Agenda and minutes

Apologies for absence were received from Councillor Walsh.

         Councillor Dalton declared a pecuniary interest in item 4, Update on Proposed Ground Mounted Solar and Wind Farms at America Farm, Morris Fen and Newborough, and stated that he would leave the meeting room whilst the item was under discussion.

The minutes of the meeting held on 3 February 2014 were agreed as a true and accurate record.

Cabinet received a report following a Scrutiny Commission for Rural Communities meeting held on 16 December 2013. The purpose of the report was for Cabinet to consider the recommendations arising from the Rural Commission meeting and to agree a way forward for the three energy parks. The recommendations from the Scrutiny Commission requested that Cabinet:

i)             Immediately stops both options (1) solar and (2) wind for the America Farm project due to the negative income predicted for the delayed project; and

ii)            Stops the solar panel option (1) on all three sites (America Farm, Newborough and Morris Fen) due to the significant total expenditure of £296 million, a poor return of £21 million net income and a net present value figure of only £10.5 million’.

The report further provided Cabinet with an update on:

i)                An update of the latest financial projections for the three sites;

ii)               The latest position on survey results etc. at the America Farm site; and

iii)           The feedback received to date as part of the budget consultation launched at the 3^rd February Cabinet meeting.

         The Chairman advised that Councillor David Harrington, Ward Councillor for the Newborough Fen site, was present and had been permitted time to address Cabinet. In summary, key points of concern were highlighted as follows:

·         Arable farmland needed to be protected in order to secure future food source. Reliance could not be placed solely on food coming in from abroad;

·         Agricultural industry should not be disregarded as some other industries had been, such as engineering and nuclear technology;

·         The Council needed to support the tenant farmers, and there were many ways this could be achieved such as through education and seeking joint ventures with other partners, for example in the likes of bio fuel production;

·         This assistance would help to keep the land in production and to secure agricultural skills for the future;

·         Renewable energy came in many forms and should be for the benefit of all, not at the expense of others;

·         The project posed a major risk to the Council’s reputation and services and it was unbelievable that the report proposed to ignore the concerns of the Scrutiny Commission;

·         The success of the venture was not guaranteed and it would not be prudent to take a £250 million loan in order to fund such a risky venture;

·         If the recommendations were approved, the Council would have to find at least £78.24 million in order to service the debt, causing further hardship to Peterborough; and

·         It was Councillor Harrington’s understanding that a cross party working group was being initiated to look at the proposals in detail and the financial implications across all three sites.

Councillor Seaton introduced the report and addressed the recommendations arising from the Scrutiny Commission. An overview of the updated financial position relating to the America Farm site was provided, taking into account revisions to costs following further consultation with the market, through advisors and other developers. The outcome of the revisions now showed that the net  ...  view the full minutes text for item 4.

(Urgency provisions have been invoked in relation to this decision and further details are contained at paragraph 3.1 of the report).

Cabinet received a report which included detailed proposals for the delivery of growth and regeneration schemes in Peterborough and for the Council’s involvement in those schemes. In summary, the report sought Cabinet’s approval to:

i)             Establish a 50:50 joint venture company with a new Peterborough Investment Fund to prepare viable and consented development schemes for a series of sites;

ii)            Participate in the governance of the Peterborough Investment Fund through representation of the Fund’s Investment Committee and Management Board;

iii)           Grant Option Agreements on the sites as listed within the report, to the Peterborough Investment Fund;

iv)           Approve the future Council office consolidation plan described in the report and enter into an Agreement for Lease with the Peterborough Investment Fund for new administrative offices to be developed on Fletton Quays; and

v)            Recommend to Council that the Treasury Management Strategy is amended to permit investments in Collective Investment Schemes to enable the Council to participate in the profits of the Peterborough Investment Fund, if it chose to do so.

         The Chairman advised that work on proposals for a Joint Venture had been taking place since 2009 and it was an incredible opportunity for the city which would provide funding for delivery growth schemes. The investment would ensure that the city thrived, with continued growth in new jobs and homes.

         The Director of Growth and Regeneration provided Cabinet with a further detailed overview of the report’s main aspects including the significant challenges faced within the city; the Council’s growth delivery arrangements following a series of measures agreed by Cabinet in December 2009 in the report entitled ‘Peterborough’s Growth Delivery Arrangements’ which aimed at driving forward the city’s growth ambitions in the wake of the economic downturn that began in 2007 and a summary of the proposed model and how it would work going forward, including redevelopment of a number of council owned sites and Council office consolidation into a purpose built building on Fletton Quays.

Cabinet debated the report and comments and responses to queries included:

·         There would be no funding from Government going forward, therefore those involved in the development of the scheme should be congratulated on the work undertaken;

·         The role of Opportunity Peterborough would change to enable more focused economic development activity, skills and marketing of the city to businesses and investors;

·         Once the fund had been established, information regarding investors into the fund would become available once the business had been listed on the stock market.

Cabinet considered the report and RESOLVED the following:

In order to facilitate the establishment of a Peterborough investment Fund to bring forward development through £130m of external investment, Cabinet is recommended to approve:

(1)   The business case for an investment joint venture as attached at Appendix 1 to the report;

(2)   The establishment of a Joint Venture Company with a Fund regulated by a UK registered fund manager with a 50% equal shareholding for each party;

(3)   Investment of £3m funded from the existing capital programme, representing the value of  ...  view the full minutes text for item 5.

Cabinet received a report as part of the Council’s agreed process for integrated finance and business planning.

The purpose of the report was to recommend to Council budget proposals for 2014/15 through to 2023/24, in line with the final local government finance settlement for 2014/15 and in advance of some Department for Education specific grants being finalised. The Medium Term Financial Strategy (MTFS) was presented at the meeting of Cabinet held on 3 February 2014 and remained the basis for Cabinet to recommend the budget for approval by Council. The report was supplemented with the MTFS and budget consultation and was due to be refreshed to include the updates contained within the report, for Council on 5 March 2014.

The report further provided an update on the budget consultation responses received so far, recognising that the consultation remained open until 4 March 2014 and that some meetings with key stakeholder groups had yet to take place. In addition, the report had regard to the revised budget timetable approved by Council at the meeting held on 4 December 2013

Councillor Seaton introduced the report and in the first instance acknowledged the number of consultation responses received, thanking all those involved and the hard work undertaken by officers in the development of the document.

Further key points highlighted by Councillor Seaton included the substantial number of consultation responses received in relation to the Children’s Centres and St Georges Hydrotherapy Pool; the reduction in grant by nearly £44m in 2015/16; evidence of investment in the city including Peterborough having one of the lowest shop vacancy rates in the country; GSCE results in Peterborough being the sixth most improved in the county; an independent report of UK cities highlighted that Peterborough was the UKs fastest growing city and had the second highest private sector employment growth and the fifth highest housing stock growth; Peterborough had the sixth lowest council tax in the country and it was proposed to freeze the level for the next two years.

In summarising, Councillor Seaton advised that the budget proposed struck the right balance between supporting vulnerable people and minimising the impact on services, whilst also meeting the financial challenges and placing the Council on a sound financial footing moving forward and improving the city for all residents.

Councillor Seaton further added that he had an update on the Hydrotherapy pool. Following feedback from the Disability Forum and the recent petition received, Cabinet remained committed to trying to find a future solution for the users of St Georges Hydrotherapy Pool.

It remained unclear as to whether there was a long term future for the pool given the high levels of maintenance and repair that the site required, however all avenues would be explored and the Council would continue to keep the facility open beyond April, whilst working with others to consider future options. It was advised that a number of Councillors had pledged Community Leadership Fund money in order to keep the pool open for around another three months.  ...  view the full minutes text for item 6.