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Decision details

Provision of cash flow loan to White Rock Neighbourhood ventures to support the purchase process of the Observer Building

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

Simon Hubbard, Director of Operational Services presented a report on the White Rock Neighbourhood Ventures short term cash flow loan. This report proposes that the Council support the redevelopment of the Observer Building by providing a short term loan to White Rock Neighbourhood Ventures (WRNV). WRNV will pay back the loan within a three month period.

 

The Observer Building was formerly a printing works and offices for the Observer newspaper and has been vacant for almost 30 years. It is a multi-storey building located on the south side of Cambridge Road, bounded by Prospect Place to the west and an alleyway to the rear of Claremont to the east. It is located within the Hastings Town Centre Conservation Area.

 

This will be given under the De Minimis regulations. WRNV has confirmed that they have not used De Minimis for other programmes over the past three rolling fiscal years.

 

An amendment was proposed for recommendations 1 and 3 to be removed, and the remaining recommendation to be amended as seen in the resolution below.

 

This was proposed by Councillor Chowney which seconded by Councillor Batsford.

 

RESOLVED (by 6 for, 2 against) that:

 

1.     Cabinet delegate authority to the Director of Operational services, Chief Finance Officer and Chief Legal Officer in conjunction with the Leader of the Council to agree terms of the loan once due diligence work has been completed to the council’s satisfaction and after exploring a contribution to meet the difference in interest rates to the loan is concluded.



Reasons for this Recommendation were:

White rock Neighbourhood Ventures Ltd, owner of Rock House, is currently finalising the purchase of the Observer Building. This building has had minimal economic impact in the town centre for thirty three years and the ambition of WRNV to revitalise the building through development of mixed use units including workspace, leisure and housing is supported by the council.

 

The loan is to cover a period of three months, and will cover the VAT applicable on the purchase price, a sum detailed in the part 2 report which will be repaid to WRNV within 3 months, and in turn the loan from HBC will be repaid by WRNV by the 31March 2018.

 

Due to other constraints on staff time and speed at which we have been asked to progress the decision with regard to the loan, not all due diligence and risk assessment has been completed, therefore officers are asking for a decision in principle, whilst this work is completed.

 

Should the due diligence show that this proposal is unviable no loan will be made.

Report author: Victoria Conheady

Publication date: 11/04/2019

Date of decision: 03/12/2018

Decided at meeting: 03/12/2018 - Cabinet

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