Agenda and minutes

The Chair will agree with Members the arrangements for management of the meeting, including the order of business, confirmation of Agenda items, including late reports and apologies for absence.

The Deputy Mayor agreed to take the items in the order as set out on the agenda and resolved to exclude the press and public, as the report being considered was exempt by virtue of paragraph 3 of the Access to Information procedure rules set out in the constitution pursuant to schedule 12A Local Government Act 1972, as amended, the information therein relates to the financial or business affairs of both the Council and the London Pleasure Gardens Ltd and pursuant to paragraph 5 in so far as it contains information which is legally privileged. It was considered more in the public interest to withhold this information as to release it may prejudice the Council’s ability to obtain the best terms possible in the public interest from its negotiations with London Pleasure Gardens Ltd.

This is the time for Members to declare any interest they may have in any matter being considered at this meeting.  Advice is attached.

There were no declarations of interest.

Report of the Executive Director - Regeneration and Inward Investment

The previous report relating to this item can be found by following the below link:

http://lbnmgov001/ieListDocuments.aspx?CId=294&MId=8150&Ver=4

The Deputy Mayor, in consultation with Cabinet, considered an update following on from the decision on 23 February at Cabinet to defer the decision on the proposed Loan to London Pleasure Gardens.  The update set out the additional information members requested at the 23 February meeting.

Members, in considering the report, made the following points:

Impact Assessment.  Members asked what impact assessment had been carried out for residents.  Transport and the like, and their amenity of the Pleasure Gardens and how impact would be mitigated to local communities.  Officers noted that the scheme had been considered by the Council’s Planning and Licensing Committees.  The Planning committee had taken account of relevant impact assessments.

Financing.  Members said that it was vital that the Council was fully satisfied with the financial controls in place for the scheme and that the Council had a secured role in determining where spend from the Council’s investment was directed.  Members said that this should also extend to Council involvement in the design and implementation of the arts programme to be run by London Pleasure Gardens.  Officers said that the Heads of Terms required the scheme to employ a qualified project manager and that the Council had also costed into the administration fee for the set up of the loan, its costs for managing the loan agreement during the period of the loan.  In addition there would be an agreed business plan including operating principles and financial controls.

Employment.  Members queried how many local jobs would be generated from the scheme and how Workplace would be involved in providing employment.  The Mayor said that it was essential that the scheme provide a demonstrable commitment to working in collaboration with Workplace.

Decision

The Mayor, in consultation with Cabinet:

1.  agreed to the principle of approving a revenue loan facility for a short-term, repayable cash flow investment in the project subject to satisfactory legal and financial due diligence up to a maximum of £3 million;

2.  noted that Officers will complete necessary legal, financial and technical due diligence on the business plan and proposals to ensure that the investment is robust and on appropriate commercial terms before any loan or other related documentation is completed, and asked that officers prepare a report for Cabinet when this work is completed;

3.  approved the principles of the Heads of Terms attached in the exempt report subject to the following:

  (i).  explore the options for using the Assets over which the Council will have a debenture on other sites;

 (ii).  full financial, legal and technical due diligence which is to be reported back to Cabinet with the final loan agreement;

(iii).  that officers work with LPG to ensure that specified job vacancies are filled through workplace and that this is passed down to contractors;

(iv).  that the Council receives at least the proposed 20% site profits and 5% of profit from use of the brand/concept elsewhere to be explored either through intellectual property rights, profits share, royalties of equity share;  ...  view the full minutes text for item 3.

In accordance with Section 100(A)(4) of the Local Government Act 1972, the Committee is asked to resolve that the press and public be excluded from the meeting for specific items of business on the grounds that they may involve the likely disclosure of exempt information as defined in the paragraph of Part I of Schedule 12A to the Act, as amended.

Agreed to exclude the press and the public from the remainder of the meeting during consideration of the following exempt information:

·  Exempt report for Agenda Item 3.

Report of the Executive Director - Regeneration and Inward Investment

This report was considered as part of deliberations on item 3.