Decision details

To receive an update on the latest financial position, including a requirement for additional funding to complete remediation works.

a)  That the update report including the latest financial position be noted;

b)  That it be noted that there may be a requirement for an additional loan facility to be made available to GRE5 (subject to additional analysis) which would require full Council approval;

c)  That it be noted that a Council parent company guarantee is required to enable GRE5 to enter the GFA and secure funding from HE.  The guarantee should relate to the DA costs for ACM cladding and strictly associated works only;

d)  Recommend to Full Council that approval should be given for a parent company guarantee to be entered into as set out in c) above and that the Treasury Management Strategy should be amended to reflect this;

e)  Recommend to Full Council that the loan facility previously approved by the Cabinet be approved and that authority be delegated to the Chief Executive to enter into an appropriate loan agreement with GRE5;

f)  That delegated authority be given to the Chief Executive to develop a longer-term strategy for GRE5, including appropriate phasing of future works and options for the leaseholders or another third party to acquire the shareholding;

g)  Noted that the issues arising will be dealt with as part of the ongoing financial review of the Council’s governance and contract management of its Group Companies;

h)  Agreed that a decision on an additional loan facility is deferred until further information on future works and costs is available in the next month and that a decision may be sought directly from Full Council if this is not in accordance with the Treasury Management Strategy; and

i)  Agreed that the Council requests that GRE5 prioritise essential cladding and directly associated works under the DA and that it reviews the scope and timing of all other works outside the scope of the DA, including ongoing advisor costs in light of the Council’s financial constraints.