Minutes:
Not for publication – exempt information as defined in paragraph 41 (Information provided in confidence relating to contracts) of the Freedom of Information Act 2000. It is considered that in all the circumstances of the case the public interest in maintaining the exemption outweighs the public interest in disclosing the information.
Ms Molloy updated the Committee on developments since the last meeting in relation to Lancaster University’s Health Innovation Campus (HIC) project and reported that the independent consultant had confirmed all the outstanding technical matters discussed at the previous meeting had been addressed.
The Committee discussed the funding required for the project and was informed that Lancaster University had provided a detailed funding profile which included elements of Growth Deal funding, European Structural and Investment funding, (ESIF) Higher Education Investment Funds and investment by the University.
It was noted that the funding profile provided by the University would be circulated to members of the Committee for consideration and approval prior to the LEP Board on the 8th November 2016.
In considering the report the Committee recognised it was proposed that any Growth Deal Grant Funding Agreement would provide for a limited amount of grant to be made available for draw down prior to ESIF (or alternative equivalent funding) being secured. Such funding would be matched by Lancaster University and would enable early development works to take place ahead of a formal decision being made in relation to ESIF funding.
With regard to the remainder of the Growth Deal funding required the Committee was informed that funds would only be released for draw down once the whole of the funding package had been secured. It was noted that in the event of ESIF or alternative funding not being secured the University would be required to repay any grant funding which had been drawn down and the remaining allocation would lapse.
The Committee also noted that the LEP Board on the 13th September 2016 had agreed to lobby Government regarding uncertainty surrounding ESIF and its impact on projects such as the HIC.
Having considered the report the Committee concluded that as all technical matters had been satisfactorily addressed and measures would be implemented to minimise risk associated with the project, together with the work being undertaken to lobby Government on ESIF funding the LEP Board should be recommended to approve funding for the HIC project at the meeting on the 8th November 2016.
Resolved:
1. That the LEP Board be recommended to agree a funding approval of up to £17m for the Lancaster Health Innovation Campus (HIC) Project, subject to Lancaster University identifying alternative sources of funding or exploring the possibility of scaling down or re-phasing the project in the event that European Structural and Investment Funds (ESIF) are unavailable;
2. That approval be given to an initial drawdown of a maximum of £1.5m of Growth Deal funding, prior to ESIF or alternative funding having been secured, which will be subject to clawback provisions in the Grant Funding Agreement;
3. That in the event of further clarity regarding secured funding for the project not being provided by the end of Quarter 1 the Committee will undertake a review of the project and inform the LEP Board of its findings.
4. That the Committee receive further updates in relation to any requirements for the clawback of Growth Deal funding or the scaling down/re-phasing of the project in the event that reduced funding is secured.
5. That the Committee receive an update on the HIC project at each future meeting.