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RESOLVED
 
That the Cabinet is recommended (subject to
(i) Full Council approval of the
associated budgets, and (ii) the satisfactory conclusion of legal
due diligence related to these proposals):
 
(i)            
To approve the refurbishment of the Premises by the Council in the
sum of £900,000; 

 
(ii)           
To approve the provision of a contribution in the sum of
£175,000 to the Tenant to facilitate their fit-out works;
 
(iii)          
To approve a procurement exemption allowing the Council to obtain
quotes or utilise a framework to employ a contractor to carry out
the refurbishment works, rather than conducting a formal open
tender process; and
 
(iv)          
To approve entering into any documentation required to give effect
to the recommendations contained in this report, and, delegate
authority to the Head of Legal and Democratic Services
(i) to finalise the terms of and enter
into any required documentation to give effect to the above
recommendations, and, (ii) to undertake any functions required to
enable related legal due diligence to be concluded to ensure the
viability of the proposals contained within these
recommendations. 
 
 
REASONS
 
To facilitate the refurbishment and associated
leasing of the Premises.
 
ALTERNATIVE OPTIONS CONSIDERED BUT REJECTED AS
IDENTIFIED IN THE REPORT
 
Other leisure operators were considered,
however, the proposed tenant presented the most favourable
combination of ideal property use, strong financial covenant,
significant investment commitment and competitive rental offer.
Their proposal stands out as the best option for ensuring the
long-term success and viability of the Premises.
 
The option of using the Premises for a social
purpose was carefully considered but ultimately rejected, as the
income generated from such use would be significantly lower
compared to leasing the Premises to a commercial leisure operator.
Leasing to a commercial operator offers a far more sustainable and
profitable revenue stream, ensuring both the financial viability of
the Premises, the long-term benefit to the Council and brings about
benefits for the community in terms of an additional leisure
offering.  
The option of demolishing the Premises and
rebuilding as a purpose-built leisure facility, such as a Padel
court facility,was considered but
rejected, as the Premises if refurbished ensures the asset value is
preserved. Furthermore, it would be more timely to instigate and
other operators would more readily provide the leisure options
throughout the district.