Agenda and minutes

The Chair welcomed those present. At his invitation introductions were duly made.

Apologies for absence had been received from Councillor Wasim Ali (Sandwell Metropolitan Borough Council), Paul Brown (Black Country Local Enterprise Partnership), Councillor Tristan Chatfield (Birmingham City Council), Councillor Tony Jefferson (Non-Constituent Authorities) and Gary Taylor (Greater Birmingham and Solihull Local Enterprise Partnership).

Apologies for absence had also been received from Sarah Middleton (Black Country Local Enterprise Partnership) and Paula Deas (Coventry and Warwickshire Local Enterprise Partnership).

Councillor Matt Jennings had been nominated as a substitute for Councillor Tony Jefferson (Non Constituent Authorities) and Sally Agass had been nominated as a substitute for Gary Taylor (Greater Birmingham and Solihull Local Enterprise Partnership).

Members are reminded of the need to declare

any disclosable pecuniary interests they have in

an item being discussed during the course of the

meeting. In addition, the receipt of any gift or

hospitality should be declared where the value of

it was thought to have exceeded £25 (gifts) or

£40 (hospitality).

The Chair declared a personal interest in Agenda Item No. 11 (Full Business Case (FBC) – UK Central (UKC) International – HS2 Design Process – Roundabout Over – Trace) as the site was in his Ward and he was a Director of the Urban Growth Company. 

[For approval]

Resolved:

That the minutes of the meeting held on 29 July 2019 be confirmed as a correct record and signed by the Chair.

Linda Horne and Sukhy Dhanoa presented a report on the status of the Investment Programme to assist the Board in determining investment decisions. Linda Horne advised that the WMCA Mayor and Metropolitan Leaders would receive a report on the current position with addressing the challenges faced with the Investment Programme on 13 September 2019 with a report on this matter being presented to this Board in due course.

Councillor Jim O’Boyle commented on the cancellation of the Comprehensive Spending Review and its replacement with Departmental Spending reviews and asked whether the WMCA would still make a submission into this process. Linda Horne confirmed that a submission would be made with regard to those schemes at risk due to a shortfall in the Investment Programme and the difficulties encountered following the cancellation of proposals for a Supplementary Business Rate and accessing Business Rates Growth. Meetings had also been held with representatives of H M treasury and the Ministry of Housing, Culture and Local Government. The Chair reported that the WMCA Mayor had also sent a letter to the Chancellor of the Exchequer and the Chancellor of the Duchy of Lancaster in connection with this matter.

Councillor Mike Bird advised on recent discussions regarding the financial shortfall in the Very Light Rail Innovation Centre project at Dudley, a Coventry City Council scheme and asked as to the present position. Sukhy Dhanoa updated the Board on this matter. Councillor Mike Bird suggested that the relevant parties should receive a briefing on this matter.

Resolved:

1.    That the report be received and noted;

2.    That the WMCA Directors of Finance and Investments and Commercial Activities provide a briefing to relevant Elected Members and Officers at Dudley Metropolitan Borough Council, Coventry City Council and Coventry and Warwickshire Local Enterprise Partnership in relation to the current position with the Very Light Rail Innovation Centre project at Dudley.  

The Board considered the WMCA Collective Investment Fund (CIF) Dashboard (public iteration) as at 29 July 2019.

Resolved:

            That the Dashboard be received and noted.

The Board considered the WMCA Brownfield Land and Property Development Fund (BDLPF) Dashboard (public iteration) as at 29 July 2019.

Resolved:

            That the Dashboard be received and noted.

The Board considered the Land and Property Investment Fund (LPIF) Dashboard as at 1 August 2019.

Resolved:

            That the Dashboard be received and noted.

[To pass the following resolution:

That in accordance with Section 100A4 of the

Local Government Act

1972, the press and public be excluded from the

meeting during the

consideration of the following items of business

as they involve the

likely disclosure of exempt information relating to

the business affairs

of any particular person (Including the authority

holding that

information)]

Resolved:

That in accordance with Section 100A4 of the Local Government Act

1972, the press and public be excluded from the meeting during the

consideration of the following items of business as they involve the

likely disclosure of exempt information relating to the business affairs

of any particular person (Including the authority holding that

information).

Nick Oakley presented a report which sought the provision of a £9,100, 000 Collective Investment Fund (CIF) loan to Barberry Perry Barr Ltd., which would be fully secured against the property to fund the Development on the terms detailed in the report. Linda Horne asked for further details of current loans to the Company given the concentration of risk. Nick Oakley provided details of the loans to and repayments made to date by the Company. He also reported on recent discussions with the Company following correspondence with the WMCA. The Board discussed the best way to proceed in supporting the application. In response to a question from Nick Abell, Nick Oakley reported on the present position with other schemes managed by the Company and supported through CIF Loans. Nick Abell reminded the Board that the Company was also a headline sponsor of the WMCA at the MIPIM exhibition and suggested that this fact be recorded in the minutes in the interests of transparency.

Resolved:

            That the application for a Collective Investment Fund (CIF) Loan be supported in principle and that delegated authority be granted to the WMCA Director of Finance and Director of Investment and Commercial Activities to determine the application having satisfied themselves ass to the level of exposure of the WMCA arising upon the concentration risk.  

Lisa Chaney presented a report which included the Full Business Case (FBC) which outlined the recommended solution which optimised Value For Money (VFM) and which established that the successful business management arrangements were in place. In response to a query from Nick Abell, Fran Gibbons outlined how this request related to funds allocated previously.

Ian Martin sought an assurance that if any of the contingency sum was not used and any value capture achieved would be returned to the Investment Programme. Lisa Chaney confirmed that this would apply in both circumstances and that she was confident that significant reductions in the cost would be achieved. In relation to value capture, she advised that discussions were on-going with Officers from the WMCA on this element.

Resolved:

That funding of £19.945 million for the proposed Roundabout Over- Trace (RoT) project required to ensure that the huge economic potential of the Arden Cross HS2 Interchange Station site and the NEC, which could form part of the wider growth plans for the UK Central (UKC) was realised be approved.

Martin Reeves presented a report which outlined the key benefits and implications of the UK City of Culture 2021 project to support the request for the approval of £4 million of WMCA funding.

Councillor Karen Grinsell referred to the 6% of funding anticipated from Health Trusts and other sources and enquired as to the likely success of receiving such funding. Martin Reeves advised that without this commitment from the WMCA it would be much harder to achieve and that were the request to be granted he was confident that such funding would be forthcoming.

Resolved:

1.    That the request for £4 million funding as part of an overall £36.4 million project in progress to support the City of Culture Trust in planning and delivering the UK City of Culture 2021 Programme and developing a sustainable legacy be approved;

2.    That the UK City of Culture project be endorsed to move forward for consideration by the WMCA Board at its September 2019 meeting.  

The Board considered the WMCA Collective Investment Fund (CIF) Dashboard (private iteration) as at 29 July 2019.

Resolved:

            That the Dashboard be received and noted.

The Board considered the WMCA Brownfield Land and Property Development Fund (BDLPF) Dashboard (private iteration) as at 29 July 2019.

Resolved:

            That the Dashboard be received and noted.