Issue - items at meetings - Brighton Open Market CIC Loan Request

Report of the Acting Executive Director for Environment, Development & Housing (to follow).

1)        That the Committee agree to make available a loan of £61,000 to the Brighton Open Market CIC to allow it to continue trading and implement its Recovery Plan as discussed below in paragraphs 4.4 and 4.8 and attached at Appendix 1.

2)        That the Committee grant delegated authority to the Executive Director Environment, Development & Housing and Executive Director Finance & Resources to agree the Recovery Plan with Brighton Open Market CIC prior to releasing the requested loan and authorises the Head of Legal Services to complete all of the required documentation.

3)        That Officers ensure that business is sought and involved in acting the recovery plan, and that a monitoring report is brought to the Committee by the end of the financial year.

68.1       The Committee considered a report of the Acting Executive Director for Environment, Development & Housing in relation to Brighton Open Markey Community Interest Company (CIC) Loan Request. The report sought to delegate authority to the Executive Director for Environment, Development & Housing and the Executive Director for Finance & Resources to agree a loan of £61,000 to the CIC to address cash flow difficulties until it moved into profit; the loan would not be granted until a recovery plan had been agreed with the Executive Directors and the Monitoring Officer would be authorised to complete all necessary documentation.

68.2       The Chair noted that the agreement of the loan had been deferred from the previous meeting of the Committee in October following a request for a full report to be brought to this meeting.

68.3       Councillor Bewick proposed an additional recommendation to request Officers ensure business advice was sought and involved in actING the recovery plan, and that a monitoring report be brought back to the Committee at the end of the financial year.

68.4       The Chair then put the proposed Labour & Co-Operative amendment to the vote from Councillor Bewick. This was carried.

68.5       In response to questions from Councillor Miller the Acting Executive Director for Environment, Development & Housing explained that the business plan sought to address the problems this financial year and ensure actions were taken now to reach a stable cash flow situation.

68.6       Councillor Sykes noted his support for the report, but requested assurance in relation to the level of risk involved.

68.7       Councillor Wealls noted that that additional financial information could have been provided to the Committee in Part Two, as the Committee had little information on the profitability of the market, he noted that it would be the position of the Conservative Group to abstain without this level of detail. The Monitoring Officer confirmed that the report only sought delegated authority to grant the loan once Officers were of the view that this was in the best interest of the Council.

68.8       Councillor Mac Cafferty noted his concerns with the recovery plan, and stated that there should be some wording in the plan to asking the CIC to review its relationship with the traders; given the concerns that had been expressed in their deputation to the October meeting of the Committee. Councillor Mac Cafferty also queried if there was sufficient in-house expertise to prevent the potential need of hiring a consultant to better manage business rates.

68.9       Councillor A. Norman noted her observations of the site as a shopper stating that more needed to be done to increase footfall, as well as improving the general atmosphere of the market.

68.10    Councillor Allen addressed the Committee at the discretion of the Chair as a Board member of the Open Market CIC; he provided some context and information on the events had lead up to the request for a loan. Councillor Allen stated his view that moves had been made towards being more open, and added that the recruitment of additional independent directors was crucial. He asked that the Committee agree to grant delegated authority for the loan to be agreed.

68.11    The Chair then put the amended recommendations to the vote:

68.12      RESOLVED:

1)        That the Committee agree to make available a loan of £61,000 to the Brighton Open Market CIC to allow it to continue trading and implement its Recovery Plan as discussed below in paragraphs 4.4 and 4.8 and attached at Appendix 1.

2)        That the Committee grant delegated authority to the Executive Director Environment, Development & Housing and Executive Director Finance & Resources to agree the Recovery Plan with Brighton Open Market CIC prior to releasing the requested loan and authorises the Head of Legal Services to complete all of the required documentation.

3)        That Officers ensure that business is sought and involved in acting the recovery plan, and that a monitoring report is brought to the Committee by the end of the financial year.