Decision Maker: Cabinet

Outcome: Recommendations Approved (subject to call-in)

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 21, 2026

Purpose:

Content: RESOLVED   That the Cabinet is recommended (subject to (i) Full Council approval of the associated budgets, and (ii) the satisfactory conclusion of legal due diligence related to these proposals):   (i)             To approve the refurbishment of the Premises by the Council in the sum of £900,000;    (ii)            To approve the provision of a contribution in the sum of £175,000 to the Tenant to facilitate their fit-out works;   (iii)           To approve a procurement exemption allowing the Council to obtain quotes or utilise a framework to employ a contractor to carry out the refurbishment works, rather than conducting a formal open tender process; and   (iv)           To approve entering into any documentation required to give effect to the recommendations contained in this report, and, delegate authority to the Head of Legal and Democratic Services (i) to finalise the terms of and enter into any required documentation to give effect to the above recommendations, and, (ii) to undertake any functions required to enable related legal due diligence to be concluded to ensure the viability of the proposals contained within these recommendations.      REASONS   To facilitate the refurbishment and associated leasing of the Premises.   ALTERNATIVE OPTIONS CONSIDERED BUT REJECTED AS IDENTIFIED IN THE REPORT   Other leisure operators were considered, however, the proposed tenant presented the most favourable combination of ideal property use, strong financial covenant, significant investment commitment and competitive rental offer. Their proposal stands out as the best option for ensuring the long-term success and viability of the Premises.   The option of using the Premises for a social purpose was carefully considered but ultimately rejected, as the income generated from such use would be significantly lower compared to leasing the Premises to a commercial leisure operator. Leasing to a commercial operator offers a far more sustainable and profitable revenue stream, ensuring both the financial viability of the Premises, the long-term benefit to the Council and brings about benefits for the community in terms of an additional leisure offering.   The option of demolishing the Premises and rebuilding as a purpose-built leisure facility, such as a Padel court facility,was considered but rejected, as the Premises if refurbished ensures the asset value is preserved. Furthermore, it would be more timely to instigate and other operators would more readily provide the leisure options throughout the district.