Meeting documents

Cabinet received a report which contained the final business case for the proposed Chiltern Lifestyle Centre.

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.

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.