Purpose

To consider the report of the Cabinet Member for Communities, Safety and Leisure, seeking approval for a new long term lease of the Townhill Park Community Centre.

Decision

i)  To approve the grant of a lease of Townhill Park Community Centre, Meggeson Avenue, Southampton SO18 2FH, to Testlands, a Charitable Incorporated Organisation (registered charity number 1195023), for a term of 25 years as set out in Appendix 2.

ii)  To approve the grant of the lease on the terms set out in Appendix 2, including the disposal at less than the best consideration reasonably obtainable, having considered the assessed undervalue set out in Appendix 3 and being satisfied that the disposal will contribute to the promotion or improvement of the social, economic and environmental wellbeing of the Council’s area.

iii)  To delegate authority to the Executive Director of Growth and Prosperity, following consultation with Cabinet member for Leisure, Communities and Heritage, Cabinet Member for Finance and Resources, the Executive Director of Resident Services and the Executive Director of Enabling Services, to agree the final terms of the lease and take all necessary steps to complete the transaction, provided that the final terms do not materially depart from the terms approved by Cabinet or increase the assessed undervalue.

Reasons for the decision

1.  Townhill Park Community Centre is an important community asset providing accommodation for a range of local services, including early years provision and youth activities. The continued operation of the centre supports the Council’s Corporate Plan outcome of A Healthier Southampton by helping people to live healthy, active and independent lives and ensuring children and young people have a good start in life.

2.  City Life Church, who had been operating the property under a 25-year lease, served notice to surrender its lease with an end date of 31 August 2026 due to financial and operational challenges. To maintain the centre’s operation, the Council undertook a successful marketing exercise which resulted in interest from several parties. Following a robust evaluation, Testlands was identified as the preferred tenant. This was supported by users of the building at an engagement meeting.

3.  A 25-year lease will provide Testlands with the security and certainty required to plan for the long-term future of the facility. It will enhance the organisation’s ability to secure grant funding and external investment for the improvement and sustainability of the centre, benefits which may not be achievable under a shorter-term arrangement.

Alternative options considered

1.  Option 1 – Do Nothing:

•  The council does not approve the proposed lease and there would be no operator in place to manage Townhill Park Community Centre.

•  This would create uncertainty for the preschool, scout group and community users.

•  There will be no user to operate the site and keep the facility open.

•  This option is not recommended because it will not secure the continued operation of the centre and does not provide a sustainable long-term arrangement and could ultimately lead to the closure of the building and all the costs associated with managing a vacant property

2.  Option 2 – The Council retains responsibilities for managing and operating the centre:

•  The Council would need to establish suitable management arrangements. Currently the Council has no dedicated team in place to undertake this function. The centre operates through an online booking system and the Council does not have a system available for managing such bookings and the resource to facilitate it.

•  Responsibilities could be shared across different service departments but it would require ongoing staff coordination and resources.

•  This option is not recommended because it would create ongoing financial, staffing and operational challenges for the Council. Selecting an independent specialist organisation with experience of managing community facilities would be better placed to operate the centre effectively and efficiently is a better option.

3. Option 3 – The Council could take steps to immediately close the building and discontinue its use as a community facility:

•  Grant funding, provided by the department of Education for the construction of the building was on the condition that an education facility would continuously run from the premises, otherwise, part of the funding may be deemed repayable under the terms of the grant.

•  By closing the facility, it would result in direct loss of an important purpose-built community asset.

•  The preschool, scout group and other community organisation that operates from there would be displaced and experience disruption. 

•  Local residents would lose direct community-based services and activities.

•  This option is not recommended because it will create adverse effect on existing users, local residents and potentially trigger a financial clawback from the Government.

4.  Option 4 – The Council could grant a shorter lease term than the proposed 25 years:

•  A shorter lease would provide continuity of services and operation of the building but will offer less long-term security.

•  To secure grant funding and external investments, applicants may be required to demonstrate long term security of their occupation.

•  Testland’s ability to secure grant funding and external investment may be restricted which is required for the long-term sustainability of the centre.

•  This option is not recommended because a 25-year lease will enable Testland to secure the necessary grant funding, external investments and security needed to continue management of the centre.