Agenda item

Recommendations and comments

Response

1. The Overview and Scrutiny Committee (Committee) endorses the Council welcoming Sheffield Hallam University to Brent Cross Town and welcomes the opportunities it will bring for local people and benefits to the Borough as a whole.

Endorsement of the Overview & Scrutiny Committee is much appreciated.

2. The Committee supports the principle of the Council intervening to provide funding support for delivery of Plot 1 through the provision of interim project finance.

The Overview & Scrutiny Committee’s comments as set out in the minutes of their respective meeting are noted and welcomed.

3. The Committee recognises that the proposal should be considered in light of the new Subsidy Control Act 2022.

Noted and a full subsidy control assessment and Competition & Markets Authority referral (as appropriate) is expected to  be undertaken once Cabinet makes its in-principle decision.

4. In light of recommendation 3, the Committee recommends that Cabinet pay particular attention to the commercial structure, and in particular whether our risks are well aligned with those of commercial partners.

Discussions with other parties are ongoing and Members will receive an update.  Cabinet discussed the options for responding to Overview & Scrutiny Committee. Consideration and discussions continue, with particular focus on alignment of the parties’ interests while mitigating risk to the Council.

5. The Committee recognises that officers have identified and put in place measures to manage the risks associated with the proposed investment, but also note that such an investment can never be wholly risk free; and highlight that it is important that if issues do materialise we work closely with partners to address them in a way that best protects the interests of the Council, the joint venture with Related Argent, and the delivery of Brent Cross Town.

Noted.

6. The Committee recommends that Cabinet pays particular attention to due diligence on the financial position of Sheffield Hallam University especially in relation to any reliance on international students for the scheme to be viable and impact of any immigration changes to their financial position.

Due diligence on the financial position of Sheffield Hallam has indicated the covenant is sufficiently strong. With only 14% of its student population being from overseas SHU is not overly susceptible to immigration or foreign student policy changes.

7. In light of the above, the Committee recommends that Cabinet may wish to consider whether to explore any appropriate adjustments to the proposed financial structure.

The proposed financial structure and detailed loan arrangements remain under active consideration (as per points 4 & 5 also) and Members received an update.