Decision details

Leisure-at-Cheltenham- contract with Alliance Leisure

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

That Cheltenham Borough Council enter into a contract with Alliance Leisure Services to progress a programme of improvements to Leisure-at-Cheltenham as set out in section 3 of the report to Council on 11 December 2017.

 

There are two risks associated with signing the agreement with ALS today; 12.01.18 :

 

The repayment agreement with the Trust for the loan is not yet in place. There is the risk the Trust do not sign up to a legally binding document to make the repayments before CBC commits to the works

The Sport England grant agreement is not yet completed. This has been signed by CBC and received by them-we are awaiting the agreement to be sealed and completed.

Reasons for the decision:

Council on 11 December 2017 agreed to a revised programme of improvements to Leisure-at-Cheltenham as set out in section 3 of the report. The total cost of the improvements is £2.554m, with the Council agreeing to contribute £2.236m of these costs via prudential borrowing.


The improvements will take forward the vision for Leisure-at.

 

To develop a hub within the town that encourages public participation in diverse experiences that touch and inspire people be it through sport, culture, play, competition, heritage, learning, health and wellbeing. The ambition is to put Cheltenham at the forefront nationally, creating a unique place that contributes to the social, cultural and economic value of the town and enriching the lives of residents and visitors.

 

Council agreed to delegate authority to the Director Resources and Corporate Projects, in consultation with the Cabinet Member Healthy Lifestyles and the Borough Solicitor to enter into a contract with Alliance Leisure Services and any other legal agreements and processes necessary to progress the scheme whilst safeguarding the Authority’s interest.

Alternative options considered:

The Council and the Trust have explored two other options :

 

DO NOTHING: Continue to maintain the existing facility to ensure it is fit for purpose within resources, in the knowledge that Leisure-at will not be able to meet the demand for business and customer expectations, with reducing appeal and subsequent declining retention and reputation with increased wear and tear on kit and facilities. There will be a negative impact upon economic viability of the business and the Trust. This option has therefore been dismissed.

 

COMMERCIAL FUNDING: The Cheltenham Trust could fully fund the capital investment programme without contribution by CBC through seeking a commercial loan. Although on the face of it, this would minimise the risk to the Council in that the Trust business activities would fund the repayments, the Council would need to act as a guarantor for the loan. That would mean assigning an equivalent sum in our reserves to fund this in case the Trust failed. In addition, the cost of the loan would have been higher at an estimated 5 %. On advice from the S151 officer, this option has been dismissed.

Other reasons / organisations consulted

Both the Cabinet Member Healthy Lifestyles and the Borough Solicitor have been consulted about he intention to enter into the legal agreement with ALS and both parties are happy to proceed.

Contact: Mark Sheldon, Director of Corporate Resources Email: [email protected] Email: [email protected].

Publication date: 12/01/2018

Date of decision: 12/01/2018

Accompanying Documents: