Meeting documents

To approve as a correct record the Minutes of the meeting held on 12 July, 2016, attached as an appendix.

RESOLVED –

That the Minutes of 12 July,2016, be approved as a correct record.

RESOLVED –

That the Minutes of 12 July,2016, be approved as a correct record.

Councillor Bowles

Deputy Leader and Cabinet Member for Economic Development Delivery

To consider the attached information.

Contact Officer:  Andrew Small (01296) 585507

(a)       Decision(s)

(1)          That Council be recommended to authorise the Director with responsibility for finance, after consultation with the Cabinet Member for Finance, Resources and Compliance to review and make an assessment of the due diligence being undertaken by South Northamptonshire District Council.

(2)          That subject to the above assessment proving satisfactory and subject to suitable terms and conditions being agreed by the supporting councils and the necessary commitment to the scheme being given by each of them, Council be recommended to:-

·         Approve the inclusion of £2m within the Capital Programme as a provision to make a loan facility available to Silverstone Heritage Limited: and

·         Earmark £2m of unallocated New Homes Bonus for the above purpose.

            NOTE: A copy of the organisation’s business plan was appended to the Confidential part of the Cabinet agenda.

(b)       Reason(s) for Decision(s)

            Silverstone represents a significant hub for leisure, tourism, employment and high tech industry.  Its draw and impact in the region extends well beyond the administrative boundaries of the councils in whose areas the circuit is situated, with an economic radius of approximately 50 miles.  An estimated 36,000 jobs are dependent on Silverstone as the centre for UK motor sports and the home of Formula One.

            The leisure, recreation and employment businesses that depend on the venue generate significant amounts of business rates for the councils in the area, and the changes to the retention of business rates mean that the councils now benefit directly from the success of Silverstone.

            The support recommended for the Silverstone Heritage Scheme is recognition of the strategic importance of the venue to Buckinghamshire and Northamptonshire and the need to promote the venue and enhance its attraction in order to ensure the long term future of Formula One motor sports.

(c)       Alternative Option(s) Considered

            Not to make a loan facility available, but this was discounted for the reasons given above.

(d)       Relevant Scrutiny Committee

            Finance and Services.  However as this matter will be considered by Council, it is not subject to call in.

(e)       Conflicts of Interest / Dispensation(s)

None.

As part of a package of loan support provided by the four County and District authorities in whose area the circuit was situated, this Council had been asked to consider making a loan facility for £2m in connection with the establishment of "The Silverstone Heritage Experience".  The combined loan facility of £8m made up from the four authorities was required to secure provisional Heritage Lottery funding of £9.3m and would only be required in full or in part if private sector funding could not be obtained.   It was anticipated that the project would attract over 400,000 visitors to the area each year thereby bolstering tourism and the economic viability of the area.

It was proposed that the project would open in October, 2018, on the 70^th anniversary of the first Grand Prix being held at Silverstone.  The vision was to bring the extensive heritage of Silverstone and British motor racing to life through the creation of a dynamic, interactive and educational visitor experience, including:-

·         A permanent exhibition at the entrance to the circuit that would take visitors on an exciting two hour journey through motor racing at Silverstone set against the wider context of the sport, and in particular, the role that the circuit, its owners, the British Racing Drivers Club (BRDC) and the region’s motor industry have played in the development of the sport worldwide.

·         A collections and research centre, offering museum and archive-accredited storage for the unique BRDC archive and other important motor sport collections.

·         An extensive education programme which aimed to address the region’s shortage of engineers by inspiring the engineers of the future through its interactive teaching sessions, engineering teaching bursaries and awards programmes.  This would help to ensure that the region continued to be the focus of high performance engineering with a readily qualified workforce.

The Silverstone heritage Experience would serve as a catalyst, stimulating further development at Silverstone, for example, a new hotel and family entertainment centre.  Its marketing budget would also ensure that the attraction was promoted to a very large and diverse audience, helping to strengthen Silverstone’s and the region’s standing nationally and internationally.

Robust feasibility studies and a five year business plan had been prepared (with the assistance of sector experts) which had shown that the Silverstone Heritage Experience would deliver anticipated visitor numbers of 436,500 in its first full year of operation (2019).  Once open, it would be self funding, generating a healthy annual surplus, so it could easily service a loan of £8m paid back over a ten year period.  Nearly £11.5m gross visit impact to the local and regional economy was projected for 2019, with an additional 87,000 bed nights generated in the region.  The total number of jobs created by the project would be 78.

By virtue of the additional visitors the project would attract to Silverstone, it would help to secure the future of the Silverstone Circuit and its ability to continue to host the British Grand Prix and other national and international events which  ...  view the full minutes text for item 2.

Councillor Mordue

Cabinet Member for Finance, Resources and Compliance

To consider the attached information.

Contact Officer:  Andrew Small (01296) 585507

 (a)      Decision(s)

That no action be taken in relation to the invitation to the Council to participate in this Bond offer.

(b)       Reason(s) for Decision(s)

            Although appreciating the potential benefits to the community, Cabinet felt that its commitment to the scheme might be viewed as an endorsement of the Bond as an investment to the wider community.  Without making any judgement on the quality of the Bond offer as an investment, Cabinet felt that it was inappropriate for it to be in a position of effectively recommending investments through its actions.

(c)       Alternative Option(s) Considered

            To participate in this Bond offer.

(d)       Relevant Scrutiny Committee

            Finance and Services. 

(e)       Conflicts of Interest / Dispensation(s)

None.

Cabinet was advised of an approach by "Communities For Renewables CIC (Community Interest Company) seeking the Council’s agreement to participate in the Community Bond Offer for Gawcott Fields Community Solar CIC.  At that point "Communities for Renewables" had a well developed and advanced proposal for the scheme with all the necessary permissions, agreements and contractors in place to deliver the scheme by the Feed in Tariff deadline of 29 June, 2016.

"Communities for Renewables" was a specialist advisory company that helped local energy enterprises to develop, finance and manage renewable energy generation schemes that were owned by and run for, the benefit of the local community.  They had considerable experience in this field and were seeking the Council’s commitment to participate in a Community Bond Offer both as advocate of the concept and to encourage members of the local community to also invest in the proposed Gawcott Fields Community Solar Community Interest Company (Gawcott CIC).

A Community Interest Company was not established or conducted for private gain, but rather to benefit the community.  The Gawcott CIC would generate a "community surplus" instead of a profit and this "community surplus" had to be used to provide funding for community organisations and projects in the local community.  It was hoped that this particular scheme would generate up to £1.5m over the 30 year life of the project.  The local community was defined as the parishes within a 5km radius of the Community Solar Farm.

Initially, the Community Interest Company Board would be made up of Messrs Jake Burnyeat and Tom Cosgrove of Communities for Renewables CIC and Ian Payne, CEO of Citizens Advice, Buckingham, Winslow and District.  In time, it was intended that the Board membership would be expanded to include other directors taken from the local community.  This might include the opportunity for an elected member of AVDC to take a Board position, should the Council decide to participate.  The Buckingham accountancy firm, Tearle and Carver, were providing support to the Board, in addition to providing accountancy services.

The scheme would be partly financed by a bank loan and partly by a Community Bond Issue.  It was proposed that the Council should take a stake in the Bond Issue to support the community and renewable energy aspirations.

The project was an operational 4.17MWp solar PV array at Gawcott Fields, adjacent to an existing 5MWp solar PV field array owned by the landowner.  This would complete the planning application for a 9.18MWp scheme under a permission dated 28 October, 2015.  Solar was a proven technology and at the end of 2014, global PV arrays amounted to 175GWp (International Energy Agency) or around 700 million panels.

Expectation of annual generation from the array was 4,100MWh of electricity per year from approximately 16,000 panels.  The annual electricity generation estimate which underpinned the business plan had been produced by an independent technical expert and was considered to be a robust long term projection, accepted and relied upon by commercial lenders.  Whilst weather conditions were subject  ...  view the full minutes text for item 3.

Councillor Mrs Macpherson

Cabinet Member for Leisure, Communities and Civic Amenities

To consider the attached information.

Contact Officer:  Stephanie Moffat (01296) 585295

(a)       Decision(s)

(1)          That the Cabinet report be noted.

(2)          That Charities, voluntary and community groups, social enterprises and Parish Councils in the Vale with eligible projects be encouraged by Members to contact the Grants Officer as soon as possible so they do not miss out on the remaining opportunities to apply for funding.

(b)       Reason(s) for Decision(s)

            The report sets out the progress of the scheme and its contribution to the delivery of community assets and provides an opportunity for all Members of the Council to raise awareness of the scheme.

(c)       Alternative Option(s) Considered

            None as such.

(d)       Relevant Scrutiny Committee

            Finance and Services.

(e)       Conflicts of Interest / Dispensation(s)

None.

Cabinet received an update on the grants made via the Community Chest in year nine (2015/2016) of this ten year funding scheme.

2016/17 was the final year of this ten year arrangement between the Vale of Aylesbury Housing Trust (VAHT) and AVDC involving the provision of £5m of funding for voluntary and community sector projects within the Vale.  A copy of the year nine Annual Report was appended to the Cabinet item.  The leverage of grants had decreased slightly during the year to £5.81 of local investment for each £1 granted.  The average over the past nine years was nearly £8, with £32m of projects supported through the £4.1m granted by the end of March, 2016.

Members were reminded that the Community Chest had been launched in March, 2007, having been established under schedule 19 of the Housing Stock Transfer Agreement with VAHT.  Each partner to the fund (AVDC and VAHT) had agreed to contribute £250,000 to the Community Chest fund each year, from tax funds reclaimed under a VAT shelter arrangement.  Each partner had three representatives on the grants approval panel.

Since the fund had been launched and to the end of July, 2016, 715 grants had been made totalling £4,355,229.  The penultimate project grants round had closed on 8 July, 2016 and the eleven applications received would be considered by the grants panel on 19 September.  The final round of project grants (up to £25,000) would close on 2 December, 2016 with the final grants panel meeting scheduled to take place on 9 January, 2017.

"Micro-grant" applications (up to £1000) would be accepted up to 15 December, 2016, with monthly assessments being made by the Grants Officer using the approved scoring system.

An annual event entitled "Working Together" had been held each Summer since 2008 as a celebration of the scheme and as a networking event for grant recipients.  In 2016, the "Working Together" event had taken place at Westbury Village Hall.  The final event would be held on 17 March, 2017 at The Gateway.

The Annual report for the ninth year showed a wide range of community projects that had been grant aided across a large number of community organisations.  Examples included £20,000 for drop in sessions for homeless adults run by the Aylesbury Homeless Action Group, £22,000 for a multi use games area at Ashendon and a paved area renewal scheme at Aston Clinton Bowls Club.  These were but a few of the schemes that had benefited from the Community Chest Scheme.  Attention was drawn also to a number of projects grant aided within the Great Brickhill Ward, the venue for this evening’s meeting.

RESOLVED –

(1)  That the Cabinet report and accompanying information be noted.

(2)  That all Members be invited to encourage organisations within their Wards to contact the Council’s Grants Officer as soon as possible if they had schemes that might qualify for grant aid so as not to miss out on the remaining opportunities to apply for funding.

Councillor Mordue

Cabinet Member for Finance, Resources and Compliance

To consider the attached information.

Contact Officer:  Andrew Small (01296) 585507

(a)       Decision(s)

That Council be recommended to accept the Government’s 4 year funding offer and to submit a link to the appendices attached to the Cabinet report as its Efficiency Plan and supporting evidence in order to satisfy the conditions of acceptance of the 4 year funding settlement for the period 2016/17 to 2019/20.

(b)       Reason(s) for Decision(s)

            Acceptance of the Government’s offer will create certainty over a significant part of the Council’s future resources and allow the Council to create Medium Term Financial Planning Targets with greater certainty over the amount required to balance the budget.

(c)       Alternative Option(s) Considered

            Not to take up the Government’s offer.  If this were the case RSG funding would be subject to the existing yearly process for determining local government finance, with all the uncertainties this entails.

(d)       Relevant Scrutiny Committee

            Finance and Services.  However as this matter will be considered by full Council, it is not subject to call-in.

(e)       Conflicts of Interest / Dispensation(s)

None.

As part of the December, 2015 spending review, the Secretary of State for Communities and Local Government had made an offer to councils to take up a four year funding settlement for the period 2016/2017 to 2019/2020.  In order to accept this offer, councils had to prepare an efficiency plan for publication by 14 October, 2016.  The Secretary of State had not issued guidance on what an efficiency plan should contain – a development welcomed by the local government community generally.

The offer made by the Government was to any council that wished to take up a four year funding settlement.  The purpose of the offer was to help local authorities prepare for the move to a more self-sufficient resource base by 2020.  The multi-year settlement was intended to provide funding certainty and stability for the sector, thus enabling more proactive planning of service delivery and to support collaboration with partners.  The Government expected these multi-year settlements to be used to strengthen financial management and efficiency, including maximising value in arrangements with suppliers and making strategic use of reserves in the interests of residents.

The Medium Term Financial Strategy agreed by Council in February, 2016 had incorporated the funding provided within the four year settlement offer.  However it had related only to Revenue Support Grant (RSG) which was a reducing proportion of total Council funding, currently £1.569m in 2016/17, decreasing to a negative figure (payment to the Government) of £0.687m in 2019/20.  If the offer was accepted it would provide greater certainty as the funding received would not be less than outlined in the final settlement and would not be subject to the yearly process determining the local government finance settlement.

The grant settlement number had always been a volatile and difficult to predict element of budget planning and the certainty provided by a four year settlement would allow the Council to plan with greater certainty in the later years of the MTFP period.  The following table was submitted showing the settlement funding assessment per year, including RSG:-

 The offer made by the Government was as follows:-

"On 9 February we provided summaries and breakdown figures for each year to your s151 Officer.  From those figures the relevant lines that are included in the multi-year settlement offer, where appropriate, are:

·         Revenue Support Grant;

·         Transitional Grant; and

·         Rural Services Delivery Grant allocations.

In addition, tariffs and top-ups in 2017-18, 2018-19 and 2019-20 will not be altered for reasons related to the relative needs of local authorities, and in the final year may be subject to the implementation of 100% business rates retention. The Government is committed to local government retaining 100% of its business rate revenues by the end of this Parliament. This will give them control over an additional £13 billion  ...  view the full minutes text for item 5.

Councillor Mrs J Blake

Cabinet Member for Business Transformation

To consider the attached information.

Contact Officer:  Evelyn Kaluza (01296) 585549

(a)       Decision(s)

That the draft business plan prepared by Aylesbury Vale Broadband Ltd be approved.  (A full copy of the Plan was appended to the confidential part of the Cabinet agenda).

(b)       Reason(s) for Decision(s)

            To enable the Company to progress the expansion of superfast broadband across the District in accordance with previous Council decisions.

(c)       Alternative Option(s) Considered

            Not to continue investing in the further expansion of superfast broadband.  But this would be contrary to the Council’s previously agreed strategy in this field.

(d)       Relevant Scrutiny Committee

            Economy and Business Development.  That Committee will be receiving a similar report at its next meeting.

(e)       Conflicts of Interest / Dispensation(s)

None.

In December, 2014, the Council had committed £1.536m of New Homes Bonus funding to support the roll-out of superfast broadband across the District.  In April, 2015, the Council had approved an initial loan from this funding of £200,000 to run a pilot project through the creation of a limited liability company – Aylesbury Vale Broadband (AVB) – to provide superfast broadband to the villages of North Marston and Granborough.

Progress with the pilot had been reported to the Economy and Business Development Scrutiny Committee on a regular basis, with the last report having been submitted on 15 March, 2016.  That Committee would also be receiving a report similar to this one at its meeting on 7 September, 2016.

As a result of the success of the pilot, in April, 2016, a further loan was approved in the sum of £500,000 to support further expansion of the service across the Vale.  These loans had been made under commercial rates and were expected to be repaid by 30 June 2022.

AVB had been structured with the majority shareholder (95%) AVDC and 5% Ironic Thought.  Ironic Thought was owned by Andrew Mills who had been appointed as the managing Director in July, 2016.  Some of the wider benefits of AVB's progress to date include:-

·         AVB’s network, in the middle of rural Aylesbury Vale, was delivering speeds that only 2% of the UK population could currently receive.

·         Approximately one in three of AVB’s customers were small businesses who were now benefitting from AVB’s 100% fibre broadband.

·         As a direct result of AVB’s pilot, its competitors (including fixed and wireless providers) had spent an estimated £600,000 on upgrading their existing solutions and were providing new services to Aylesbury Vale.  This expenditure was unlikely to have happened without AVB’s existence and it meant fewer people were having to make do with poor broadband in Aylesbury Vale.

The business plan included plans for expansion which went further across the Vale to deliver fibre to the home (FTTH) to more villages.  This was predicated on an additional £550k loan being allocated to AVB from the original £1.536m of funds earmarked for superfast broadband (and previously approved by the Council).

It had been forecast by several industry bodies that demand for bandwidth was expected to grow exponentially by 2020.  Fibre was the only known technology that could cope with this demand, without additional investment and therefore by selecting FTTH, AVB was reducing its future support and maintenance costs and increasing confidence in the financial forecasts for the future.

A copy of AVB’s draft business plan was submitted as part of the confidential Cabinet agenda. It was necessary to resolve to exclude the public to enable the plan detail to be discussed under section 100(A)(4) of the Local Government Act, 1972, because of the commercial sensitivity of the information contained therein as defined in Paragraph 3 of Schedule 12A of the Act.

RESOLVED –

That the draft business plan prepared for Aylesbury Vale Broadband Ltd (attached to the confidential  ...  view the full minutes text for item 6.

Councillor N Blake

Leader of the Council and Cabinet Member for Major Projects

To consider the attached information.

Contact Officer:  Teresa Lane (01296) 585006

(a)       Decision(s)

That Council be recommended to approve a budget of up to £250,000, to be met from the General Revenue Fund to enable the preparatory work for the next stages of the redevelopment of Aylesbury town to progress in support of the Council’s economic and commercial AVDC strategies.

(b)       Reason(s) for Decision(s)

            To enable a mixed scheme for the next phases of redevelopment of Aylesbury Town Centre.

(c)       Alternative Option(s) Considered

            AVDC could choose to do nothing and wait for a developer to come forward and suggest a scheme for the next phases of redevelopment.  However, this would be highly unlikely to happen and a high risk strategy, given the competition from other centres seeking to attract development partners for similar sized schemes.  Leaving it the market would also mean that the Council’s ability to shape and influence what happens next would be very much reduced.

            There is a risk that unless AVDC continues to take the lead, momentum in the town centre could stall, putting at risk the already considerable investment that has taken place.

(d)       Relevant Scrutiny Committee

            Finance and Services.  However as this matter will be considered by full Council, it is not subject call-in.

(e)       Conflicts of Interest / Dispensation(s)

None.

In 2014, AVDC had published a masterplan for the phased redevelopment of the Exchange Street Car Park, Aylesbury.  (For ease of reference a copy was appended to the Cabinet report).  Although indicative, the master plan set the context for phase one – the redevelopment of the area between the restaurants outside the cinema and Long Lionel.

Outline planning permission for Phase One which comprised restaurant and commercial space on the ground floor with one and two bedroomed apartments on four floors above, together with a stunning new public square, had been granted in late 2014.  The reserved matters application was due to be considered by the Strategic Development Management Committee on 21 September.  If approved, construction was expected to start on site in early Spring, 2017, with completion approximately 18 months later.

The progress made on the plans for Phase One had been monitored with interest by the market.  The collective investment in recent years by both the private and public sectors was a sign of the growing confidence in the town centre and its future.

There was also a recognition that as the County Town, expected to accommodate significant housing growth on its fringe as part of the Vale of Aylesbury Local Plan (VALP), Aylesbury had the scope and potential to attract more retail and food and beverage outlets whilst providing a highly desirable location for town centre living.  More quality space would be expected to feature as an important part of the mix.

These assertions were supported by a recent study by The Retail Group which had been commissioned as part of the evidence base for the draft VALP.  The final conclusions of the study were awaited but the early indication was that there was demand for additional retail space whilst recognising that it was also important to ensure that existing retail space was fully occupied and not compromised by new space.

With regard to food and beverage demand, a study by Coverpoint in 2013 had confirmed that upwards of 15 additional operators were needed to reflect the changing role of town centres, where leisure dining had become a visit in its own right, as well as now being an increasingly popular part of a visit for retail shopping.  The growth in the food and beverage sector remained very strong and even though new restaurants had opened since 2013, they had mostly replaced former operators rather than taken new space.  The delivery of the new restaurants in phase one of Waterside North would still leave considerable unmet demand and would help attract other operators who wanted to be part of the Aylesbury food and beverage community.

There also continued to be a compelling case for town centres to be a hub for new homes and any schemes which emerged for future phases of redevelopment were likely to include new housing as well as quality open space, helping to connect pedestrian circuits through the town and provide a place for people to dwell, relax and socialise.

The draft VALP  ...  view the full minutes text for item 7.

The following matters are for consideration by Members "In Committee". It will therefore be necessary to

RESOLVE –

That under Section 100(A)(4) of the Local Government Act, 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in the Paragraph indicated in Part 1 of Schedule 12A of the Act:-

Item 11 – Silverstone Heritage Experience (Paragraph 3)

Item 12 – Aylesbury Vale Broadband Business Plan (Paragraph 3)

Item 13 – Aylesbury Vale Estates Business Plan (Paragraph 3)

The public interest in maintaining the exemptions outweighs the public interest in disclosing the information because the reports contain information relating to the financial or business affairs of organisations (including the Authority holding that information) and disclosure of commercially sensitive information would prejudice negotiations for contracts and land disposals/transactions.

The following matters formed part of the confidential Cabinet Agenda.

RESOLVED –

That under Section 100(A)(4) of the Local Government Act, 1972, the public be excluded from the meeting for the following items of business on the grounds that they involved the likely disclosure of exempt information as defined in the Paragraph indicated in Part 1 of Schedule 12A of the Act:-

Silverstone Heritage Experience Business Plan (Paragraph 3)

Aylesbury Vale Broadband Business Plan (Paragraph 3)

Aylesbury Vale Estates Business Plan (Paragraph 3)

The public interest in maintaining the exemptions outweighed the public interest in disclosing the information because the documents contained information relating to the financial or business affairs of organisations (including the authority holding that information), and disclosure of commercially sensitive information would prejudice negotiations for contracts and land disposals/transactions.

Councillor Bowles

Deputy Leader and Cabinet Member for Economic Development Delivery

To consider the confidential information attached.

Contact Officer:  Andrew Small (01296) 585507

In reaching the decisions referred to above in connection with this project, consideration was given to the organisation’s business plan, included as part of the confidential Cabinet agenda.

In reaching the decisions referred to above in connection with this project, consideration was given to the organisation’s business plan.

Councillor Mrs J Blake

Cabinet Member for Business Transformation

To consider the confidential information attached.

Contact Officer:  Evelyn Kaluza (01296) 585549

In reaching the above decisions, consideration was given to AVB’s draft business plan, included as part of the confidential Cabinet agenda.

In reaching the above decisions, consideration was given to AVB’s draft business plan.

Councillor Bowles

Deputy Leader and Cabinet Member for Economic Development Delivery

To consider the attached information.

Contact Officer: Teresa Lane (01296) 585006

(a)       Decision(s)

That based upon AVE’s responses to queries raised previously by Cabinet, the draft business plan for 2016/17, be approved.

(b)       Reason(s) for Decision(s)

            The draft business plan contains a number of important actions which were listed in the confidential part of the Cabinet agenda and to proceed, it was necessary for approval to be given to the business plan.

(c)       Alternative Option(s) Considered

            None as such.

(d)       Relevant Scrutiny Committee

            Economy and Business Development.  That Committee has previously had the opportunity to consider the business plan and many of Cabinet’s earlier queries mirrored those of the Scrutiny Committee.

(e)       Conflicts of Interest / Dispensation(s)

None.

Cabinet recalled the consideration given on 12 April to the AVE business plan.  Members had a number of questions which they felt needed answering before they felt able to approve the plan.

Consideration was given to a report summarising the questions and AVE’s responses.

Members sought assurances that the dividend distribution and major acquisition would take place in 2016/17 and that the number of voids would be reduced in that financial year.

RESOLVED –

That having regard to the responses from AVE, approval be given to the business plan.