24 Asset investments and disposals
Report of Chief Executive
Lead Cabinet member: Councillor David Tutt
Exempt information reason 3 - Information relating to the financial or business affairs of any particular person (including the authority holding that information).
Additional documents:
Decision:
(Key decision):
(1) Agree to act as guarantor for a company to raise finance on an asset.
(2) Agree to the commercial terms as set out at section 3 of the exempt report.
(3) Delegate to the Chief Executive, the authority to finalise the transactions in consultation with the Leader, Chief Finance Officer and Assistant Director Legal Services.
(4) Agree a budget of up to £75,000 from reserves to undertake legal and financial due diligence and finalise all necessary documentation and processes required for this purpose, to give approval to allowing exceptions to the Council’s Contract Procedure Rules, should that be considered appropriate by the Chief Finance Officer and the Assistant Director - Legal & Democratic Services in the appointment of the relevant consultants.
(5) Approve the establishment of a wholly owned council company if required for the purpose of such company providing the guarantee and in such a case agree the Council will guarantee the obligations of such wholly owned company.
Minutes:
The Cabinet considered the report of the Chief Executive regarding the Council’s asset investment and disposals.
Resolved (key decision):
(1) To agree to act as guarantor for a company to raise finance on an asset.
(2) To agree to the commercial terms as set out at section 3 of the exempt report.
(3) To delegate to the Chief Executive, the authority to finalise the transactions in consultation with the Leader, Chief Finance Officer and Assistant Director Legal Services
(4) To agree a budget of up to £75,000 from reserves to undertake legal and financial due diligence and finalise all necessary documentation and processes required for this purpose, to give approval to allowing exceptions to the Council’s Contract Procedure Rules, should that be considered appropriate by the Chief Finance Officer and the Assistant Director - Legal & Democratic Services in the appointment of the relevant consultants.
(5) To approve the establishment of a wholly owned council company if required for the purpose of such company providing the guarantee and in such a case agree the Council will guarantee the obligations of such wholly owned company.
Reason for decision:
The Council has set out income targets to assist with the reductions in Government funding as part of its medium term financial strategy. This opportunity would represent a significant low risk contribution towards those targets.
Notes: (1) The report remains exempt. (2) Exempt information reason 3 – information relating to the financial or business affairs of any particular person (including the authority holding that information). (3) All officer recommendations contained in the exempt report were unanimously approved.