Decision details

Councillor Hargreaves presented the report regarding a request from Aspire (CRP) Ltd for additional loan funding. The purpose of the loan was to fund new development at Chesterford Research Park, namely the building of a new unit for letting (Building 800), and phase 1 of an on-site solar farm. The loan was forecast to provide a significant positive return to the Council over a number of years. Furthermore, should the Council decide not to proceed, there was a risk that the value of Aspire’s existing stake in Chesterford Research Park would be adversely affected. For these reasons, it was recommended that the Council proceed with the loan as requested. He said the proposal had been recommended for approval by both the Investment Board and Cabinet. He formally proposed the recommendation set-out in the report.

Councillor Sell seconded the proposal.

Members discussed the report and were supportive of the development.

In response to a request from Councillor Barker, the Strategic Director of Commercialisation and Corporate Services said a site visit would be arranged for members.

The Chair took the proposal to a vote.

RESOLVED:

                      I.        Approve a new loan facility of up to £21,060,000 be made available to Aspire (CRP) Ltd, to be drawn down in tranches over a period of up to 2 years;

                    II.        Note the implications of making the loan on the Council’s access to Public Works Loan Board, as set out in paragraphs 50 to 57;

                   III.        Delegate authority to the Director of Finance, Revenues & Benefits (in consultation with the Portfolio Holder for Finance and the Economy and the Council’s external treasury advisers) to agree the final terms of the loan facility, including the interest rate to be charged (such rate to be no less than 7.5%); and

                          IV.            Approve the financing of the new loan facility through additional external borrowing as set out in paragraphs 38 to 41 of the report.