Issue details

Amendment of Existing Loan Arrangements to Empower

With the approval of the Chairman of the Growth, Environment and Resources Scrutiny Committee Urgency, Special Urgency and waiver of call-in procedures have been invoked to suspend the requirement to advertise the decision for 28 days, publish the decision for 5 days prior to publication, and to suspend the 3 day call-in period.

 

The urgent timescale is driven by external commercial factors. The Council had been reassured by Empower that full refinancing was progressing within agreed timescales. When it became clear that neither was the case the Council needed to spend time investigating and understanding why the outcome of Empower's refinancing process was not as expected, while considering the range of options now available to it. Those refinancing and other options currently under discussion with Empower LLP and external parties have only now reached a point at which specific recommendations and decisions can be made. The loan facility currently expires on 30 November 2018.

 

The Cabinet Member:

 

1.    Approved the amendment of the terms of the Strategic Partnership with Empower Community Management LLP

2.    Approved the amendment of the financing agreement with ECS Peterborough 1 LLP

3.    Approved the Council entering into such further agreements with ECS Peterborough 1 LLP and any other body necessary to facilitate the arrangements set out in this report.

4.    Delegated to the Corporate Director, Resources and Director of Law and Governance the ability to finalise matters 1 to 3 above.

5.       Delegated to the Corporate Director, Resources the ability to extend the funding facility which will be included in the financing agreement at 3. above on a monthly basis for up to 4months based on the methodology for extending the facility set out in this report

 

Decision type: Key

Reason Key: Expenditure or savings greater than £500,000;

Decision status: Recommendations Approved

Wards affected: (All Wards);

Notice of proposed decision first published: 30/11/2018

This decision will be taken under urgency procedures.

Reason for urgency:
With the approval of the Chairman of the Growth, Environment and Resources Scrutiny Committee Urgency, Special Urgency and waiver of call-in procedures have been invoked to suspend the requirement to advertise the decision for 28 days, publish the decision for 5 days prior to publication, and to suspend the 3 day call-in period.

The urgent timescale is driven by external commercial factors. The Council had been reassured by Empower that full refinancing was progressing within agreed timescales. When it became clear that neither was the case the Council needed to spend time investigating and understanding why the outcome of Empower's refinancing process was not as expected, while considering the range of options now available to it. Those refinancing and other options currently under discussion with Empower LLP and external parties have only now reached a point at which specific recommendations and decisions can be made. The loan facility currently expires on 30 November 2018.

Anticipated restriction: Part exempt  - View reasons

Explanation of anticipated restriction:
Appendix 1 is NOT FOR PUBLICATION in accordance with paragraph (s) 3of Schedule 12A of Part 1 of the Local Government Act 1972 in that it contains information relating to commercially sensitive information, namely the project plan. The public interest test has been applied to the information contained within the exempt annex and it is considered that the need to retain the information as exempt outweighs the public interest in disclosing it as to do so. To release the details of the project plan would disclose commercially sensitive information about Empower and the terms of the refinance agreement and disclosure would also be damaging to the Council’s commercial interests

Decision due: 30 Nov 2018 by Cabinet Member for Resources

Lead member: Councillor David Seaton, Cabinet Member for Finance david.seaton@peterborough.gov.uk

Lead director: Acting Corporate Director Resources

Department: Resources

Contact: Peter Carpenter, Acting Corporate Director Resources Tel: 01733 384564, Email:  Peter.carpenter@peterborough.gov.uk  peter.carpenter@peterborough.gov.uk Tel: 07920 160122.

Relevant Scrutiny Committee: Growth, Environment and Resources

Decisions