Agenda and minutes

Apologies for absence had been received from Councillor Dean Cohen who was substituted for by Councillor Peter Zinkin.

Apologies for absence had also been received from Councillors Alex Prager, Daniel Thomas, Giulia Innocenti and Ernest Ambe.

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Councillor Ross Houston, Portfolio Holder for Homes & Regeneration, Cath Shaw, Deputy Chief Executive, and Anisa Darr, Executive Director Strategy & Resources presented a report which detailed a proposal for Barnet Council to make interim funding available for construction of the first commercial office building at Brent Cross Town (BXT), the lower floors of which have been pre-let to Sheffield Hallam University. It was noted that this would be a significant milestone for the scheme, as Sheffield Hallam would bring its first remote campus to BXT and with four faculties, namely, Digital and Technology, Business and Finance, Health and Wellbeing and Nursing. This would in turn support the creation of a thriving business ecosystem at BXT and a unique selling point for commercial occupiers seeking to recruit and undertake research in the above-mentioned areas.

In response to a query on why if other parties were unwilling to enter the arrangement and why the local authority should be willing, the Cabinet Member stated that one of the proper functions of a local authority when it comes to investment is to do it to enable regeneration. This scheme would meet this function in partnership with a key bank and other investors, in a manageable risk environment, thus allowing for the building to be built, with a tenant in place, with interest paid back from day one.

In response to a question of the financial robustness of the scheme, specifically concerns about the current financial climate, the lower than originally estimated appetite for office space, and the delay in the shopping centre, the Cabinet Member commented that decoupling the proposed shopping centre from the rest of the scheme had allowed the bulk commercial and residential element of the Brent Cross regeneration scheme to go ahead. The Cabinet Member further noted that the proposals and the master plan did not rely on this scheme being linked to the shopping centre, but rather focused on creating a new town centre with a mix of commercial, leisure and residential, which this proposal would support delivery of.

In response to a query on the demand for university places at the Sheffield Hallam remote campus, it was confirmed that not only was the university confident enough to sign a legal contractual agreement to pre-let the site, but this was supported by the CBRE market report. Furthermore, the advice commissioned from KPMG in relation to the Subsidy Control regime required them to assess the condition of the market providing further assurance.

In response to a query on what else the loan could be spent on, the Cabinet Member confirmed that this was a standalone scheme and didn’t preclude us investing in other areas such housing for example.  However, he stated that the Council would need to be mindful of the increased capital exposure of capital funding if used for other purposes. Officers also confirmed that the proposal wouldn’t reduce the Councils ability to borrow capital for other schemes, such as housing, and the interest rate being paid would cover the borrowing  ...  view the full minutes text for item 6.

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The Chair moved a motion to exclude the press and public on the basis that the exempt items will involve discussion of confidential information.

The Committee resolved – that under Section 100A (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 involve the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Act (as amended).

RESOLVED that the Committee note the exempt information.

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