Issue - meetings

This report considers how the Council can help facilitate the enhancement of post 16 educational provision and development in Brent by the provision of a loan of up to £50m to United Colleges Group (“United Colleges”) given their wish to develop modern newly constructed facilities in Wembley Park.  This loan is required as “bridging” finance with the report detailing the risks alongside the social and economic benefits that facilitating the development would be expected to bring.

RESOLVED:

       i.          That Cabinet agreed to provide a loan facility of up to £50m to United Colleges on the general terms set out throughout the report.

      ii.          That Cabinet agreed that the loan shall only be provided subject to the conditions set out in the report being discharged.

    iii.          That Cabinet delegated authority to the Chief Executive, in consultation with the Deputy Leader, to determine whether the conditions set out in the report have been discharged.

    iv.          That Cabinet delegated authority to the Director of Finance, in consultation with the Deputy Leader, to set the interest rate and other terms of the loan.

     v.          That Cabinet delegated authority to the Director of Finance, in consultation with the Deputy Leader, to conclude and execute the loan transaction or transactions referred to above, whether acting independently or with other lenders, including to make such minor adjustments to the precise terms as prove necessary.

    vi.          That Cabinet noted and carefully considered the potential benefits of the scheme alongside the inherent risks and how these risks are proposed to be mitigated.

Councillor Margaret McLennan, Deputy Leader of the Council, introduced the report asking Members to consider how the Council can help facilitate the enhancement of post 16 educational provision and development in Brent by the provision of a loan of up to £50m to United Colleges Group (“United Colleges”) given their wish to develop modern newly constructed facilities in Wembley Park. 

Councillor McLennan stated that this loan is required as “bridging” finance to enable the project to proceed. The expectation would be that all of the Council’s principal loan plus interest would be recovered. As with any project, there are also risks which should be considered, and it might be possible to share these risks by attracting finance from other parties such as Homes England.

Councillor McLennan asked Members to consider the remaining risk to the Council alongside the significant social and economic benefits that facilitating the development would be expected to bring.

Councillor Krupesh Hirani, Cabinet Member for Public Health, Culture and Leisure, expressed his support for the proposal stating that a new state of the art college facility in Brent is an opportunity to raise the aspirations for young people and adults alike in Brent, by creating an inspiring learning environment.

RESOLVED:

      i.        That Cabinet agreed to provide a loan facility of up to £50m to United Colleges on the general terms set out throughout the report.

    ii.        That Cabinet agreed that the loan shall only be provided subject to the conditions set out in the report being discharged.

   iii.        That Cabinet delegated authority to the Chief Executive, in consultation with the Deputy Leader, to determine whether the conditions set out in the report have been discharged.

   iv.        That Cabinet delegated authority to the Director of Finance, in consultation with the Deputy Leader, to set the interest rate and other terms of the loan.

    v.        That Cabinet delegated authority to the Director of Finance, in consultation with the Deputy Leader, to conclude and execute the loan transaction or transactions referred to above, whether acting independently or with other lenders, including to make such minor adjustments to the precise terms as prove necessary.

   vi.        That Cabinet noted and carefully considered the potential benefits of the scheme alongside the inherent risks and how these risks are proposed to be mitigated.