Agenda item

            The Committee was reminded that, at its meeting on 24th January, it had discussed the future of the City of Belfast Golf Course at Mallusk.  At that meeting it had been agreed that the Council would retain the Golf Course and continue to manage it within the context of a facilities management agreement framework and consider the realisation of the development potential of the site in the medium-term.  It had been agreed also, in principle, that the Facility Management Agreement be extended for a period of up to twenty-one years subject to:

·         further information in relation to the club’s business case for the replacement of the clubhouse being submitted within a six month period;

·         the business case specifying in detail how the redevelopment was to be financed; and

·         the incorporation of a buy-out clause within the agreement.

            The Director reported that the Club had provided a detailed business case regarding the financing of the replacement clubhouse within the six months specified and Council officers had met with representatives of the Club to progress discussions in relation to future agreements.

            He explained that the need for a replacement clubhouse had been established through the Council’s own property inspection process.  The existing building had been installed in 1985 as a temporary structure and was no longer fit for purpose.  The Club was proposing to provide a new clubhouse which would incorporate a shop and adequate toilet and changing facilities, the estimated cost of which was approximately £235,000.  In order to finance the building, the Club had considered obtaining a mortgage, however, it had been informed that a ten year repayment period at 7.9% per annum would be offered and that had been rejected by the Club committee.  The Club had explored other options but had agreed that the use of its accumulated building fund provided the most cost-effective method of financing a replacement building.

            The Director reported, since the Club was not obtaining a mortgage, that removed the need for a buy-out clause.  He reminded the Members that the initial concern had been that the Club Committee would incur debt and liabilities through a mortgage and that the Council might at some future date close the facility, perhaps in advance of the mortgage having been paid.  The buy-out clause had been intended to safeguard individual Club members.  However, the Club Committee had requested that the Council incorporate instead within its Management Agreement a “comfort clause”.  The Club wished to bring a degree of longevity to the management arrangement and, although the Committee had agreed to a Facilities Management Agreement of twenty?one years, it had included within its decision provision to review the development potential of the site in the medium-term.  It was proposed that Council officers enter discussions with the Club in relation to the form of the agreement which would give sufficient comfort to the Club regarding the length of the agreement and the termination clauses within the context of the future development potential.

            After discussion, the Committee agreed to affirm its decision of 24th January to extend the Facility Management Agreement for a period of up to twenty-one years, subject to an appropriate agreement being prepared by the Council’s Assistant Chief Executive and subject to the appropriate management and financial arrangements being agreed.