Decision details

The board considered a report from Director of Housing & Regeneration and the Director of Investment & Commercial Activities on proposals to increase a previously approved loan to assist in the construction of 17 light industrial units at Chancerygate, Holbrook Lane, Coventry totalling 105,218 square feet. The original proposals had been approved at the meeting of this board on 20 July 2020.

West Midlands Development Capital reported that labour and materials had seen recent increases in costs, which had prompted the request to increase the previously agreed loan. The Director of Investment & Commercial Activities indicated that the developer was now at the stage of contracting for the works and therefore any subsequent cost overruns would need to be met by the borrower. This would mean that the WMCA should not be approached for any further increase in the loan facility.

Resolved:

An increase to the previously approved loan, for the sum set out within the report, to fund the increased costs required to deliver the development by way of a senior commercial loan on the key terms and conditions also included within the report be approved.