CLYDE GATEWAY DEVELOPMENTS LTD. Minute of Board Meeting of 29 April Apologies: John Gallacher Neil MacDonald

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1 CLYDE GATEWAY DEVELOPMENTS LTD. Minute of Board Meeting of 29 April Present: Chris Thompson (Chair) David Bankier Ian Manson Allan McQuade George Redmond In Attendance: Alison Brown Martin McKay Jim Clark Steve Pritchard Fionna Kell Lesley Rooney Barry Macintyre Angela Rowley Tracey McAlpine Raymond Burns Apologies: John Gallacher Neil MacDonald 1. Additional Item. The Board agreed to receive a verbal report on an additional item under the heading National Business District Shawfield Phase 1 Remedial Works. 2. Minute of previous meeting and matters arising. The minute of the previous meeting held on 25 March 2013 was approved subject to an amendment to the item headed National Business District, Shawfield Phase 1 Remediation Works Supply contract for Calcium Polysulfide CGDL13(MAR)01 to include a reference to the ERDF support achieved for this project. 3. Business. Strategy and Operations. 3.1 Operating Plan 2013/14 to 2015/16 CGDL13(APR)01. Barry Macintyre referred the Board to the discussion at its meeting on 25 March 2013 when the Board in considering the Draft Operating Plan to cover the period had Considered a series of background papers and presentations; Noted that these papers and discussions were the first stage in shaping and developing a full Operating Plan for ; and Noted that further detailed reports and recommendations would be submitted to upcoming Board Meetings, Barry then presented a report CGDL(APR)01 requesting that the Board approve the Funded and Full Operating Plans covering the three year period from 2013/14 to 2015/16, as set out in Appendices 1 and 2 respectively; and note that these plans would then be set out within a detailed prospectus covering Clyde Gateway s bid funding strategy over the same period which would come back to the June Board meeting for consideration. Barry further indicated that the Funded Operating Plan had been updated to reflect the outturn for the preceding 2012/13 financial year and the carry-over of spend into 2013/14, that the updated Full Operating Plan sought to address the changing 1

2 funding environment which Clyde Gateway was facing and represented the best approach to planning at this time and that the Operating Plan would be set out in a detailed prospectus which would be used as the basis to prepare strong funding bids. After a full discussion, the Board approved the Funded and Full Operating Plans covering the three year period from 2013/14 to 2015/16, as set out in Appendices 1 and 2 of the report respectively; and noted that these plans would then be set out within a detailed prospectus covering Clyde Gateway s bid funding strategy over the same period which would come back to the June Board meeting for consideration. 3.2 Investment and Residual Property Portfolio 3 Year Operating Plan. Angela Rowley and Steve Pritchard jointly presented a report on the Investment and Residual Estate Property Portfolio 3 year Operating Budget CGDL(APR)02 seeking approval to the 3 year Operating Budgets required to manage the Investment and Residual Estate Property Portfolio and planned activity at a cost of 500,695 and outlined the asset management measures to be undertaken to effectively manage the Portfolio. Angela outlined that Clyde Gateway Developments Ltd. had either acquired or developed a comprehensive portfolio of land and property for sale, lease or development; and that a comprehensive review of the Portfolio had been undertaken and property had now been classified as either:- Investment properties which have been developed or purchased to provide long term income generating prospects and required to be positively asset managed to ensure the income is achieved or maintained; or Residual Estate Property which is stock that may or may not be income generating, but had generally been purchased for sale, lease or redevelopment and required a level of estate management. Steve detailed the process utilised to adopt a Strategic Asset Management Plan and associated acquisition and disposal strategy for the portfolio and how the budget reforecasting exercise for 2013/14 had been extended to take into account the 3 year operational costs set against the predicted income which would result in a predicted deficit of 500,695 over 3 years less any potential disposals. After discussion, the Board Approved the 3 year Operating Budget required to manage the Investment and Residual Estate Property Portfolio and planned activity at a cost of 500,695; and Noted the asset management measures proposed to effectively manage the Investment and Residual Estate Property Portfolio. 2

3 3.3 Rutherglen Shopping Centre Improvements. Fionna Kell presented a report CGDL(APR)03 seeking approval for a contribution of up to 100,000 towards a total cost of 920,000 to undertake a programme of enhancements to the interior and exterior of Rutherglen Shopping Centre. Fiona indicated:- That Town Centres across the UK had been badly hit by a combination of current economic conditions and a shift to online retailing; That the Board at their meeting in December 2012 had approved a report CGDL12(DEC)04 which introduced a shop front improvement grant as a tool to support inward investment activity in key locations across the Clyde Gateway area; That the new owners of the Rutherglen Shopping Centre, Moorgarth Group, were considering two works packages to enhance the shopping centre namely a basic package costed at 526,265 alongside an additional enhanced package costed at a further 394,000 and Clyde Gateway had been approached to consider assistance in the sum of up to 100,000 towards the delivery of the additional works; That the additional works that could be considered eligible for a contribution from Clyde Gateway would include works to the rear elevation of the car park and the frontage/entrance on to Main Street; and That the centre owners may decide not to progress with the remainder of the works package if they cannot make a sufficiently strong internal business case, however, the contribution from Clyde Gateway was seen as key to unlocking this investment, would be subject to the entire programme being delivered and would be repayable in the event this did not happened. After discussion, the Board approved the contribution of up to 100,000 towards the exterior improvements to Rutherglen Shopping Centre as part of an overall 920,000 investment programme. Noted that the contribution would unlock the basic works package of 526,265 investment from the owners, lever additional investment of at least 100,000 towards the additional works and make a positive contribution toward the overall attractiveness of the town as a destination for both residents and investors. Agreed that the contribution would be subject to: the balance of the works programme being carried out by the centre owners; and a clawback agreement which would see Clyde Gateway s contribution being repayable in the event of the centre being sold. 3.4 Additional Bank Deposit Accounts and Direct Debit Mandate. Lesley Rooney presented a report seeking Board approval to the opening of project specific deposit accounts to facilitate the treasury management of major regeneration initiatives such as the Riverside East office development and Shawfield Phase 1 remediation; an increase to the cap on funds held in any one deposit account from 1m to 5m; and 3

4 Clyde Gateway URC (CGURC) and Clyde Gateway Developments Limited (CGDL) becoming direct debit initiators. Lesley advised that during 2012/13 financial year, Clyde Gateway had been successful in attracting 21.6m of additional funding from the Scottish Government for shovel ready projects for projects like the Riverside East office development and managing the cash flow for this and other major projects including Rutherglen Low Carbon Zone, Eastgate Phase 2 and Shawfield Remediation, with ring fenced funding would be enhanced through the allocation of specific deposit account. Given the overall funding levels for some of these projects it was also recommended that the existing cap of 1m on funds held in any one deposit account be increased to 5m. Lesley further recommended that as the number of tenants etc had increased it was proposed that to facilitate the recovery of these various income streams, CGURC and CGDL become direct debit initiators utilising the services of Bottomline Technologies Ltd., a Bacs approved processing bureau at a cost of 2,000 in year one with set up costs, reducing to around 500 a year thereafter. After some discussion, the Board approved the opening of project specific deposit accounts to facilitate the treasury management of major regeneration initiatives such as the Dalmarnock Riverside East office development and Shawfield Phase 1 remediation; an increase to the cap on funds held in any one deposit account from 1m to 5m; and Clyde Gateway URC (CGURC) and Clyde Gateway Developments Limited (CGDL) become direct debit initiators. 3.5 Audit and Evaluation Committee Meeting of 2 April 2013 (For Info) CGDL12(APR)05. Barry Macintyre reported that the Audit & Evaluation Committee had met on 2 April 2013 and provided a summary of the papers considered. Barry indicated that Ann Clyde had agreed to become a member of the Audit and Evaluation Committee. After consideration, the Board noted the report. 3.6 Clyde Gateway East Joint Venture. Steve Pritchard gave a verbal report on the contents of a draft paper which had been discussed at the last meeting of the Stakeholders Group and outline the current position around developments/opportunities being carried out in various Phases at Clyde Gateway East and highlighted the potential disposal of Clyde Gateway s interest in the site, all of which would be the subject of a report to the May meeting of the CGDL Board in May. After some discussion, the Board noted the position. 3.7 National Business District Shawfield Phase 1 Remedial Works Verbal update. Martin McKay referred to the decision of the Board at its meeting on 25 March 2013 after consideration of a report CGDL13(MAR)01 to enter into a contract for the supply of 270 tonnes of Calcium Polysulfide at a net cost of 2,191, excluding VAT associated with the site remediation works at the National Business District, 4

5 Shawfield Phase 1. Martin further reminded the Board of their discussions around the risks associated with the contract and the actions put in place to protect Clyde Gateway s position. Martin then gave a verbal update on further actions which had been implemented to manage the contract and which included him travelling to the suppliers in Japan to view the chemical production process, an amendment to the shipping requirements for the chemicals resulting in a reduction from 7 shipments to 6 shipments, the award of planning permission for the works by South Lanarkshire Council and the current position with regard to the signing off of the contract, all of which would be further updated in a report to the Board in May. After discussion, the Board noted the position. 4. Date and time of next meeting. Jim Clark advised that the next Board Meeting would be Monday 20 May 2013 at the Clyde Gateway Offices. 5