Agenda item

To consider Report No. REG2501 (copy attached), which sets out the next steps in relation to the provision of a leisure centre in Farnborough.

The Cabinet considered Report No. REG2501, which set out the next steps in relation to the provision of a new leisure centre for Farnborough.

The Cabinet was reminded that, in January 2023, the Council had been awarded £20 million of Levelling Up Funding to support the delivery of a Leisure and Cultural Hub in Farnborough. Since that time, a review of the project had shown that estimated costs had increased significantly and it had become clear that a project of that type was no longer affordable for the Council. The project team had engaged with a team of specialist consultants provided by the Government to look at how the project could be adjusted to achieve the most important outcomes for local people whilst being affordable for the Council. The Report set out a revised proposal that would deliver a leisure centre in Farnborough that was both within the time parameters of the Levelling Up funding and affordable for the Council, given its wider financial pressures.

The Cabinet was supportive of the proposed approach and felt that this would deliver an important facility for the Borough.

The Cabinet RESOLVED that

(i)           the revised approach to providing a leisure centre in Farnborough town centre, as set out in Report No. REG2501, be approved;

(ii)          the proposed facilities mix for the leisure centre, as set out in the Report, be approved;

(iii)         the development procurement approach, to enable the delivery of the project within the Levelling Up Fund timelines, be approved;

(iv)         the commissioning of design work to the end of RIBA Stage 3, planning submission and associated costs of up to £1.35 million be funded by the Levelling Up Fund;

(v)          the use of Levelling Up Fund Capacity Funding Grant (£40,000), towards legal and other project related costs that cannot be drawn down from the Levelling Up Fund, be approved;

(vi)         the overall operator procurement and appointment approach, as set out in the Report, be approved, along with the commencement of the process;

(vii)       the Executive Head of Operations, in consultation with the Healthy Communities & Active Lives Portfolio Holder, be authorised to amend the procurement documentation as required throughout the process, subject to consultation with the Executive Head of Finance on any financial implications;

(viii)      the further extension to the existing agreement with Places Leisure to operate the Aldershot Pools and Lido on the same terms until 31st March, 2027 be approved;

(ix)         it be noted that a detailed viable business case, based on the outcomes of RIBA 3 and the initial stages of the operator procurement, including an appropriate funding strategy supported by robust independent due diligence, would be produced before a decision to move to RIBA Stage 4 of the project was considered by the Cabinet;

(x)          it be noted that, if proceeding beyond RIBA Stage 4, the Council would be accepting the financial risks associated with the funding strategy, including the outcomes of the operator procurement and the risks fully identified, evaluated and scenario tested in the business case; and

(xi)         it be noted that, to progress beyond RIBA Stage 4, the Council would firstly need to resolve its current Medium Term Financial Strategy deficit and, to a high degree of certainty, achieve financial sustainability.