Purpose

At 19th June 2025 Executive, the following
Unit 5 delegated decision recommendation (No.2), was approved

3. Subject to the outcome of the pre-market engagement
(recommendation 1), delegate decisions regarding whether to invite
tenders for (and to subsequently appoint) a management contractor
(option 1) or enter a short term partnership service level
agreement (option 2), or enter a lease (option 3) (and any
associated contractual arrangements) to the Strategic Head of
Communities & Wellbeing and Head of Property Services, in
consultation with the Deputy Chief Executive, Chief Finance
Officer, Legal Services Manager, the Portfolio Holder for Finance,
Assets and Governance, and the Portfolio Holder for Leisure and
Culture.

Officers and specialist consultancy advisors have now completed a
review of the pre-market engagement activity to inform the
delegated decision.

The decision requires consultation with the Portfolio Holder for
Finance, Assets and Governance and the Portfolio Holder for Leisure
and Culture, both who have been duly consulted on the proposed
procurement approach which they have endorsed. The Deputy Chief
Executive, Chief Finance Officer and Legal Services Manager have
also been duly consulted about this decision, which they have fully
endorsed.

The rationale for this decision is based on key insights from the
pre-market engagement activity and input from specialist advisors
Time+Space, which have informed our understanding of the
opportunities and challenges facing the arts and cultural market,
and therefore the approach that provides the greatest chance of
both venues thriving and maximising benefit for local communities.
Key to this is the benefit of complementary rather than competing
programming across the two venues, and the opportunity to ensure
community programming is a key component through the contract
specification. Further commercially sensitive information can be
found at Annexes 1 (key sector insights), 2 (operator procurement:
issues, risks and mitigations), and 3 (comparison of benefits and
risks) all of which are exempt papers.

Whilst the decision precludes a smaller community operator from
bidding to take on the operation just of Unit 5, the potential
opportunity remains for those businesses / charities / groups to
collaborate with the future operator of both venues as part of each
venue’s programming. Those who expressed an interest only in
operating Unit 5 may be disappointed by this decision, however,
communications with these organisations / groups gives them the
opportunity to be introduced in due course to the appointed
operator, to support kick starting collaboration discussions.

The decision to procure one third party operator to manage both
Unit 5 and the Harlequin, under a management contract delivery
model, increases the likelihood of long-term sustainability of the
venues, and a complementary rather than competing offer between the
two venues.
Additionally, a management contract provides greater opportunity
for the Council to ensure community interests are met.

Decision

To undertake a procurement process for the
appointment of one third party operator, under a management
contract, to manage both Unit 5 and the Harlequin. (Please note a
separate delegated decision form has been completed for Harlequin),
thereby discounting the other operating model options which were
previously also being considered.

Alternative options considered

Options that were considered include:
1. Two separate operators under management contract

This option is not recommended as it reduces the likelihood of
long-term sustainability of one or both venues and increases the
likelihood of a competing rather than complementary multi genre
offering, between the two venues.

2. One or both venues under lease, not management contract

This option is not recommended as a lease arrangement will reduce
the Council’s ability to influence programming content and
ensure community interests are met and sustained and is not
anticipated to provide the same opportunity for success.