Issue - meetings
Crosby Lakeside Redevelopment Project
Meeting: 07/11/2019 - Cabinet (Item 74)
74 Crosby Lakeside Redevelopment Project 
PDF 144 KB
Report of the Head of Commercial Development
Additional documents:
Minutes:
|
The Cabinet considered the report of the Head of Commercial Development in relation to the Crosby Lakeside Adventure Centre Redevelopment Project.
|
|
Decisions Made: That the Cabinet:
(1) approved the Full Business Case and option 5 within the Full Business Case;
(2) authorised the Head of Commercial Development to implement the delivery plan outlined within the Full Business Case in consultation with: the Cabinet Member – Regeneration and Skills; the Cabinet Member – Regulatory, Compliance and Corporate Services; and the Cabinet Member – Health and Wellbeing;
(3) authorised the Head of Commercial Development to conduct a procurement exercise for the appointment of a contractor to undertake the capital works outlined in the Full Business Case in consultation with the Portfolio Cabinet Members and granted delegated authority to award the contract resulting from the procurement.
(4) authorised the Head of Commercial Development to conduct a procurement exercise to procure a partner in line with the requirements outlined within the Full Business Case in consultation with the Cabinet Members and granted delegated authority to award the contract resulting from the procurement.
(5) authorised Officers to engage in appropriate consultation with employees and trade unions in terms of employment matters following the Council’s normal procedures; and
(6) noted that the capital cost of this project and refurbishment will be £3.1m and will be funded from a direct grant by the Combined Authority. A subsequent supplementary capital estimate for this sum will be provided for Cabinet to recommend to Council for approval. |
Reasons for the Decisions:
To enable the project to progress from the Development Stage (Stage 1) onto Transition to Delivery Stage (Stage 2) then to on-going Operations (Stage 3).
Alternative Options Considered and Rejected:
Five options for delivery of the objectives of this project were considered, which are detailed in the table below.
The assessment of these options identified the Preferred Option to be Option 5: a JVCo to deliver operational transformation within a fully refurbished hospitality facility.
The summary of the outcome of the assessment is shown in the table below:
|
OPTION |
VALUE AND RISK ASSESSMENT |
|
Option 1. No ops changes. No refurbishment. |
Retain the existing operating model and team; no investment in the hospitality facilities. No change – continue ‘as-is’. Financial outcome: no reduction in current c.£250k pa subsidy (likely to rise over next 10 years, average of c. £290k pa). (Backlog maintenance requirements not addressed). Overall assessment: not a sustainable option. |
|
Option 2 New management. No refurbishment. |
Retain the existing operating model and team and hire new management with hospitality experience; no investment in the facilities. Financial outcome: only marginal reduction in current c.£250k pa subsidy to an average of c.£220k pa subsidy over 10 years). (Backlog maintenance requirements not addressed). Overall assessment: not a sustainable option.
|
|
Option 3. No ops changes. Full refurbishment. |
Retain the existing operating model and team; and invest in refurbishment and reconfiguration of the facility. Financial outcome: increase in current c.£250k pa subsidy after funding on-going maintenance to c. £420k pa average over 10 years. ... view the full minutes text for item 74 |