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. “

The Strategic Housing Manager and Regeneration Officer presented the report which concerned interim grant funding to Ocean Regeneration Trust (ORT) for the period 2017/2018.  This payment would enable them to continue with their activities and in particular their partnership with City Gateway for the current financial year since the expected rental income from the north side shops has been delayed and it was now estimated that this funding stream will start from the second quarter 2018.

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 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 had expressed concern on a number of matters relating to issues that; the projected self-funding elements of the project were slow to be delivered; the regeneration project had become protracted and there was a risk of no funds if the retail units remained unlet.  Members of GDSC echoed these concerns 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 the 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.  Responding to GSSC questions on what income ORT might be able to generate themselves, the Sub Committee heard that it was not possible to give an indication at this time as it was not known what sort of revenues the let of the retail units would generate.  The Sub Committee also noted that there had been delays in the release of the buildings to the Council by the developer.

Following the discussion 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.

RESOLVED

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. “