Minutes:
Jonathan Bretherton and Adam Wilkinson presented a report which requested an allocation of funding for development costs associated with the Arden Cross Multi-Storey Car Park (MSCP). They explained that the funding sought would not normally be subject to consideration by this Board but that an ‘in principle’ agreement to a repayable grant was also sought in order to deliver the MSCP. A further report on this element would be submitted to a future meeting as the scheme progressed through the WMCA’s Assurance Framework. Linda Horne confirmed that the sum sought towards development funding was included within the approved allocation and that further work was required on the terms of the repayable grant. For the avoidance of doubt, Ian Martin advised that the Accountable Body for the scheme was Solihull Metropolitan Borough Council.
The Officers responded to various questions from Members of the Board. Linda Horne explained that ultimately the seven Metropolitan Borough Councils would be required to endorse the proposals in respect of the repayable grant and that the due diligence process was likely to take up to two years to complete. Councillor Stephen Simkins asked for an assurance on the safeguards which would be put in place in the event that the scheme was unsuccessful and also sought an assurance that this type of opportunity would be available to other members of the Combined Authority. Linda Horne advised that a robust Business Case would be required before the repayable grant was entered into and that this would need to ensure that neither the local authorities nor the WMCA was subject to undue risk. The proposal under consideration currently did not involve any financial risk.
Nick Abell suggested that the WMCA should take a charge against the MSCP until such time as the repayable grant was repaid. Councillor Tristan Chatfield requested that, in the light of the 2041 Agenda for carbon neutrality, consideration be given to including reference to this issue in future reports to this Board. Linda Horne advised that making a charge against the MSCP was already under consideration and undertook to ensure that the issue of carbon neutrality be included, as appropriate, in future reports to this Board.
Resolved:
1. That an Investment Programme funding allocation for development costs towards the development of the Arden Cross Multi-Storey Car Park be approved;
2. That the need as a West Midlands region to show a positive commitment towards the development of the Arden Cross Multi Storey Car Park be agreed;
3. That the principle of a repayable grant from WMCA to Solihull Metropolitan Borough Council (SMBC) to deliver the works at the HS2 site, which would be predicated on:
i) WMCA and SMBC identifying reliable, sufficient and secure income streams to repay the investment;
ii. WMCA being adequately satisfied that the proposal is affordable and that the risks associated with the investment are acceptable to WMCA;
iii. WMCA Constituent Authorities supporting the agreement and in particular noting the exposure to the under-write risk;
iv. The proposals progressing through the WMCA Assurance framework;
v. Final approval to any repayable grant by WMCA Board;
4. That a further report be submitted to a future meeting in respect of the repayable grant subject to the progression through the WMCA Assurance Framework.