Purpose

This report outlines the business case for the refurbishment of two Multi-Use Games Areas (MUGAs) as part of the Football Foundation PlayZone project. It also sets out recommendations and seeks a decision for the signing of the formal grant agreements and the leases for the management of the sites following investment.

The PlayZone project is a national initiative aimed at refurbishing Multi-Use Games Areas, led by the Football Foundation in collaboration with local authorities and their partners. For approved PlayZone sites, the Football Foundation provides 75% of the build cost, with the remaining 25% to be secured through partnership funding. The approach proposed in this report is to accept the following confirmed funding avenues:

- Site One, Ashburton Park: 75% Football Foundation / 25% Community Infrastructure Levy (CIL, approved by Infrastructure Funding Group)

- Site Two, South Norwood Lakes: 75% Football Foundation / 25% London Marathon Foundation;

An integral part of the Playzones programme is that projects are rooted in local communities and applications have been developed and informed by a programme of local community engagement. Playzone projects around the country have generally been delivered by local consortia and in Croydon’s case this has been led by Croydon Voluntary Action (CVA), Oasis Academy, Palace For Life Foundation and the Council.

The partners sought to identify a shortlist of potential sites for application. Through this process, two locations were identified as having the strongest potential to secure funding for refurbishment, obtain planning permission, and demonstrate a viable business case to ensure both short- and long-term sustainability:

- Site one: Ashburton Park, which currently contains an underutilised and deterio-rated netball court, and

- Site two: South Norwood Lakes, which currently contains a tennis court and a basketball court in a deteriorated condition.

Under the PlayZones proposal, each location will be refurbished and converted into a Multi-Use Games Area (MUGA). The Playzones project preserves existing provision whilst introducing new, flexible facilities that expand community access and secure long-term external investment.

A condition of the grant is that operating plans are in place for the PlayZones in order to enable sufficient community access and ensure long term maintenance will take place. Both proposed locations are currently operated by Greenwich Leisure Limited (GLL) under the leisure operator agreement. The terms of this agreement allow for only minimal maintenance, activation or community engagement programme. Under these arrangements the site management would not meet the eligibility for the Football Foundation grant criteria. In order to secure the external investment, a different approach needs to be taken.

As part of the project’s development, the possibility of leasing the sites has been explored, with Croydon Voluntary Action (CVA) expressing interest in managing the South Norwood Lakes site and Oasis Academy proposing to take on the management of the Ashburton Park site under lease agreements. GLL have indicated they are open to releasing both sites from the leisure operator agreement should the Council decide to proceed with these arrangements. Both CVA and Oasis have demonstrated their ability to meet the Football Foundation’s funding requirements through their maintenance and community access plans. The recommendation regarding site management is based on ensuring long-term sustainability, alignment with the Council’s strategic priorities, and whether the Council could still leverage the funding without adopting this approach.

Other options considered are detailed below in section 5. These include keeping both sites within the leisure operator agreement with revised terms (and cost implications) or the Council taking on the direct management of the sites. However, both alternatives present challenges. In both cases the council would need to ensure full compliance with the grant terms, including specific maintenance responsibilities, community engagement and activation. This would incur either additional direct cost to the council, or indirect loss of income through a revision of the leisure operator contract.

In order to meet the deadline for submission to the Playzones grant scheme in March 2025, a high-level financial analysis was undertaken and considered by the S151 Officer and Director of Commercial Investment & Capital (detailed further below in section 8 and at Appendix E). Two applications were subsequently submitted to the Football Foundation, one for Ashburton Park, the other South Norwood Lakes, both seeking 75% match funding. The applications outlined a proposed management model for both sites involving leasing and delegating the discharge of the grant terms to community partners to operate the sites. However, the applications were clear that this is subject to approval through the council’s internal governance processes. The potential operators were detailed in the application as Oasis Academy at Ashburton Park and CVA at South Norwood Lakes.

Decision

The Corporate Director of Resources and S151 Officer resolved to:

1. 1.        Agree leasing of the South Norwood Lakes PlayZone to Croydon Voluntary Action (CVA) and the Ashburton Park PlayZone to Oasis Academy subject to agreement with funders, CVA and Oasis, for a period of 15 years and a total aggregate value of £180,000 (£90,000 per site)
2. 2.        Note the timescales for delivery in line with the PlayZone funding programme

Reasons for the decision

The Playzone project presents an opportunity to leverage approximately £520,000 in external investment into Croydon which will significantly improve the two sites. A further £80,000 of match funding from the Council is funded by CIL.

Both Oasis and the CVA hold standing within the Croydon community and bring substantial value to the proposed newly opened sites. Their planned involvement supports the development of community usage and programmes aimed at activating the facilities and engagement with harder to reach groups including those from low socio-economic backgrounds, girls and those with disabilities. These plans were outlined in the grant applications to the Football Foundation and the London Marathon Foundation, detailing how both organisations intend to reach these groups through targeted programming, subsidised access and free access.

Furthermore, both Oasis and CVA possess a strong understanding of the Football Foundation’s PlayZones ethos and they have been working alongside the Council to develop the application and approval process from the Football Foundation and the London Marathon Foundation

The terms and conditions of the Playzones grant require funding and arrangements to be confirmed for the maintenance and management of the asset over a period of at least 15 years. The recommended model represents the best value approach for the council to achieve this.

A model of working more closely with VCFS partners to secure additional investment, deliver services and meet need in the community also aligns with the council’s Target Operating Model

The Council risks losing this investment opportunity if it does not follow this approach, as the Football Foundation may lack confidence in the Council’s commitment and capacity to meet the grant terms given its ongoing financial pressures.

Alternative options considered

A longer list of potential sites was initially considered. However, sites were discounted based on their likelihood of meeting the criteria required for a successful bid to the Football Foundation and their likelihood of obtaining planning permission

The Council could choose not to proceed, but this would leave two sites with minimal opportunities for future redevelopment. Both facilities are currently in a poor condition and continue to deteriorate. Consequently, usage of both facilities appears quite low and the surfaces also present safety hazards, particularly during adverse weather conditions.

If the Council decides to retain the sites within the leisure operator agreement, it is likely to reduce the chances of securing funding from the approved bids. Given the Council’s financial position and GLL’s indication that they would not invest in refurbishment, future improvements to the sites are unlikely. Consequently, usage levels may remain low, and the risk of injuries due to deteriorating surface conditions would remain higher than if the sites were refurbished.

The Council could choose to invest in improving the sites itself rather than accept the external funding terms and conditions. Ahead of submitting the application to the Football Foundation, the Council’s finance team prepared a high level analysis of this option in comparison with the funding bid. Making some assumptions on potential profit and income generated through the investment, this analysis found that there would likely be a direct cost of around £300k (to a lower specification than required by the FF) and a total cost of borrowing of £140k assuming a 15 year lifespan and interest at 6%. The model identified a breakeven period of 11 years, though this would be contingent on income targets being met which would not be confirmed. Overall this was viewed as a riskier option than the one recommended in this report.

The council had considered proceeding with the application while the leasing situation remained unchanged. However, throughout the process, it has been indicated by the Football Foundation that without the sub-lease arrangement in place to secure the community engagement and give confidence in long term maintenance and site management, the likelihood of the grant being approved is reduced. This would result in the Multi-Use Games Areas remaining in their current condition, underutilised, and not benefiting from the substantial funding available for renovation. The risk of missed investment and failing to meet the Football Foundation’s criteria underscores the importance of securing the sub-lease agreements to fully realise the potential of these facilities for the community.

By retaining management of the sites, directly or under the leisure operator agreement, the council would also assume full responsibility for meeting the associated grant obligations. This includes not only ongoing maintenance but also the structured delivery of community programmes as stipulated by the funding conditions. Ensuring compliance with these obligations would necessitate a sustainable operational

strategy, encompassing long-term maintenance planning, resource allocation, and structured programme execution to maximise community engagement and fulfil grant expectations. This would present an additional revenue cost to the council, or loss of income if the council sought to include the obligations in revisions to the leisure operator agreement.