Agenda item

The report of the Chief Executive is attached.

The Leader of the Council, Councillor Robinson presented the report of the Chief Executive providing an update to Council on the Development Corporation.

Councillor Robinson outlined the dual purpose of the Development Corporation report, which sought to bring Council up to date on the development of the Corporation, and outlined recommendations to move forward. Council’s attention was drawn to a typographical error in the recommendations, where £300k should read £500k. The ambitions of the Development Corporation, which aimed to capitalise on the geographical relationship between East Midlands Airport, the proposed HS2 link at Toton and the soon to be decommissioned, power station at Ratcliffe-on-Soar were outlined.  The creation of 19,000 new jobs was highlighted, together with the potential for the Borough to be a leader in carbon neutral developments. Council was asked to note the business case for change contained within the report. The development of the site would be a long process, which would require legislation. In July 2020, the Secretary of State had confirmed support for the creation of an Interim Vehicle to manage the change. This report sought Council’s agreement to the creation of that Interim Vehicle.  Councillor Robinson informed Council that the Interim Vehicle would be operational from January 2021, and that the funding mentioned in the report would cover a period of three years and included hiring a programme team, a master-planning exercise and the delivery of the business case. Councillors were reminded that the existing power station site was a vital, strategic site and a very visible site within the Borough.

Councillor Edyvean seconded the recommendations in the report and reserved the right to speak.

Councillor J Walker noted the progress that has been made on this project since the last update to Council. She conveyed that the Labour Group recognised the need for financial support but expressed their reservations about many of the proposed developments and asked whether they were really being undertaken with the best interests of Rushcliffe residents in mind. Concerns were expressed over the recent coverage in the press that HS2 would no longer reach as far as Toton, the ‘gimicky’ nature of the zero-carbon research centre, and that the government might still change the nature of its support for this project. However, Council was advised that despite her reservations, she still considered that it was more important to have a seat at the table than the alternative. Council was reminded of the opportunity presented by this project to create a sustainable future for the site but asked Councillor Robinson to ensure this future was environmentally viable as well as bringing economic benefits to the Borough.

Councillor Major confirmed that the Liberal Democrat party was happy to support the proposals for the Interim Vehicle to oversee the significant redevelopment of this Borough landmark. She recognised that investment was needed to move the project forward but expressed concern that this was being taken from the Council’s Climate Change Fund and asked that alternative sources of funding be explored first. 

Councillor R Mallender stated that the Council was right to be ambitious and also right to be seeking housing and employment for the benefit of the Borough. He echoed Councillor Major’s concerns regarding the use of the Climate Change Fund and expressed concerns about the wider Freeport proposals. Councillor Mallender informed Council that he felt it was right to go forward with the proposals at this stage and that there would be opportunities to scrutinise progress in the future.  Councillor Mallender expressed concern for East Midlands airport becoming a 24-hour freight hub.  

Councillor Clarke advised Council that he believed the proposals contained within this report were vital for raising the profile of the East Midlands and would bring much needed investment to the Borough. The Development Corporation was a much broader proposal that just the future of the power station site in Ratcliffe-on-Soar, which would bring jobs and prosperity to the area. He concluded by asking the Council to put their trust in the Leader of the Council to fight for what was right for Rushcliffe. 

Councillor R Walker confirmed his full support for the generation of high quality and high-tech jobs and recognised that Rushcliffe alone could not bring about this change. However, he expressed concern about the involvement so far of the local communities that he represented, which would be most affected by this development and asked the Leader to think broadly about community engagement.

Councillor Gowland took the opportunity to reinforce the comments made by Councillor R Mallender in relation to the 24-hour freight hub.

Councillor Edyvean reminded Council that this was the start of a long process; the land was privately owned and therefore care had to be taken to engage the landowners in the process moving forward. The landowner working independently would not benefit the Borough and might lead to a derelict site in the Borough for years to come. Councillor Edyvean informed all Councillors that the local universities were involved in the zero carbon future site and that the whole project brought together the right people from all quarters.  Councillor Edyvean also confirmed that East Midlands airport was presently a 24-hour freight hub.

Councillor Gaunt clarified the position of the Labour Group with regard to the proposals.

Councillor Robinson thanked Councillor Gaunt for his clarification and reminded Councillors that this was an incredible opportunity for the Borough, with the potential to deliver thousands of high-quality jobs, environmental change and a pioneering centre of excellence. He outlined the different ways in which this project would be monitored by the Borough Council including the Cabinet led member working group, the option to scrutinise in the future and the fact that all major decisions would come through Council and Cabinet. Tribute was paid to Uniper, who owned the site, for their commitment to the project so far and Councillor Robinson informed Councillors that he had been told to expect an announcement about HS2 in the next few weeks. Councillor R Walker was thanked for his comments about the importance of community involvement and undertook to consider those further. He concluded by reminding Council that the involvement of the Borough Council in this project was a huge opportunity and asked for the backing of the whole Council in carrying the recommendations forward.

It was RESOLVED that:

a)     the progress made to date of the East Midlands Development Corporation Programme, towards the establishment of an Interim Vehicle was noted;

b)     the principle of a financial contribution to support the Interim Vehicle over the next three years in the sum of £500,000, subject to match funding from other affected local authorities and Government. The funding arrangements to be included within the Medium Term Financial Strategy for 2021/22 onwards and funding will be allocated over the course of the three years be approved;

c)      the Members’ Agreement and participation in the incorporation of the Interim Vehicle Company Limited by Guarantee be approved, and authority to the Leader and Chief Executive for agreeing the final form of the Members’ Agreement and Articles of Association be approved in principle; and

d)     the Leader of the Council be nominated as Director of the Interim Vehicle.