Meeting documents

The Committee agreed to consider the redevelopment of Chiltern Pools and adjacent community facilities at item 5 of the agenda.

 

Members received a report on the design, cost plan and business case for the redevelopment of the Chiltern Pools project at supplementary agenda 1. It was noted that a structural survey undertaken in 2015 which indicated that the current centre had a lifespan until 2020; and addressing the structural issues would have significant financial implications for the Council.

 

Two public consultations undertaken by the Council found strong local support for a redevelopment of Chiltern Pools, and for the bringing together of leisure and community facilities. Two key areas of concern were raised during the consultation and would look to be mitigated, namely the preservation of the barns and the need for adequate parking on the site. It was reported that Amersham Town Council had agreed to the disposal of land to the Council in return for the transfer of the green at Woodside Close and edge of Chiltern Avenue. Further, that the stage 2 designs were being finalised ahead of the detailed design phase.

 

A presentation relating to the financial and business plan options appraisal was given to Members by Managing Director of Knight, Kavanagh and Page, David McHendry. Members were advised that pursuing option 1 would allow a higher net benefit to the Council. The centre would attract over 800,000 visits per annum with the health and fitness facility accounting for 40% of the total income. The facility mix would enable all identified needs to be addressed with the Health and Fitness Centre sufficiently sized to accommodate over 4,400 members.

 

The total scheme including; library, community centre, nursery, swimming pools, sports hall, dry diving, fitness studios and spa was projected to cost £34m. Further key points from the business plan were highlighted:

 

·       The base business plan was anticipated to generate £1.2m benefit to the Council providing a £32m borrowing capacity, leaving a funding gap of circa £2 million; assuming the Council would invest the current £200k subsidy for its leisure management contract in the new development.

 

·       Applying a pricing structure that recognises the investment in the facilities, (option 1) would increase the financial return to the Council, and was anticipated to generate £1.475m/annum, giving the Council a borrowing capacity of circa £38 million over 45 years.

 

·       It was expected that a ‘do nothing’ scenario would see an increase in the subsidy from 200k to 700k per annum from 2021-2031 to undertake a backlog of maintenance required to keep the facility safe and operational.

 

The Committee raised the following key points:

 

·       Impact on the usage and client base of the other centres as this could impact on financial performance.

 

·       That the risk be recognised of not being able to attract bidders for the management contract of the new facility who would be prepared to take on the hoped for income risk. The structural survey was important in this context.

 

·       Members raised that testing with a lower level of investment, the existing facility could be made more viable and the structural survey would inform this.

 

·       Whether the facility mix would attract the anticipated income as set out in the options. A concern was expressed over the commercial approach to pricing. Members noted that the size, scale and nature of the facilities offered would allow the operator to attract larger and different catchment areas.

 

·       It was recognised that the business plan accounted for an annualised programme of investment over the full 45 years of the centre. However, a concern was raised as to whether the centre would have a 45 year lifespan.

 

·       Members enquired as to what consideration had been given to refurbishing the current Chiltern Pools leisure centre.

 

·       It was recognised that the current leisure centre accounted for a significant amount of the Council’s CO2 emissions, and was highly inefficient in the use of energy. The new leisure centre would be built with high sustainability principles, reducing the impact on the environment and lowering future operating costs.

 

·       Members recognised that the community facilities would require to be subsidised as it was unlikely that community organisations could provide a commercial rent in return for lease.

 

·       Members welcomed an option to incorporate social housing on the leisure and community site.

 

·       That the scale of investment and duration of contract meant that the Council needed to carefully and thoroughly consider the issues and risks as it had done to date.

 

Members expressed thanks to David McHendry for an informative presentation. The Chairman then advised the Committee of amendments to the recommendations in the officer’s report.

 

The RECOMMENDATIONS to Cabinet as per the officer’s report, and as amended were as follows:

 

1. To note the findings of the current version of the design proposals and business plan to re-provide a combined community and leisure facility in Amersham.

 

2. To agree the facility mix incorporated in the current design proposals and detailed in Appendix 1.

 

3. To delegate the decision to the Director of Services to submit a detailed planning application for the proposed leisure and community centre.

 

4. To delegate authority to the Director of Services, to undertake a feasibility study of the development opportunities offered by the release of the existing leisure and community sites (the existing site) and subject to an outline business case, to submit a planning application for that site at the appropriate time.

 

5. To delegate authority to the Head of Environment and Head of Legal to carry out due diligence to identify and take steps to address any legal constraints for the proposed leisure and community centre project.

 

6. To authorise the Head of Healthy Communities, in consultation with the Support Services Portfolio Holder to draw down up to £500,000 of funding from the Council reserves to enable an outline business case, and planning application of the existing leisure and community sites (the existing site) to be determined.

 

7. To authorise the Director of Services to agree the maintenance arrangements for the land to be transferred to Amersham Town Council.

 

8. To authorise the Director of Services to agree the provision of replacement outdoor leisure facilities to be managed and owned by Amersham Town Council following the transfer of the section of King George V Playing Fields to be developed to the District Council.

 

Members debated the recommendations. The Committee suggested delaying the submission of a planning application for both the Chiltern life centre and existing community and leisure sites until the feasibility study of the current site had been considered by Members, as well as the results of the structural and mechanical and electrical survey currently being undertaken. Following discussion, the Committee RESOLVED to

 

RECOMMEND to Cabinet:

1. To note the findings of the current version of the design proposals and business plan to re-provide a combined community and leisure facility in Amersham.

2. To agree the facility mix incorporated in the current design proposals and detailed in Appendix 1.

3. To delegate the decision to the Director of Services to submit a detailed planning application for the proposed leisure and community centre.

4. To delegate authority to the Director of Services, to undertake a feasibility study of the development opportunities offered by the release of the existing leisure and community sites (the existing site).

5. To delegate authority to the Head of Environment and Head of Legal to carry out due diligence to identify and take steps to address any legal constraints for the proposed leisure and community centre project.

6. To authorise the Head of Healthy Communities, in consultation with the Support Services Portfolio Holder to draw down up to £500,000 of funding from the Council reserves to enable an outline business case of the existing leisure and community sites (the existing site) to be determined.

7. To authorise the Director of Services to agree the maintenance arrangements for the land to be transferred to Amersham Town Council.

8. To authorise the Director of Services to agree the provision of replacement outdoor leisure facilities to be managed and owned by Amersham Town Council following the transfer of the section of King George V Playing Fields to be developed to the District Council.

9. That the Chiltern Life Centre is built to high sustainability standards.

10. That the contractual arrangements to operate the leisure centres and contractor responsible for developing the Chiltern Life Centre be appointed simultaneously.