Council recommended to make seven-year loan to “large company”

BOROUGH council chiefs at Warrington are being recommended to agree to the authority making a seven-year loan to a large company based in the town.

The proposed loan will be discussed at a meeting of the council’s cabinet on Monday – although details of the company and the size of the loan will be considered in private.
Reasons for making the loan are said to be for the promotion of economic regeneration in Warrington and the North West sub-region and the related benefit of a financial return to be invested in Warrington.
The council has administered a successful loans programme since 2009 to support economic regeneration in Warrington and the surrounding sub-region, according to a report to cabinet members by deputy leader of the council and cabinet member for corporate resources Cllr Cathy Mitchell.
The loan would be in line with the council’s policy framework.
No external consultation has taken place because of commercial sensitivity. But there has been widespread internal consultation and a risk management workshop with all major stakeholders has been held.
The cabinet is also to be recommended to purchase another property in the town.
Members will be told that the council’s recent property investment activity has included a number of high profile and successful acquisitions. But there remain ongoing reasons to seek further opportunities to invest in commercial market opportunities generating a commercial internal rate of return to the council and take advantage of current property values.
Again, details of the property involved will be considered in private.