Decision Outcome
On 20 September 2016, Cabinet:-
(i) Approved that the City Council’s role as Accountable Body for the Enterprise Zone (EZ) be extended to include the Curzon Investment Plan and an extended timeline from 2037/38 to 2045/46;
and acting in its role as accountable body for the GBSLEP:
(ii) approved the content of the Curzon Investment Plan, attached in report Appendix 1, which sets out the framework for investment priorities and programme for the period 2016/17 to 2045/46, with a total indicative funding package of £724m. This includes EZ funded capital and revenue investment of £556.8m supported through the Greater Birmingham and Solihull Local Enterprise Partnership (LEP);
(iii) Noted that, subject to approval to the recommendations in the report, the total EZ funding is now £1,015.1m (report Appendix 3);
(iv) Approved the content of the EZ Governance Structure and Financial Strategy, as set out in report Appendix 4;
(v) Approved a programme of further prudential borrowing to meet the additional EZ capital investment of £668.6m, which includes City Council sponsored projects that are contained in the Curzon Investment Plan (£485.3m), and the £183.3m contribution to Metro, subject to the approval of individual Business Cases and subject to regular review and updates to the Enterprise Zone Investment Plan;
(vi) noted an overall budget totalling £71.5m for new revenue investment, Accountable Body and programme delivery costs contained in the Curzon Investment Plan. These costs will be wholly funded by the uplift in EZ business rates;
(vii) noted the ring fencing of £183.3m of EZ resources by the Greater Birmingham and Solihull Local Enterprise Partnership (LEP) to the delivery of the Midland Metro from Birmingham City Centre to the HS2 Interchange, which will be directly funded through the uplift in business rates generated by the EZ, subject to Project Definition Documents and Full Business Cases and availability match funding;
(viii) noted that future business rates revaluations may reduce EZ income and affect the ability to approve business cases. A positive dialogue is in progress with Government officials which seeks to address the issue;
(ix) subject to satisfactory resolution of the business rate revaluation issue in decision (viii), authorised the City Council to enter into the Memorandum of Understanding (MOU) attached in report Appendix 5, which sets out the terms and conditions, between the LEP, DCLG and the City Council, for the extension to the EZ;
(x) authorised the City Solicitor to negotiate, execute, seal and complete all necessary agreements and documentation to give effect to the above;
(xi) approved the recruitment of posts for the Curzon Delivery Team, as set out in the Curzon Investment Plan. The posts will be fixed-term for 4 years from 2016/17 to 2020/21 funded through the EZ;
(xii) noted the extension of the EZ area from 69.8 to 113.5 ha and the extended time period for the retention of the uplift in business rates income from 31 March 2038 to 31 March 2046.
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