Apologies for absence were received from Councillor Wilkinson.

(attached)

RESOLVED that the minutes of the meeting held on 5 June 2023 (circulated previously) be approved as a correct record and signed by the Chair.

The Chair advised that there would be an informal meeting with Members following the conclusion of the formal Committee.

(Please telephone the Corporate and Community Services team to prepare a form for your signature before the meeting.  Interests must be re-declared when the item is called, and Councillors must leave the room if necessary).

The following declarations of interest were announced:

Councillor Biederman – item 8, other registerable interest as a Member of Devon County Council.

Councillor Clayton – item 10, other registerable interest as a member of Barnstaple Town Council.

Councillor R. Knight – item 9, other registerable interest as a trustee of the Bridge Trust

Councillor P. Leaver – item 8, other registerable interest as a named officer of the North Devon Liberal Democrats

Councillor P. Leaver – item 9, non registerable interest as one of his company’s clients Bridge Trust would be a beneficiary of the grant and his company may also benefit as a result of the grant.

Councillor P. Leaver – item 10, other registerable interest as a member of Barnstaple Town Council.

Councillor Prowse – item 9, other registerable interest as a Council appointed to the Bridge Trust and trustee.

Councillor Roome – item 8, other registerable interest as a Member of Devon County Council.

Councillor Roome – item 10, other registerable interest as knew James Brent the developer of the site in his former role as Chair of the NHS Trust

Councillor Roome – item 12, other registerable interest as knew James Brent the developer of the site in his former role as Chair of the NHS Trust

Report by Director of Resources and Deputy Chief Executive (attached)

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding Performance and Financial Management Quarter 4 of 2022/23.

The Finance Manager highlighted the following:

·       The revenue budget for 2022/23 was approved at Council on 23rd February 2022 at £13,721,640.

·       As at 31 March 2023, it was pleasing to report that the final out turn position was a budget surplus of £693,000, which was an overall movement of £674,000 from the last forecast at Quarter 3. The breakdown showing these movements were shown Appendix A – “Variations in the Revenue Budget”.

·       The movement from Quarter 3 of £674,000 can be mainly attributed to adverse and favourable variances as outlined in paragraph 4.1.4 of the report.

·       The cost of living pressures with double digit inflation continuing for the whole of 2022/23, peaking at 14.2% in October 2022 and still near that peak at the end of the March 2023 at 13.5%, resulted in the Council utilising fully the £936,000 budget management reserve in 2022/23. Due to the favourable variances and a transfer in year from the Collection fund reserve the reserve had been replenished to a balance of £815,000 to provide resilience to similar inflationary pressures during 2023/24.

·       Members approved in June 2021 to proceed with the acquisition of Green Lanes Shopping Centre; which the Council completed the purchase in November 2021. The purchase of Green Lanes Shopping Centre was a once in a lifetime opportunity to acquire this strategic asset and complement other significant regeneration improvements being delivered within the Barnstaple town centre through the Future High Streets project. The financial modelling demonstrated that revenue income generated from the centre would cover both the repayment of the loan and asset management costs and would return a contribution to the Council which could be used towards mitigating future risks on income volatility, investment back into the centre and the overarching council budget.

·       From the revenue budget surplus of £693,000, it was proposed to set aside the amount into the following earmarked reserves:

Office Technology £120,000 – to fund capital business case

Repairs Fund £214,000 – to fund capital business cases

Budget Management £279,000 – mitigate 2023/24 inflationary pressures

Insurance Reserve £80,000 – mitigate 2023/24 higher insurance costs

·        At the 31 March 2023 total external borrowing was £3,000,000. The timing of any future borrowing was dependent on how the authority managed its treasury activity and due to previously unprecedented low interest rates and reduced returns on investments it was prudent for the Council to ‘internally borrow’ and use these monies to fund the Capital Programme. This had resulted in a £275,000 reduction in loan interest payments and an increase in interest receivable of £266,000 in 2022/23. £275,000 has been placed into a new Treasury Management reserve to mitigate against higher interest rates as we move into the 2023/24 financial year.

·        Appendix B detailed the “Movement in reserves and Balances” to and from earmarked reserves in 2022/23.

·        Appendix C detailed the “Strategic Contingency Reserve movements and commitments”.  ...  view the full minutes text for item 16.

Report by Director of Resources and Deputy Chief Executive (attached)

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Annual Treasury Management report 2022/23.

The Head of Governance highlighted the following:

·       This report outlined the actual prudential and treasury indicators for 2022/23.

·       The Council’s Capital Financial Requirement (CFR) for the year was detailed in the table on page 83 of the report and was circa £24m which included the finance leasing of vehicles.

·       A large capital programme during 2021/22 including the new Leisure Centre and purchase of Green Lanes Shopping Centre resulted in an increased CFR of circa £17m for that financial year. For 2022/23 a further £2.2m was added to our CFR which included the completion of the Leisure Centre build.

·       In relation to borrowing outturn, the 2022/23 original budget prudently assumed a level of new external borrowing would be required to fund approved capital expenditure. As a result of lower spend and less external borrowing taken on, interest paid was much lower at £60,363 for the year, with the remaining budget of £275,000 now placed into a new Treasury Management reserve to help mitigate against higher borrowing costs as we move into the 2023/24 financial year.

·       The average borrowing rate for year on borrowing loans was 2.01%.

·       In terms of investments the increase in bank rate had assisted to improve investment returns for the year with total interest of £290,000 received compared to the original budget £35,000.

·       The average rate of return on investment was 1.5% compared to the bench mark of 2.2% which closely tracked to the bank rate.

In response to a question, the Head of Governance advised the following:

·       In terms of borrowing from internal reserves. There would have been a cost to carry as borrowing was much higher than the Council would receive in terms of interest.  This decision had been made following advice received from its treasury advisors.

·       Internal and external borrowing would be kept under review.

RECOMMENDED:

(a)  That the annual treasury management report for 2022/23 be noted;

(b)  That the actual 2022/23 prudential and treasury indicators be approved.

Report by Head of Place, Property and Regeneration (attached).

The Committee considered a report by the Head of Place, Property and Regeneration (circulated previously) regarding the Future High Streets Fund: Butchers Row/Cross Street.

The Head of Place, Property and Regeneration highlighted the following:

·       The Future High Street Fund (FHSF) was a central government fund, administered by the Ministry of Housing Communities and Local Government (MHCLG) (now DHLUC) that seeks to support, renew and reshape high streets in a way that drives growth, improves experience and ensures future sustainability.

·       The approved project for FHSF was focusing on 4 interventions: The Pannier Market/Guildhall and Former abattoir, The acquisition and rejuvenation of 36/37a Boutport Street, The access and reconfiguration of Queen Street/Bear Street car park and - Pedestrianisation (10am – 4pm) and public realm improvements to Butchers Row and Cross Street.

·       This report focussed on the intervention at Butchers Row/Cross Street. This was a scheme to pedestrianise Butchers Row and Cross Street between 10am and 4pm and provide an improved public realm through those streets, linking the investment at 36/37 Boutport Street with the riverfront.

·       As one of the four interventions being progressed as part of the Future High Street Fund project, the pedestrianisation of Butchers Row and Cross Street from 10am to 4pm and the public realm improvements were seen as a key enhancement of the town; both to improve the visual amenities of the locality, allow for businesses to spill out onto the street and to connect Boutport Street via the High Street to the river.

·       It was anticipated that the pedestrianisation of Butchers Row and Cross Street would enable people to move freely from Queen Street car park, into the ‘Market Quarter’ and an improved direct pedestrianised route to the river frontage, an underused and neglected part of the town running parallel to the High Street. This would prompt the regeneration of this part of the town by increasing footfall and giving confidence to private sector investors and partners to bring forward the delivery of complementary projects set out in the Vision for Barnstaple. The Council had since been successful with the Cultural Development Fund, which will further enhance this, seeing the refurbishment of Bridge Chambers, an anchor building on the river frontage.

·       A permanent traffic order has been secured for the pedestrianisation of Butchers Row and Cross Street between 10am and 4pm already and this part of the project has been implemented.

·       The design team have produced a design to RIBA Stage 3 for public realm improvements to Butchers Row and Cross Street, which show a level surface across both streets and the interconnecting element of the high street. The current scheme was included as Appendix A to the report.

·       The scheme has had many challenges, not least providing an affordable scheme that minimises maintenance going forward.

·       Iterations of the scheme have been presented to the Barnstaple Regeneration Board, Butchers Row and Cross Street tenants/owners and Devon County Council as Highways Authority and more recently to the local U3A accessibility group and the South West branch of the  ...  view the full minutes text for item 18.

Report by Head of Place, Property and Regeneration (attached).

Councillor P Leaver declared a non registerable interest and left the room during the consideration of this item.

The Head of Place, Property and Regeneration highlighted the following:

·       The Northern Devon Cultural Strategy: Flourishing Culture was adopted in 2022.

·       To help support the delivery of the Cultural Strategy, external funding was identified through the Cultural Development Fund. An Expression of Interest was submitted in July 2022 and following shortlisting the Council were successful in proceeding to the full application stage. A full bid was prepared and submitted with supporting evidence in November 2022. At the end of March 2023, the Council were informed of their successful funding bid and awarded £3,000,000, alongside its secured match funding of £650,000 to deliver a range of capital and revenue projects across Barnstaple.

·       Following a successful two stage funding bid, led by the Culture Manager; Alison Mills, North Devon Council were awarded £3 million to deliver a range of capital and revenue projects to aid implementation of the Culture Strategy.

·       This “Flourishing Barnstaple” project combined capital investment with activity to re-establish our historic town as the beating cultural heart of northern Devon. The fund will invest in two historic buildings, our townscape, people and organisations to support our creative industries, strengthen our partnerships and make the town a great place in which to live, work, visit and invest.

·       The award funded the interventions as detailed in paragraph 4.3 of the report.

·       The fund was supplemented by £150,000 match funding from the Bridge Trust and £500,000 from North Devon Council (the latter was money that North Devon Council have already agreed as part of the Future High Street Fund programme at Boutport Street).

·       The fund must be spent by March 2026.

·       The internal project team had now been set up and would be managed by Alison Mills; Culture manager. An inception meeting with the Arts Council had now taken place on 23 June 2023 and this included our partners for this project; The Barnstaple Bridge Trust, Barnstaple Town Council, Beaford Arts and Petroc, who will all be instrumental in its delivery. A Partnership Agreement would be entered into with all partners, committing to working together and the outcomes of this project.

In response to questions, the Head of Place, Property and Regeneration advised the following:

·       Beaford Arts would be a conduit for the delivery of Bridge Chambers element of the project as a key tenant and ensure that the Barnstaple Bridge buildings would be used for broader purposes and available to the public to utilise.

·       Tenants had not yet been secured for the 36/37a Boutport Street scheme. 

RESOLVED:

(a)           That the award of the Fund and the projects that would be delivered be noted;

(b)           That authority be delegated to the Head of Place, Property and Regeneration and the Director of Resources and Deputy Chief Executive to enter into such agreements with the Arts Council and partnership agreements with the Bridge Trust in relation to this project;

(c)           That the Cultural Manager be thanked for  ...  view the full minutes text for item 19.

Report by Head of Place, Property and Regeneration (attached).

The Committee considered a report by the Head of Place, Property and Regeneration (circulated previously) regarding an update on the Seven Brethren project, land release fund.

The Head of Place, Property and Regeneration highlighted the following:

·       In November 2017 North Devon Council (NDC) were awarded £2.2 million of Land Release Fund to help bring forward residential development at Seven Brethren. This fund was a government initiative to assist in unlocking public sector sites and accelerating the delivery of housing.

·       Hybrid planning permission for the provision of a replacement long stay car park and temporary toleration site (detailed) and for 180 dwellings together with all associated infrastructure (outline) was granted on the 15 November 2022.

·       On the 7 December 2022, NDC entered into a Development Agreement with Tarka Living Ltd to deliver both the enabling works and the delivery of between 175 and 180 homes.

·       The site for the residential development comprises the old leisure centre site, events area, existing toleration site and the Tarka overflow car park.

·       The new long stay car park would be sited adjacent the Artificial Grass pitches to the rear of the Tarka Leisure Centre.

·       The enabling works constitute the demolition of the old leisure centre, provision of the new long stay car park and temporary toleration site and the erection of flood defences along the river Taw. The flood defences take the form of a wall tying in to the existing long bridge and then a bund to the new leisure centre. The majority of these defences were those required as a result of the Anchorwood development but were also needed to bring this site forward for housing. There was a contribution from the Anchorwood development that would be used towards the delivery of these defences.

·       The Development Agreement that was entered into in December was conditional and there were 3 conditions attached, as detailed in paragraph 4.5 of the report.

·       On the 28 February 2023 a reserved matters application was submitted to the Local Planning Authority in the joint names of Tarka Living Ltd and North Devon Council.

·       A plan has been received identifying the location of the 30% affordable housing and the tenure split.

·       Evidence of agreed Heads of Terms with Live West (the identified social provider) had been provided.

·       Following compliance with these conditions, the Agreement went unconditional on the 28 February 2023. For the terms of the funding agreement with Central Government this met the definition of ‘land released’ and within their agreed programme.

·       The first lease was then granted 20 working days after the unconditional agreement. The first lease constituted the old leisure centre and short stay car park. The first payment to the Council was also received.

·       Prior to the commencement of the enabling works the Development Agreement required a Compliance Inspector to be appointed for the enabling works and evidence of funding to be provided. This was provided and agreed in advance of the enabling works start date of the 28 March 2023.

·       The enabling works  ...  view the full minutes text for item 20.

RECOMMENDED:

(a)  That under section 100A (4) of the Local Government Act 1972, the public and press be excluded from the meeting for the item “A Housing Management Company” as Appendix A of the report involves the disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Act (as amended from time to time), namely information relating to the financial or business affairs of any particular person (including the authority holding that information).

(b)  That all documents and reports relating to the item be confirmed as “Not for Publication”.

RESOLVED:

(a)   That under section 100A (4) of the Local Government Act 1972, the public and press be excluded from the meeting for the item as it involved the disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Act (as amended from time to time), namely information relating to the financial or business affairs of any particular person (including the authority holding that information).

(b)  That all documents and reports relating to the item be confirmed as “Not for Publication”.

Report by Director of Resources and Deputy Chief Executive (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding environmental insurance in relation to the Seven Brethren development.

The Director of Resources and Deputy Chief Executive outlined the report and answered questions raised by the Committee.

RESOLVED that:

(a)  That the Council take out an additional 10 year wider site environmental insurance policy that covers the authority over and above a contractor pollution liability policy that the developer was already responsible for providing.

(b)  The additional environmental insurance policy be funded as set out in section 5.6 of the report.