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  • Issue - meetings

    Crediton GP/NHS Hub - Loan Decision

    • Issue Details
    • Issue History
    • Related Decisions
    • Related Meetings
     

     

    Meeting: 11/09/2019 - Council (Item 53)

    53 Reports - Cabinet - Report of the meeting held on 25 July 2019 (00-11-00) pdf icon PDF 75 KB

    To receive and consider the reports, minutes and recommendations of the recent meetings as follows:

     

    (1)         Cabinet

     

    -              25 July 2019

    -              22 August 2019

     

    2)        Scrutiny Committee

     

    -                 5 August 2019

    -                  2 September 2019  - (to follow)

               

    (3)       Audit Committee

     

    -         27 August 2019

               

    (4)       Environment Policy Development Group

     

    -                6 August 2019

     

    (5)       Homes Policy Development Group

     

    -                13 August 2019

     

    (6)       Economy Policy Development Group

     

    -                 8 August 2019

     

    (7)       Community Policy Development Group

     

    -          20 August 2019

     

    (8)       Planning Committee

     

    -                31 July 2019

    -                28 August 2019

     

     

    Additional documents:

    • NHS Hub - Cabinet Report, 25/07/2019 Cabinet, item 53 pdf icon PDF 97 KB
    • Appendix 1 - Contemporary Health Building Crediton May 2019, 25/07/2019 Cabinet, item 53 pdf icon PDF 4 MB
    • Appendix 2 - Transfer Plan, 25/07/2019 Cabinet, item 53 pdf icon PDF 263 KB
    • Appendix 3 PART 2 - 051619 Land at Joseph Locke Way Crediton - valuation report RW, 25/07/2019 Cabinet , View reasons restricted (53/5)
    • Appendix 4 PART 2 - Financial Appraisal of Development (3), 25/07/2019 Cabinet , View reasons restricted (53/6)
    • Minutes , 22/08/2019 Cabinet, item 53 pdf icon PDF 95 KB
    • Minutes , 05/08/2019 Scrutiny Committee, item 53 pdf icon PDF 77 KB
    • Minutes , 27/08/2019 Audit Committee, item 53 pdf icon PDF 82 KB
    • Minutes , 06/08/2019 Environment Policy Development Group, item 53 pdf icon PDF 77 KB
    • Minutes , 13/08/2019 Homes Policy Development Group, item 53 pdf icon PDF 92 KB
    • Minutes , 08/08/2019 Economy Policy Development Group, item 53 pdf icon PDF 88 KB
    • Minutes , 20/08/2019 Community Policy Development Group, item 53 pdf icon PDF 83 KB
    • Minutes , 31/07/2019 Planning Committee, item 53 pdf icon PDF 170 KB
    • Enforcement delegation report April 2019, 31/07/2019 Planning Committee, item 53 pdf icon PDF 133 KB
    • Minutes , 28/08/2019 Planning Committee, item 53 pdf icon PDF 110 KB
    • Minutes , 02/09/2019 Scrutiny Committee, item 53 pdf icon PDF 83 KB

    Minutes:

    The Leader presented the report of the meeting of the Cabinet held on 25 July 2019

     

    1.    Crediton GP/NHS Hub – Loan Decision (Minute 33)

     

    The Leader MOVED seconded by Councillor R J Dolley

     

    THAT the recommendations of the Cabinet as set out in Minute 33 be ADOPTED.

     

    Following discussion and upon a vote being taking, the MOTION was declared to have been CARRIED.

     

     

     


    Meeting: 25/07/2019 - Cabinet (Item 33)

    33 Crediton GP/NHS Hub - Loan Decision (00-09-02) pdf icon PDF 97 KB

    To consider a report of the Deputy Chief Executive (S151).

     

     

     

    Additional documents:

    • Appendix 1 - Contemporary Health Building Crediton May 2019, item 33 pdf icon PDF 4 MB
    • Appendix 2 - Transfer Plan, item 33 pdf icon PDF 263 KB
    • Appendix 3 PART 2 - 051619 Land at Joseph Locke Way Crediton - valuation report RW , View reasons restricted (33/4)
    • Appendix 4 PART 2 - Financial Appraisal of Development (3) , View reasons restricted (33/5)

    Minutes:

    The Cabinet had before it a *report of the Deputy Chief Executive (S151) requesting the Cabinet to consider a long term loan arrangement to help facilitate the construction of a NHS Hub building in Crediton.

     

    The Cabinet Member for Finance outlined the contents of the report stating that he appreciated the time and effort that officers had taken with regard to this matter, he felt that the project was a good investment for the area of Crediton and important to the town.  He informed the meeting of the background to the project, the request for funding that had been received at the end of 2018 by representatives of two GP Practices who were proposing to merge and locate to a new building in Crediton. The new building was proposed to provide much more than just a larger GP Practice, but to be more of an integrated health hub with both GP and wider NHS treatment areas. They had approached the Council to see whether it could offer a more competitive lending rate than that already offered by two banks. The initial timeline had been tight, hence the urgent decision on the principle of supporting the project, since that time further work had been completed and the urgency of the request had subsided due to the extension of the timelines by the NHS.

     

    He explained the lending criteria that had been negotiated, that of £2.1m over a 28 year period and that the authority would have the first charge on the property, external legal advice had been sought,  State Aid had not been triggered, 85% of the funding required would be financed by the NHS with the remaining 15% requested from the District Council.  He also outlined how the funding would be managed by the authority.

     

    Consideration was given to:

     

    ·         Appreciation for the work of officers with regard to the project and the additional information available

    ·         The benefits of the project for the town of Crediton

    ·         The excellent location for the hub with good parking facilities and access to the station

    ·         Whether any equity would be released from the original GP surgeries

    ·         The terms of the loan and the repayment scheme

    ·         The level of risk

    ·         The governance arrangements following the merging of the 2 GP practices and the liability of the debt

    ·         The residual value of the site and the future phases of the project

     

    RECOMMENDED  to Council that:

     

    1       A loan to the GP Practice of £2.1m repayable over 28 years on an annuity basis at a fixed interest rate of 3.75% be agreed, subject to the Deputy Chief Executive (S151), in consultation with the Group Managers for Finance and Legal Services:

    (a)  Completing a suitable loan agreement with the Practice adequately protecting the Council’s position;

    (b)  Registering a first charge over the relevant land and completing a deed of priorities to be registered at the Land Registry; and

    (c)  Being satisfied following the finalisation of any remaining due diligence deemed necessary, that the loan remains a financially prudent  ...  view the full minutes text for item 33