Agenda item

Marine Lake Event Centre

Report of the Executive Director - Place

Minutes:

The Cabinet considered the report of the Executive Director – Place that updated on the Marine Lake Events Centre (incorporating The Light Fantastic) and presented the preferred option for progressing the commitment of Southport Town Deal funding for the project. The report also included the business case for the project for required submission by the Council, as accountable body, to Government on behalf of the Town Deal Board; and set out the next steps required in relation to the appointment of a main contractor and Operator.

 

Decision Made:

 

That:

 

(1)

the full business case for the Marine Lake Events Centre project be approved and submitted to Government on behalf of the Town Deal Board;

 

(2)

the agreement and return of all project documentation to the Department for Levelling Up, Housing and Communities be delegated to the Chief Executive and the Executive Director of Corporate Resources and Customer Services, in consultation with the Executive Director - Place and the Cabinet Member - Regeneration and Skills and Cabinet Member - Regulatory, Compliance and Corporate Services, on behalf of the Town Deal Board and in line with Town Deal funding deadlines;

 

(3)

the Executive Director - Place in consultation with the Cabinet Member - Regeneration and Skills be authorised to exercise delegated authority to procure a suitable contractor for the capital works via a fully compliant framework;

 

(4)

the Heads of Terms for the operation and management of the Marine Lake Events Centre as set out in the report and Full Business Case be approved and that the Executive Director - Place in consultation with the Cabinet Member - Regeneration and Skills be authorised to exercise delegated authority to agree the detailed terms;

 

(5)

it be noted that the Liverpool City Region Combined Authority continue to support the principle of allocating up to £20m to the new Events Centre, from which the first £2.3m has been released to support pre-development work;

 

(6)

it be noted that a request for a supplementary capital estimate to enable the scheme to be included within the Council’s Capital Programme will be submitted to Cabinet and Council following on from the Liverpool City Region Combined Authority final approval and agreements from the Department for Levelling Up, Housing and Communities;

 

(7)

the key risks identified within this report be noted; and

(8)

it be noted that the proposal was a Key Decision but had not been included in the Council's Forward Plan of Key Decisions. Consequently, the Deputy Leader of the Council and the Chair of the Overview and Scrutiny Committee (Regeneration and Skills) had been consulted under Rule 27 of the Access to Information Procedure Rules of the Constitution, to the decision being made by Cabinet as a matter of urgency on the basis that it was impracticable to defer the decision until the commencement of the next Forward Plan.

 

Reasons for the Decision:

 

Cabinet has previously approved to progress with a new Marine Lake Events Centre in Southport as part of the successful Southport Town Deal.

 

Under the Town Deal Heads of Terms, Sefton Council is required to submit a full business case by 8th August 2022. The business case for the Marine Lake Events Centre (incorporating The Light Fantastic) has been developed in accordance with the guidance provided for Town Deal projects. The business case needs to be approved for the submission to be made to Government to facilitate the provision of the grant funding.

 

As per Cabinet on 29th July 2021 a Competitive Dialogue procedure to procure an operator for the MLEC site is underway, and as this process concludes it is necessary to agree the final terms to allow appointment.

 

It is also now required to start the process of appointing a suitable build contractor, with early engagement and input increasing cost certainty and reducing risk on the project.

 

Alternative Options Considered and Rejected:

 

The Outline Business Case presented to Cabinet on 24th June 2021 considered several alternative options ranging from do minimum, to refurbishment, to major redevelopment. The preferred option was major redevelopment with the other options being rejected as they did not meet the project aims and objectives.

 

The preferred way forward identified at the Outline Business Case stage was subject to further review in early 2022 focused on the re-examination of the scheme given capital affordability constraints alongside a review of the funding strategy.  This review led to the confirmation of the preferred way forward scheme as set out at the Outline Business Case stage.

 

The shortlisted intervention options examined as part of the Full Business Case include the Outline Business Case preferred option requiring £73m of funding and a reduced scheme requiring £61.8m capital investment.

 

These two intervention options were considered against a revised reference case that considers that the STCC did not re-open after COVID-19 and has been mothballed by the Council. Therefore, the Do Minimum option, examined as part of the Outline Business Case, was no longer considered.

The preferred option from the Outline Business Case scored the highest in the Full Business Case and therefore the circa £73m major redevelopment remains the preferred option.

 

 

 

 

 

Supporting documents: