Purpose

The Sun Pavilion is a Grade II listed building located within Valley Gardens, Harrogate. It
primarily operates as a venue for weddings, private functions and small corporate events with a capacity of up to 120 guests.
The venue currently operates under a concession contract where the Council receives a percentage of the operators’ sales, subject to a guaranteed minimum fee. This contract is due to expire 31 May 2027 which provides an opportunity to review existing arrangements, assess available options and recommend a preferred way forward.
This report will review the available options and recommend the most suitable venue operating model.

Decision

Approval for the commencement of a competitive procurement process to appoint an external contractor to operate the soft facilities management, bar and catering services for the Sun Pavilion, Harrogate under a concession contract. This contract will be for a term of five years with an option to extend for a further five years.

Reasons for the decision

The concession contract model has historically delivered positive outcomes for the Council. It has ensured that the venue remains well-utilised while generating a strong financial return. The model is also consistent with industry best practice for catering and hospitality arrangements of this nature and provides the most effective means of maintaining continuity of service for customers with bookings already secured for 2027.

Alternative options considered

Alternative Use
Manage the Building In-House
Pursue a Freehold Sale of the Asset
Enter into a Lease arrangement