Decision details

To consider reprofiling and further support proposals for the Observer Building project in respect of the Growing Places Fund loan.

9.1       The Leader and Lead Member considered a report by the Director of Communities, Economy and Transport together with exempt information in a later agenda item.

DECISIONS

9.2           The Leader and Lead Member RESOLVED to:

1)             Agree to extend the repayment term of the two Growing Places Fund loans as outlined in the report; and

2)             Agree the financial proposals set out in the exempt report; and 

3)             Delegate authority to the Director of Communities, Economy and Transport, to finalise the terms of the legal charge. 

REASONS

9.3       The redevelopment of the Observer Building by Hastings Commons has been partly funded by £3,366,500 of Growing Places Fund (GPF) revolving loan funding awarded by South East Local Enterprise Partnership (SELEP) and due for repayment in full by 31 March 2026.

9.4      As part of the closure of Local Enterprise Partnerships and the transition of relevant responsibilities to upper tier local authorities the County Council is now the accountable body for the Growing Places Fund (GPF) programme in the county.

9.5       Following a number of unforeseen events since the award of the loan, Hastings Commons notified the County Council in 2023 that they are seeking an extension of the terms of the repayment of the loan.

9.6       County Council officers have since been engaged in ongoing discussions with the project leads to find an approach to this issue that balances the need to see the timely return of the GPF loan and securing an appropriate level of security over the loan, whilst supporting the locally significant project and organisation.