Agenda item

To receive a presentation from Executive Director, Karen Edwards and Development Manager, Johanna Cohen on the key considerations within Report No. REG2601.

Report No. REG2601, alongside any Exempt Appendices, will be available, once published, to the Cabinet and will be accessible via the following link Cabinet - 3rd March 2026.

The following Exempt documents are available for reference:

Cabinet 11 February 2025 – Exempt Report No. REG2501

Cabinet 8 July 2025 – Exempt Report No. REG2503

Cabinet 14 October 2025 – Exempt Report No. LEG2505

Any recommendations arising from the Committee, would then be considered by the Cabinet at its meeting on 3rd March, 2026.

The Committee welcomed the Portfolio Holder for Healthy Communities and Active Lives, Cllr Sophie Porter, Executive Director, Karen Edwards, Rosie Plaistowe-Melham, Service Manager – Finance and Deputy S151 Officer and Johanna Cohen, Development Manager who were in attendance to advise Members on the detail of Report No. REG2601.

Also in attendance were representatives from development partner Alliance Leisure, Sarah Watts, Chief Executive and Founder and Steve Rose, Project Delivery Manager, who provided an overview of their business model and responsibilities throughout the project.

Members acknowledged that there had been a large amount of information to go through prior to the meeting which had been shared as soon as it had become available. However, following a round table discussion, multiple Members felt they had had insufficient time to carry out full scrutiny, but the majority felt they could move forward with the support of officers in the room.

Members were provided with a presentation which set out a summary of the decision and key considerations for the Cabinet at its meeting on 3rd March, 2026, and an overview of the content of the Report and Appendices. Key project milestones were also noted, and in response to a query, it was advised that estimated revenue financial implications, of the £8.8m of additional borrowing to enable the project, had been included in the Medium-Term Financial Strategy, which would be presented at the Full Council Meeting on Thursday 26th February, 2026. Key risks and mitigation were also addressed.

During discussion, the Committee noted that in the initial years following project completion, revenue costs outweighed operational income. However, from year four onwards, there would be a net positive revenue position to enable debt costs of the project to be covered and an income for the Council. Payback (breakeven) would be achieved in 2041/42, at the end of the initial 15 year operator contract.

Members reviewed financial modelling criteria carried out on a number of different scenarios. It was noted that the level of external funding available (Levelling Up funding of £18.5m) helped secure the delivery of the project, and without the funding the Council wouldn’t be in such a positive position. In addition, it was requested that financial modelling be undertaken on 3-4% increased interest rates and a combination scenario.

ACTION:

A discussion was held on the options for borrowing. The current forecasts accounted for long term borrowing of the £8.8m, however this position may change when the time came to borrow the additional amount. Local Government Reorganisation (LGR) could mean that funds may not need to be borrowed, or alternative short-term borrowing could be considered.

In response to a query regarding a Climate Impact Assessment for this project, it was noted that these assessments were in the process of being introduced and a written response would be provided by the Cabinet Member on the latest position.

ACTION:

The Committee received a presentation from Alliance Leisure, which advised on their business model of working solely within the public sector. By working in this sector only, Alliance offered a greater understanding of what was important when developing a facility with a local authority. Alliance worked with architects GT3 and contractors Pellikaan, to develop facilities that were affordable and relevant to need.

The Committee discussed the contract structure and were advised that the Council had requested a Clerk of Works, an independent person to oversee the quality of works, as part of the contract with Alliance Leisure. During a discussion on ground condition, it was noted that the area being used for the development was poor, but Alliance had confidence in Pellikaan, and their 80 years of experience.

The Chair thanked Ms Watts and Mr Rose for their presentation.

With agreement of the Committee, it was proposed that the remainder of the meeting be held in private, therefore excluding the public, to allow for scrutiny of the exempt appendices included within the Report.