Minutes:
The Committee considered the undernoted report:
“1 Relevant Background Information
1.1The Belfast Welcome Centre (BWC) opened in April 2001. It provides a focal point for visitors to Belfast by offering general tourist information on Belfast and Northern Ireland, ticketing, retail and accommodation bookings and it plays a key role in delivering spending targets for Belfast and spreading the economic benefits of tourism across the City.
1.2The BWC currently deals with approximately 385,000 enquiries per annum (of which 310,000 are from visitors to its premises at Donegall Place). Annual revenue costs (approx £1.6 million per annum) are part funded by BCC (£479,465 per annum) and the NITB (£158,000 per annum) with the balance of funding arising from profit on retail sales and commissions on ticket sales/accommodation bookings.
1.3The ten year lease of the current premises at Donegall Place expired on 31 July 2010, but is renewable. The current premises are on the first floor and it has been a long term aspiration of the BWC to relocate to a more suitable ground floor location.
1.4Members have been fully briefed on the possibility of relocating the BWC. TTC and Allan Balnaves produced an initial report demonstrating the potential of the BWC relocation to ground floor, presented to Development Committee on 13 January 2010. ASM Horwath were appointed in October 2010 to undertake the economic appraisal and presented initial recommendations to Development Committee on the 10 November 2010.
1.5Having considered the views expressed by the Members at the above meeting the consultants are now in a position to present their final report for the Committee’s consideration.
2 Key Issues
2.1Rationale for Relocation
The Belfast Welcome Centre was
opened in April 2001 and is now 10 years old. During this period,
tourism across the city has grown and the total number of overnight
trips to the City region has trebled.
The tourism product has changed across
the City, a new Belfast brand has been adopted, visitor patterns have changed and the use of technology has become a must for all tourism destinations – to attract visitors and service visitors once in a destination.
2.22012/2013 will be a key year for Belfast as the new Titanic Belfast attraction will be opened. This, alongside recent private sector investment into the city e.g. Merchant Hotel, demonstrates the recognition of Belfast’s importance as a tourism destination and a Gateway to the rest of the region. London 2012 also presents opportunities that will not be present in future years, specifically in relation to the number of international media who will visit the UK to cover the Olympics. The Belfast Welcome Centre plays a strategic role in signposting visitors from honey pot areas to other parts of the city and therefore will play an important part in spreading visitors and benefits across the city in 2012 and thereafter.
2.3The Belfast Welcome Centre needs to be updated and it has long been their aspiration to move to a ground floor location. It is therefore timely to explore the potential for relocation before any lease on the current premises is extended and any upgrade in the existing facilities is undertaken.
2.4The principal focus of the economic appraisal has been to assess the location options which are currently available. A preferred location has now been identified and, subject to the approval of this option by the Committee, a full business case now needs to be worked up to establish how this location might be sustained financially.
2.5Lands Tribunal
Members are aware that BCC's lease on the Donegall Place premises terminated on 31 July 2010. BCC as tenant applied to the Lands Tribunal for an order for the grant of a tenancy for a further year from 1 August 2010 and month to month thereafter at the current rent of £160,000 p.a. The application was made to the Tribunal as it was not possible to agree the term of the new lease with our landlord. The length of term requested by BCC reflects the ongoing work around a potential relocation of the Belfast Welcome Centre.
2.6The Member for the Lands Tribunal has set
25 March 2011 as the date for the
hearing with written evidence to be submitted to the Member by
11 March 2011. Legal Services have
instructed Bernard Brady to act for BCC and his
Opinion on the case is awaited. The landlord’s position is that they will accept no less than a 5 year term at the existing rent for any further tenancy. Even if the Member sets a term which BCC still find unacceptable BCC will have 3 months to vacate the premises.
2.7Capital Programme
It is important to note that this project has not been included within the capital programme agreed by the Council at its meeting on 9 February 2011 when this year’s rate was agreed. Should the Committee agree to approve one of the options set by the consultants the associated capital expenditure would require approval by the Strategic Policy and Resources Committee. Any decision would be subject to advice from the Director of Property and Projects and the Director of Finance and Resources as to whether the project represents value for money and is fundable within the capital budget allocation. Furthermore the SP&R Committee will want to consider the project within the context of the wider capital expenditure proposals.
2.8Next steps
The next steps in the process are set out in the Council’s Decision Making and Gates Review Process. These are:-
Development Committee decision considered by the SP&R Committee as part of Quarterly Update on the Capital Programme. Formal Prioritisation within the Capital Programme (SP&R)
Financial Services examine the preferred option within the Green Book Appraisal, capture resource needs for the project and future departmental implications/efficiencies
Gate 1 Review – Business Justification; Recommendation to move forward or referred back for clarification
(Gate Reviewers)
Department develops full business case, including brief for delivery and performance indicators for benefits to be achieved
3 Resource Implications
3.1All options are based on receiving ongoing revenue support from BCC of £479,465 per annum, however relocation may present an opportunity to reduce this support.
3.2The capital costs associated with the options presented within the report range from £544K, which is deemed to be the minimum reinvestment required in the current location, to £1.62 million associated with relocating to a suitable ground floor location. Should the SP&R Committee agree to proceed with the project applications will be made to NITB for capital support.
3.3As stated in Paragraph 2.7 above any decision to proceed will lie with the Strategic Policy and Resources Committee in the context of the overall capital programme and the availability of capital financing within the current budget.
3.4If a decision is taken to proceed £15,000 will be required from the Development Department’s 2011/2012 budget to support preparation of full business case.
4 Equality and Good Relations Considerations
4.1If this projects proceeds it will be subject to Equality screening.
5 Recommendations
5.1Members consider the options presented by the consultants and if appropriate agree to refer the project to the SP&R Committee for its consideration.
6 Decision Tracking
Timeframe: March 2011 - Report to SP&R Committee
Reporting Officer: John Mc Grillen
Timeframe: April 2011 - Further Report to the Development Committee
Reporting Officer: John McGrillen
7 Key to Abbreviations
BWC - Belfast Welcome Centre
NITB - Northern Ireland Tourist Board
BVCB – Belfast Visitor and Welcome Centre”
It was reported that Messrs. M. Williamson and J. Parker, representing ASM Horwath, who were acting as consultants in this matter and who had prepared the associated economic appraisal, were in attendance and they were admitted to the meeting and welcomed by the Deputy Chairman.
Mr. Williamson reviewed the role of the Belfast Welcome Centre and referred to the options which had been considered for its future location and development, which are set out hereunder:
(i) do nothing;
(ii) relocate to Donegall Square North (the former Northern Bank Building);
(iii)remain at the Donegall Place site and refurbish the building
(iv)remain at the Donegall Place site and do nothing; or
(v) relocate to the Belfast Central Library.
Mr. Williamson outlined advantages and disadvantages associated with each of the options, including the fit-out costs, the operating costs and potential revenues, the wider economic benefit to the City and the cost–to-benefit ratio. He advised the Committee that, after studying the future potential options for the relocation of the Welcome Centre, it had been concluded that the most advantageous to the Council, on a longer-term basis, would be to relocate to the former Northern Bank Building, 8?10 Donegall Square North, since it would, in the consultant’s opinion, offer the most viable solution for the undernoted reasons:
· the building was of a high-profile and offered a central location close to the City Hall;
· the location would, potentially, attract a higher number of visitors which would, in turn, generate additional direct and indirect spending opportunities;
· the location was close to the existing transport network and any Rapid Transit System which might be developed in the City; and
· the location would enable the utilisation of the latest information technology.
Mr. Williamson and Mr. Parker then answered a number of questions which were put to them by the Members regarding the potential capital costs associated with the proposals outlined and they then retired from the meeting.
A Member stated that, whilst the former Northern Bank building in Donegall Square North was located in an area that would prove beneficial in terms of prominence, accessibility and potential footfall, a full survey should be carried to establish the long-term viability of the building as a site for the Welcome Centre. It was suggested also, given the age and design of the building, that there might be a long?term financial burden placed on the Council should it choose this option and that other possibilities should be explored.
After discussion, the Committee agreed to note the information which had been provided within the Consultant’s report and agreed further that £15,000 be allocated towards the development of a full business case for each of the options, subject to the Strategic Policy and Resources Committee agreeing that the project be included within the Capital Programme.