The council is looking for approval on a one-year interim payment of £80k for 2017/2018 to the ORT.  The interim payment is needed to cover the period until rental income is received from the leasing of the north side of Ben Jonson Rd shops.  The lease negotiations have slowed due to issues relating to planning and leaks which are currently being resolved.

The one year payment is in line with previous payments of this amount which has been granted to the Trust.  The decision to continue for one more year will contribute to their ongoing commitments of staff salaries, rent and delivery of their programmes.

The Strategic Housing Manager and Regeneration Officer presented the report.  They apologised that no officer had been able to attend GSSC meeting and advised that a response to issues raised by GSSC had been circulated to all its members.  GDSC members were informed that for commercial and circumstantial reasons there had been delays in realising funding to ORT from retail units’ receipts and therefore an interim payment was being sought for 2017/18 pending completion of all necessary tasks to bring income from the retail units on stream for 2018/19.

Councillor Woods reported that GSSC was concerned that the projected self-funding elements of the project were slow to be delivered and the project had become protracted.  Additionally there was a risk of no funds if the retail units remained unlet.  Members of GDSC echoed this concern and noted there had been historic issues around the let of the regenerated retail units.

Members were informed that it had been recognised that ORT would not achieve full income in the first year of letting the retail units, and hence funding would likely be necessary in this period (2018/19).  Officers outlined how ORT had been subject to interim funding and lease arrangements at the Harford Centre whilst the retail units were being completed and let, this had also impacted on the organisations ability to raise additional funds independently.  However it was intended that the interim arrangement should not continue beyond the time necessary to establish an income stream from the retail units and work for a new rental proposal would be undertaken in the coming financial year.

The Chair enquired and Councillor Woods confirmed that the matters raised by GSSC had been answered sufficiently to withdraw the recommendation that the decision be deferred.

DECISION

1.    That the Corporate Director, Place be authorised to make a payment to Ocean Regeneration Trust of £80,000 in the financial year 2017/2018. “