URL: https://northumberland.moderngov.co.uk/ieDecisionDetails.aspx?ID=439

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: In accordance with the Energising Blyth Programme - Local Assurance Framework, the report seeks the approval of the Full Business Case (FBC) for the Energy Central Campus Phase 2: Energy Central Institute.

Content: RESOLVED that:-   Where NCC is a member of Energy Central Campus Limited (ECC Ltd) and is acting as guarantor to the NECA/ECC Ltd Grant Funding Agreement, Cabinet agrees to : 3.1.1  Amend the delegation granted by Cabinet on 11th February 2025 (as set out in the report dated 11.02.2025) to read: Vary the existing Members & Framework Agreement to reflect NCC’s role as contracting authority for the capital build, to confirm reimbursement arrangements up to the value of the NECA capital grant, and to incorporate VAT related provisions including NCC’s option to tax, the VAT treatment of NCC funded works, VAT inclusive invoicing, and ECC Ltd’s need for sufficient cashflow to meet VAT obligations prior to reimbursement; and to set out clear responsibilities for the delivery of outputs and outcomes required by all GFAs. 3.1.2  Delegate authority to the Executive Director for Place & Regeneration, in consultation with the Executive Director of Transformation and Resources, subject to subsidy control compliance, to enter into an unsecured Facility Agreement or such amendments to the Members & Framework Agreement as may be appropriate to provide funds to ECC Ltd up to a maximum sum of £200,000 (an increase from £100,000 in the current Members & Framework Agreement) to be funded from the Regeneration Reserve Development Fund (RRDF), subject to equal value facility agreement being made by the other two founding partners of ECC Ltd. Where NCC is the applicant and Grant Funding Recipient for FHSF and Town Deal capital funding Cabinet agrees to: 3.2.1     Delegate authority to the Executive Director for Place & Regeneration, in consultation with the Executive Director of Transformation and Resources and the Deputy Leader as Portfolio Holder to enter into a Grant Funding Agreement between Northumberland County Council as the Grant Funding Recipient and Northumberland County Council as NCC Accountable Body. 3.2.2     Delegate authority to the Executive Director for Place & Regeneration in consultation with the Executive Director of Transformation and Resources and the Portfolio Holder, to enter into any contracts relating to the project subject to confirmation of associated funding being in place and the appropriate procurement processes being followed. 3.2.3  Delegate authority to the Executive Director for Place & Regeneration in consultation with the Executive Director of Transformation and Resources and the Portfolio Holder, to place early orders from April 2026 as detailed in the report up to the value of £2,182,400 under the existing Pre-Construction Services Agreement, but prior to entering into the main build contract with, Kier Construction Ltd (see paras 5.30-5.45 below) subject to appropriate procurement processes being followed. In relation to NCC as the Accountable Body for the Town Deal funding Cabinet agrees to: 3.3.1  Delegate authority, in accordance with the Local Assurance Framework, to the Executive Director of Transformation and Resources following consideration of the recommendation of the NCC Programme Board to approve the Full Business Case. This includes the updated total project cost of £24.869m as set out in table 3a with the funding available to meet those costs as identified in table 3b.   3.3.2  Delegate authority to the Executive Director of Transformation and Resources to enter into a Grant Funding Agreement between Northumberland County Council as the fund Accountable Body and Northumberland County Council as the applicant/funding recipient, subject to satisfactory appraisal and Subsidy Control compliance. In relation to NCC’s role as landowner and freeholder of Energy Central Institute, Cabinet agrees to:  3.4.1  Delegate authority to the Executive Director for Place & Regeneration to enter into, an agreement for lease and long lease arrangement with ECC Ltd for the land/building at nil consideration subject to compliance with the Local Government Act 1972, permitted use requirements and Subsidy Control advice. The terms of such lease ensure that NCC as recipient of grant funding is able to comply with the GFA conditions. 3.4.2  Approve updates to the capital programme as set out in table 3b including the reallocation of £3,879,164 NCC match fund currently allocated in the MTFP for a proposed hotel to ECI and an allocation of £1,000,000 from the Northumberland Growth Fund (NGF) in 2026/27 to the ECI.

Date of Decision: April 7, 2026