Issue - meetings

The report of the Executive Manager – Communities.

It was RESOLVED that:

a)    the findings of the Bingham Leisure Centre options appraisal and feasibility study and the associated significant financial implications, be noted.

b)    detailed investigations of the feasibility of constructing a new leisure centre at Chapel Lane, Bingham on land owned by the Council as part of a wider commercial development of the site, be commenced.

c)     £40,000 be allocated from the investment and regeneration project budget to undertake a business case feasibility study, site investigations, and design works for an integrated leisure and commercial development of the site.

d)    a further report be brought  to Cabinet before the end of financial year 2018/19 covering the financial, business and community outcomes of an integrated leisure and commercial development at Chapel Lane.

The Portfolio Holder for Community and Leisure presented the report of the Executive Manager – Communities to provide information on the feasibility study and options appraisal of potential locations for a new leisure centre at Bingham, and the associated financial, operational and technical implications of the various options.

In in June 2017 Cabinet had approved the Council’s Leisure Facilities Strategy for 2017 – 2027 that detailed Bingham Leisure Centre as the facility in greatest need of major improvement (Minute No. 5 2017/18). Following the leisure strategy approval, a feasibility study had taken place in November 2017 on four potential locations for a new leisure centre in Bingham along with the associated financial, operation and technical implications associated with the construction of a new leisure centre at each potential site.

The Portfolio Holder advised that potential locations had been considered on the Toot Hill School site where Bingham Leisure Centre was currently located, however, the feasibility study had concluded that all of the identified locations on the school site presented significant and prohibitive challenges due to accessibility problems and their close proximity to nearby houses. It was therefore recommended that a new stand-alone facility be built off the school site. The Portfolio Holder requested Cabinet approval for further investigations be made on the feasibility of the construction of a new leisure centre within the available Council owned land adjacent to Chapel Lane, Bingham. The Portfolio Holder presented two ‘facility mix’ options that outlined the options for facilities that could be available at the leisure centre. Facility mix one included sports facilities as well as office space. Facility mix two included the majority of sports facilities and office space outlined in mix one minus the sports hall and replacement track/infield.

The Portfolio Holder also asked Cabinet to consider the financial implications of the feasibility study and of the construction of a new leisure centre in Bingham and asked for approval for the allocation of £40,000 from the investment and regeneration project to undertake a business case feasibility study, site investigations and design works for an integrated leisure and commercial development on the Chapel Lane site. The financial cost estimates of facility mix one was estimated at £20.5 million - £21. 4 million and facility mix two was estimated to cost £16.1 million plus inflation at £1.4 million over two years. It was also estimated that facility mix one would return a surplus of £188,000 per annum and that facility mix two would return a surplus of £104,000, which included annualised maintenance replacement costs. It was noted that due to the Council’s diminishing capital resources borrowing would be required. It was explained that based on a PWLB loan at 2.82% over 40 years for the full cost of the development; annual repayments would be approximately £944,000 for facility mix one and £709,000 for facility mix two. The development of a new leisure centre would therefore put financial pressure on the Council’s budget going forward. The Portfolio Holder stated that it was expected that  ...  view the full minutes text for item 14