Agenda item

Potential Options for Salt Ayre Sports Centre

(Cabinet Member with Special Responsibility Councillor Sands)

 

Report of Chief Officer (Health & Housing)

Minutes:

(Cabinet Member with Special Responsibility Councillor Sands)

 

Cabinet received a report from the Chief Officer (Health & Housing) which informed Cabinet of the potential options for Salt Ayre Sports Centre (SASC) and sought approval to undertake further work to explore a development partner.

 

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

 

 

Option 1:  Continue to invest in line with current budgets with replacement and repair as necessary but with no major improvements.

Option 2:  Seek a development partner to invest and improve SASC in the short and medium term.

Advantages

None

Provides a planned programme of works over a period of years which could include for example refurbishment/expansion of the gym, change of use to half the sports hall to provide activities that would result in greater occupancy levels, spa facilities and an outdoor ropes course.

 

Provides facilities which meet current customer expectations as well as all H&S standards.

 

Would position Salt Ayre sports centre as a premier sport and leisure facility in the North West providing a diverse range of activities on one site whilst retaining a community hub for continuation of active health and other targeted health programmes for more vulnerable citizens.

 

Position the council well for delivery of public health commissioned activities that cut across a range of council delivered services such as leisure, housing and environmental health.

 

Provides a sounder financial footing for the sports centre.

 

Is a good example of the municipal entrepreneurialism theme of the ensuring council ethos enabling the council to translate its policy objectives into practice.

Disadvantages

Opportunity to reduce operating subsidy missed.

Upfront investment is required to facilitate these improvements.

Officer capacity to oversee the programme is required. Some external specialist legal advice may be required.

Risks

Operating costs increase to such a point that the facility becomes no longer viable to subsidise in the context of reducing resources. This could lead to decisions about closure.

 

Lack of investment in new facilities will increase the repair costs and potentially lead to unforeseen costs due to meeting health and safety standards.

Failure to secure a suitable development partner – this risk is mitigated by the fact that our soft market testing has shown there are a few experienced companies with a track record of success.

 

The investment required is substantial and the affordability, financial sustainability and prudence of this is not yet known – detailed analysis   of the financial model and robust due diligence processes will allow the council to ensure the best option of financing the improvements is chosen.

 

Officer capacity to oversee the programme may be insufficient – this risk is mitigated by the fact that the sport and leisure restructure  built in some capacity to progress projects such as this as well as day to day management.  In addition, the council adopts a cross service project team approach to large scale projects such as this similar to the solar PV project.

 

Option 2 is the officer preferred option.  Seeking a development partner will give the Council the opportunity to assess how a partner could improve the facilities, enable a more secure financial operation and prepare the council for a more sustainable model of sport and leisure provision for the future.  Improving the offer will further enhance the district as a place to live and visit whist remaining entirely well placed to deliver on our health and wellbeing objectives particularly still providing for our more vulnerable citizens.

 

There is a clear requirement to address the medium and long term future of SASC.  The report set out that to continue as now with limited investment will lead to reduced occupancy levels, reduced gym memberships, increased subsidy as income decreases and ultimately unaffordable facilities.  Having seen refurbished facilities in other parts of the country and spoken to officers at these councils/trusts, officers believe that the development partner option to invest and improve SASC is a financially attractive option and is a good example of the municipal entrepreneurialism strand of the ensuring council ethos.  

 

Councillor Sands proposed, seconded by Councillor Leytham:-

 

“That the recommendations, as set out in the report, be approved.”

 

Councillors then voted:-

 

Resolved unanimously:

 

(1)          That Cabinet approve in principle to seeking a development partner to invest and improve facilities at Salt Ayre Sports Centre in the short and medium term. 

(2)          That the outcome of this piece of work be reported back to Cabinet with more detailed proposals, associated financial implications and to seek authority to proceed prior to entering into any contractual agreement.

Officer responsible for effecting the decision:

 

Chief Officer (Health & Housing)

 

Reasons for making the decision:

 

The decision supports the Council’s ensuring Council ethos, particularly relating to municipal entrepreneurialism as well as being directly related to the health and wellbeing corporate plan priority and aligns with the Council’s key objective to ensure value for money in delivering services.

 

Supporting documents: