Agenda and decisions

To be made at the start of the Agenda Item in question, in accordance with the members Code of Conduct.

To receive the Report of the City of Cardiff Council Corporate Director of Resources in relation to the acceptance of the terms and conditions of the grant transfer from Welsh Government and HM Treasury to the Accountable Body.

AGREED; that the Cardiff Capital Region Joint Cabinet:

a)       Approve the Welsh Government funding terms and conditions, including the clarifications formally agreed, which terms and clarifications are set out in Appendix 2.

b)      Authorise the Section 151 Officer of the CCRCD Accountable Body to formally sign acceptance of the Welsh Government funding terms and conditions on behalf of the Cardiff Capital Region Joint Cabinet.

AGREED; that the Cardiff Capital Region Joint Cabinet:

a)       For 2017-2018, waive all requirements for prior notification of an Annual
Business plan, and

b)      For the purposes of complying with 2.4 and 7.3 of the Joint Working
Agreement approve the Annual Business Plan 2017-2018, attached as
Appendix 1, consisting of:

·           the Transition Plan 2017-2018 as agreed by Regional Cabinet on 17th
March 2017;

·           a budget (money received) of £19,257,500 and the ability to commit up
to £50m (fifty million pounds) of the HMT contribution for the support of schemes, projects
and programmes detailed in the Cardiff Capital Region Implementation
Plan, which was approved as part of the JWA, with any specific
proposal subject to approval of the Regional Cabinet;

c)       To note that if commitments exceed the available monies received in 2017-
2018 this will result in committing future annual budgets;

d)         Agree in principle to the establishment of appropriate delivery vehicles, as required, to implement approved projects, for example a lead authority; special purpose vehicle; a community interest company.

Appendices 1, 2, 3a, 3b, 4, 5a, 5b, 6a, 6b, and 7 of this report are exempt from publication because they contain information of the kind described in paragraphs 14, 16 and 21 of parts 4 and 5 of Schedule 12A to the Local Government Act 1972.

Subject to:-

(i)         Compliance with the conditions contained in the external specialist advice contained in the confidential appendices to the main report,

(ii)        Reaching agreement as to the Heads of Terms referred to in Paragraphs a) and c) below,

(iii)       The matters referred to in Paragraph 10.3 of the confidential Appendix 6(a) (The Compound Semiconductor Project Proposal) being resolved, and

Noting that:-

1)     as regards one of the matters referred to Paragraph 10.3 of the confidential Appendix 6(a) (The Compound Semiconductor Project Proposal),Rhondda Cynon Taf County Borough Council (RCT) has agreed, in principle, to provide bridging finance for cash flow purposes as set out in Paragraph 31 of the report, through the most viable and cost effective mechanism and in the best interest of RCT and the wider City Deal constituent Councils at that time and in line with RCT’s Treasury Management Strategy.

AGREED; that the Cardiff Capital Region Joint Cabinet:

Support the development of a Compound Semiconductor Industry Cluster in the region by establishing an anchor space in the region for high end production and manufacturing by:

a)      Entering initially into a Heads of Terms agreement with Welsh Government and subsequently negotiate the purchase of a specific facility;

b)      In accordance with section 2.4 of the JWA, commit £38.4m of the HMT Contribution to the Wider Investment Fund for landlord works to the facility referred to in Paragraph a), building fit-out, ancillary works and associated management and supervision costs;

c)      Entering initially into a Heads of Terms agreement for an eleven-year lease, and subsequently granting a lease (of the facility referred to in Paragraph a) to the proposed lessee, with an in-built stair-cased rental profile and flexible Option to Purchase;

d)     To allow the head lessee, to enter into a sub-lease arrangement; and

e)    To make a direct award for the development and fit-out of the facility.

As such, Recommendations a) to e) are further detailed in the report and confidential appendices to the report.

It was further RESOLVED:

f)      In principle to establish a Special Purpose Vehicle to implement the proposal, the detailed arrangements of which will be the subject of a further report to the Regional Cabinet for approval;

g)     Prior to a Special Purpose Vehicle being established, to agree that for the purposes of continuity, Monmouthshire County Council continues to act as lead Authority to progress this matter; and

h)   That approval of this proposal requires amendment to the Annual Business Plan 2017-2018; this amendment is approved and will be reported back to the next meeting of the Regional Cabinet for noting.