Decision details

To consider potential investment in the delivery of the East Leeds Orbital Road and approve further work to progress due diligence and legal terms.

Further to minute 74 of the meeting held 21st October 2015, the Director of City Development submitted a report containing details of the Council’s efforts to source funding for the East Leeds Orbital Road. The report also provided information on an emerging proposal for private sector funding for the construction of the road.

The report provided background to the development of the initial proposal for Legal & General to provide equity investment, alongside public grant from the West Yorkshire Plus Transport Fund, to enable construction of ELOR by the Council.

Additionally, the report set out the range of issues to be further assessed and resolved, before decisions can be made as to whether the investment can be considered to be appropriate and commercially acceptable for all parties.

Responding to an enquiry, the Board received details of the proposed timescales regarding the establishment of the Orbital Road; and also received information on the development of the surrounding land.

Following the consideration of Appendix 2 to the submitted report, designated as exempt from publication under the provisions of Access to Information Procedure Rule 10.4 (3), which was considered in private at the conclusion of the meeting it was

RESOLVED -

a)  That the expression of investment interest from Legal & General in the East Leeds Orbital Road be noted and welcomed;

b)  That approval be given to the Director of City Development to lead further due diligence on the investment proposals and that discussions continue to take place with Legal & General on the matters set out in paras 3.18 – 3.23 of the submitted report;

c)  That the Director of City Development be requested to report back to Executive Board to provide assurances on risks and value for money to the Council relating to the investment and proposed Heads of Terms by September 2016;

d)  That agreement be given for the Council to continue to develop its baseline funding model for the East Leeds Orbital Road, as set out in paragraphs 2.12-2.14 of the submitted report, alongside any further discussions with Legal & General or other third party interests.

Briefings to the Leader of the Council and the Executive Member for Regeneration, Transport and Planning.

Leader of the Council and Executive Member for Regeneration, Transport and Planning