Decision details

Cabinet will be asked to agree the updated business plan for Mercury Land Holdings for 2022/23, including scheme budgets.

Cabinet approved the Mercury Land Holdings (MLH) Business Plan and Budget Update 2023-2026.

1.       Approved the Mercury Land Holdings Limited Business Plan 2023 to 2026 (see Exempt Appendix 3).

2.       Agreed to delegate authority to the Cabinet Member for Development & Regeneration, in consultation with the S151 Officer, the Strategic Director of Place and the Deputy Director of Legal and Governance, to approve the detailed business cases, related viability assessments and funding requirements for the individual schemes noted within the Business Plan as they may be presented during the business plan period, including the authority to enter into all relevant agreements to give effect to the schemes.

3.       Agreed that the previously allocated funding in the November 2019  Business Plan to MLH, up to a maximum of £228.4 million, is reallocated to updated projects in the Exempt Agenda, through a combination of equity investment and Subsidy Control compliant loans.  Note that the individual schemes are subject to detailed business cases to be approved under delegated authority, as set out in Recommendation 2.

4.       Authorised additional capital funding of £42.7million for Mercury Land Holdings Limited, via the 2024/25 budget cycle, in order to fully fund the MLH Business Plan.

5.       Agreed to delegate to the S151 Officer, in consultation with the Director of Asset Management, and the Deputy Director of Legal and Governance, the authority to determine the principles and processes by which any assets shall be disposed of and the terms of disposal to MLH.

6.       Agreed to increase the MLH Working Capital Facility by £2m and to extend the term for a period of up 5 years, as appropriate, commencing January 2024, and to delegate authority to the S151 Officer, in consultation with the Strategic Director Place and the Deputy Director of Legal & Governance to enter into the relevant agreements to give effect to this decision.

7.       Agreed that the Cabinet Member for Development & Regeneration will replace the Leader at MLH shareholder meetings, including the MLH AGM, as appropriate.