Issue - meetings

Commercial Strategy 2017-2021 (Interim Update 2019)

Meeting: 05/09/2019 - District Executive (Item 41)

41 Commercial Strategy 2017-2021 (Interim Update 2019) pdf icon PDF 105 KB

Additional documents:

Decision:

 

RESOLVED:

That District Executive:-

 

a.

approved the Commercial Strategy 2017-2021 (Interim Update 2019) as per the attached revised Strategy at Appendix 1;

 

b.

approved that any capital received from the disposal of investment assets (only) are used as part of a revolving investment fund, unless specifically agreed otherwise by council;

 

c.

recommends to Full Council the approval of an increased investment fund limit and borrowing limit to take the council through to 2021, as set out at Appendix 2 as a Confidential item;

 

d.

recommends to Full Council the increased level of delegation of individual investment / acquisition approvals to the CEO in consultation with the Leader as set out at Appendix 2 as a Confidential item.

Reason:

To note the mid-term review of the Commercial Strategy 2017-2021 which was originally approved by District Executive and Full Council in August 2017 and to update and strengthen the Strategy to ensure that it is fit for purpose until 2021.

 

Minutes:

The Portfolio Holder for Economic Development said he was pleased to report that 91% of the annual net income target of £2.2m set in 2017 and required by 2021 from commercial property investment, had been achieved.  He thanked the Director and her team for their successful investment programme.  The proposal was to invest further to continue the success and this strategy was in line with other District Councils.  The proportion of investments in property and renewables was around 75/25 and this was acceptable.

 

In response to questions from Members, the Chief Executive and Section 151 Officer confirmed:-

 

·         Adding green technology to the commercial investment properties could be included in the emerging Environment Strategy.

·         Funding of £300,000 had been agreed to support the Environment Strategy and this would be used as projects came forward.

·         The borrowing limits had been agreed by Members and if a proposal was outside them, then it would be brought forward with reasons and a plan.

·         Savings targets had been set within the Financial Strategy to address the funding gap but this should not prevent some opportunities for future investments.

 

During discussion, Members noted that the public did not always understand why commercial investments were made outside of the district although such questions were reducing and it was noted that a recent Somerset Live article had given a fair representation of the commercial strategy and list of investment properties.

 

The recommendations were proposed and seconded and on being put to the vote were unanimously confirmed by Members.

 

At the conclusion of the debate, the Chairman asked that her congratulations and thanks to the Commercial Investment team for their exceptional investment work be recorded.

 

RESOLVED:

That District Executive:-

 

a.

approved the Commercial Strategy 2017-2021 (Interim Update 2019) as per the attached revised Strategy at Appendix 1;

 

b.

approved that any capital received from the disposal of investment assets (only) are used as part of a revolving investment fund, unless specifically agreed otherwise by council;

 

c.

recommends to Full Council the approval of an increased investment fund limit and borrowing limit to take the council through to 2021, as set out at Appendix 2 as a Confidential item;

 

d.

recommends to Full Council the increased level of delegation of individual investment / acquisition approvals to the CEO in consultation with the Leader as set out at Appendix 2 as a Confidential item.

Reason:

To note the mid-term review of the Commercial Strategy 2017-2021 which was originally approved by District Executive and Full Council in August 2017 and to update and strengthen the Strategy to ensure that it is fit for purpose until 2021.