Agenda item

Consider report by Executive Director.  (Copy attached.)

With reference to paragraph 26 of the private Appendix to the Minute of 29 June 2016, there had been circulated copies of a report by the Executive Director providing an update on the overall composition of the City Deal, including both Governments’ financial offer and the Heads of Terms document signed in July and seeking authority to progress and implement the Edinburgh and South East Scotland City Region Deal through the establishment of a Joint Committee, and to delegate authority to the Chief Executive, in consultation with the Leader, to enter into a minute of agreement.  The report explained that the Terms of Reference for a Deal were agreed in March 2016, Heads of Terms, as contained in Appendix 1 to the report, were received by partners from the Governments on 19 July 2017 and authority was granted to the Leader to sign the Heads of Terms of Agreement through an Emergency Powers Report on 19 July 2017.  The specific financial offer in the City Deal for Scottish Borders amounted to £15m (against an “ask” of £26.9M), mainly to be used for development of the Business Park at Tweedbank/Lowood.  The overall costs of delivering the Tweedbank/Lowood project were estimated to be in the region of £58m.  The funding commitment approved by the Council in the capital programme was currently £5m over 2017/18 and 2018/19, with a further £1.7m being provided by Scottish Enterprise towards the development of business infrastructure.  Commercial rents and contributions of £10.6m were assumed as part of the funding package.  This indicated a current shortfall in capital funding of £25.7m to deliver the full project.  Members noted that further details on the proposals would be provided at the special Council meeting on 30 November 2017.

DECISION

(a)     NOTED the Heads of Terms of Agreement contained in Appendix 1 to the report.

(b)     AGREED:-

          (i)      to establish a Joint Committee under Section 57 of the Local Government (Scotland) Act 1973 with City of Edinburgh, East Lothian, Fife, Midlothian, and West Lothian Councils, representatives from the higher education and further education sector, and business to oversee the governance arrangements for the Edinburgh and South East of Scotland City Region Deal;

          (ii)     the arrangements that would inform the proposed Minute of Agreement establishing the Joint Committee as detailed in Appendix 2 to the report;

          (iii)    that the Leader of the Council be appointed to represent the Council on the Joint Committee;

          (iv)    to delegate authority to the Chief Executive, in consultation with the Leader of the Council, to negotiate and agree the final Minute of Agreement (the draft contained in Appendix 3 to the report) establishing the Joint Committee, in line with the principles stated in Appendix 2 to the report, and any financial and resource contributions, if they were required; and

          (v)     that updates would be provided to the Economic Development themed meetings of Executive on an ongoing basis on progress with the implementation of the Edinburgh and South East of Scotland City Region Deal.

MEMBER

Councillor Turnbull joined the meeting during consideration of the above item.