Decision details

To report progress made in relation to the regeneration of Woking Town centre undertaken under Joint Venture arrangements with Woking Borough Council

Part 2

The Cabinet Member for Business Services reminded Cabinet that in September 2012, it agreed that Surrey County Council (SCC) would participate in a Joint Venture Company, Bandstand Square Developments Ltd, with Woking Borough Council (WBC) and Moyallen Ltd to regenerate Woking Town Centre. 

SCC’s and WBC’s participation was in the form of development loan funding to the Joint Venture to deliver the first phase of the project.  However, the Joint Venture company has now approached SCC and WBC for additional funding, to be provided equally and on the same terms as the original loan facility, to complete Phase 1.  Additional funds were required primarily as a result of increased land acquisition costs to provide the replacement Fire Station in the town.

RESOLVED:

1.         That the increase in the Phase 1 loan funding provided to Bandstand Square Developments Ltd, as set out in the submitted report, be approved.

2.         That the Strategic Director for Business Services, in consultation with the S151 officer, be authorised to approve appropriate contractual amendments to extend the loan facility.

Reasons for Decisions:

The increase in the loan facility provided by SCC is required in order to fully complete Phase 1 of the Woking regeneration project.  The first phase of the project will deliver the land acquisition required for the development, all necessary planning consents and the construction of a new Fire Station to enable relocation from the existing site.

The full project will deliver a large scale regeneration of the town centre, improving the long-term viability of the existing retail offer in the town. 

SCC’s financing costs associated with providing the Phase 1 loan facility will be offset by interest payments received from the Joint Venture.