Wirral Growth Company
Decision Maker: Leader of the Council
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The report of the Director of Finance and Investment sought approval for the release of funds which Cabinet had previously agreed to be earmarked to fund its 50% share of Wirral Growth Company’s initial working capital. Agreement was also sought for the three key milestones within Wirral Growth Company Partnership Agreement to be extended, as agreed between Wirral Council and Muse at the quarterly JV Board on 25 July, 2019.
(1) That working capital of up to £1.27m (which is within limits previously agreed by Cabinet in February 2018) be made available by way of loan to Wirral Growth Company LLP (WGC) on an equal contributory basis with Muse Developments Ltd (Muse) in advance of an agreed Partnership Business Plan. The agreement is provided on the premise that in each case the Director of Finance is satisfied that the expenditure is reasonable and is necessary for WGC to incur in advance of any Indicative Drawdown Profile being agreed in an approved Partnership Business Plan or relevant Site Development Plan.
(2) That the milestone date for the submission of the Partnership Business Plan by Muse (as Development Manager) to WGC Board for its approval be extended by agreement with Muse to a date no later than 30 November, 2019.
(3) That the milestone date for the approval by the Council of the Partnership Business Plan adopted by WGC be extended by agreement with Muse to a date no later than 31 January, 2020.
(4) That the approval of the Council and Muse to the Final Site Development Plan for Phase 1 of the Birkenhead Commercial District be extended by agreement with Muse from 21 to 24 months from the date of the execution of the Partnership Agreement (19 March, 2019).
Reasons for the decision:
Wirral Council and Muse Developments Limited each hold a 50% share in Wirral Growth Company. Wirral Growth Company has been established as a joint venture with aims to undertake large scale regeneration within the Wirral area. The Joint venture partners will be equally liable for financing project expenditure as per the terms of the Joint Venture Partnership Agreement.
Amongst the recommendations within the Wirral Growth Company Cabinet report of 28 February, 2018 was the following:
‘Approve the release of up to £3m of capital funding already approved for strategic acquisitions to be invested in the JV.’
The recommendation in the report confirm the use of the monies agreed on 28 February, 2018.
Publication date: 03/09/2019
Date of decision: 03/09/2019
Effective from: 11/09/2019