Councillor Pat Hackett introduced an updated report by the Director of Law and Governance following approval by the Cabinet at its meeting on 24 February 2020 of the Wirral Growth Company LLP Partnership Business Plan.  (Minute No. 94 refers.)  He informed that the Council’s plans for economic growth were about creating community wealth.  They were also about creating jobs and opportunities for local people, regenerating commercial areas and inspiring ambition.  Councillor Hackett was of the view that prosperous communities were happier, healthier, and better places in which to live. The proposals set out in the report detailed the next steps for taking forward the strategic regeneration objectives of the Wirral Growth Company for Central Birkenhead.

Councillor Hackett reported that Council officers had been working with the Wirral Growth Company LLP to finalise the location of the proposed new Birkenhead Commercial District. This development was  to be underpinned by the Council taking a lease of space anticipated to be approximately 150,000 sq. ft net for a period of approximately 40 years, with a maximum rent payment period of 35 years to enable funding for future re-developments by the Wirral Growth Company LLP.

Whilst the business case for this development was approved by Cabinet at its meeting of 24 February 2020 the report recommended to Members that there should be no significant delay in proceeding with the above lease arrangements, notwithstanding the economic effects of the Covid 19 pandemic.

The report sought authority for the Director of Law and Governance to negotiate and finalise the terms of the lease structure in consultation with the Director of Regeneration and Place and enter into a conditional agreement for the lease and such other documentation as may be reasonably necessary to progress the proposed lease structure. There were also consequential recommendations regarding the appointment of contractors and the amendment of the Milestones for entering into the agreement for lease.

This matter affected all wards within the borough and the decisions were Key Decisions.

In considering other options the Cabinet noted that to not enter into the agreement for lease the Council would be exposed to a claim that it had breached the partnership agreement and this would trigger a potential compensation payment to its Joint Venture Partner. This option was, therefore, not recommended.

Another option was to revisit the means of financing with a view to an outright purchase of the property.  This was not recommended as the merits of such an option had been fully considered by the Cabinet in the report of 24 February 2020. Whilst financing a purchase via the Public Works Loan Board had been considered, the Council would be directly funding the preparation and construction costs from day one, placing a liability on the Council. The annuity lease mechanism meant that the forward funder would be funding this. Also, the timing of payments with lower amounts under the annuity lease in the early and mid-term life of the asset meant that the annuity lease was predicted to result in  ...  view the full minutes text for item 116