Issue - meetings

          The Board considered a report of the Executive Director – Environment and Regeneration, which provided an update on the proposed next phase of delivery and funding arrangements at Sci-Tech Daresbury and the Investment Zone initiative. The report sought approval in principle to utilise the Enterprise Zone Tax Incremental Financing mechanism to support the viability gap for Project Violet Phase 2 and also to provide an equity contribution to the Joint Venture to delivery Project Violet Phase 2.

Reason(s) for Decision

A decision is required to enable the Council to progress the necessary legal and funding agreements for Project Violet which include use of the Enterprise Zone TIF Borrowing Mechanism.

Alternative Options Considered and Rejected

A number of alternative funding arrangements have been explored; however there is currently no commercial market to fund a speculative development at Sci-Tech Daresbury.

Grant funding has been explored, but were not appropriate funding mechanisms at this point for a variety of reasons, including timescales and eligibility.

Reflecting its status as a designated Enterprise Zone, it is envisaged that a TIF mechanism, based on Public Works Loan Board (PWLB) borrowing against future business rates growth, will play a critical role in addressing barriers to the delivery of the masterplan.

Implementation Date

Subject to further due diligence, the project will continue to be developed through to procurement and the borrowing is likely to be required during 2024.

          RESOLVED: That

1)    the report be noted; and

2)    the Board approve in principle the funding strategy for Project Violet Phase 2 outlined in the report, subject to the completion of the necessary due diligence.