Agenda item

Report of the Director of Governance enclosed.

1. That Cabinet approves the granting of the loan of £150,000.00 and a Grant of £50,000.00 to the Trustees of the Hoole Village Memorial Hall;

2. That the Council’s interests be protected by way of a facility agreement and legal charge and a separate grant agreement;

3. That Cabinet approves the execution of the loan agreement, legal charge and grant agreement by the Director of Governance.

The Cabinet Member (Finance, Property and Assets) presented a report

of the Director of Governance requesting approval to release funds by way of a loan, charge and a grant to the Trustees of Hoole Village Memorial Hall to enable them to progress and complete their works project to the premises.

The report also requested that the execution of the loan, grant and legal charge is undertaken by the Director of Governance.

Councillors Michael Green and Clark requested information regarding the terms of the loan, i.e. rate of interest and the loan period respectively. The Chief Executive explained that the terms of loan agreement were not yet in the public domain, however it was agreed that all Members of Council would be provided with this information once the decision had been taken.

A question had been submitted by a resident from Much Hoole to the Cabinet Member (Finance, Property and Assets) as follows:

“I am a concerned Much Hoole Resident. Over the last few years I have seen the parish council regularly precepting / granting large sums of money to the Much Hoole Village Hall Building fund. (2017 - £43600; 2020 - £25000; 2021 - £25000). This is all with almost no publicity to the residents, who are paying for it. Although nothing has been agreed, I expect the parish council to be used to repay the South Ribble BC. loan.

Will you please clarify for me the repayment conditions you expect to be set by South Ribble Borough Council for the repayment of the loan, as I expect to be used to pay it?”

The Cabinet Member (Finance, Property and Assets) in his response clarified that the terms of the agreement between would become public knowledge once the decision had been taken. Until such time, he was unable to disclose details of the loan agreement. He also suggested that anyone with an issue with the Parish Council should raise it with them directly.

Members present expressed concerns regarding public questions where the person did not consent to their name being publicised and requested that the procedure be reviewed.

Decision made (unanimously):

1. That Cabinet approves the granting of the loan of £150,000.00 and a Grant of £50,000.00 to the Trustees of the Hoole Village Memorial Hall;

2. That the Council’s interests be protected by way of a facility agreement and legal charge and a separate grant agreement;

3. That Cabinet approves the execution of the loan agreement, legal charge and grant agreement by the Director of Governance.

Reasons for decision

The village hall trustees had previously approached the Council requesting financial support for the project to address their estimated funding shortfall, for the provision of a works project to the Village Hall.

A budget of £200,000 has been included in the Budget and Medium-Term Financial Strategy for this project. A due diligence process has been undertaken with regard to the provision of a loan. In order to protect the Council’s interest in the granting of the loan and Grant it is necessary to enter into certain documents with the Trust. The required agreements are a facility agreement which details the terms of the loan, a grant agreement which details the terms of the grant and a legal charge which secures the granting of the loan against the Hoole Village Memorial Hall.

Alternative options considered and rejected

The Cabinet could have chosen to do nothing in this regard. However, it was not considered that this was in the best interests of the residents of Much Hoole.