Issue - meetings

David Mathews (Land and Property Programme Manager) to present the report.

·         To agree in principle to the change request for the grant recipient for the Former North Wales Hospital project.

·         To delegate the power to the Portfolio Director in consultation with the Chair, Vice Chair, Section 151 Officer and Monitoring Officer to agree the detail of the change requests including any further amendments that may be requied to complete and enter into the Grant Funding Agreement.

The report was submitted by the Land and Property Programme Manager.

RESOLVED

·       To agree in principle to the change request for the grant recipient for the Former North Wales Hospital project 

·       To delegate the power to the Portfolio Director in consultation with the Chair, Vice Chair, Section 151 Officer and Monitoring Officer to agree the detail of the change requests including any further amendments that may be required to complete and enter into the Grant Funding Agreement.

REASONS FOR THE DECISION

The Full Business Case (FBC) for this Project was prepared on behalf of Jones Bros Ruthin (Civil Engineering) Co. Ltd and approved by the Board on 17 May 2024.

The Full Business Case stated that ‘Jones Bros Ruthin (Civil Engineering) Co. Ltd will be contracting this project through its holding company - Jones Bros Ruthin Development Holdings Ltd’.

Initial negotiations identified that Jones Bros Ruthin (Civil Engineering) Co. Ltd was not to be a party to any contractual documents relating to the project.  Consequently, NWH Ltd were introduced by Jones Bros Ruthin (Civil Engineering) Co. ⁠Ltd as the proposed new grant recipient and Special Purpose Vehicle for the project with Jones Bros Ruthin Development Holdings Ltd company acting as the guarantor.

DISCUSSION

The Monitoring Officer confirmed that this modification was highly technical as it stemmed from how companies were structured. It was emphasised that the risks arising in changing a company in an agreement of this nature had been addressed in full by the fact that the guarantor was a proper and substantial company. It was explained that allowing this change allowed the project to reach the process of developing a Funding Agreement as the Full Business Case had already been approved. It was confirmed that the companies had been named parties on the Development Agreement granted by Denbighshire County Council to NWH Ltd.