Decision details

The Council is the Limited Partner of the SCR JESSICA Fund and under the terms of the Limited Partnership Agreement the Fund is required to secure Council approval for certain operational matters including securing additional funding and variations to the Investment Strategy.

This proposal is to secure Council approval for the SCR JESSICA Fund to enter into two Funding Agreements with the SCR Combined Authority with a combined value of up to £15m and thereafter invest in commercial property development across the Sheffield City Region for the benefit of the economy. In addition the proposal seeks an amendment to the Investment Strategy of the Fund to enable a more flexible approach to investment.

That the Chief Executive, in consultation with the Cabinet Member for Business and Economy, the Cabinet Member for Finance and Resources, the Acting Executive Director, Resources and the Director of Legal and Governance approves:

(i) The amendment of the Principles of the Investment Strategy; and

(ii) The General Partner of the SCR JESSICA entering into Grant Agreements with the SCR Combined Authority for £5m in respect to development in the SCR Enterprise Zone and up to £10m for investment across the whole SCR together with the associated Investment Strategies.

The underlying benefit of this proposal is to enable the SCR JESSICA to invest additional resources in the SCR Enterprise Zone and across the wider Sheffield City Region in a flexible manner. This will enable the Fund to consider development projects that are not progressing due to perceived lack of occupier demand or viability concerns. The additional grant funding will also enable the Fund to target strategic priorities identified in the Integrated Infrastructure Plan.

Additional funding in form of a loan to the Fund would not serve the purpose of facilitating developments that are not being brought forward due to concerns regarding occupier demand and/or financial viability.

The combined value of the two grants will be up to £15m. This is considered an appropriate level of funding to progress a number of developments across the Sheffield City Region. A smaller sum would limit the impact on the SCR economy.

Without amendments to the Investment Strategy the fund would not able to invest in the flexible manner required to stimulate and accelerate development.