That Cabinet recommends that Council:

1. Approve the Investment case for the i9 office development at Wolverhampton Interchange.

2. Authorise the allocation of up to £13 million capital investment by way of prudential borrowing to forward purchase the i9 office development.

3. Approve the proposal to declare the Council’s land holdings at Railway Street car park as surplus to requirements to enable the office development.

4. Approve the Council granting a headlease to ION and the grant of an underlease from ION to the Council.

5. Approve delegation to the Cabinet Members for City Economy and Resources, in consultation with the Strategic Director for Place and Director of Finance for: -

i. The appointment of ION (being the developer under the Master Development

Agreement or their subsidiary) as developer to deliver the scheme;

ii. The entering into various legal agreements with ION including Funding/ Phase Agreements, collateral warranties, supplemental agreement to the Master Development Agreement for the Interchange, headlease, underlease, and any other ancillary documentation necessary in order to give effect to the recommendations in this report;

iii. Participating in the process for ION to procure and appoint a contractor to build i9;

iv. The approval of terms for lettings with occupiers;

v. The application for, and granting of, relevant licences to enable the construction of i9;

vi. Approval of the terms for the headlease to ION and the underlease to the Council subject to advice from Corporate Landlord;

vii. The Council establishing an investment company to hold the asset if this proves to be a preferential option.

6. Approve the use of the Council’s powers under s.247 of the Town and Country Planning Act 1990 to stop up parts of the highway at Railway Street to enable development.

7. Agree to receive a further report regarding the appropriation of the development site for planning purposes (if appropriation is required).

That Cabinet recommends that Council notes:

1. That an application has been submitted by ION Developments Ltd to the Black Country Local Enterprise Partnership (LEP) for capital support from the Land and Property Investment Fund (LPIF) by way of a grant.

2. The investment case is subject to/ conditional on LEP board approval for the full business case/ economic appraisal and award of the grant. The funding bid has not yet been formally determined.

3. That the maximum capital investment sum in the forward purchase of i9 is £13 million.

4. That discussions and negotiations with potential office occupiers will be intensified once the Council has committed to invest in the forward purchase of i9 and LEP board have approved the full business case.

Councillor John Reynolds presented the i9 Office Development – Investment Case for approval and recommendation to Council. The report outlined the case for the Council investment in the purchasing of the i9 building as the next phase of the Wolverhampton Interchange project, following the success of i10.

A corresponding exempt report detailing confidential aspects of the business case was also submitted to the meeting for consideration.

Resolved that Cabinet recommends that Council:

1. Approve the Investment case for the i9 office development at Wolverhampton Interchange.

2. Authorise the allocation of up to £13 million capital investment by way of prudential borrowing to forward purchase the i9 office development.

3. Approve the proposal to declare the Council’s land holdings at Railway Street car park as surplus to requirements to enable the office development.

4. Approve the Council granting a headlease to ION and the grant of an underlease from ION to the Council.

5. Approve delegation to the Cabinet Members for City Economy and Resources, in consultation with the Strategic Director for Place and Director of Finance for: -

i. The appointment of ION (being the developer under the Master Development Agreement or their subsidiary) as developer to deliver the scheme;

ii. The entering into various legal agreements with ION including Funding/ Phase Agreements, collateral warranties, supplemental agreement to the Master Development Agreement for the Interchange, headlease, underlease, and any other ancillary documentation necessary in order to give effect to the recommendations in this report;

iii. Participating in the process for ION to procure and appoint a contractor to build i9;

iv. The approval of terms for lettings with occupiers;

v. The application for, and granting of, relevant licences to enable the construction of i9;

vi. Approval of the terms for the headlease to ION and the underlease to the Council subject to advice from Corporate Landlord;

vii. The Council establishing an investment company to hold the asset if this proves to be a preferential option.

6. Approve the use of the Council’s powers under s.247 of the Town and Country Planning Act 1990 to stop up parts of the highway at Railway Street to enable development.

7. Agree to receive a further report regarding the appropriation of the development site for planning purposes (if appropriation is required).

Resolved that Cabinet recommends that Council notes:

1. That an application has been submitted by ION Developments Ltd to the Black Country Local Enterprise Partnership (LEP) for capital support from the Land and Property Investment Fund (LPIF) by way of a grant.

2. The investment case is subject to/ conditional on LEP board approval for the full business case/ economic appraisal and award of the grant. The funding bid has not yet been formally determined.

3. That the maximum capital investment sum in the forward purchase of i9 is £13 million.

4. That discussions and negotiations with potential office occupiers will be intensified once the Council has committed to invest in the forward purchase of i9 and LEP board have approved the full business case.