Agenda item

Policy and Performance Committee

2 December 2020

The Committee considered the creation of a company, also known as an interim vehicle, to unify the efforts of relevant local authorities in ambitious projects for the development of three major sites, namely Toton and Chilwell centred on the HS2 Hub, Ratcliffe on Soar power station and East Midlands Airport.  The Council would be a minority shareholder in the company, which would be a forerunner of the statutory Development Corporation to be created by Parliament.

It was proposed by Councillor M Radulovic MBE and seconded by Councillor G Marshall that the conditions of the recommendation to Council be amended to include the following:

e) That the Council will look to ensure that the freeport proposition and any development on the Ratcliffe on Soar site is consistent with the Council's net carbon zero climate change strategy ambitions.

f) That the Council will look to ensure that the freeport proposition and any development on the Ratcliffe on Soar site is consistent with the Council's net carbon zero climate change strategy ambitions and contribute to regional resilience and clean growthand that the ambition for the national skills academy in the Broxtowe area be further developed and strengthened.

On being put to the meeting the proposal was carried.

RECOMMENDED to Council that:

1. The proposal for the Council to join the interim vehicle and participate in its incorporation be approved.

2. The Council enter into a proposed Members’ agreement and articles of association as outlined in appendix 2 (the final content of these documents being delegated to the Chief Executive in consultation with the three group leaders).

RECOMMENDED to the Finance and Resources Committee and Council that the expected financial contribution of £500,000 over three financial years funded from the Council’s general fund reserves, with the profile from 21/22, 22/23 and 23/24 to be confirmed subject to the following conditions:

a)     That the funds will not be used in a manner which contravenes state aid rules,

b)     If the government decides not to financially contribute to the interim vehicle the Council, will reserve the right to review its financial commitment;

c)     If government policy changes so that the HS2 hub station does not come to Toton the Council, will reserve the right to review its position

d)     For consensus on a number of key points namely agreement by the council’s representative on the board to the annual business plan; changes to the articles, the process for appointment of independent directors and the decision to move to a statutory development company.

e)     That the Council will look to ensure that the freeport proposition and any development on the Ratcliffe on Soar site is consistent with the Council's net carbon zero climate change strategy ambitions.

f)      That the Council will look to ensure that the freeport proposition and any development on the Ratcliffe on Soar site is consistent with the Council's net carbon zero climate change strategy ambitions and contribute to regional resilience and clean growth and that the ambition for the national skills academy in the Broxtowe area be further developed and strengthened.

RECOMMENDED to Council that the appointment of a Director of the Interim Vehicle be approved.

POLICY AND PERFORMANCE COMMITTEE

2 December 2021

Members considered a reference from the Policy and Performance Committee which sought approval for the establishment of an Interim Vehicle, to be known as ‘EM Devco CLG’, to maintain progress prior to a Statutory Development Corporation being created by Parliament. This included approval for the establishment and governing documents for this new company, the approval of a joint agreement between the local authorities and the emerging companies, nomination of a representative from this Council to sit on the Board and contributions from the various councils to finance the initial stages over the next few years prior to handing over to a delivery vehicle to develop and build out the concepts on each of the three sites.

A recorded vote was proposed by Councillor M Radulovic MBE and seconded by at least five other councillors. The voting was as follows:

RESOLVED that:

1.   The proposal for the Council to join the interim vehicle and participate in its incorporation be approved.

2.   The Council enter into a proposed Members’ agreement and articles of association as outlined in appendix 2 (the final content of these documents being delegated to the Chief Executive in consultation with the three group leaders)

3.   The expected financial contribution of £500k over three financial years funded from the Council’s general fund reserves, with the profile from 21/22, 22/23 and 23/24 to be confirmed.

Subject to the following conditions:

a) that the funds will not be used in a manner which contravenes state aid rules,

b) if the government decides not to financially contribute to the interim vehicle the Council, will reserve the right to review its financial commitment;

c) If government policy changes so that the HS2 hub station does not come to Toton the Council, will reserve the right to review its position

d) for consensus on a number of key points namely agreement by the council’s representative on the board to the annual business plan; changes to the articles, the process for appointment of independent directors and the decision to move to a statutory development company.

4. The appointment of a Director of the Interim Vehicle be approved.