- Meeting of Policy and Resources Scrutiny Committee, Wednesday, 1st December, 2021 6.30 pm (Item 510.)
- View the background to item 510.
Minute 417 (Cabinet Agenda Item No. 4 refers).
Called-in by Councillors Cox and Davidson.
The Committee considered Minute 417 of the meeting of the Cabinet held on 2 November 2021 that had been called-in to the Policy and Resources Committee, together with a joint report of the Deputy Chief Executive and Executive Director (Finance and Resources) that proposed a financial and commercial structure to enable the delivery of the Seaway Leisure development whilst also providing greater ownership and an improved, long-term sustainable commercial return for the Council.
The Leader of the Council undertook to provide a written response to questions raised by members of the Committee prior to the next meeting of the Council, with regard to any requirement for the seasonal closure of some car parking facilities at the proposed Seaway Leisure development specified in the grant of planning permission for the development.
(1) That the following decisions and recommendations of the Cabinet be noted:
“1. That the significant economic benefits that the proposed Seaway Leisure development will bring as outlined in the approved 25 February 2020 Cabinet report and that the project is a clear Council commitment and a Southend 2050 Roadmap project, be noted.
2. That it be noted that the Council has commissioned CBRE to undertake a review of the development, specifically in relation to the elements at a) to c) below:
a) Undertake financial due diligence on Turnstone Estates Ltd (and its company structure, including Turnstone Southend Ltd, the subsidiary special purpose vehicle for Seaway Leisure) and to advise on their suitability as a partner for the Council;
b) Review the proposed Seaway development and its appropriateness including reviewing the anticipated economic benefits; and
c) Look at the most suitable and deliverable funding models for the development and consider the risks and benefits associated with them.
3. That officers proceed with the final negotiations of terms with Turnstone Southend Limited (TSL), and Turnstone Estates Ltd (as parent company guarantor as appropriate) to enable the proposition to be presented to the funding market on the basis set out in sections 7.12 to 7.15 of the submitted report and at the same time proceed to secure the necessary legal and financial advice on those terms to robustly protect the Council’s position.
4. That it be noted that officers will update terms with Homes England in relation to the grant funding associated with the Rossi Factory, 1-3 and 29 Herbert Grove, having regard to the proposed revisions.
5. That it be noted that officers will look to identify grant funding opportunities which enable the Council’s proposed equity investment to be reduced and/or replaced with grant funding.
6. That authority be delegated to the Executive Director (Finance and Resources), in consultation with the Leader of the Council and the Cabinet Member for Corporate Services and Performance Delivery, to:
a) approach the market for funding at the relevant time;
b) finalise and agree (with independent advice as required) any final terms following responses to the proposition from the funding market; and
c) authorise any relevant actions including the execution of all necessary documentation including that arising from the decisions in 2 to 5 above and recommendation 8 below.
Note: This is an Executive Function save that the recommendation in 8 above constitutes a Council Function.
Cabinet Members: Councillor I Gilbert and Councillor P Collins
- Report of Chief Execuitve and Executive Director (Finance and Resources), item 510. PDF 693 KB
- Appendix 1 - Review of Turnstone Estates as a counterparty, item 510. PDF 820 KB
- Appendix 2 - Review of Seaway Leisure and Economic Benefits, item 510. PDF 792 KB
- Appendix 3 - Financial Risks, item 510. PDF 818 KB
- Appendix 4- Statements from Anchor Tenants, item 510. PDF 609 KB
- Appendix 5 - Comparable Schemes, item 510. PDF 1 MB