Minutes:
(Councillor Mullan left the meeting whilst this item was under discussion.)
(Mr. A Hassard, Director of Parks and Leisure, attended in connection with this item.)
The Committee considered the undernoted report:
“1 Purpose of report
1.1 The key purpose of this paper is to:
· present initial cost estimates, risks and the procurement approach around the stadium regeneration project at Olympia,
· update members on partnership agreements and;
· to recommend a financial package for both stadia regeneration projects at Olympia and Andersonstown.
2 Relevant Background Information
2.1 Significant investment by DCAL and sporting bodies into the Stadium Development Programme fits with the Investment Programme and the strategic review of leisure, presenting major strategic opportunities for the Council to begin a transformation plan linked to the stadium developments. At Windsor Park, this offers the opportunity for regeneration around adjacent Council assets at Olympia. Planning permission for Windsor Park has been granted including an annex to the West stand designated for community benefit. The stadium development is due to begin on site in January 2014.
2.2 Members will be aware of the Strategic Policy & Resources meeting in March 2013, where it was agreed:
· ‘in principle’ to progress both the Olympia and Andersonstown Leisure Centres to Stage 2 of the Capital Programme to form the first phase of the citywide leisure transformation review, and;
· to develop regeneration plans in tandem and in conjunction with government departments given the one off strategic opportunity and DCAL community benefit commitment.
2.3 At a special meeting of the Strategic Policy & Resources Committee on 26 April 2013, members were updated on the status of negotiations with IFA regarding relocation of Olympia into the new stadium at Windsor Park. The Committee agreed to relocation only on the basis of a nil rental and agreement on a mutual community benefit arrangement with the IFA.
2.4 Members will also be aware that leave has been granted for a Judicial Review hearing regarding the development at Windsor Park, the dates of which are set as 16 – 18 December 2013.
3 Key Issues
Windsor / Olympia - Phasing of physical regeneration
3.1 Members’ preference was to move leisure provision into the new stadium; relocate community centre provision into the Village area; redevelopment of the Olympia site to provide a new alignment and replacement for Midgley Park; a new pitch; play provision; some commercial development and new public realm and access to the stadium from Boucher Road.
3.2 DCAL/Linfield and the IFA also favour this option as the Council use of stadium space for leisure in the widest sense meets the sustainable community benefit criteria and it provides a much better setting and access for the new stadium adding to its offer.
3.3 The optimum phasing would be to build the leisure element in the stadium and when that is complete demolish Olympia and redevelop the site as Phase 2. This allows continuity in terms of leisure provision but will mean some temporary loss of pitch provision to both the Council and Linfield.
3.4 Table 1: Project phasing at Windsor / Olympia
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Phase 1a: ‘Active Belfast’ facility, Windsor Park |
This is the first stage where the new leisure facility would be built onto the West Stand of a newly refurbished Windsor Park. This is dependent upon satisfactory leasing and partnership agreements with IFA as the facility owner. Access to this new facility would be dependent on the delivery of Phase 1b: the enabling works |
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Phase 1b: Enabling works
|
This stage covers the ‘enabling works’ and environmental regeneration required to provide access to Council services and would take place once a new facility is complete, including:
- Demolition of the existing centre (this would be linked to the relocation of Community Services provision, see paragraph 3.19)
- Reorientation of Council outdoor space at Olympia
- Access improvement at multiple entry points including a new boulevard
- Redevelopment of Midgley Park which is currently located in front of the West Stand - Redevelopment of play park at Olympia |
|
Phase 2: Development opportunities |
Development briefs may be issued for commercial development and/or capital receipts, at the front of the site on the basis of sports-led regeneration opportunities. |
3.5 Significant risks remain around the delivery of this project. These include:
· Leave granted to Crusaders for a Judicial Review
· Partner agreements with both IFA and Linfield FC yet to be finalised
· Procurement arrangements for both design and construction in partnership with DCAL and IFA
· Planning approval for an enhanced annex to the West stand in order to provide a leisure facility and the regeneration of the wider site
· Tight timescales in order to align with the delivery of the stadium programme
Windsor / Olympia - design and cost estimates
3.6 Members will be aware that the Council are working ‘at risk’ on this project on developing up costs and detailed designs in order to meet the timescales for the delivery of the stadium programme.
3.7 Following the first stage of community engagement, an intense and sustained effort by officers from Property & Projects, Parks & Leisure and Development Departments has culminated in the development of requirements and design for the new facility and the wider site. Initial design development for the ‘Active Belfast’ facility at Windsor Park is now achieved to a stage which enables cost estimates to be produced.
3.8 Despite the design constraints apparent in building onto a stadium within a restricted site line, the proposed design meets the aspirations of the Parks & Leisure Department and is currently a 7,500m2 centre, which is significantly larger than the current facility at Olympia with enhanced provision.
3.9 This design has been costed prior to any further design development taking place. Any subsequent modifications in design will result in an increase in this cost estimate. Due to the rapidly progressing nature of this project, a verbal update report on cost estimates will be provided by the Director of Property & Projects at Committee.
Windsor / Olympia procurement arrangements
3.10 The time pressures, legal and procurement complexities of this project will require the appointment of an integrated design team. Officers are confident that this methodology whilst is undesirable will be still able to demonstrate value for money.
3.11 Officers have issued correspondence to DCAL which outlines a procurement approach for both Works and Services and requested key dates for which information is required to keep with the programme for delivery of the stadium.
3.12 Officers are in the process of drafting up contractual arrangements for consideration by DCAL and the IFA. The key elements to this contract will be that DCAL would the primary funder in this overall project and that the Council will be afforded every opportunity as the contract proceeds to test the value for money within the contract. The fit-out of the shell and elements outside of the shell and core may be tested through a separate procurement exercise ensuring value for money.
3.13 To date Belfast City Council have completed design work to RIBA Stage C and at present have not engaged with any supplier to further progress this work.
3.14 Officers are developing a series of planning applications for the project which would be progressed over the summer in order to align with DCAL’s stadium development programme.
Windsor / Olympia partnership agreement – IFA
3.15 The new stadium will impact on the entire city, however members have emphasised their aspirations that the Council works to ensure enhancements for adjacent communities. This is an opportunity to realise the potential socio-economic benefits and work towards an enhanced community provision.
3.16 Work to determine the nature of a community benefits partnership with the IFA is ongoing. There are emerging organisational synergies regarding health promotion, employability, good relations and sports participation around which to build a proposal for Committee’s consideration. Options on the objectives of the partnership, associated programming, use of facilities and costs have been drafted and are with the Director of Parks & Leisure to approach the IFA Chief Executive. Until this agreement is in place, no agreement on leasing terms can be reached.
Midgley Park land agreement - Linfield FC
3.17 Midgley Park is owned by Linfield FC and is situated on the edge of the west stand of Windsor Park, slicing through the potential sports village and any potential new access from Boucher Road.
3.18 Officers are working with Linfield FC to reach a land agreement in order to facilitate the regeneration project. Linfield have indicated that they support the concept of the project, and are keen to reach an agreement with the Council through their Board and club members. The Council has received Linfield’s requirements and has now presented a proposal to Linfield in terms of site layout. Outstanding issues including, whether it will be a land swap, a management agreement, shared usage of the pitch are all still to be determined. Due to the rapidly progressing nature of this project, a verbal update report on the response from Linfield’s Board will be provided by the Director of Property & Projects at Committee. This will follow Linfield’s Board meeting of 17 June 2013.
Olympia Community Centre
3.19 A report on Olympia Community Centre is due to be considered by the Development Committee on 20 June 2013. The report is seeking to engage external support to research and develop options, to determine the strengths and weaknesses of the identified options, the resources required to carry through and ultimately the prospects for success. The report indicates delivery of a community based consultation, research exercise and a series of recommendations within a twelve week process.
Windsor / Olympia - Economic Appraisal
3.20 Currently a full economic appraisal is underway on the leisure offering and enabling works. Members will be aware that the initial economic assessment showed that the option of relocation into Windsor is only feasible and value for money to the Council if this is provided at a nil rental with a 25 to 50 year lease period.
Andersonstown Regeneration
3.21 At the special SP&R meeting on 8th March, Members agreed to refocus the economic appraisal at the Andersonstown development on the Andersonstown Leisure Centre site and maximise regeneration benefits of both the leisure centre and stadium. Work is progressing on the regeneration plan, including a series of workshops with staff to develop initial options.
3.22 Discussions to ensure community benefit for the public money associated with Casement are ongoing with DCAL and the GAA and further updates on the Andersonstown project, including updates on the community benefits discussions, will be brought back to Committee in due course.
Integrated Stadia Developments – proposed financial package
3.23 Cost estimates for the proposed ‘Active Belfast’ facility at Windsor and associated enabling works are due to be presented to Belfast City Council on 17 June 2013. Due to the rapidly progressing nature of this project, the anticipated budget requirements have been set out below in Table 2, and a verbal update report on the cost estimates will be provided by the Director of Property & Projects at Committee.
3.24 The anticipated financial package required in order to deliver the Windsor facility and associated works will be a maximum of £21.6m gross, including construction, professional fees and charges. DCAL have indicated that along with the IFA, they would make £2.6m available as part of the shell construction of the leisure facility at the stadium. This would leave a financial requirement of up to £19m from Belfast City Council.
|
Works |
Maximum gross budget |
External contributions |
Anticipated net budget required from Council will be a maximum of |
|
Phase 1a |
£14.1m
|
£2.6m (DCAL/IFA)
|
£11.5m
|
|
Phase 1b |
£7.5m |
|
£7.5m |
|
Total |
£21.6m |
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£19m |
A financial package of up to £19m is proposed for Olympia, to include a new leisure facility and enabling works to the wider site.
A comparable financial package of up to £19m is proposed for Andersonstown, to include a new leisure facility, and regeneration at the site. These maximum affordability limits have been advised by the Director of Finance and Resources and are set out in more detail in the Leisure Strategy paper which outlines the overall leisure package.
4 Resource Implications
4.1 Financial
A potential £38M financial investment in regard to the two leisure centres and associated assets required to fulfil regeneration opportunities.
4.2 Human Resources
There are ongoing significant staff resource requirements from relevant departments in order to develop each project in line with DCAL’s tight timeframe. Potential staffing issues will be examined as part of the overall review of the leisure transformation programme. Any resultant HR issues will be managed in accordance with the Council’s processes, policies and procedures for dealing with HR matters and TU consultation.
4.3 Asset and Other Implications
Unknown at this stage, however comprehensive regeneration of the significant stadium developments should lead to improved services and benefits for the community and aesthetic improvements at Council sites. The project could include the Council giving up a freehold interest and moving to a leasehold interest with all the associated implications.
5 Equality and Good Relations Considerations
5.1 It is envisaged that both inclusive regeneration stadium strategies progress in parallel, enabling a wider positive impact across the city. The phases of the overall leisure transformation will be subject to equality screening. This will include the periodic screening of the stadia developments as part of phase 1 to identify differential impacts and any mitigating actions required, in accordance with standard Council procedures.
6 Recommendations
6.1 Members are asked to note the updates provided, and give approval:
· To procure integrated design team within an agreed strategy with DCAL and IFA for the shell building for the new leisure facility
· To prepare a planning application for Windsor / Olympia Phase 1 (a and b)
· For a budget expenditure for up to £38m on behalf of the council comprising £19m each for both the Andersonstown and Olympia regeneration proposals”
After discussion, during which the Director of Parks and Leisure answered a number of questions in relation to the community benefit relating to both schemes, the Committee adopted the recommendations.