FURTHER details about the deal struck between Bolton Council and Asons have emerged.
The Bolton News has seen correspondence between Director of Place Stephen Young and Council leader Cliff Morris which outlines the controversial decision to award the £300,000 grant to the firm, the terms that go along with it and the justification behind it.
It states that the money is being issued to Asons to ‘assist in the development costs associated with the refurbishment and occupation of 40 Churchgate.
The letter, written by Mr Young and signed by Cllr Morris states that the term of the grant is five years and is conditional on a number of factors.
It states that Asons must occupy the property as its head office and must locate at least 80 per cent of its staff in the building.
The company is required to follow the council’s Skills Strategy and work with the Team Bolton Partnership to deliver the employer pledge.
Finally, Asons has been told it must ‘use all reasonable endeavours’ to procure local labour and materials in the completion of the development.
Law firms slam council's 'deeply concerning' decision to award Asons a secret £300,000 grant
The council letter states explicitly that the funding can only be used for development costs associated with Newspaper House.
If the firm terminates the agreement, it will be forced to repay the £300,000 on a sliding scale by 20 per cent for each full year after the work is done.
Many people have question why this funding needed to be awarded under what are known as Emergency Powers.
EXPLAINER: What are Emergency Powers and why did Bolton Council use them to award Asons £300,000?
The correspondence answers this by stating: “As development and occupation is progressing, consideration of this matter is required under the Emergency Powers Procedure in light of the urgent need to enter into a contract with Asons to complete the grant agreement and commence the associated conditions.”
The letter is dated September 20, with the matter coming to the Leader of the Council’s executive committee meeting for ratification on November 7.
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