Northamptonshire County Council will discuss arrangements next week to secure a £14 million loan for the University of Northampton’s new waterside campus.
In November, the government confirmed that an application for funding by Northamptonshire Enterprise Partnership (NEP) for the new campus had been approved by the Public Works Loan Board (PWLB).
Third party loan
The funding will take the form of a third party loan in which the county council will receive the cash and pass it to the university.
The loan exceeds the £10million value of third party loans allowed for in the council’s treasury management strategy so a meeting of the council’s cabinet will be asked to recommend that the council approves this loan in principle, subject to due diligence and legal agreements.
Councillor Bill Parker, cabinet member for finance, said: “The University’s plans to create a waterside campus will be a massive boost to the local economy. The plans were nominated by NEP for a new concessionary lending rate for infrastructure projects.
“It’s clearly a hugely significant element in the regeneration of the Northampton which includes projects like the £3million makeover of our main shopping centre in Northampton, a £20 million redevelopment of our train station and a £7million project to bring a new bus interchange to the town.
“The council is effectively acting as a conduit for the loan, so there will be no financial strain for the council. Repayment of the principal amount and interest will be met by cash flows from the university.”
Find out more
The cabinet meeting takes place at 2pm on Tuesday 11th February in the Blue Room at County Hall in Northampton. The papers relating to this - Item 18 on the cabinet agenda - are available on our Committee Management Information System.