Purpose

At 19th June 2025 Executive, the following
Harlequin delegated decision recommendation (No.3), was
approved:

3. Subject to the outcome of the pre-market engagement
(recommendation 2), delegate decisions regarding whether to invite
tenders for and subsequently appoint a third party management
contractor or to pursue third party operation via a lease 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.
The decision to procure one third party operator to manage both the
Harlequin and Unit 5, 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 the Harlequin and Unit 5. (Please note a
separate delegated decision form has been completed for Unit 5),
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.