Meeting documents
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
To consider the final business case of the Chiltern Lifestyle Centre project and to consider the comments and recommendations of the Chiltern Lifestyle Centre Scrutiny Sub-committee.
Decisions:
Cabinet
considered a report which contained the final business case for the proposed
Chiltern Lifestyle Centre and associated car park redevelopment. The key points
of the report were highlighted and detailed breakdowns of the figures that form
the business case were included in the appendices.
The final
fixed project cost of the Chiltern Lifestyle Centre was c£36m. It was proposed
that this would be financed by way of loan from the Public Works Loan Board.
Cabinet noted that
there would be a cost to the Council during 2020/21 to continue the operation
of the existing facility during the construction phase, following which the
Council would then receive an income generated from the proposed centre. As the
years progressed this income would increase. On the assumption that bids of a
similar level were received to operate the centres at the time the leisure
operator contract was up for renewal from year 16 onwards, over the 40 year
period a significant profit for Buckinghamshire Council was predicted and
deemed realistic.
Factored in to
the business case was an annualised capital cost of £100k to deal with any
structural repairs or external maintenance. Rental income would continue at the
existing rate for the nursery and community centre to ensure that they were in
no worse position, these lease agreements would be subject to a five yearly
review.
It was
proposed that an agreement be entered into with Sport England to draw down the
Strategic Facilities grant of £1.5m and to use this funding in addition to the
current capital programme.
Councillor M
Stannard advised of the significant amount of time and work that had gone into
the project over the past five years and spoke positively of the effect the
proposed new lifestyle centre, and proposed improvements at the centres at
Chesham and Chalfont would have on residents of not only the Chilterns, but the
whole county. The proposals before Cabinet would deliver a first class facility
which would have something inside for every resident. The proposed lifestyle
centre would deliver revenue to Buckinghamshire Council and could improve many
residents’ health and wellbeing.
Cabinet
recorded its thanks to Councillor Stannard for his dedication, determination
and time given in supporting the project to reach this stage. Further, officers
were thanked for their time and commitment given to the project with each stage
having been carried out meticulously and professionally, and hundreds of hours work having been put in. Cabinet agreed that this
would be a flagship centre for the entire county and residents would be
delighted to use the new facilities in the knowledge that they were cost
effective.
The Leader
welcomed comments from non-cabinet members. Councillor P Jones emphasised that it
was key that the design of the proposed centre was not changed as this could
significantly increase costs to the Council. In addition, whilst recognising
that this risk would lie with the operator, Councillor P Jones said that the
estimated number of visits remained optimistic and should be treated with
caution and queried the evidence behind it. Councillor P Jones added that at
each of the Chiltern Lifestyle Centre Scrutiny Sub-committee meetings he had
attended, members had been very thorough in their questioning and officers had
answered questions in detail and in honesty which instilled confidence that
building a top class facility was the best option.
Councillor N
Shepherd agreed that the proposal before Cabinet was the best option for
Buckinghamshire Council. Councillor Shepherd emphasised the importance of
marketing and promoting the project which would excite so many residents and
was such a good reflection of the work the Council does.
In response to
Councillor P Jones concern, Councillor Stannard explained that experienced
leisure operators who would have carried out extensive research had guaranteed
their number of visitors to the proposed centre as part of their bid for the
operator contract, so if this number was not met, the risk was theirs rather
than the Council’s. If the operator was to outperform its targets, the Council
would receive 50% of the extra funds generated.
The Leader
acknowledged that whilst the project had been initiated by this Council, at the
time of the proposed centre being opened, Buckinghamshire Council would be the
responsible authority. The proposed centre was described as a facility which
residents of the Chilterns and Buckinghamshire could be proud of. The Leader
re-iterated that this would be a flagship project for the new Council and
further thanks to Councillor Stannard and the team of officers behind the
project were noted.
With Cabinet support, the business case
would be considered by the Shadow Executive of the Shadow Buckinghamshire
Council on 10 September 2019.
RESOLVED
1.
That the current position
be noted.
2.
That Cabinet agree the
final business case and proposals for the Chiltern Lifestyle Centre project.
3.
That Cabinet agrees to
utilise the £33m in capital programme for the construction of this project and allocate
£500,000 from reserves to the project to cover the contingency sum.
4.
To authorise the Head of
Healthy Communities, in consultation with the Portfolio Holder and Director of
Services, to conclude the delivery agreement between BAM and the Council for
the construction phase.
5.
That the Head of Finance be
authorised to carry out the necessary arrangements to obtain the loan finance.
6.
That the Head of Healthy
Communities be authorised to negotiate and conclude any necessary agreements
including with Sport England to allow the development to proceed through to
completion.
7.
That Cabinet note the loss
in revenue income arising from the discontinuation of the Library car park from
October 2019.
8.
To note and agree the
re-phasing of the pre-construction costs of this project from £1,750,000 to
£2,421,381 to avoid future costs arising from a delay to the build programme.
9.
To agree to set aside
reserves to cover the three year initial revenue costs, these to be replenished
during the 15 year contract period, ensuring the Chiltern Lifestyle Centre is
delivered at no cost to the Council Tax payer.
Report author: Martin Holt
Publication date: 20/08/2019
Date of decision: 20/08/2019
Decided at meeting: 20/08/2019 - Cabinet
Effective from: 24/09/2019