Decision details

Galgate Community Rooms

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Ellel Parish Council have requested a short term City Council loan pending receipt of Pathfinder in Practice grant in respect of a £180,000 project to develop new Community Rooms in Galgate.

Decisions:

(Cabinet Member with Special Responsibility Councillor Tony Johnson)

 

The Head of Economic Development and Tourism submitted a report that advised that Ellel Parish Council had requested short term, repayable financial assistance pending receipt of Pathfinder in Practice funding towards the development of Community Rooms in Galgate.  The report outlined the background to the request, noted the potential joint arrangement with Lancashire Economic Partnership and raised the implications of funding such requests. 

 

The options, options analysis, including risk assessment, were set out in the report as follows: 

 

Option

Advantages

Disadvantages

Risks

1. Refuse the request to provide short term finance

Avoids setting precedent for similar requests

Substantial external funding for community project not taken up

 

City Council perceived as unsupportive

No financial risk to the City Council

 

Project potentially put at risk as unable to bridge period  pending receipt of PiP funding

2.  Provide short term repayable funding, jointly with LEP, against contractor invoices and charge interest of approx £900-1000

Project able to proceed as planned.

 

City Council perceived as supportive of rural community projects

 

No financial loss to the City Council when loan repaid in full

Increases overall project costs to the Parish Council

 

Depending on LEP approach, there may be a mismatch in the handling of interest on the loan

Whilst the offer of PiP funding has been secured, payment will be subject to the project meeting the terms and conditions set by the funder.  It is conceivable that payment of PiP grant could be withheld and repayment to the City Council delayed.

 

Risk of setting precedent

3.  Provide short term repayable funding, jointly with LEP, against contractor invoices and forego interest of approx £900-1000

Project able to proceed as planned

 

City Council perceived as supportive of rural community projects

 

Loss of interest on the funding provided

Whilst the offer of PiP funding has been secured, payment will be subject to the project meeting the terms and conditions set by the funder.  It is conceivable that payment of PiP grant could be withheld and repayment to the City Council delayed.

 

Risk of setting precedent

4.  Approach Lancashire County Council with a view to the required finance being met equally with LEP and the City Council

Potential to reduce the commitment of resources and risk for the City Council

LEP initially approached the County Council which indicated that it would not be able to provide support from the Rural Development Budget (the most appropriate budget) in the current financial year.  The timescale required for any further approaches and consideration by the County Council probably dictates against this option being taken forward.

Risk of delay in confirming the availability of short term funding on a tripartite basis

 

The preferred officer option was option 3.  If Members wished to support the request for short term finance, it should be noted that Lancashire Economic Partnership do not generally charge interest on the finance   provided.  If this is LEP’s confirmed approach in this instance, Members may wish to adopt a consistent approach ie Option 3. 

 

It was moved by Councillor Tony Johnson and seconded by Councillor John Gilbert: -

 

“That the recommendations, as set out in the report, be approved, subject to there being no interest charge.” 

 

Resolved Unanimously:

 

(1)     That Cabinet approves the request from Ellel Parish Council and provide the required advance of up to £80,000, subject to Lancashire Economic Partnership providing an equivalent sum and that no interest be charged on the finance provided. 

 

Officer responsible for effecting the decision:

 

Head of Economic Development and Tourism. 

 

Reason for making the decision:

 

The decision enables the project to proceed as planned with the City Council being supportive of rural community projects. 

 

Report author: Bill Kindon

Publication date: 01/02/2008

Date of decision: 22/01/2008

Decided at meeting: 22/01/2008 - Cabinet

Accompanying Documents: