Agenda item

To consider a report of the Cabinet Member for Property & Assets and Economic Growth.

a)    That Cabinet approves the formation of a wholly owned but independent Dorset Council trading company limited by shares and the entry into such ancillary legal agreements and documentation as may be necessary in line with the proposed scope of this report.

b)    That authority be delegated to the Executive Director Place in consultation with the Director Legal and Democratic, Executive Director Corporate Development and the Cabinet Member for Assets, Property and Economic Growth, to approve the detailed implementation plans for the Company including the Target Operating Model and Business Case, and to agree the Articles of Association, Shareholder Agreement, Service Contract and Support Contract between the Council and the Company including arrangements for operational delivery.

c)    That an Executive Committee be established, to be known as ‘The Shareholder Committee for ‘Dorset Innovation Park Limited’ with delegated authority within the scope of its terms of reference, including strategic oversight and decision making of matters which were reserved to the Shareholder in accordance with the Shareholder Agreement.

d)    That 5 members of the Executive be appointed to the Shareholder Committee.

e)    That authority be delegated to the Executive Director Place in consultation with the Director Legal and Democratic, Executive Director Corporate Development and the Cabinet Member for Assets, Property and Economic Growth to approve the Terms of Reference for the Shareholder Committee.

f)      That Cabinet approve the granting of indemnities for personal liability incurred by any Council Officers or Councillors who may be appointed either temporarily or permanently to the role of directors of the company.

g)    That authority be delegated to the Executive Director Place in consultation with the Executive Director Corporate Development and the Cabinet Member for Assets, Property and Economic Growth with the Cabinet Member for Finance and Capital Strategy to approve the allocation to the Company of retained Business Rates generated from within the Enterprise Zone and any additional budget requirement determined as part of the annual approval of the Company Business Plan.

Reason for the decision

In November 2025 Cabinet considered a report to decide on the options for the Dorset Innovation Park and they agreed to set up a management company.  Members had now considered the mechanism by which the council would deliver change and establish a new governance structure as the mechanism to address the key weaknesses that had hampered development of the innovation park to date.

In presenting the report the Cabinet Member for Property & Assets and Economic Growth reminded Cabinet that, in November 2024, it had agreed to review options for forming an arm’s length company as the preferred management arrangement for the Innovation Park. The details of the proposed governance arrangements were set out in the appendix attached to the report.

Responding to questions regarding any deep dive scrutiny relating to the efficacy of arm’s length trading companies, the Executive Director for Place advised that officers had worked closely with legal services to learn lessons from other trading companies that had already been set up by the Council.  However, this was an established model that had been used widely by other councils across the country.

In response to a question regarding the sale of any land belonging to the Council, these decisions would be the responsibility of the Shareholder Committee, following negotiations with the arm’s length company. In reply to concerns around marketing of the site, the Executive Director for Place confirmed that to date the council’s approach to managing the innovation park had been under resourced, under coordinated and under invested. The new arm’s length trading company proposal was intended to create a more forward-looking approach.

In answer to a further question, the Cabinet Member confirmed that community engagement and working with the Parish Council was an important part of the business case.

The Cabinet Members supported the recommendations in the report.

It was proposed by Cllr R Biggs seconded by Cllr S Bartlett

Decision

a)    That Cabinet approves the formation of a wholly owned but independent Dorset Council trading company limited by shares and the entry into such ancillary legal agreements and documentation as may be necessary in line with the proposed scope of this report.

b)    That authority be delegated to the Executive Director Place in consultation with the Director Legal and Democratic, Executive Director Corporate Development and the Cabinet Member for Assets, Property and Economic Growth, to approve the detailed implementation plans for the Company including the Target Operating Model and Business Case, and to agree the Articles of Association, Shareholder Agreement, Service Contract and Support Contract between the Council and the Company including arrangements for operational delivery.

c)    That an Executive Committee be established, to be known as ‘The Shareholder Committee for ‘Dorset Innovation Park Limited’ with delegated authority within the scope of its terms of reference, including strategic oversight and decision making of matters which were reserved to the Shareholder in accordance with the Shareholder Agreement.

d)    That 5 members of the Executive be appointed to the Shareholder Committee.

e)    That authority be delegated to the Executive Director Place in consultation with the Director Legal and Democratic, Executive Director Corporate Development and the Cabinet Member for Assets, Property and Economic Growth to approve the Terms of Reference for the Shareholder Committee.

f)      That Cabinet approve the granting of indemnities for personal liability incurred by any Council Officers or Councillors who may be appointed either temporarily or permanently to the role of directors of the company.

g)    That authority be delegated to the Executive Director Place in consultation with the Executive Director Corporate Development and the Cabinet Member for Assets, Property and Economic Growth with the Cabinet Member for Finance and Capital Strategy to approve the allocation to the Company of retained Business Rates generated from within the Enterprise Zone and any additional budget requirement determined as part of the annual approval of the Company Business Plan.

Reason for the decision

In November 2025 Cabinet considered a report to decide on the options for the Dorset Innovation Park and they agreed to set up a management company.  Members had now considered the mechanism by which the council would deliver change and establish a new governance structure as the mechanism to address the key weaknesses that had hampered development of the innovation park to date.