To approve the underwrite of an element (£850,000) of Marches Local Enterprise Partnership (LEP) Growth Deal grant funding that has been awarded to the New Model in Technology and Engineering (NMiTE) Higher Education institute.  The underwrite is required under the terms of the LEP Grant Funding Agreement. 

Following a successful application by the council to the Marches LEP, NMiTE have been allocated a capital grant totalling £2.3m.  The grant will enable NMiTE to adapt the Blackfriars Street premises and to purchase the specialist engineering equipment required to teach their first cohort of 50 students that are due to begin their studies in January 2020.  A condition of the funding agreement is that in the event of material failure of NMiTE, determined by Shropshire Council as accountable body for the LEP, the council will have 12 months to identify an alternative body to deliver an equivalent set of outputs that would be agreed with Shropshire Council at the time. If the council fails to find an alternative body, and should there be a subsequent clawback by central government of the Growth Deal funds, the council shall within 10 days pay a sum equal to the value of all grant payments which have been paid to NMiTE for the purpose of the refurbishment or improvement of the Blackfriars Street premises (up to £850,000).

The council own the freehold of the Blackfriars Street premises, and has granted a long lease to the Department for Education (125 years). The Department for Education has subsequently granted a sub-lease to NMiTE (50 years).