In February 2019, the Government approved funding for a two-year programme to explore the business case for a locally led development delivery vehicle for the East Midlands and asked the Midlands Engine to lead the work. Between 2019 and 2021, Broxtowe Borough Council was involved in this regional conversation facilitated by Midlands Engine. It culminated in a case being made for a new type of development corporation that would require legislative change. This was to provide for the creation of what was known as a Locally Led Urban Development Corporation (LLUDC). This work led to the creation of EM DevCo Ltd by five authorities, including this Council, in May 2021, as a company limited by guarantee. The Company was to operate as an interim vehicle prior, paving the way for the proposed new type of statutory development corporation.
The five member local authorities of EM DevCo also included Nottinghamshire County Council, Leicestershire County Council, North West Leicestershire District Council and Rushcliffe Borough Council. The governance arrangements for the company were designed to mirror those of originally envisaged for the LLUDC model.
When the five councils established EM DevCo it was agreed that Nottinghamshire County Council would host the company and each council approved funding contributions to EM DevCo. Broxtowe Borough Council agreed a contribution of £500,000 spread equally over three financial years from 2021/22 to 2022/23 and was financed from General Fund reserves. The final contribution of £166,000 was made in 2023/24.
Members stated that the East Midlands received less finance than any other part of the country for infrastructure into economic growth. Furthermore, the region has had more industrial decline than any other over the last four decades. It was important to make the case for industrial investment in the area.
RESOLVED that Cabinet:
1. Supports the necessary steps being taken by the Board of Directors to bring forward the voluntary dissolution of EM DevCo Limited.
2. Delegates authority to the Chief Executive and the Leader of the Council, to consent and sign the resolutions to enable to dissolution of the EM Dev Co Limited.
Reason
EM Dev Co is solvent, and the Board is satisfied that it is in the best interests of the Company that it is dissolved given the natural conclusion of its activities and the creation of EMCCA.
Members were provided with a review of the EM DevCo Ltd. Throughout the three-year period, the DevCo had developed important strong relationships with a wide range of key stakeholders, including Government Agencies and had helped to put the region on the map. There had been significant progress made with emerging projects and developments. The Board of Directors with support of the Oversight Authority reviewed the future of the company and agreed that the DevCo should explore the scope for closer alignment with East Midlands Combined County Authority with further agreement that the work of EM Dev Co had naturally come to an end with a voluntary dissolution of the company being considered. The existing local authority Members had expressed their desire to seek alignment with East Midlands Combined County Authority, there was no clear source of additional funding and the Board was satisfied that it was in the best interests of the Company that it was dissolved.
The Advisory Shareholder Sub Committee RECOMMENDS that Cabinet:
1) Supports the necessary steps being taken by the Board of Directors to bring forward the voluntary dissolution of EM DevCo Limited.
2) Delegates authority to the Chief Executive and the Leader of the Council, to consent and sign the resolutions to enable the dissolution of the EM Dev Co Limited.