The Overview and Scrutiny Committee of Rushmoor Council met on Thursday, 5th February 2026, to conduct pre-decision scrutiny on the procurement of a leisure operator for its facilities and to reconsider the disposal of properties at Union Yard, Aldershot. The committee discussed the proposed operator for the Farnborough Leisure Centre, Aldershot Pools and Lido, and Alpine Snowsports Centre, and also reviewed the decision to dispose of Blocks C & D at Union Yard to Vivid Housing.

Farnborough Leisure Centre - Leisure Operator Procurement

The committee undertook pre-decision scrutiny of the procurement and approval of an operator for the Aldershot Pools and Lido, Alpine Snowsports Centre, and the proposed new Farnborough Leisure Centre. The report presented outlined the outcome of the leisure operator procurement process, which began in June 2025 and considered both quality (60%) and cost (40%). Bidders had the option to propose either a standard concession contract or an agency agreement.

During the discussion, members raised several questions. Concerns were voiced about whether costs would be passed on to residents through membership fees. It was noted that the preferred bidder had proposed a pricing model designed to ensure equitable access and commercial performance, with price increases to be benchmarked annually against Sport England and other comparators, and reported to the Council for agreement. The implications of targets not being met were also discussed, with assurances that the Council would retain an agreed minimum financial return. Regarding mechanical or plant failure at the Lido, it was clarified that the responsibility for maintenance of the Lido plant would remain with the Council. Car parking capacity at the Aldershot Pools and Lido was identified as an ongoing issue, with details provided on recent expansions and the occasional use of the Crematorium car park during busy periods. The committee also questioned how social value promises made during procurement would be upheld, with confirmation that contract terms would include provisions for social value. The costs associated with the procurement process were noted, with reference to a contract with Portsmouth Council for procurement support. Finally, community outreach was discussed, with target areas of multiple deprivation identified, though it was noted these were negotiable. The committee also discussed rebuilding relationships with local clubs, particularly swimming and synchronised swimming clubs, and was informed that key stakeholders, including these clubs, had been consulted during the process.

The committee requested that David Phillips, Deputy Head of Operations, confirm any penalties for contract failure by the operator, whether the Council should request a performance bond from the preferred operator, and confirm that appropriate balance sheet checks had been undertaken for the preferred operator.

Union Yard, Aldershot - Disposal of Blocks C & D

The committee reconsidered the decision made by the Cabinet on 15th December 2025, to dispose of Blocks C & D at Union Yard, Aldershot to Vivid Housing. It was noted that since the December meeting, key project dependencies had changed, and Vivid Housing's Board decision was confirmed to take place in mid-February. The committee heard from Chris Hodgkinson of Lambert Smith Hampton (Investment Management), who presented findings from recent soft market testing on the value of Blocks C & D. Mr. Hodgkinson reported that six companies had made offers, all of which were below the value offered by Vivid Housing, leading to a recommendation to proceed with the sale to Vivid Housing.

The committee discussed the financial implications of selling to Vivid Housing compared to alternative options outlined in Exempt Report No. REG2502. While red book valuations were used as a benchmark, it was explained that a property's actual sale value is determined by what the market is willing to pay. Soft market testing generally reflects true value, although off-market sales can sometimes lead to over or under-valuation. Members asked questions and received responses regarding the specifics of the sale.

The possibility of selling the properties individually on the open market was also discussed, with differing views on the potential income. It was noted that selling the properties piecemeal could take between 14-21 months and would incur additional costs during the sales progression period compared to a single sale of both blocks. Although the total capital receipt from individual disposals could be higher, this would need to be offset against increased holding costs, making it a higher risk compared to the immediate benefit of a larger single capital receipt.

Executive Director, Karen Edwards, stated that Option 4(a) from Exempt Report No. REG2502, which was the original preferred option for disposal in April 2025, had been withdrawn. The current offer from Vivid Housing was the quickest to progress in line with the Council's Financial Recovery Programme and would help minimise further costs associated with holding the property for a longer period. The mix of properties and restrictions on the commercial units had also been adjusted during negotiations. Affordable housing nominations would align with the Council's current arrangements to address the housing list, while shared ownership would be managed by Vivid Housing.

In response to a query regarding anti-social behaviour (ASB) and Vivid Housing's perceived inaction, it was stated that strategic-level meetings were being held to address such concerns effectively. Members were informed that 18 units were already occupied by Vivid tenants, and no ASB issues had been reported to date. The committee noted the financial implications of not proceeding with the sale to Vivid Housing.

The committee had discussed relevant financial and social points but made no specific recommendations to the Cabinet.

Declarations of Interest

Councillor S. Trussler and Councillor Gareth Williams declared personal and non-pecuniary interests as Directors of Rushmoor Homes Limited. The committee agreed that they could remain and participate in the meeting, in line with a dispensation granted by the Council's Corporate Governance, Audit and Standards Committee in May 2021 for members appointed to the Rushmoor Development Partnership and as Directors of Rushmoor Homes Limited.