Agenda item

            The Committee considered the undernoted report:

“1.0     Purpose of Report or Summary of main Issues

1.1            This report updates Members on the development and implementation of the £105m leisure assets capital programme.

2.0       Recommendations

2.1       The Committee is asked to note the contents of this report and

•   Programme level budget – Avoniel and Templemore – note the update in respect of the current project estimates for Avoniel and Templemore as at 3.4-3.6 below and approve the reallocation of £4m from Avoniel project towards the Templemore project providing an overall budget of £12m for Templemore and £8m for Avoniel (the previous agreed budgets being Templemore £8m and Avoniel £12m). Members are asked to note that this has no implications for the overall leisure budget which remains within the overall limit of £105m

•   Templemore – approve the acquisition of the adjacent former hospital site from the Department for Communities at a nominal sum and on such other terms as agreed by the Director of Property and Projects and Town Solicitor in order to facilitate the development of the new Templemore (see 3.10 below)

•   Andersonstown – note that the planning application for Andersonstown is due to be considered at the Planning Committee on 15th August and Members will be verbally updated at the meeting on 18th August

3.0       Main report

            Programme level

            Design cost budgets – Templemore and Avoniel

3.1       Members will also be aware that an overall affordability limit of £105m has been agreed for the Leisure Transformation Programme and in April 2015 Committee agreed the notional cost design limits for each of the projects under the Programme as below. It was also agreed that these projects would be phased as laid out in below.

3.2       A set of principles underpinning the leisure transformation programme has previously been agreed by Committee (see Appendix 1). As part of this Members agreed the need to develop a city wide strategy with a USP per centre that will encourage people to travel to centres from across the city and further afield. Given this Committee, in April 2016, agreed a USP strategy for the Programme as outlined below which was designed to ensure that the city has a unique offering in terms of its leisure provision and minimises any duplication of provision ensuring both balanced investment and value for money. It was noted by Committee at this stage that further work was to be carried out in respect of the USP for Girdwood and this work is continuing.

3.3       In terms of the Phase 2 projects (Avoniel and Templemore) officers have continued to work these up since this time on the basis of the agreed USPs and the high level facilities mixes as agreed.

3.4       Members will be aware that Templemore Baths is a listed building which is in a generally poor state of repair. The project is also proposing an extension to the existing centre on lands adjacent to the current site. Since the initial cost design limit was set in April 2015 officers have been progressing discussions with HLF in relation to securing funding to help renovate the existing building and in October 2016 Members were advised that the Council had been successful in its Round 1 application under HLF’s Enterprise scheme and had received a development grant of £380,000 to work up detailed proposal for the project. This has now been progressed and the estimated project costs, which have been agreed with HLF, for Templemore are £17m with a contribution of £5m from HLF. This is primarily due to the costs in relation to restoring and conserving the current listed building.  Therefore, this assumes a Council contribution of £12m.  Based on the agreed design cost limit as above of £8m this leaves a deficit of £4m.

3.5       Also in April 2015, Members agreed a budget of £12 million for Avoniel. However, based on the current stage 2 designs for Avoniel, the total cost is estimated to be £8m, which leaves an excess of £4m.

3.6       The SP&R Committee is therefore asked to approve the reallocation of £4m from Avoniel towards the Templemore project. This would provide a budget of £12m for Templemore and £8m for Avoniel. Members are asked to note that this has no implications for the overall leisure budget which remains within the overall limit of £105m.

3.7       Members are asked to note that is proposed to undertake consultation on both the Templemore and Avoniel projects in tandem later in the Autumn and that updates on the design and proposed consultation dates will be taken into the East AWG prior to this.

            Programme Level – Social and Community Benefit Clauses

3.8       Members have previously been advised that there is a significant opportunity with the scale of the leisure investment to leverage additional benefits by procuring this as an overarching programme of work and that Heron Bros Ltd. have been appointed as the contractor for the delivery of the facilities at Andersonstown, Robinson and Brook.  In line with the Council’s ‘Social Clause Policy’ Heron Brothers are required to deliver the contract in such a way so as to maximise the social, economic and environmental benefits for Belfast through training and employment opportunities and, where practical, using local suppliers.

3.9       As part of this Members will be aware that a ‘Supply Chain Event’ Event took place on 26th June in the City Hall to inform companies, suppliers and contractors (small, medium and large) of the process Heron Brothers will undertake to assess and select their suppliers as part of their contract and the various opportunities this will present to local businesses. This was followed up by another event on 10th August which took place in the new Olympia.   Members are asked to note that there was extremely high levels of interest in both of these events with over 100 participants at the event in June and 150 participants from 105 companies demonstrating the significance of this contract for suppliers. These contacts will be followed up as the contract progresses.   

            Project level

            Templemore

3.10     As outlined above the proposals for the development of new leisure facilities at Templemore Baths incorporate adjacent land owned by Department for Communities (DfC).  This former hospital site lies to the south of Templemore Baths and comprises a cleared site extending to approximately 0.8 acres. The site had been expected to transfer to the Council under the transfer of regeneration as part of Local Government Reorganisation.  As this did not occur, officers have been in discussions with DfC regarding acquisition of the site.  Under Stormont Regulation and Government Property Act (Northern Ireland), 1933, DfC may transfer land to a local authority at a nominal price if it will result in its development, improvement or general benefit.  Members are accordingly asked to approve the acquisition of this site at a nominal sum and on such other terms as agreed by the Director of Property and Projects and Town Solicitor.

            Andersonstown  

3.11     Members are asked to note that the application for the new Andersonstown is due to be considered by the Planning Committee at its meeting on 15th August and that the Committee will be verbally updated on the recommendation of the Planning Committee at the meeting on 18th.  The SP&R Committee is asked to note that any changes to the design after planning approval is recommended will have both a cost implication and a programme implication.  It is therefore recommended that ‘design freeze’ is now implemented for all the Phase 1B projects. 

3.12     Financial and Resource Implications

Financial – The design costs limits for each centre were agreed by Committee in April 2015 as part of the overall £105m – there is no additional money available for leisure.  The recommendation in relation to the Templemore/Avoniel budgets is a reallocation within this agreed £105m.

3.13     Equality or Good Relations Implications

There are no direct equality implications.”

            During discussion, the Director of Property and Projects provided information on the construction schedule of the three centres and the associated programme and indicated that further details could be provided at the Area Working Groups as requested.

            The Committee noted also that the planning application for Andersonstown had been approved at the Planning Committee meeting on 15th August and accordingly adopted the recommendations.