Agenda item

Report of the Managing Director.

The Leader introduced the report of the Managing Director (previously circulated)updating Cabinet on progress in relation to the delivery of the Teesside International Airport Limited (TIAL) business case for the airport and requesting shareholder consent to enable TIAL to progress a joint venture for the development of the Southside, in line with that business case.

The submitted report stated that the Southside comprised a significant area of land to the southern side of the main airport complex and the operational areas including the main runways and airport taxiing routes; part of the site was located within the Darlington Borough, but predominantly within Stockton Borough; the site extended to approximately 109 hectares; and outlined the importance of a successful Southside development to underpin a viable airport.

It was reported that the Tees Valley Combined Authority (TVCA) had approved investment proposals for the acquisition and development of TIAL; the TVCA Cabinet and the airport board of directors had now taken decisions that would provide for the Southside land to be unlocked which would take the development of the Southside into a new stage; the upfront infrastructure had been costed at £23.6 million to provide road access, utilities and flood mitigation works; TIAL would enter into a joint venture partnership with the Theakston Land and Wynyard Business Park to deliver construction of the infrastructure and development of the business park through the establishment of a joint venture subsidiary; and that this Council, together with the other Tees Valley Councils and Durham County Council, were minority shareholders of TIAL, and consent from the minority shareholders was required to enable TIAL to enter into any partnership, joint venture or profit sharing arrangement if this was outside the normal business of the airport as a commercial airport.

RESOLVED - (a)  That the decision of the Tees Valley Combined Authority  Cabinet to support the development of the Southside, through a loan of £23.6m to Teesside International Airport Limited (TIAL), for enabling infrastructure, as detailed in the submitted report, be noted.

(b)  That the decision of the TIAL board to enter into a joint venture and establish a subsidiary company with their selected developers Theakston Land and Wynyard Business Park, to undertake the development of the Southside, be noted.

(c)  That TIAL be given consent to pursue the Southside development,including consent to the establishment of the subsidiary and the grant of a 125-year lease.

REASONS - (a)  To support the Southside development and to help in securing the long-term viability of Teesside International Airport.

(b)  To provide the consent required to enable the development to move forward