Agenda item

The Committee considered the undernoted report:

“1    Relevant Background Information

      The Committee is reminded that at its meeting on 10 June 2010 it received a report in respect of a request from the Cairn Lodge Boxing Club.  A copy of the report is attached as Appendix A.  The report set out that the Club wished to construct its own facility on land within the Hammer Open Space and sought from the Council a lease on an area of land adjacent to St Michael’s Church, a copy of the site map is attached as Appendix B.  As can be seen from the attached report, the Committee agreed, in principle, subject to certain conditions, to enter into a 25 year lease. 

      In the intervening period, the Boxing Club has secured a design team and prepared drawings for a new building.  Planning permission has been secured. 

      In addition, the Boxing club has sought funding from Sport NI under its Community Capital Programme.  If successful, the club will have secured a maximum of £245,000, the total cost of the scheme is estimated to be £443,278.80, as at November 2010.  This leaves a short fall of approximately £200,000.  To meet the short fall, the Boxing Club been in discussion with the Department for Social Development (Belfast Regeneration Office) and has been advised that there is potential funding of £95,000.  The Club has also made application to the Council for financial support under the Local Investment Fund and the availability of funding from this source will have to be considered in the context of the relevant criteria as outlined by members. 

2    Key Issues

      The Committee is asked to note the following issues:

1.   The Committee has previously agreed, in principle, to enter into a 25 year lease;

2.   The Club has progressed the project to a point where greater certainty is required around security of tenure;

3.   However, while the project has been progressed there remain areas of uncertainty.  While the indications around funding have been positive, there are as yet no letters of offer;

4.   Further design work will be required to prepare tender documentation;

5.   Copies of the sports development plan and business plans have not been received, however this will be a requirement by the funding bodies;

6.   The initial estimate was prepared in November 2010 and is likely to need revised;

      Sport NI has asked that Council provide security of tenure in respect of the land, this is a requirement of the grant process. 

      Members will note from the issues above that the project remains work in progress.  Within this context it would not be appropriate for the Council to provide a lease on the land.  However, as indicated in the previous report of June 2010 and to meet the requirements of SNI it is proposed that at an appropriate point in the process the Council enter into development agreement.  The development agreement would require certain conditions (including agreement on building specification and confirmation of funding) to be fulfilled before commencement of construction on site.  In essence, this agreement would set out that in the event that the Boxing Club construct the new building within a specified period of time, say 24 months, that a lease agreement will be activated.   Members are asked to note that a lease agreement forms an attachment to the Development Agreement which is a legal document.  This safeguards the Council and the Club. 

3    Resource Implications

      Financial

      Notwithstanding any funding which may be accrued as [part of the Local Investment Fund there is no expenditure anticipated in relation to this project.  The lease will provide for payment to the Council of an annual market rent.

      Human Resources

      There are no additional human resource implications at this time. 

      Asset and Other Implications

      The report should highlight implications for Council assets and any other major implications which the decision required would have for the overall strategic planning of the Council.

4    Equality and Good Relations Considerations

      There are equality or good relations considerations.

5    Recommendations

      It is recommended that the Committee in accordance with its previous decision to agree in line with Standing Orders to recommend to the Strategic Policy and Resources Committee that the Council  enters into a 25 year lease agreement by way of a development agreement subject to the agreement of appropriate terms including confirmation of  funding being secured.”

            The Committee adopted the recommendation.