Agenda item

Prior to considering the following item of business, the Council agreed that those members who had declared interests in relation to the AECC prior to the previous item of business could be invited to return for the following item should they wish to. Accordingly, Councillor Dean rejoined the meeting prior to its consideration and Councillor Reynolds rejoined the meeting during the course of its consideration.

With reference to Article 32 of the minute of meeting of the Finance and Resources Committee of 2^nd December 2010, which had been referred to it for consideration by five members of that Committee, the Council had before it (1) a report by the Director of Enterprise, Planning and Infrastructure which summarised progress on the future funding and development of the AECC; and (2) the decision of the Finance and Resources Committee, to approve the recommendations contained within the report which had originally been supported by the Enterprise, Planning and Infrastructure Committee on 9^th November 2010 (Article 27 of the minute of that meeting refers).

The report recommended:-

that the Enterprise, Planning and Infrastructure Committee -

(a)       note the recent decision of the Finance and Resources Committee (Article 40 of the minute of meeting of 28^th September 2010 refers) to invest £1.068 million, as part of the Council’s capital programme (£368,000 from this year’s budget and £700,000 from next year’s budget), in new hard standing to accommodate the erection of temporary expansion facilities for future Offshore Europe exhibitions (subject to planning approval being received) and to instruct officers to report back on progress until completed;

(b)       note the current AECC trading situation which was summarised in Appendix 1 to the report;

(c)        comment on the proposals outlined below and to refer to the Finance and Resources Committee for consideration the proposals that the Council negotiate, with AECC Ltd:-

(a)       the reversion of all existing leases relating to land currently leased to AECC, and the transfer of ownership of all AECC owned buildings and assets, from AECC to the Council;

(b)       an agreed “buyout” fee (based on the market value of the leases), which would immediately be used to repay an equal amount of AECC’s current outstanding debt to the Council;

(c)        a contract, of sufficient value to enable AECC Ltd to manage, operate and develop the business of the AECC, subject to suitable performance targets being met; and

(d)       a full repair and maintenance lease over the buildings and assets currently owned by AECC to run concurrently with the management and operating contract above;

(d)       instruct officers to prepare and submit a report to both the Enterprise, Planning and Infrastructure Committee and the Finance and Resources Committee outlining the options and terms for reverting all existing leases relating to land currently leased to AECC, and transferring ownership of all currently owned buildings and assets, from AECC Ltd to the Council;

(e)       instruct officers to undertake a procurement exercise, using the appropriate process, to identify suitable development and investment partners interested in establishing a joint venture development company to assume responsibility for the future development of all Council owned land and buildings in and around AECC, to be undertaken on the basis of a pre-agreed 20-30 year development plan, which included the construction of a four star hotel, and which took full account of the future business development needs of AECC, with consideration to be given to the creation of a Local Asset Backed Vehicle (LABV) to help fund this development;

(f)         instruct officers to negotiate the possible inclusion of AECC buildings, the proposed new hotel and all other Council owned land in and around AECC, in any potential LABV;

(g)       instruct officers to prepare and submit a report to both the Enterprise, Planning and Infrastructure Committee and the Finance and Resources Committee outlining the proposed:-

(a)       terms for creating the proposed joint venture development company;

(b)       terms for creating a LABV;

(c)        assets to be included in the LABV and the terms relating to their inclusion;

(d)       long-term development plan for Council owned land and buildings in and around AECC; and

(e)       relationship, if any, between the joint venture development company and the City Development Company; and

(h)        instruct officers to ensure that the proposed management services contract for AECC Ltd was of sufficient value to replace the current AECC annual revenue grant.

Councillor Kevin Stewart moved, seconded by Councillor Leslie:-

            That the decision of the Finance and Resources Committee be approved.

Councillor Young moved as an amendment, seconded by Councillor Graham:-

That recommendations (a), (b), (c)(a) and (c)(b) be approved, and that the non-elected member Board members of AECC be in place by 9^th February 2011.

On a division, there voted:-

For the motion  (26)  -  Lord Provost Peter Stephen;  Depute Provost Dunbar; and Councillors Cassie, Clark, Corall, Cormack, Cormie, Dean, Donnelly, Greig, Jaffrey, Kiddie, Leslie, McCaig, McDonald, May, Noble, Penny, Reynolds, Robertson, John Stewart, Kevin Stewart, Wendy Stuart, John West, Wisely and Yuill.

For the amendment  (11)  -  Councillors Adam, Allan, Boulton, Collie, Cooney, Farquharson, Graham, Hunter, Ironside, Laing and Young.

Absent from the division  (6)  -  Councillors Crockett, Fletcher, Malone, Milne, Penny and Kirsty West.

The Council resolved:-

to adopt the motion.