Decision Maker: Managing Director
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
As a result of COVID and other challenges in
the retail market, Market Asset Management Darlington approached
DBC for financial assistance to ensure they could continue to trade
and deliver the refurbished Market (circa £1.8m investment by
MAMD).
To assist MADM with cashflow it was agreed that loan interest and
principle charges would be deferred until 1 April 2022 at which
time, full repayment of the loan would commence on a 10-year term
therefore there is no financial impact on the council as the loan
is still to be repaid in full.
To give direct financial assistance, a discretionary grant of
£40,000 was approved from the Council’s discretionary
business grant scheme and a two-year rent free period (cash to the
Council £20,000) was agreed.
To grant financial support as detailed above,
in the executive summary.
Reason- To enable the redevelopment of a major asset in the town
centre at minimum cost to the Council of all options .
To not give support leading to the Market
failing and the Council being required to bring the service back
in-house with estimated additional costs to the Council in excess
of £3m.
Publication date: 20/07/2020
Date of decision: 07/07/2020