Decision details

Councillor O’Brien introduced the report which provides an update on progress with the Northern Gateway Mayoral Development Corporation (MDC). Creation of the MDC was approved by Cabinet in July 2025, where it was noted that a further report would be presented outlining the MDC operational arrangements, costs, and cost sharing approach. This report sets out these arrangements and seeks their approval. It also seeks authorisation and associated delegation for the preparation and completion of contractual arrangements to provide for these arrangements.

Councillor Rydeheard complimented the negotiation of the loan and asked for clarity around trigger points for repayments and the anticipated date the receipts will come over the low value.

Councillor O’Brien confirmed it was a piece of work currently being processed and will form future spending arrangements. Committed to sharing minutes of meetings with all members at the appropriate time.

Councillor Rydeheard queried the potential for legal issues and potential liability for those issues and whether work is ongoing to make sure we’re not over exposed to the legal risk.

The Monitoring Officer assured members that there were safeguards in place. The Monitoring Officer for GMCA is the Monitoring Officer for the MDC but we play a part in understanding what is coming forward and ensure that Bury’s interests are taken into account.

Councillor Vernon echoed what Councillor Rydeheard had said and asked about business rates.

Councillor O’Brien advised that we have confidence in the site, but aware that it will require a lot of upfront work to get to a position where it is generating those business rates. Can be assured that the risk to Bury is low but need to be

Councillor Rydeheard queried what the exchange for the loan was and whether we continue to hold a stake or get receipts from it? 

Councillor O’Brien confirmed we don’t have a share in the site itself but trying to, through the corporation, deliver the site and will benefit from it at a later stage.  If we are in a position where we can pay it off, will be left with running costs we have committed to paying. 

Decision(s) 

Cabinet:

·         Noted and approved the MDC operational arrangements, costs, and cost sharing approach as set out at Appendix 2.

·         Authorised and delegated to the Executive Director for Place and Director of Legal and Democratic Services the negotiation, preparation, and completion of the necessary contractual arrangements to provide for the MDC operational arrangements, costs, and cost sharing as set out at Appendix 2.

·         Noted and approved the GMCA’s offer to contribute additional grant funding of up to £300,000 per year to in-part fund the MDC for a period of three years from 2026/27 to 2028/29.

·         Authorised and delegated to the Executive Director for Place and Director of Legal and Democratic Services the negotiation, preparation, and completion of the necessary contract(s) in relation to the GMCA’s additional grant funding to provide for the MDC (referred to at recommendation 4.3 above).  4

·         Noted the GMCA’s offer of an interest free loan of up to £877,000 to support Bury Council making its contribution towards MDC costs and authorise the Council’s Finance Team to undertake the necessary assessments under the Council’s Treasury Management Strategy and associated Prudential Indicators to determine its merits and the necessary approval process required before entering into such a loan, pursuant to the Constitution of this Council. 

Reasons for decision(s): 

-       In March 2025, Cabinet endorsed the creation of an MDC as the preferred delivery vehicle for the Northern Gateway and most appropriate route to achieve the Strategic Development Vision for Northern Gateway, endorsed by Cabinet in November 2024.

-       As set out in the report to Cabinet in July 2025, Rochdale Council will host the MDC with Bury Council to act as the partner authority for an initial period of 2 years with reviews every 5 years thereafter, with the operational resource costs of the MDC shared equally between the Councils.

Alternative options considered and rejected:

-       A core principle of the MDC from the outset has been that both Bury and Rochdale Councils will contribute equally to its costs, therefore no alternative split of costs has been considered. 

-       Alternative operational arrangements, including Bury Council being the initial host authority, were considered as the MDC proposal was developed.  Rochdale Council was considered to have the operational capacity to be the initial host authority.

-       The review cycle for hosting arrangements was proposed to be 5 years throughout the lifetime of the MDC.  This was reduced to 2 years for the first review as this was considered a suitable period for the MDC to stabilise, and a point at which the respective circumstances of the Councils, with respect to operational capacity to support the MDC, may have changed.