Decision details

Sheffield Council (SCC) holds responsibility for a number of funding streams within the Sheffield City Region (SCR). A financial appraisal of a scheme to build 44,000 sq ft of business space at RHABP by Robin Hood Airport Developments Limited (RHADL), identified a viability gap of £1,010,000. SCC approached Doncaster Council to apply to
the SCR Growing Places Fund (GPF), and then transfer the equivalent in aid to RHADL through a separate Facility Agreement.

Seeking a catalyst for development at RHABP, DMBC entered into a Facility Agreement with SCC to secure the GPF and a separate facility agreement with RHADL to facilitate the development and provide aid to the project.
The facility agreement with RHADL contained references to the site location within an Enterprise Zone at RHABP.

A risk assessment, completed by officers from
the Legal and Strategy & Performance Teams was presented to the Director of Regeneration and Environment, Assistant Director of Legal and Demographic Services and the Assistant Director of Finance on 29th March 2017. It was unilaterally agreed to progress with the scheme and ask the Sheffield City Region to intensify efforts to secure an Enterprise Zone at RHABP.

The RHADL Facility Agreement was completed in May 2017, at a time when:
- Sheffield City Region had agreed to adopt 10 hectares of Robin Hood Airport Business Park in a portfolio of enterprise zones;
- Written agreement was secured from the Treasury that the RHABP would be adopted as an Enterprise Zone;
- SCR had submitted a form application to the Treasury to place RHABP and a number of other sites in the SCR into law.
- The site was actively marketed by SCR, the Government and Doncaster Council as an Enterprise Zone.

RHADL completed the construction of 10 units totalling 44,000sqft in March 2018.

On 22nd February 2018 the SCR received written confirmation that the Government had rejected the SCR Enterprise Zone application. This decision has presented Doncaster with a number of new opportunities including:
- Future business rate receipts do not have to be relinquished to the Sheffield City Region and will be retained by the = Council in line with current business rate law.
- Companies located in the proposed enterprise zone were excluded from receiving aid from the DMBC Business Investment Incentive Scheme. Business Doncaster is now able to better tailor assistance to the needs of companies locating at the Business Park.

A Deed of Variation between Doncaster Council and Robin Hood Airport Developments Limited is required to reflect the position that Robin Hood Airport Business Park is not an Enterprise Zone.

See attached Officer Decision Record for further details.

To enter into a Deed of Variation to an existing Facility Agreement between Robin Hood Airport Developments Ltd (RHADL) and Doncaster Council, wherein the parties confirm that the Property at Robin Hood Airport Business Park (RHABP) is not in the Sheffield City Region Enterprise Zone and agree that all references in the Facility Agreement dated 3rd May 2017 to the Property being located in the Enterprise Zone are deleted.

OPTION 1 – Recommended
Enter into a Deed of Variation between Doncaster Council and Robin Hood Airport Developments Limited to reflect the position that Robin Hood Airport Business Park is not in an Enterprise Zone.

OPTION 2 – Do nothing
Do not pursue the Deed of Variation with RHADL.