CABINET KEY DECISION
Subject:
Landholdings – North Bournemouth
Cabinet Portfolio: Resources
Corporate Lead:
Jane Portman – Executive Director, Children & Families Services
Service Director: Roger Brown - Leisure
Meeting Date:
27 May 2009
Status:
Non-Public as it contains exempt information as defined
in paragraphs 3 & 4 in Part 1 of Schedule 12A of the
Local Government Act 1972
Contact:
Roger Brown (Service Director – Leisure)
01202 451181 [email address]
1.0 Summary:
1.1
This report follows an options appraisal for the provision of a North
Bournemouth Leisure Centre, a long-standing Council aspiration.
1.2
The proposal is to acquire the existing ‘ROKO’ private sector leisure
facilities at the Civil Service Sports Club site, Kinson, to create a
North Bournemouth Leisure Centre as a replacement for Kinson
Swimming Pool.
1.3
Acquisition of this site will enable
• a replacement Centre to be fully available to the public following
adaptation by October 2010;
• an integrated community campus for North Bournemouth to be
developed to incorporate Kinson Library; Kinson Village Green;
Kinson Health centre; Kinson Community Centre; Pelhams Park
and the Civil Service Ground
• the other potential sites, namely the existing Kinson Swimming
Pool site and the former Kingsleigh First School site to be declared
surplus to Leisure’s requirements and made available for
alternative use.
1.4
This report seeks formal approval to proceed with the acquisition and
adaptation of the ROKO facilities at a total cost of £6.9 million and
for the project to be incorporated in the Council’s Capital
Programme.
2.0 Recommendation:
The Cabinet is recommended to make the following
recommendations to Council :
2.1
To approve the acquisition of the ROKO site and the adaptation of
the facilities at a total cost of £6.9 million, to be financed as
follows :
Corporate Capital Funding £3.9m; Prudential Borrowing £2.5m;
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Leisure S106 Funding £0.5m; and for the Capital Programme to be
amended accordingly.
2.2
To approve the amendment to the Capital Programme funding
enabling the release of £160K of Revenue funding to support the
anticipated revenue pressures during the period to full opening.
2.3
To declare the following sites as surplus to Leisure Services’
requirements:
a)
Kinson Swimming Pool site – following demolition of the
existing Kinson Swimming Pool after the opening of the
North Bournemouth Centre in October 2010;
b)
former Kingsleigh First School site – with immediate effect
3.0
Reason for Recommendation:
3.1
The creation of a North Bournemouth Leisure Centre to replace
Kinson Swimming Pool has been a long-standing aspiration of the
Council. The new Centre will address a shortfall of indoor leisure
provision in North Bournemouth and assist the Council and the Health
Trust’s objective to increase the levels of physical activity in this
area of the town. The project will also achieve more cost effective
leisure provision; will release land for alternative uses, will better
meet the leisure needs and aspirations of residents in North
Bournemouth, and will contribute to the Council’s investment priority
of ‘all-weather attractions’.
Supporting Information 4.0 Background
Detail:
4.1
The ROKO facility, which is located adjacent to Pelhams Park in
Kinson, has significant and well designed ‘dry’ facilities, but the
swimming pool area has inappropriate depth/depth gradients and
inadequate plant for operation as a public facility. Investment is
required to replace the swimming provision and to provide separate
‘dry side’ changing rooms.
4.2
The proposal is to acquire the site in July 2009; to operate it as a
private members club for 3 months as a transition period; to then
extend the ‘dry side’ provision to casual users in October 2009; to
close the swimming pool area for refurbishment in January 2010 and
to open the completed facility for full public use in October 2010.
This programme will allow the Centre to continue to operate whilst
the refurbishment works are undertaken. The Kinson Swimming Pool
would continue to be available until October 2010, when the new
swimming facilities become available. At that point, the Kinson
Swimming Pool will shut, the building will be demolished and the site
will become available for alternative use.
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4.3
An additional site, the former Kingsleigh Infants School site which was
under consideration for the siting of the North Bournemouth leisure
centre can also be declared as surplus to Leisure Services’
requirements and made available for alternative use. This can be
considered alongside the Building Schools for the Future proposals for
the Kings High School site and the Parks Landholdings Review
proposals for land adjacent Green Lane.
4.4
A plan is provided at Appendix 3 which identifies the ROKO site
(labelled ‘A’); the Kinson Swimming Pool site (labelled ‘B’) and the
former Kingsleigh First School site (labelled ‘C’).
5.0 Consultation:
5.1
Consultation has been primarily with the Cabinet Members for
Resources and for Major Projects. The limited consultation has been
necessary because of a confidentiality agreement between the
Council and Sports & Leisure Group (trading as ROKO). This was a
direct response to the Council’s approach to ROKO because the
Centre was not up for sale.
5.2
A small project team has been working with the Deputy Leader and
Cabinet Member for Major Projects to progress the discussions and
consider the options. The team has included senior managers from
Leisure, Property, Resources and Communications; with additional
support from Legal Services and Democratic Services.
5.3
Ward Councillors were briefed this morning immediately prior to
Cabinet. The Minutes of Cabinet will become public this Friday, 29
May. On that morning Officers will be briefing the existing staff at
Kinson Swimming Pool and the ROKO Centre on the intended
acquisition and the ROKO staff’s transfer under the Transfer of
Undertakings Protection of Employment (TUPE) process. A press
release has also been prepared for release on Friday, 29 May.
6.0
Alternative Options considered & rejected:
6.1
Following an Options Appraisal (see Appendix 1), the clear preference
is Option 2 – the acquisition of the current ROKO site. It is considered
that this option provides a unique opportunity to achieve a leisure
centre for North Bournemouth, with comprehensive indoor and
outdoor facilities, in a very suitable location and at significantly
reduced cost when compared to the new build option. It also has the
benefit of early delivery with the full facilities, following
refurbishment, to be available for public use within 16 months of
acquiring the site.
6.2
The alternative options considered and rejected (see Appendix 1)
include:
• refurbishment of the existing Kinson Swimming Pool site
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• new leisure centre build at the former Kingsleigh Infants School
site
7.0
Summary of Financial/Resources Implications:
7.1
The business case was presented and approved by the Executive
Gateway Board on 11 May 2009 and is referenced in the background
papers.
7.2
The predicted project costs are £6.9 million and a breakdown of
these costs is in Appendix 2. The proposed sources of funding are as
follows:
£
Corporate
Capital
Funding
3,900,000
Leisure – S106 Funding
500,000
Prudential
Borrowing 2,500,000
_________
6,900,000
And the spend profile is as follows:
2009/10
£5,469,500
2010/11
£1,430,500
7.3
The Prudential Borrowing costs will be met from the projected
revenue improvement from the operation of the new Centre (£80K
surplus per annum) compared with Kinson Swimming Pool (£95K
deficit per annum). The projections are based on full trading being
achieved commencing 2011/12.
7.4
Release of the Kingsleigh First School landholding and ultimately the
Kinson Swimming Pool site for alternative use could enable new
capital receipts to be achieved when prevailing market conditions
allow.
7.5
The acquisition of the existing leisure facility, together with the
planned expansion of activities and user numbers, may have
significant implications on the Council’s VAT position, especially
around the impact of the partial exemption limit. External advice is
being sought as a matter of urgency. An update on the implications
of this purchase and subsequent service investment on the Council’s
overall tax position will be provided separately to the Cabinet.
8.
Summary of Legal Implications
8.1
The Civil Service Sports Ground is leased to Sports & Leisure Group
(trading as ROKO) by the Civil Service Sports Association on a 125 year
lease which commenced on 1 December 2003. The acquisition
involves the purchase of the building and the benefit of the
remainder of the lease which also includes the playing field and car
park areas, ie. The land marked ‘A’ on the plan at Appendix 3.
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8.2
The target date for exchange for the acquisition is 28 May 2009, with
a target completion date of 1 July 2009. The Council will assume
responsibility for the 37 staff currently employed at the site, through
a TUPE transfer. The Centre is being acquired as an operational
concern, with the transfer of plant, equipment and staff.
9.0 Summary of Environmental Impact:
The Environmental Impact checklist has been completed. The
opportunity to create a community campus for North Bournemouth in
an attractive park setting will improve the quality of the local
environment. Leisure centres are significant users of energy and to
mitigate this there will be a focus on effective energy management
and promotion of access to the Centre by modes other than by car.
New footpath and cycleway links through Pelhams Park to the Leisure
Centre are proposed. The provision of good quality local public
facilities will also reduce the need to travel.
10.
Summary of Equalities & Diversity Impact:
10.1 An initial Equality Impact Needs Assessment has been undertaken.
The project will address the shortfall of indoor leisure provision in
this area of the town, which is a priority area for health improvement
identified by the Council and the Primary Care Trust.
10.2 Consultation with the local community on the programming of the
Centre will enable, in particular, the strands of age, race and
religious beliefs to be fully considered, and the works programme is
an opportunity to address accessibility issues for those with
disabilities. The overall equality and diversity impact of the project
will be positive.
11.0 Summary of Risk Assessment:
An initial risk assessment has been undertaken. The identified risk
level is ‘High’ as a consequence of the significant capital investment
and prudential borrowing associated with the project. To minimise
risks, full consideration has been given in developing the costings to
appropriate contingency provision (15%), a full-time project
management resource and a project board to be led by an Executive
Director. A full building survey is also being undertaken and a verbal
update will be given to Cabinet.
Background Papers:
• Capital Gateway 2 – Business Justification – Executive Gateway Board (11
May 2009)
RB/MB/20 May 2009
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Appendix 1
Options Appraisal (Version 5) – North Bournemouth Centre
The project to look at the building of a new North Bournemouth Leisure Centre, which
would respond to the current and future requirements of the local community, has
been in progress for over 10 years and a number of options have been considered:
Option 1 - New Leisure Centre build - Kingsleigh Infants School Site
In 2004 the Council instructed architects to design a facility on the site of Kingsleigh
first school in Hadow Road, Kinson and this was duly undertaken by S & P.
This work was subsequently superceded by work undertaken by architects: Gibson
Hamilton in early 2007, with a new design including:
• 25 m 6-lane swimming pool
• Learner pool with moveable floor
• Fitness suite – 422 m² + assessment room
• Cafeteria
• Dance Studio – 240 m²
• Car parking for approximately 90 cars
Total cost - estimated to be in excess of £10.5 million at current prices
In addition the current land value of the site that would otherwise be able to be
sold for other uses is estimated to be £1.25 million.
Option 2 – Purchase of ROKO Fitness Club
In May 2008, the opportunity came about to enter discussions with Sports and
Leisure Management concerning the possible acquisition of the existing Roko Fitness
Club, situated in Pelhams Park, Kinson.
A number of options have been considered with the site, involving retention of the
existing building envelope with redevelopment being initially confined to the
swimming and dry changing facilities. Essentially, this would provide:
• 25 m 4-lane swimming pool/Learner Pool (Total 29 m in length with movable
boom to provide flexibility)
• Fitness suite – 639 m²
• Cafeteria
• 2 Nr. Dance studios – total 206 m² + assessment room
• 8 x 5 a side astro turf football pitches
• Outdoor playing fields
• Car parking for 180 cars
The facilities included do not differ significantly to the proposals for facilities included
in Option 1 with the actual layout of the facilities on both ground floor and first floor,
very similar to the proposed facility at Hadow Road
Due to the large number of dryside facilities, including a very profitable astro turf
football complex, it is anticipated that the facility could be operated to realise an
operating profit of approximately £80K compared with the current trading
performance of Kinson Pool which attracts an operational subsidy of approximately
£95K per annum.
This would improve the revenue account by approximately £175K per annum.
This site is deemed to be more suitable than the Hadow Road site as the wider
Pelhams Park, including other Council facilities, offers potential for an integrated site.
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The Roko facility is, however, in the green belt and consequently any additions to the
building are likely to be contentious. The only variation on this is if there are “special
circumstances” but the view of planners is that there are unlikely to be any special
circumstances.
Site acquisition
- £3.715 million
Essential Works
- £2.700 million
Project Management - £0.075 million
Revenue Pressures - £0.160 million
Total
- £6.650 million
The cost of acquiring this facility is £3.715 million plus an additional £2.70 million to
upgrade the swimming pool and changing rooms to a suitable standard for the
anticipated levels of public use.
A sum of £100K has been allocated for the demolition of the Kinson Pool Site and a
further provision of £160K made for the revenue loss on the project in two years 2008
– 2010.
Option 3 – Refurbishment of existing Kinson Pool site
The Kinson Pool site, built in the late 1960’s with a predicted life of 20 years, is after
nearly 40 years nearing the end of its economic life. Whilst some of the pool plant
has been replaced over the years much of the building and equipment is original.
The view of the architects (Gibson Hamilton ) is as follows:
The condition of the existing building because of its age and condition, is unlikely to
be appropriate for refurbishment. The options available for Kinson Pool are therefore
as follows:
I. Modification and refurbishment of the building retaining the existing 20 yard pool
would cost approximately:
£2 million.
II. Modification, refurbishment and an extension to the building capable of
accommodating a 25 metre pool tank, would cost approximately:
£3.5 million
To invest in the Kinson Pool site would raise a number of problematic issues as
highlighted by the architects Gibson Hamilton:
• The current subsidy provided to each of the 55,000 users per annum is £2 per
user. This is due to there only being a swimming facility on site. There would
need to be extensive more profitable dryside facilities available to reduce the
current operating deficit. However the site is inadequate to accommodate the
range of facilities envisaged at either Hadow Road or the Roko site. The
presence of the existing mature trees and the steep gradient on the southern
and western aspects of the site limits the available land for an enlarged
facility.
• Even an increase the length of the current pool to a standard 25 metre length,
would reduce the number of car parking spaces to less that 30
• There are no other locally based community services that could integrate with
this facility.
Peter Brown
6th May 09
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Appendix 2
North Bournemouth Project : Predicted Project Costs
£
Site Acquisition
3,715,000
Works Contract
1,940,000
Consultant
260,000
Procurement – Fees
Equipment Renewal (5 year programme)
250,000
Project Management
75,000
BREEAM (5% of overall cost to meet ‘Very Good’ rating
100,000
Contingency (increased to 15% based on good project
300,000
management experience)
Demolition cost of Kinson Pool site
100,000
Revenue pressures during transition & construction
period (2009-10 & 2010-11)
160,000
Total Funding Requirement
6,900,000
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