That £600,000 of Future High Street Funding be allocated to the capital project to restore Paignton Picture House.

1.      That, subject to Council approval of recommendation 2. below, Cabinet approves:

(i)    the Council enters into the tripartite agreement with the Arts Council England and Paignton Picture House Trust, in accordance with the draft agreement as set out at Appendix 2 and subject to (vi) below;

(ii)   the Council acts as the accountable body for the Delivery Partnership;

(iii)  the Council indemnifies the Paignton Picture House Trust that the project will be delivered with reasonable skill and care and provides a clear and agreed mechanism for the Paignton Picture House Trust to have oversight of any decision the Council makes in executing the project including the right to dispute decisions through a defined escalation process of adjudication and arbitration;

(iv)  the Council requires a charge to be made on the freehold title of the Paignton Picture House under the same terms as that required by the Art Council England but for a period of 20 years;

(v)   the formalisation of the Delivery Partnership by the creation of a Project Delivery Board with Terms of Reference negotiated with the Paignton Picture House Trust and the Arts Council England that reflects the delivery requirements of (i, ii, iii); and

The Project Governance Structure under the Project Delivery Board to include:

a)    Ensure the Council has oversight of all expenditure associated with the project where the Councils underwriting risk is exposed.

b)    That the Council has the ultimate authority to approve, review and reject payments to all contractors, suppliers and the Trust, necessary to deliver the project.

(vi)  that the actions necessary to facilitate the agreements in (i, ii, iii, iv, v) through negotiation with the Paignton Picture House Trust and the Arts Council, and the wider supply chain, are delegated to the Director of Regeneration, in consultation with the Cabinet Member for Place Development and Economic Growth, the Director of Finance and the Monitoring Officer, and signed/in consultation with the Councils Statutory Officers as the nature of each agreement or action requires by the Council’s Constitution.

2.      That Cabinet recommend to Council the following:

(i)    that an additional £900,000 be allocated from the Future High Street Fund to delivery of the Paignton Picture House project; and

(ii)   that the Council underwrites the delivery of the project up to a maximum of £1.6m, to be funded from unsupported borrowing, if required.  The Council will limit the financial liability through robust cost oversight of the project and seek to secure any other applicable funding sources.