Agenda item

Financing the Yeovil Refresh

Meeting of South Somerset District Council, Thursday 8th July 2021 6.30 pm (Item 23.)

Decision:

RESOLVED:	That Full Council agreed to:-
	a.	An increase of the Yeovil Refresh net budget of £2,604,168.
	b.	An increase in long term borrowing of £2,604,168 to fund the project.
	c.	An increase to the gross budget by £367k from the current approved budget (see Appendix A for more detail).
That Council noted:
	d.	That a future Council meeting would consider the Business Case for establishing a cooperative working space at Yeovil.
	e.	That in the worst case scenario the Council may need to increase its long term borrowing to £4,529,168m in total (ref. Para 26).
Reason:	To agree to increase the net budget to enable delivery of the Yeovil Refresh projects that are included in the Future High Street Bid over the 36 month construction period associated with this Fund.

(Voting: 36 in favour, 0 against, 2 abstentions)

Minutes:

The Portfolio Holder for the Yeovil Refresh introduced the report and reminded Members that the Yeovil Vision included the whole town of Yeovil whereas the Yeovil Refresh covered just the town centre. He said it was vital the extra funding was agreed otherwise parts of the planned refresh would have to be removed and the scheme re-evaluated which could jeopardise the Future High Streets Fund grant. He said that town centres were changing and SSDC should take advantage of the funding and support all the regeneration schemes in Chard, Yeovil and Wincanton. He noted other development and investment taking place in Yeovil and he thanked the officers who had worked on the project and concluded by proposing the recommendations for approval.

The Portfolio Holder for Finance and Legal Services said the additional funding was essential to be able to draw down the Future High Streets Fund grant. He said there was a significant cost to setting aside the capital funding but it was hoped to cover that cost through income generation although this was not guaranteed. He noted that a business case was required for collaborative working space.

In response to questions from Members, the Portfolio Holder for Finance and Legal Services and the Director for Place and Recovery advised that-

· CIL funding was intended for major infrastructure projects listed on the 1,2,3 list and it would be inappropriate to retrospectively change the 1,2,3 list

· The governance arrangements around the allocation of CIL funding were being looked at as SSDC were expecting a further £1.1m in that year and it was important that a fair and objective way of assessing need was agreed. This would be discussed at the Strategic Development Board in September.

Councillor Jason Baker spoke in support of the funding as an opportunity to invest in Yeovil as it was in other town centres and he seconded the recommendations.

In response to questions, the Section 151 Officer and Portfolio Holders for the Yeovil Vision and Finance and Legal Services advised:

· The Council were taking advice from Arlingclose, their Treasury Management advisers on the different types of borrowing available rather than the Public Works Loans Board and there were many options available but no conclusions had been reached. This would be reported as part of the Medium Term Financial Plan Refresh in September.

· The Council had a good record of repaying loans and it was using short term finance at the moment at a favourable interest rate.

· The refresh scheme covered the whole of the town centre and some funding would be coming from developers for improvements to the streetscene.

· Love Yeovil were decorating the windows of empty shops where owners allowed them.

· The cost of Business rates was always an issue for small shops in the town centre.

· Town centres were changing and were attracting smaller boutique shops, cafes and restaurants.

· The Future High Streets Funding would enable the creation of a smart and modern town centre with facilities to attract shops and shoppers.

· Developers were working with the Council on several sites in the town and it was hoped that planning applications would come forward to redevelop sites shortly.

· Constructive criticism and new ideas were always welcome.

· A six monthly update report on the progress of the Yeovil Refresh would be presented to Area South Committee and all Members were welcome to attend.

The Yeovil Refresh Project Manager said the mix of development in town centres was moving towards more leisure and commercial developments and they were talking to a range of developers as investment was starting in the town.

The recommendations, having been proposed and seconded, were put to the vote and carried by 36 in favour, 0 against and 2 abstentions.

RESOLVED:	That Full Council agreed to:-
	a.	an increase of the Yeovil Refresh net budget of £2,604,168.
	b.	an increase in long term borrowing of £2,604,168 to fund the project.
	c.	an increase to the gross budget by £367k from the current approved budget (see Appendix A for more detail).
That Council noted:
	d.	that a future Council meeting would consider the Business Case for establishing a cooperative working space at Yeovil.
	e.	that in the worst case scenario the Council may need to increase its long term borrowing to £4,529,168m in total (ref. Para 26).
Reason:	To agree to increase the net budget to enable delivery of the Yeovil Refresh projects that are included in the Future High Street Bid over the 36 month construction period associated with this Fund.