Agenda item

Reporting Person – Leigh Clarke

The Executive received a report which sought approval of the Executive to recommend to Council the provision of a loan facility to be made available to Greenfield School to cover the acquisition and development of its School at the site of the former International School of London (ISL).  It was noted that the required loan facility of £21m had been provided in the Council’s approved Investment Programme.  The Executive was advised that the commercially sensitive Business Plan and Cost Plan for the school were set out in the Part II confidential report later on the Agenda.  A private view of the new school site had been arranged for Members of the Council prior to the Executive.  Councillor Azad reported that Greenfield School would be required, as a condition of the loan facility, to enter into a Community Use Agreement in order to ensure the long term benefit to the wider community from use of the school premises.

The Executive welcomed the report which would support the Council’s objective of securing additional school places in the Borough so as to underpin the economic vitality of the Borough.  The wider financial benefit to the community was highlighted, as the School would pay a 1% margin on its loan facility which was assumed to be £136,000 per annum.  In addition, the proposed Community Use Agreement would provide a long term benefit to the wider community and provide opportunities for community groups.  The challenges faced by schools in securing funding through other lenders, such as banks, was raised.  Regarding security on the loan, it was noted that the Council would take a charge over the School’s property assets.

The Leader highlighted an amendment to recommendation (v).  It was noted that the Chief Executive would be the named Officer referred to in recommendation (v) and that consultation would take place with both the Portfolio Holder for Financial Planning and Policy, and the Portfolio Holder for Cultural and Community Development.

RECOMMENDED to Council

That  (i)    the £21m loan facility, included in the Investment Programme for the provision of school places, be made available to Greenfield School to cover the acquisition and development of its new site to enable it to accommodate the projected increase in pupil numbers;

          (ii)   the loan facility be subject to a 1% margin over the Council’s cost of borrowing and that the borrowing period does not exceed 50 years;

          (iii)  the detailed terms of the loan be determined by the Chief Finance Officer in consultation with the Portfolio Holder;

          (iv)  Greenfield School undertakes to seek to dispose of the assets it proposes in a timely manner; and

          (v)   Greenfield School enter into a Community Use Agreement with the Council to ensure long term wider community benefit from the provision of the loan facility with terms of the Community Use Agreement being approved by the Chief Executive in consultation with the Portfolio Holder for Financial Planning and Policy and the Portfolio Holder for Cultural and Community Development.

Reason:   To secure the provision of additional school places to support the economic vitality of the Borough.