Decision details

The board considered a report of West Midlands Development Capital

(WMDC) that sought approval for loan funding from the Commercial

Investment Fund for the sum specified in the report, to the ‘Company’, to

assist with the purchase of the Southside Building enabling the

refurbishment of the space at the ‘Property’.

The loan would enable the ’Company’ to undertake refurbishment works to

elements of the ‘Property’ which have yet to be refurbished with the main

aim being to provide further space to arts and culture businesses/individuals

on flexible and minimal cost rents/terms.

The key terms were highlighted in section of 3 of the report and the loan

would be fully secured by way of first charge over the property.

The Director of Commercial and Investment, Ian Martin, reported that he

was supportive of the loan which was not a long-term debt and was less

than £100 per square foot. He noted that the report confirmed that WMDC

had spoken with the Borrower, and it was understood that the loan

was facilitating purchase and development readiness with no expectation of

the loan continuing after this initial term

Resolved that:

1.    The powers and ability of the WMCA to make the proposed loan be noted;

2.    The loan investment from the Commercial Investment Fund for the amount specified in the report, to the ‘Company’ for a term of 5 years on the terms and conditions set out in the report be approved;

3.    Authority be delegated to the Director of Commercial and Investment in consultation with the Section 151 Officer and Monitoring Officer to negotiate any other terms and conditions of the loan that are not set out in the report be agreed and

4.    Authority be delegated to the Director of Commercial and Investment to exercise the rights granted to the WMCA under the terms of the loan to authorise the ‘Company’ on such terms as shall be considered appropriate to either (i) transfer any part of the development site, and/or (ii) grant any lease, easement, wayleave or other instrument in each case to either (a) any utility company and/or (b) any local authority in the exercise of its planning highway functions and (c) any third party in the discharge of any planning obligation be agreed.