Niall McGowan (Housing Regeneration) presented the report. This requested that the Ocean Regeneration Trust (ORT) was awarded grant funding to take on the lease for the Harford Street community centre and provide continued support for ongoing projects without a disruption in provision. The Sub – Committee were reminded that the ORT was a well established charity and had sound governance arrangements. They also noted the advantages of ORT taking over the lease for the community centre, in terms of the community benefits.  It was also noted that the proposals, once the shortfall had been overcome, should be cost effective in the long term, that it was a pilot scheme and be subject to monitoring.

The Mayor noted the GSSC’s comments on the report. The GSSC asked questions about the expected rents from the north side shops. They also asked questions about the deficit, highlighted in the report and the plans in place to reduce this.

The GSCC were satisfied with the responses and supported the project. The GSSC endorsed the report. A summary of the GSSC questions were circulated at the meeting.

The Mayor then invited GDSC Members to comment on the report. The Mayor welcomed the proposals and the GDSC supported the recommendations

DECISION

That the Grants Determination Sub – Committee approve:

1.         allocation of £80,000 grant to ORT for 2018/19, funded as agreed in previous years by an interim provision of revenue from the existing shops on the south side of Ben Jonson Road (Nos 38-82 even), and supplemented by revenue from the new retail units on the north side of Ben Jonson Road (Nos 41-73 odd) which is now coming on-stream;

2.         allocation of £809,000 grant to ORT for the period 2019 – 2022, comprising £528,000 projected revenue from the new retail units on the north side of Ben Jonson Road and £281,000 from existing shop units on the south side of Ben Jonson Rd: this grant will support ORT’s ongoing projects and core activities for this period, and specifically will enable ORT to take on a 3 year lease from the Council to manage the Harford Street Community Centre.

3.         allocate a further provisional grant of £61,000 as a contingency should ORT not be eligible for the anticipated 80% community rent discount, as explained in the report.

Niall McGowan (Housing Regeneration) presented the report. This requested that the Ocean Regeneration Trust (ORT) was awarded grant funding to take on the lease for the Harford Street community centre and provide continued support for ongoing projects without a disruption in provision. The Sub – Committee were reminded that the ORT was a well established charity and had sound governance arrangements. They also noted the advantages of ORT taking over the lease for the community centre, in terms of the community benefits.  It was also noted that the proposals, once the shortfall had been overcome, should be cost effective in the long term, that it was a pilot scheme and be subject to monitoring.

The Mayor noted the GSSC’s comments on the report. The GSSC asked questions about the expected rents from the north side shops. They also asked questions about the deficit, highlighted in the report and the plans in place to reduce this.

The GSCC were satisfied with the responses and supported the project. The GSSC endorsed the report. A summary of the GSSC questions were circulated at the meeting.

The Mayor then invited GDSC Members to comment on the report. The Mayor welcomed the proposals and the GDSC supported the recommendations

RESOLVED

That the Grants Determination Sub – Committee approve:

1.         allocation of £80,000 grant to ORT for 2018/19, funded as agreed in previous years by an interim provision of revenue from the existing shops on the south side of Ben Jonson Road (Nos 38-82 even), and supplemented by revenue from the new retail units on the north side of Ben Jonson Road (Nos 41-73 odd) which is now coming on-stream;

2.         allocation of £809,000 grant to ORT for the period 2019 – 2022, comprising £528,000 projected revenue from the new retail units on the north side of Ben Jonson Road and £281,000 from existing shop units on the south side of Ben Jonson Rd: this grant will support ORT’s ongoing projects and core activities for this period, and specifically will enable ORT to take on a 3 year lease from the Council to manage the Harford Street Community Centre.

3.         allocate a further provisional grant of £61,000 as a contingency should ORT not be eligible for the anticipated 80% community rent discount, as explained in the report.

Councillor Ehtasham Haque, vice-chair invited the Officer to present the report. Mr Niall McGowan, Housing Regeneration Manager stated the report detailed the ongoing work of the Ocean Regeneration Trust (ORT) in bringing socio-economic improvements and investment into the Ocean area. Mr McGowan explained the ORT was set up in accordance with New Deal for Communities (NDC) succession and legacy requirements and was seeking three separate grants as detailed in paragraph 1.2 of the report.

In response to questions from Members the following was noted:

·         Mr McGowan reassured Members the rent from the North side shops would be sufficient to cover the revenue required. Mr Alan McCarthy from Property Services further clarified that of the 16 shops, 11 shops were already let out and 5 were under negotiation, with the hope the leases for the remaining shops would be completed within the next three months. Mr McCarthy said management consultants would manage the shops and would take the necessary action in the event of defaulters who accrue rent arrears.

·         In response to Table 1, page 30 showing a deficit of £281,000 and the steps taken to reduce this shortfall, Mr McGowan referred Members to Table 2, page 32 and said the deficit was a comparable deficit. If the ORT take over the running of the Harford Community Centre this will result in a downward trend of the deficit which would be monitored on a quarter by quarter basis, year on year.

·         Mr McGowan assured Members, paragraph 7.5 page 27, that the kitchen facilities at the Harford Community Centre would be fitted out immediately as a commercially functioning kitchen because this would generate income for the ORT.

Members of the Sub-Committee RESOLVED to AGREE and ENDORSE the recommendations to the Grants Determination Sub-Committee to authorise the Acting Director of Place to:

2.1.1   pay ORT £80,000 grant for 2018/19, as explained in the report, funded by a combination of revenues from the existing shops on the south side of Ben Jonson Road (Nos 38-82 even), and as available from the new retail units on the north side of Ben Jonson Road (Nos 41-73 odd), to support ORT’s ongoing projects and core activities for the current financial year;

2.1.2     pay ORT grant in the sum of £809,000 for the period 2019 – 2022, comprising £528,000 projected revenue from the new retail units on the north side of Ben Jonson Road and £281,000 from existing shop units on the south side of Ben Jonson Rd, as set out in the report, to support ORT’s ongoing projects and core activities for this period, and to enable ORT to take on a 3 year lease from the Council to manage the Harford Street Community Centre;

2.1.3     allocate a further provisional grant of £61,000 as a contingency should ORT not be eligible for the anticipated 80% community rent discount, as explained in the report;

2.1.4     note the arrangements for transitional council officer support and monitoring set out in para. 7.14.