Issue - meetings
Sports Hall Feasibility Options Appraisal
Meeting: 30/05/2018 - Cabinet (Item 5)
5 Sports Hall Feasibility Options Appraisal 
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Additional documents:
Minutes:
The Portfolio Holder for Leisure and Cultural Services provided background information in respect of the project. Highlighting that the decision was taken in 2014 to build a new Sports and Leisure Centre, which would not include a Sports Hall, as a report from Sports England had advised that there was sufficient sports hall facilities within the District. After discussion it was agreed that Officers would enter negotiations with BAM in respect of the use of the sports hall facility at North Bromsgrove High School as an additional facility. Unfortunately, at a very late stage the Council was advised that this would not be possible for the amount of weeks originally agreed, 48 and were offered 38 weeks. Officers were then asked to come back to Cabinet with an options appraisal report, which Members how had before them. This had been prepared by MACE the managing agent for the new centre and provided a number of different options and associated costs.
The Portfolio Holder for Finance and Enabling referred Members to paragraph 4.2 of the report which provided full costings for the proposed options which ranged from £2.9m to £4.7m. There was the potential for money to be raised from the sale of land, but this would not be as significant as had originally been suggested if a Sports Hall was built. Details of the income generated from the options was also included and was anticipated to be no more than £70k, which would give prudential borrowing of up to £1.9m. This in turn gave a predicted shortfall of £1.9m to £2.83m, which would need to be funded from elsewhere. The Portfolio Holder for Finance and Enabling went on to outline the financial future of the Council including reductions in funds from the New Homes Bonus and Business rates for example. It was also highlighted that within the Medium Term Financial Plan presented at the February 2018 full Council meeting that there were significant shortfalls to be faced by the Council in the future years totalling £2.1m. The aim of the Council was to maintain its services and it would be difficult to find the funding for a Sports Hall within these financial constraints. The Portfolio Holder for Finance and Enabling therefore suggested that reluctantly the Council could not afford the project. This was supported by the Portfolio Holder for Leisure and Cultural Services.
Members went on to discuss a number of areas covered within the report, including:
· The potential income from the Sports Hall, if a soft play area was included and the level of prudential borrowing it could generate.
· The amount available through prudential borrowing and the amount of additional funds that the Council would need to find.
· The cost of the options being far in advance than expected.
· The need for the Council to remain financial sustainable in future years.
RESOLVED that Capital funding of £600k be released from balances in 2018/19 to complete the Phase 2 and 3 works associated with the project.