Issue - meetings

(Cabinet Member with Special Responsibility Councillor Fletcher)

Report of the Head of Cultural Services to follow.

(Cabinet Member with Special Responsibility Councillor Fletcher)

The Corporate Director (Regeneration) submitted a report asking Cabinet to consider options for the future of the Dome.

The options, options analysis, including risk assessment, were set out in the report as follows:

Option 1 – Closure and demolition of the dome, with no transfer of events.

In Option 1 an estimate for demolition of the Dome (“to one metre below ground level, grubbing up and sealing off of services, removal of debris and arisings off site, etc”) has been received from Birse Civils Limited. At 2009/10 prices the total cost estimate stood at £85,100 (2008/09 Base plus 2% inflation). Any capital growth in respect of the above has yet to be highlighted as an item for the Capital Programme and approval would be dependent on a project appraisal.

Assumptions:-

• Cessation of all operations at Dome.
• One permanent staff member subject to redeployment, with effect from April 1st 2009. Staff member may alternatively take redundancy option which would result in subsequent redundancy costs.

• Effective 1st April 2009, subject to no contractual costs relating to cancellation of existing bookings.

Projected revenue savings of £111,900 best case and £66,900 worst case scenario based on 2009/10 draft estimates. The projected savings for 2010/11 and 2011/12 are £121,200 and £127,200. A breakdown of the Option 1 financial appraisal is attached as an appendix to the report.

Risks:-

• The above would have a potentially damaging impact on the reputation of the Council and district. The closure of the Dome and no transfer of events would be viewed negatively in terms of the impact that shows and events make to the district and undermine the events strategy undertaken since the creation of Cultural Services. High profile event/shows such as those undertaken in 2007/2008, including;- the “Arctic Monkeys”, “Athlete”, “Reverend & the Makers”, and “the Kooks”, etc., would cease through the loss of the existing revenue budget.

• The above assumes an effective date of the 1st April 2009, and no contractual costs relating to cancellation of existing bookings. Based on the earlier work undertaken as part of the January 2008 report to Cabinet, bookings scheduled for the Dome in 2008/2009, the potential maximum estimated contractual costs of cancellations were calculated at £45,000 (there has not been time to-date to adjust the figures to reflect 2009/2010 pre-booked events). Pending Cabinet’s decision with regards to a preferred option on the future of the Dome, to avoid the risk of reputational damage the above is hypothetical, as no event promoter or organiser has yet been contacted with a view to negotiating an alternative venue (which could offset some of the potential contractual cancellation costs). However, if the decision was taken now to close the Dome with effect from April 2010, there would be no contractual costs relating to cancellation of bookings, as to-date no bookings have been confirmed for 2010/2011. A decision could be made to coincide with the end of the 2009/2010 season to ensure no commitments  ...  view the full minutes text for item 97