Pandemic leaves council owned company on the brink

Members of City of York Council’s Executive will consider a request by Make It York (MIY) for financial support at a meeting on 15 December.

The council-owned organisation carries out destination management and marketing functions on behalf of the city, including tourism, inward investment, business support, culture, events and city centre management, and recently launched a new culture strategy for the city- York’s Creative Future 2020-2025.

While MIY was previously financially successful, meeting its budget targets and producing a £35,000 annual dividend for the council, the company’s revenues and trading have been badly hit by the pandemic.

York City Council says although the company’s board has reduced costs and cut all non-essential spending, the measures have not been enough to ensure the business’s immediate commercial viability.

Proposals put forward by MIY’s Board set out measures to enable the company to continue to operate and deliver its services, while also allowing it the opportunity to return to a positive balance sheet position.

If approved, the proposals would see the council:

  • Waive the requirement for MIY to make a revenue return to the authority in 20/21 in respect of trading activity across the city centre
  • Defer the first two quarters’ rent due from MIY in 20/21 for use of premises on Museum Street and Silver Street offices
  • Provide a loan facility of £300,000 to be accessed by MIY only if necessary
  • Provide a letter of guarantee to MIY with access to a maximum of £1m over the next two years should it be required.

The council notes if these proposals are not approved, MIY would cease to trade as a company, its financial deficit could not be recovered and its liabilities would need to be addressed immediately by the council.

Sean Bullick, managing director of Make It York

Sean Bullick, managing director of Make It York, who joined last year and has led a restructuring of the organisation, said in a statement: “The current COVID crisis has decimated Make It York’s income, just like many businesses in the city. As a result of this, our Board has taken the necessary step of asking City of York Council, Make It York’s owner, for an investment package which will enable the business to weather the current storm.

“Before Covid-19 struck, MIY had been on track to deliver a surplus to be reinvested in the city and paid as a dividend to our Shareholder, as we have done in the past few years. Should our request for financial support be granted, we are confident that this will be the case again post-crisis.

“The number one priority for MIY remains supporting York’s businesses and the local economy. We have a strong track record in this, with over 200 businesses supported in this quarter alone.

“Beyond this, we continue to adapt our services and offering throughout the rest of the year, ensuring we help create a strong, positive and exciting future for York beyond this crisis. Over the last few months we’ve launched a virtual Christmas Market and rolled out plans for a safe and welcoming city centre Christmas offer, as well as working on the development and delivery of York’s Culture Strategy, alongside City of York Council and York’s Cultural Leaders Group. Delivering York’s Tourism Recovery Marketing Strategy in partnership with City of York Council also continues to be a key focus – working with businesses across the city to ensure we help them recover and grow as we move into 2021.”

Bullick added that financial support along with the actions the organisations has already taken to reduce costs would “enable MIY to build back better”.

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