Issue - meetings

This report updates Cabinet on the progress with the procurement for the Community Stadium and City Leisure Facilities contract. The scope of the project has expanded considerably with the inclusion of the city’s leisure facilities since the approval of the original business case.

Resolved: That Cabinet agree to:

(i)           Proceed with the procurement on the basis of the proposals set out in the report, to deliver the ‘New Stadium Leisure Complex’ and the estimated project timetable set out in Table 3.

(ii)          Note that Greenwich Leisure Ltd have been nominated as the Preferred Bidder following the Competitive Dialogue procurement exercise.

(iii)     Note the overall financial position and programme management arrangements as presented noting the financial risks and potential resultant liabilities that may arise as a result of proceeding with the scheme through the detailed planning submission and construction phases.

(iv)        Proceed with the submission of a detailed planning application on behalf of the Council by the preferred bidder seeking approval for the proposals for the New Stadium Leisure Complex.

(v)         The appropriation of the proposed stadium complex and leisure facilities site to planning purposes under S.122 of the Local Government Act 1972 and Section 237 of the Town and Country Planning Act 1990 on the basis that the appropriation will facilitate the carrying out of development, re-development or improvement works on the land which will contribute to the promotion or improvement of the economic, environmental or social well-being of the Council’s area.

(vi)        Work with relevant stakeholders in looking at community management options for Yearsley Pool as set out in paragraph 35 of the report should the operator not take up the option to operate the pool at no additional cost.

(vii)      Note the position of the project partners and the implications of proceeding and any potential delays.

(viii)   Note the progress of the off-site facilities and          their associated issues, risks and timetable for financial close.

(ix)     Note, and accept, the risks set out in the risk management section of the report, and the financial implications section.

Reason:      To update Members on the procurement of the New Stadium Leisure Complex and in order to progress the scheme to provide a landmark leisure destination for the City.

[See also Part B minute]

Consideration was given to a report which updated Cabinet on the progress of the procurement for the Community Stadium and City Leisure Facilities contract. Since approval of the business case, in March 2012 it was reported that the scope of the project had expanded with the inclusion of the city’s leisure facilities.

With the final stage bid now complete, Greenwich Leisure Ltd had been selected as the preferred bidder and were proposing to create a new Stadium Leisure Complex, comprising an 8000 all-seat community stadium,  leisure and sports centre, NHS Training and Development Centre, community hub and commercial retail/ digital cinema and restaurants/bars.

It was noted that, whilst the scheme would increase the city’s sport and leisure offer, the total direct cost of the project would be c.£37m, which would require c.£8m of CYC funding, requiring Council approval. Further information on the financial implications and associated risks of proceeding with the project up to contract award were reported.

Officers referred to points raised by earlier speakers confirming that the original scheme for a smaller stadium had not included any commercial income streams which were required to make the scheme commercially viable. Work had been undertaken to bring forward a sustainable solution which included a number of commercial properties. Officers acknowledged the risks, although they confirmed operators would take on many of the risks once any commercial deals were agreed. With regard to Yearsley Pool it was confirmed that a number of options had been explored and, if the Pool was to have a long term future, further work was required.

Members expressed their support for the Stadium scheme which would provide facilities of both regional and national significance. They confirmed that a wide range of options had been explored but pointed out that it was the authority’s duty to obtain the optimum from the site.

Officers were thanked for the comprehensive report and it was confirmed that the Cabinet Members for Transport and Leisure, Culture and Tourism were keeping a watching brief on the proposals as they progressed.

Following further lengthy discussion it was

Resolved: That Cabinet agree to:

(i)           Proceed with the procurement on the basis of the proposals set out in the report, to deliver the ‘New Stadium Leisure Complex’ and the estimated project timetable set out in Table 3.

(ii)          Note that Greenwich Leisure Ltd have been nominated as the Preferred Bidder following the Competitive Dialogue procurement exercise.

(iii)     Note the overall financial position and programme management arrangements as presented noting the financial risks and potential resultant liabilities that may arise as a result of proceeding with the scheme through the detailed planning submission and construction phases.

(iv)        Proceed with the submission of a detailed planning application on behalf of the Council by the preferred bidder seeking approval for the proposals for the New Stadium Leisure Complex.

(v)         The appropriation of the proposed stadium complex and leisure facilities site to planning purposes under S.122 of the Local Government Act 1972 and Section  ...  view the full minutes text for item 32