?
The development is located in Dartford West (Jan Ozog).
Financial implications: Ross Gill Economic Strategy and Policy Manager Economic and Spatial Development 01622 221312 07837 872705 Ross.firstname.lastname@example.org
Legal implications: 13/00032
Equalities implications: Financial criteria exceeded