Purpose

To consider the report of the Cabinet Member
for Finance and Resource and the Cabinet Member for Leisure and
People outlining the future delivery model for Southampton Water
Activity Centre.

Decision

(i) 
To approve the lease appointment of the SWAC site to Chieftain
Training.
(ii) 
To approve the key commercial terms set out within Appendix 1.
(iii) 
To delegate authority to the Executive Director of Resident
Services, following consultation with Cllr Simon Letts, Cabinet
Member for Finance & Resources, and Executive Director of
Growth & Prosperity, to take the necessary actions for the
contracts, leases, and agreed terms on the property aspects.

Reasons for the decision

1. 
A number of options have been considered (see the
“Alternative Options Considered and Rejected” section
of this report).
2. 
The following points outline the approach taken to secure the
future of the SWAC site:
 
• 
Cabinet approval was obtained in July 2024 to find an alternative
provider for the site.
• 
An open and transparent competitive process in January to find a
tenant. 
• 
Engagement with the interested parties on various aspects of the
site.
• 
Progressing partnerships and engagement with other services and
organisations.

Alternative options considered

Permanently cease leisure services at SWAC
 
This option has been rejected as it does not
meet the needs of the community nor the Council’s strategic
objectives and ambition.
 
Transfer the operation of SWAC to in-house
council management
 
This option has been considered and rejected
as the council does not have the expertise, funding nor the
infrastructure to enable provision of quality leisure services.
This option therefore is likely to be more expensive and provide
poorer quality of services than through the approval of the
recommendations of this report.
 
Retain SWAC within the leisure contract under
a new operator
 
One option considered but ultimately rejected
was to retain SWAC within the leisure contract under a new
operator. It was acknowledged this site cost the council
approximately circa £160,000 per year. The decision was made
that the most appropriate course of action would be to remove it
from the contract and seek a more suitable operator or freehold
arrangement to support the long-term success of the site.