Agenda item

To receive and consider a written report from the Leader and, to answer questions on the work of the Executive, and the Executive recommendations for approval, as set out below:

A.      Executive Leaders Report

A written report was received from the Executive Leader, Cllr Chris Steward, on the work of the Executive.

Members were then invited to question Cllr Steward on his report and questions were received from the floor from the following Members in relation to the subjects listed:

·         Cllr Gunnell – regular flood updates to Communities & Environment Scrutiny Committee

·        Cllr Reid – how can York ensure that it benefits from HS2 and HS3

·        Cllr Funnell – recent announcements regarding the lesser role of school parent governors

·        Cllr Levene – concerns regarding the removal of parent governors from schools

·        Cllr Levene – April meeting of Local Plan Working Group or miss Government deadline

·        Cllr Levene – consultation on significant changes to Local Plan and effect on deadline

·        Cllr N Barnes – exploration of Devolution options and consultation

·        Cllr N Barnes – meeting end of March devolution deadline

Cllr Steward responded directly to all the questions put to him.

 [At this point in the proceedings the Lord Mayor vacated the Chair and the Deputy Chair took the meeting for the following item]

B       Executive Recommendations

Community Stadium and Leisure Facilities

Cllr Steward moved, and Cllr Aspden seconded the following recommendation contained in Minute 83 of the Executive meeting held on 17 March 2016, circulated at the meeting:

83.    Community Stadium & Leisure Facilities

Recommended:That Executive recommend Council approval of the following:

(i)     Agreement to proceed with the Community Stadium and Leisure Facilities Project.

(ii)    The Director of Customer and Business Support Services, in conjunction with the Leader and Executive Member for Leisure & Culture be authorised to complete all final negotiations and arrange execution of the following legal documents:

a)      the Design, Build, Operate and Maintain contract (“DBOM Contract”) and ancillary documents to the DBOM Contract;

b)      Freehold transfer of the land adjacent to the proposed South Stand of the NSLC (“Southern Block”);

c)      Agreement for lease of the East Stand Retail Units;

d)      Agreement for lease of commercial space on first floor of the Southern Block;

e)      Agreements for lease with the Community Partners.

(iii)   The approval of a total capital budget of £44.2m for the Project (as set out at table 2).

  (iv)  Funding for the Project as set out below:

a)  £15.3m Stadium s106 contribution

b)  £2.0m Football Club contribution

c)  £1.2m Highways s106 contribution

d)  £11.3m Commercial Capital Land Receipt

e)  £13.4m Prudential borrowing

 f)  £1.0m Venture Fund

(v)     That additional borrowing of £5.4m, within the revised total Capital budget of £44.2m, is undertaken to fund the Project (as set out at paragraph 63 of the report).

 (vi)     That the annual additional borrowing costs (£0.4m) relating to the prudential borrowing set out under recommendation (v) be included as a committed growth item in the 2017/18 Revenue Budget.

(vii)     That the Venture Fund be used to fund £1.0m of the capital expenditure which will be repaid from later years leisure revenue budget savings (as set out at paragraph 75 of the report).

(viii)     The use of the Venture Fund to manage early years deficits on the leisure revenue budget, up to a total of £0.3m. This to be repaid from later years savings on the leisure revenue budget (as set out at paragraph 75).

(ix)      That £1.2m of the transport mitigation monies from the Vangarde Section 106 Agreement be used to fund the Project (further detail of which are set out at paragraph 58).

(x)       That £0.4m be used from the existing stadium capital budget for continued early design works through to DBOM Contract signature (“Financial Close”). This £0.4m will be netted off from the overall DBOM Contract capital cost set out in the report and is therefore not an additional cost.

 (xi)     That the Commercial Development proposal be approved bringing the “Capital Land Receipt” and capital contribution to Stadium works to the Project (further detail of which are set out at paragraphs 32 - 41).

(xii)     That the freehold land transfer from the Council to the Investment Fund of the Southern Block is approved.

(xiii)     That the terms of Agreement for Lease of the East Stand Retail Units under which the Council will grant a 250 year lease to the Investment Fund be approved.

(xiv)    That the Director of Customer and Business Support Services, in conjunction with the Leader and Executive Member for Leisure & Culture be authorised, following further negotiations, to finalise and arrange execution of a 15 year lease with the Investment Fund for a portion of commercial space in the Southern Block (further detail of which are set out at paragraphs 42 - 43).

 (xv)    That the Director of Customer and Business Support Services, in conjunction with the Leader and Executive Member for Leisure & Culture be authorised to complete all final negotiations and arrange execution of the Stadium Naming Rights Sponsorship agreement.

  (xvi)    That the terms of the current Design Build Operate and Maintain (DBOM) Contract, as set out at paragraphs 22 - 29 be acknowledged and in relation to Yearsley Pool note the continuing Review which will be subject of a separate Executive report to be brought in Autumn 2016.

(xvii)     That the current anticipated Project timetable for delivery of the New Stadium and Leisure Complex (NSLC) in the report is acknowledged, as set out at table 7.

(xviii)    That the risks of the Project as set out in the report, that cover the period to reaching DBOM Contract signature and through the NSLC construction period and the ongoing operation of the full term of the DBOM Contract, are noted. ^1.

Reason:   To progress with the Project and enter into all legal agreements to deliver NSLC and operation by Greenwich Leisure Ltd of the NSLC and the city’s wider leisure facilities.

On being put to the vote, the recommendations were declared CARRIED and it was

Resolved:   That the above recommendations in respect of the new Community Stadium and Leisure Facilities be approved.^1.