Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
To consider Investment Opportunities 3 and 4.
The Leader said the investment opportunities before Members had been considered by the Investment Board and had been recommended for approval. He asked the Director – Finance and Corporate Services to present the report.
The Director – Finance and Corporate Services outlined the two investment opportunities and summarised the risks posed by the proposed acquisitions.
Members discussed the issues of parking, access and succession planning in regard to Investment Opportunity 3.
In response to a Member question, the Director – Finance and Corporate Services said these would be direct investments of the Council and not purchased through Aspire, the commercial arm of the Council. He added that this approach was supported by legal advice.
The Leader said the potential risks had been debated at length during the meeting of the Investment Board and he was more than comfortable with the proposal, particularly as the opportunities before Cabinet would significantly diversify the Council’s investment portfolio if accepted. He said the additional income generated by these investments would be used to maintain council services and fund the green agenda.
RESOLVED to endorse the conclusions of the Investment Board and that:
a. The property purchases as set out are agreed:
i. Investment Opportunity 3, up to the sum of £21,500,000
ii. Investment Opportunity 4, up to the sum of £7,000,000
b. The funding ratio is on an 80% interest only and 20% repayment basis.
c. The purchase costs are capitalised.
d. The purchases are made as a direct investment by Uttlesford District Council.
e. To authorise the Director of Finance and Corporate Services in
consultation with the Leader and Portfolio Holder for Finance and Budget to conclude the acquisition; subject to recommendation f.
f. To request Council to endorse the purchases and to authorise the necessary borrowing.
g. The income generated in 2020/21 is allocated to funding the actions, including climate change, contained in the 2020/21 Corporate Plan Delivery Plan.
The meeting ended at 5.15pm.
Report author: Adrian Webb
Publication date: 05/03/2020
Date of decision: 04/03/2020
Decided at meeting: 04/03/2020 - Cabinet