The Corporate Director Communities submitted a report, the purpose of which, was is to seek approval to take forward the development of the Enterprise Hub Development Programme which in total would cover the refurbishment and creation of new business premises in response to identified need at three key locations in the County Borough at Bridgend Science Park, Village Farm Industrial Estate and Brocastle.

The report updates on work undertaken since a previous Cabinet report on 31 January 2017 that related to the development of the Enterprise Hubs Development Project (Bridgend Science Park and Village Farm Industrial Estate) and seeks authorisation to move to the final stage of negotiations with the Welsh European Funding Office (WEFO) in relation to a funding package.

The Corporate Director Communities explained that there was very tangible evidence that if the aims of the report were achieved, then this would support the corporate priority of ‘Supporting a successful local economy.’

The report gave some background information, and emphasised of the importance of there being small enterprises in the County Borough, where BCBC were making as good progress realising this ambition, as any County Borough in Wales, when the opportunity arose, though finding adequate space and premises for such small businesses was sometimes problematic.

As stated above, he reminded Members that on 31 January 2017, Cabinet approved a report entitled European Regional Development Fund (ERDF) Regional Scheme for Enterprise Hub Development.  The report highlighted that in 2016 an Operation Logic Table (OLT) was prepared and submitted to WEFO by Blaenau Gwent County Borough Council in relation to the development of a regional Enterprise Hub Development Project as an ‘expression of interest’.  This set out the initial principles and objectives for the Project, but it did not commit the Authorities to Project delivery at that stage.  Following initial consideration, WEFO then invited a full business plan for the Project. He added that though initially Blaenau Gwent had initially led on this, Bridgend were now the lead Investor.

The report progressed by confirming that in parallel to works ongoing in respect of the above, Welsh Government had secured ERDF agreement to take forward developments of site infrastructure and enablement works at three of their key strategic sites, namely, Ty Du (Caerphilly), Cross Hands (Carmarthen), and Brocastle (Bridgend).

The Corporate Director Communities advised that there were no ‘start up’ units currently available from BCBC or Business in Focus, and both had waiting lists. The Sony Incubation units at Pencoed were all occupied and there was also a waiting list there.

It was considered that the current market climate made speculative private sector development in response to this unlikely, therefore an injection of public pump prime funding was needed  he added.

He continued by advising that the Enterprise Hub Development Programme proposed to support the refurbishment and creation of business premises at Bridgend Science Park, Village Farm Industrial Estate and Brocastle, and as a programme to deliver that which was detailed in bullet point format in paragraph 4.3 of the report.

This Programme would result in the amount of jobs, SMEs and area of floor space in these facilities, as was outlined in paragraph 4.6 of the report, whilst 4.7 gave details of the total funding package for the Programme.

Paragraph 4.9 of the report onward, contained the nature and details of various grants being allocated toward the funding of the Programme, including their terms and conditions.

The Programme will take into account other strategic work taking place across the region and in doing so will also link with relevant regional and national strategies and the report by the Cardiff Capital Region City Deal Growth and Competitiveness Commission.  Alignment with City Deal and Valleys Task Force and as they develop opportunities will be explored to further develop the Enterprise Hubs Development Programme with additional opportunities for investment being advocated.

The Corporate Director Communities then advised Cabinet of the report’s financial implications as were referred to in paragraphs 7. of the report, including advising of a Business Case that would need to be developed in order to fully progress the Scheme that would include certain viable options.

The Cabinet Member – Education and Regeneration advised that this was a good news report, in that it was confirming the attempts that were being made to fill the gaps of Starter Units for smaller enterprises. He added that European funding was also available to support this programme, which was an added bonus.

The Leader added that the programme would also allow for the opportunity for 58 small businesses to be created, which would be an investment that would pay off, and in turn, benefit the taxpayer and entrepreneurs in the County Borough.

RESOLVED:                 That Cabinet:

                                     (1)  Noted that further to the Cabinet report of 31st January 2017, entitled European Regional Development Fund (ERDF) Regional Scheme for Enterprise Hub Development, and in response to advice from WEFO, an OLT was prepared by BCBC in May 2017 with business plan being submitted in December 2017 for the delivery of the Enterprise Hubs Development Project (Bridgend Science Park and Village Farm Industrial Estate).  The OLT and business plan propose the delivery of a County specific project with BCBC as Project Sponsor, rather than the regional project with BCBC as a joint sponsor as outlined in the report of 31st January 2017.  

                                     (2)  Authorised the Corporate Director, Communities, to finalise details with WEFO in relation to the Enterprise Hub Development Project (Bridgend Science Park and Village Farm Industrial Estate) and, subject to the approval of the Section 151 Officer, enter into a funding agreement to deliver the project as outlined above.  In doing so, seek approval from Council for a sum of £544,182 to be met from prudential borrowing in addition to the already secured match funding, and for the scheme to be included within the capital programme for delivery once all funding sources have been approved.

(3)  Authorised the Corporate Director, Communities, to finalise discussions with Welsh Government in relation to a proposed Joint Venture for the development of the Enterprise Hub Development Project (Brocastle) and, in consultation with the Corporate Director, Operational and Partnership Services, enter into a satisfactory legal agreement/Solicitor to the Council and Monitoring Officer.

                                    (4)  Authorised the Corporate Director, Communities, to submit and, subject to the approval of the Section 151 Officer, accept a funding offer from WEFO for the Enterprise Hub Development project (Brocastle) to deliver the project as outlined above and in doing so seek approval from Council for a sum of £344,775 to be met from prudential borrowing, and for the scheme to be included within the capital programme for delivery once all funding sources have been approved.