Purpose

To provide an update to the decision taken by
Cooperative Executive on 24th March 2022 whereby it was resolved to
Delegate authority to the Director of Finance and Commercial
Services in consultation with the Director Legal and Governance to
enter into a funding agreement with Sheffield City Trust.
 
And, to approve the entry into a deed of
extension to the Funding Agreement, dated 31 March 2022 with
Sheffield City Trust, agreeing to extend the period of the funding
1/09/2024 to 31/12/2024.
 

Content

That the Director of Finance and Commercial
Services in consultation with the Director Legal and
Governance:
 

1.   
Note the intention of Sheffield City Trust to not bid to operate
the Major Sporting Facilities from the hand back date in 2024;
 

2.   
Note the intention of Sheffield City Trust to agree a concurrent
hand back of the other Sheffield leisure facilities to the Council,
those facilities being:
        
•                          
English Institute of Sport Sheffield
•                          
Ice Sheffield
•                          
Sheffield City Hall
•                          
Heeley Pool & Gym
•                          
Springs Leisure Centre
•                          
Concord Leisure Centre
•                          
Beauchief, Birley and Tinsley Golf Courses
 
 

3.   
Agrees to enter into a Deed of Extension to the Funding Agreement
with SCT subject to:
 

4.   
SCT agreeing terms substantially the same as those set out in the
draft deed of extension at the closed appendix 2 to this
report.
 

5.   
Note the closed appendix 1 setting out financial implications.
 

6.   
The revisions not committing the council to open ended funding nor
providing an unlimited guarantee.
 

7.   
SCT producing a Business Plan that projects all operating income
and expenditure through to the end of December 2024, following
which SCT will wind up the various group companies.
 

8.   
The Business Plan being scrutinised, updated and agreed on a
regular basis, to ensure it remains affordable to the Council.
 

9.   
The gap between SCT income and expenditure being funded by the
Council by way of grant.
 

10.The funding
agreement ending on 31st December 2024 in preparation for a new
operator contract starting on 1st January 2025, subject to a
successful procurement exercise.