Executive Member for Regeneration and Economic Development Minutes

Executive Member for Regeneration and Economic Development Minutes

Date:
Thursday 17 April 2014
Time:
12:30 p.m.
Place:
Stainsby Room, Town Hall, Middlesbrough
 

Attendance Details

Present:
Councillor C M Rooney
Officers:
Tony Parkinson and Tracy Everitt
Item Number Item/Resolution
PUBLIC
13/21 MIDDLESBROUGH TEACHING AND LEARNING CENTRE - TRAINING AND CONFERENCING BUSINESS TRANSFER - PART A

The Director of Transformation submitted a report which sought approval for the transfer of the Middlesbrough Teaching and Learning Centre (MTLC) business to Middlesbrough Football Club (MFC).

 

The report outlined that as a result of the proposals to rationalise administrative buildings within the Change Programme, the Council will have no need for the office accommodation on the MTLC site and the disposal of the site is the preferred option. Solutions have been sought to keep the MTLC training and conferencing business in the town. It is the market leader for training and conferencing in the area and supports employment and business activity locally. As a commercial centre, the town would continue to benefit from such facilities.

 

Meetings were held with local training and conferencing stakeholders both individually and as a group to discuss options to maintain and develop the training and conferencing economy in Middlesbrough. The stakeholders consulted included Teesside University, Erimus, Middlesbrough College and MFC. All are locally based and have training and conferencing resources and interests.

 

MFC expressed some interest in exploring joint working and the possible transfer of the MTLC training and conferencing business. This would support the continuing development of Middlehaven.

 

The report outlined that as part of the development of a business case to allow for any such transfer, Heads of Terms were agreed as outlined below:

  • both MFC and Middlesbrough Council wish to work in partnership to promote economic development in the town and wish to promote a strong training and conferencing business sector as part of the broader economic development strategy for Middlesbrough;
  • MFC and Middlesbrough Council will look at possibilities around the relocation of the MTLC business to the Riverside Stadium to enhance the economic development of Middlehaven and the town centre area;
  •  MFC and Middlesbrough Council will explore opportunities for interim joint management arrangements of the MTLC business;
  • both parties to agree favourable terms for Middlesbrough Council access to the MFC training and conferencing facilities to reflect transfer of business/goodwill and any assets;
  • a due diligence exercise has taken place in line with the Head of Terms exploring the MTLC business model. This exercise included:
  1. establishing a market value for the business;
  2. an independent valuation of the relevant equipment and resources;
  3. ascertaining the proportion of current MTLC business ( both Council and external) that could be accommodated within MFC facilities;
  4. determining the likely future requirements of Middlesbrough Council for training and conferencing facilities; and
  5. consideration of any potential legal implications with regards to staffing and pensions.

Both parties are now in a position to formalise the transfer of the MTLC business from Middlesbrough Council to MFC. A draft agreement is being drawn up with a view to the transfer taking place on 1 May 2014.

 

The outlined that there were 3 options available:

  • Option 1 - Do nothing - building will close on 30 June 2014
  • Option 2 - Transfer of external MTLC business to MFC
  • Option 3 - Transfer of internal and external MTLC business to MFC

ORDERED

 

That the Executive Member for Regeneration and Economic Development agrees Option 2 for the transfer of the MTLC business to MFC on the 1 May 2014.

 

REASON

 

The decision was supported by the following reason:

 

Option 2 represents the best value and provides the maximum benefits to the Council.


 

13/22 TO CONSIDER PASSING A RESOLUTION PURSUANT TO SECTION 100A (4) PART 1 OF THE LOCAL GOVERNMENT ACT 1972 EXCLUDING THE PRESS AND PUBLIC FROM THE MEETING DURING CONSIDERATION OF THE FOLLOWING ITEM ON THE GROUNDS THAT IF PRESENT THERE WOULD BE DISCLOSURE TO THEM OF EXEMPT INFORMATION FALLING WITHIN PARAGRAPHS 2 AND 3 OF PART 1 OF SCHEDULE 12A OF THE ACT AND THE PUBLIC INTEREST IN MAINTAINING THE EXEMPTION OUTWEIGHS THE PUBLIC INTEREST IN DISCLOSING THE INFORMATION.


 
EXEMPT
13/23 MIDDLESBROUGH TEACHING AND LEARNING CENTRE - TRAINING AND CONFERENCING BUSINESS TRANSFER - PART B

The Director of Transformation submitted supplementary information in relation to the  transfer of the Middlesbrough Teaching and Learning Centre (MTLC) business to Middlesbrough Football Club (MFC).
 

ORDERED

 

That the report be noted

The decision will come into force after five working days following the day the decision was published unless the decision becomes subject to the call in procedures.
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