Purpose

To agree the ongoing funding commitment associated with the
long-term lease of the leisure facility in Kettering

Content

RESOLVED
 
KEY DECISION 
 

That the Executive

 

a)      
Approved that North
Northamptonshire Council enters into a new Management Agreement
relating to schedule 3 of the underlease with Phoenix Leisure
Management Limited for the operation of the Arena Sports element of
the Kettering Leisure Village site;

 

b)      
Approved the funding commitment
for the period of 10 years from 2025 to 2035;

 

c)       
Delegated authority to the
Assistant Director Communities and Leisure, in consultation with
the Executive Member for Health and Leisure, to undertake any
activity to finalise, enter into and oversee the delivery of the
Management Agreement. 

 

 

Reasons for Recommendations: To
ensure schedule 3 and the associated Management Agreement is up to
date and is reflective of the new strategic priorities as set out
in the North Northamptonshire Active Communities Strategy, adopted
in January 2025. Secondly to confirm the funding commitment by the
Council to ensure the sports facilities at KLV are available for
community use over the next 10 years. 
 

Alternative Options Considered:
The alternative option would be to not review and refresh schedule
3 and propose a new Management Agreement. However, this is not
recommended. Council officers gave formal notice in relation to the
break clause in February 2025 so as to take the opportunity to
update the Management Agreement. The Council is now required to
either put a new Management Agreement in place or be at risk of
Phoenix Leisure seeking to terminate the lease, leaving Kettering
Leisure village without an operator which would be detrimental to
the communities of North Northamptonshire and to the reputation of
the Council.

 

The Council could have left the
previous Management Agreement in place but this was outdated and
did not align with the Council’s priority outcomes outlined
in the Active Communities Strategy. If notice had not been served
the Council would have been locked into the outdated terms of the
previous Agreement for the remainder of the lease until
2116.