Issue - meetings

Recommended: That Council approve £4m Prudential Borrowing  for the capital investment in the replacement leisure facilities (as shown in the tables at paragraph 22 of the report).  The associated revenue costs of the borrowing will be c£360k per annum and will be shown as growth in the treasury management budget from 2016/17.

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 A 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

Recommended: That Council approve £4m Prudential Borrowing  for the capital investment in the replacement leisure facilities (as shown in the tables at paragraph 22 of the report).  The associated revenue costs of the borrowing will be c£360k per annum and will be shown as growth in the treasury management budget from 2016/17. ^1.

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.