Agenda item

To consider further the minute of the meeting of 16^th January under the heading “Shaftesbury Community/Recreation Centre” which, at the request of Councillor P. Maskey, was referred back to the Committee by the Council at its meeting on 4^th February (extract herewith) (oral report of Director of Legal Services)

            (Mr. C. Quigley, Director of Legal Services, attended in connection with this item.)

 

            The Committee considered further the minute of the meeting of 16th January under the heading “Shaftesbury Community/Recreation Centre” which had been taken back by the Chairman at the Council meeting on 4th February at the request of Councillor P. Maskey.  An extract of the minute in this regard is set out hereunder:

 

      “The Director reminded the Committee that, at its meeting on 12th December, it had agreed that the Lower Ormeau and Markets Community Forum could surrender its current lease agreement with the Council in respect of Shaftesbury Community/Recreation Centre and that the facility be leased for a period of twenty-five years to the Lower Ormeau Residents’ Action Group, subject to the Members of the Committee being provided with further information regarding the membership of the Lower Ormeau and Markets Community Forum, the Lower Ormeau Residents’ Action Group and the Inner South Neighbourhood Renewal Partnership, prior to the Council Meeting on 7th January.  However, in the event that information had not been provided.  Accordingly, a report, together with various appendices which contained the requested information, had been circulated with the papers for the current meeting.

 

      The Director advised the Committee that, following a decision of the former Client Services Committee, Shaftesbury Community/Recreation Centre had been leased by the Council to the Lower Ormeau and Markets Community Forum for a period of ten years, commencing in October 2000.  The lease agreement had included a sports pitch adjacent to the Centre.  She explained that under a Service Level Agreement the Lower Ormeau Residents’ Action Group delivered on behalf of the Forum a programme of activities in response to community needs.  She explained further that the Group had been awarded funding of £2.3 million, £1,925,000 of which would be provided by Sport Northern Ireland, to undertake improvements to the Centre, including the upgrading of the sports pitch.

 

      The Director pointed out that a Sport Northern Ireland condition required the lease for Shaftesbury to be held by the Lower Ormeau Residents’ Action Group, since that organisation would be responsible for all the work being undertaken to the facility and for the efficient and effective operation of the Centre.   Hence the request from the Forum for permission to transfer the lease for the facility to the Group.  In addition, Sport Northern Ireland had indicated that the Group would be required to meet stringent funding requirements regarding openness and accountability.

 

      Following a lengthy discussion, it was

 

Moved by Councillor P. Maskey,

Seconded by Councillor Hartley,

 

      That the Committee affirms its decision of 12th December to transfer the lease for the Shaftesbury Community/Recreation Centre from the Lower Ormeau and Markets Community Forum to the Lower Ormeau Residents’ Action Group. 

 

      On a vote by show of hands five Members voted for the proposal and six against and it was accordingly declared lost.

 

Further Proposal

 

Moved by the Deputy Lord Mayor (Councillor Kelly),

Seconded by Councillor McCarthy,

 

      That the new Management Committee for the Shaftesbury Community/Recreation Centre, as required by Sport Northern Ireland’s funding condition, be in place prior to the Committee agreeing to transfer the lease in respect of the Centre from the Lower Ormeau and Markets Community Forum to the Lower Ormeau Residents’ Action Group. 

 

      On a vote by show of hands four members voted for the proposal and six against and it was accordingly declared lost. 

 

      Following further discussion, it was

 

Moved by Councillor Convery,

Seconded by Councillor Ekin and

 

      Resolved – That the Committee agrees to permit the Council to enter into a direct lease arrangement with the Lower Ormeau Residents’ Action Group in respect of Shaftesbury Community/Recreation Centre, subject to the facility’s Management Committee, as required by Sport Northern Ireland, being cross?community, cross-Party and reflective of the population of South Belfast, and to this being in place prior to Sport Northern Ireland releasing its funding.  In addition, the Committee agrees, in order to facilitate this arrangement, that the lease dated 20th December, 2000 between the Council and the Lower Ormeau and Markets Community Forum be surrendered coterminously.”

 

            The Committee considered the undernoted report which had been prepared by the Director of Legal Services:

 

[I1] “Relevant Background Information

 

      Shaftesbury Recreation Centre has been leased by the Council to the Lower Ormeau and Markets Community Forum (LOMCF) for a period of ten years from 1st October 2000.  The Lease Agreement includes an external sports pitch adjacent to the Centre.

 

      A Service Level Agreement forms the basis of a contract between LOMCF and the Lower Ormeau Residents Action Group (LORAG) under which LOMCF grants LORAG use of Shaftesbury to deliver a programme of activities in response to local community needs ensuring a broad base of activities and opportunities for each age group.

 

      LORAG have progressed an application with Sport NI (SNI) which will see an investment of £2,.3 which includes a sports and health facility and upgrade of the sports pitch to a third generation pitch.

 

·         The Development Committee at its meeting on 16 January 2008 considered a request from LOMCF that a Lease is granted directly from the Council to LORAG. Additional information relating to the request was provided in relation to LORAG’S governance/management arrangements.  The Committee agreed to permit the Council to enter into a direct lease arrangement with LORAG in respect of Shaftesbury Community/Recreation Centre, subject to ‘the facility’s management Committee, as required by SNI being cross- community, cross-Party and reflective of the population of South Belfast, and to this being in place prior to SNI releasing its funding’.  In addition, the Committee agreed, in order to facilitate this arrangement, that the Lease dated 20 December 2000 between the Council and LOMCF be surrendered, co?terminously.

 

·         At the February Council meeting (4 February 2008) it was agreed that the Minute under the heading ‘Shaftesbury Community/Recreation Centre’ be taken back to the Committee for further consideration.

 

      Current position

 

      SNI as a result of legal advice have indicated its preference that a lease be granted directly to LORAG from Council as LORAG is the funding applicant and will be the body responsible for implementation of the scheme.

 

      The Directors of Development and Legal Services met with representatives of SNI in order to clarify its requirements in relation to its offer of grant support, the current status of the offer and any specific conditions of offer.

 

      The current position can be confirmed as follows:-

 

·         SNI have a five stage process of assessment which is as follows:

 

     (i)       submission of Outline Proposal

     (ii)      formalising the Business Plan

     (iii)     Design and Tender Process

     (iv)    Construction

     (v)     Monitoring and evaluation.

 

·         The Shaftesbury proposal is at stage 2 with an indicative time scale of SNI Board consideration in May 2008

 

·         The finalised Business Plan will address any outstanding issues such as total project cost and funding deficit, governance arrangements etc

 

·         SNI confirmed that subsequent to a positive consideration of the Business Plan SNI would develop a formal letter of offer which would set out the conditions of funding and monitoring arrangements.  This will include the establishment of a facility development sub?committee of the LORAG Board populated by representatives of strategic stake holders, user groups and the local community.

 

·         The Council also requires both the LORAG Board and the facility development sub-committee to demonstrate that they are reflective of the local community.

 

·         Both SNI and the Council confirmed that any contract for funding and/or any lease agreement would as a matter of course contain the appropriate user clauses such as a Section 75 clause and a community user clause.

 

·         SNI indicated in the course of the meeting with the Directors of Development and Legal Services that the previous deadline (February 2008) for execution of a Lease had now been extended.  SNI outlined an indicative revised deadline of May 2008.

 

      The Director of Legal Services had a meeting with representatives of LORAG at which it was confirmed that it is LORAG’s intention to establish a facility development sub?committee to include user groups, stake holders and the local community.

 

      LORAG were informed that Council will secure its interests in the proposed lease which will include the following conditions;

 

1.   The lease will be subject to confirmation of SNI funding, together with any additional funding required to make the project viable.

 

2.   The facility must be used in accordance with article 10 of the Recreation and Youth Services (NI) Order 1986 for recreational, social, physical and cultural purposes and for the purposes of serving the needs of the local community in that regard without distinction.

 

3.   A facility development sub-committee be established.

 

4.   That Council will have the right to nominate members/observers to the facility development sub?committee in accordance with any Council policy in place from time to time in relation to community facilities generally in respect of which Council makes funding available.

 

Key Issues

 

      The Key issues for the Committee to consider are;

 

1.   There is now a revised timescale for execution of the Lease.

 

2.   The actual conditions of SNI are that a facility development sub-committee is established representative of User groups as outlined in the Business Plan.

 

3.   To note the position as stated in relation to funding requirements of SNI.

 

4.   Whether the Council should now proceed to grant a lease to LORAG in accordance with the various conditions recommended by the Director of Legal Services.

 

Resource Implications

 

      Financial

 

      There are no capital cost implications.  Council will be responsible for the insurance and maintenance of a larger building.  Although this will result in some modest cost to the Council, the proposed development will increase the value of a Council owned building.

 

      Human Resources

 

      No human resource implications.

 

Recommendations

 

      Members are requested to note the contents of this report and approve the grant of a Lease from the Council to LORAG subject to the conditions set out in this report and a suitable legal agreement being entered into.

 

Key to Abbreviations

 

LOMCF  –    Lower Ormeau Markets and Community Forum

LORAG  –    Lower Ormeau Residents Action Group

SNI         –    Sport Northern Ireland”

 

            The Director of Legal Services pointed out that, since the proposal regarding the Shaftesbury Community/Recreation Centre was currently only at Stage II of Sport Northern Ireland’s assessment process, that organisation was not in a position to indicate formally that grant assistance would be provided to the Lower Ormeau Residents’ Action Group regarding the scheme.  He informed the Members that he and the Director of Development had met with representatives of both organisations and had ascertained that Sport Northern Ireland would require the Action Group to establish a stakeholder forum, which must be representative of the user groups, to run the facility on a day-to-day basis.  He pointed out that the Group had been informed that, since Shaftesbury was owned by the Council, it was entitled to place certain covenants within the lease which would be required to be drawn up.

 

            During a lengthy discussion in the matter, several Members expressed concern that the lease being requested by the Lower Ormeau Residents’ Action Group was for a longer period of time than other such agreements and, therefore, the Council was not being consistent in the manner in which it dealt with such requests.  Other Members expressed the view that the Group, within two years of the existing lease being due to expire, had applied for funding to improve a facility which it did not own, thereby placing the Council in an invidious position.  It was pointed out that the Council was examining currently the Facility Management Agreements which were in place regarding a number of Council properties and it was suggested that the request regarding Shaftesbury be not considered until the Council had established a Policy on such Agreements.  Several Members enquired as to whether leasees were required to adhere to various Policies which the Council had in place regarding such issues as health and safety, signage and child protection.

 

            In response to these remarks, the Director of Legal Services indicated that the Council had entered into a number of 25 year leases and one 99 year lease on facilities.  He assured the Members that the Council, as a matter of course, would insert appropriate conditions on all its leases regarding statutory requirements.  He reminded the Committee that the Lower Ormeau Residents’ Action Group had indicated that it would be establishing a Facility Development Sub-Committee, on which the Council would be represented.

 

            After further discussion, it was

 

Moved by Councillor Crozier,

Seconded by Councillor Campbell,

 

      That the Committee defers consideration of the request from the Lower Ormeau Residents’ Action Group regarding Shaftesbury Community/Recreation Centre to allow for a report to be submitted to the Committee at the earliest opportunity on the development of an overall policy on such agreements where the Council has passed responsibility for the management of facilities to a third party. 

 

            On a vote by show of hands four Members voted for the proposal and seven against and it was accordingly declared lost.

 

Further Proposal

 

Moved by Councillor Stoker,

Seconded by Councillor Ekin,

 

      That the Committee agrees to enter into a direct lease arrangement with the Lower Ormeau Residents’ Action Group in respect of Shaftesbury Community/Recreation Centre, subject to:

 

(i)   confirmation being received that funding has been received from Sport Northern Ireland, together with any additional funding which is required to make the project viable;

 

(ii)  the facility being used in accordance with Article 10 of the Recreation and Youth Services (Northern Ireland) Order 1986 for recreational, social, physical and cultural purposes and for purposes which serve the needs of the local community in that regard without distinction;

 

(iii)a cross-community Facility Development Sub-Committee being established;

 

(iv)the Council having the right to nominate Members or officers to the Facility Development Sub-Committee in accordance with any Council Policy which is in place from time to time in relation to community facilities generally and in respect of which the Council has provided funding;

 

(v)  the agreement between the Action Group and the Council requiring the Group to adhere to all statutory requirements and Council Policies covering child protection and good governance; and

 

(vi)the agreement being used as a basis for the development of an overall policy for any future Facility Management Agreements.

 

            On a vote by show of hands five Members voted for the proposal and nine against and it was accordingly declared lost.

 

            Following further discussion, it was

 

Moved by Councillor C. Maskey,

Seconded by Councillor Mhic Giolla Mhín,

 

      That the Committee agrees to enter into a direct lease arrangement with the Lower Ormeau Residents’ Action Group in respect of Shaftesbury Community/Recreation Centre, subject to:

 

(i)   confirmation being received that funding has been received from Sport Northern Ireland, together with any additional funding which is required to make the project viable;

 

(ii)  the facility being used in accordance with Article 10 of the Recreational and Youth Services (Northern Ireland) Order 1986 for recreational, social, physical and cultural purposes and for purposes which serve the needs of the local community in that regard without distinction;

 

(iii)a Facility Development Sub-Committee being established; and

 

(iv)the Council having the right to nominate Members or officers to the Facility Development Sub-Committee in accordance with any Council Policy which is in place from time to time in relation to community facilities generally and in respect of which the Council has provided funding.

 

            On a vote by show of hands five Members voted for the proposal and five against.  There being an equality of votes, the Chairman (Councillor M. Browne) exercised his second and casting vote in favour of the proposal, which was accordingly declared carried.