Issue - meetings

RECOMMENDATIONS         

The Executive is recommended to:

1)               Agree in principle to support the Soft Market Testing recommended Option 3 - the creation of Studio 2 and explore the shift to a more commercial operational approach.

Subject to the approval of the above recommendation, it is further recommended that:-

2)               Officers scope and tender the most cost-effective construction works to create Studio 2, engaging with NYC Align Property Partners and utilising preparatory work already completed, with cost estimates indicating a budget of £7 million.

3)               Develop a new Business Plan for HCC including investment in Studio 2, commercial operating models and the future vision for HCC supported by financial, operational, and sustainability plans.

4)               Delegate to the Corporate Director Resources, in consultation with the Corporate Director Community Development, Executive Member for Finance and Resources, Executive Member for Open to Business, the authority to approve the business case to implement the improvements to Studio 2 to the value of £7m and to undertake any associated decisions.

5)               Review and define the governance requirements for HCC.

6)               Actively pursue and secure future funding opportunities, including North Yorkshire Mayoral Investment, government grants, and other sustainability initiatives.  As part of the business case, consider rebranding HCC to broaden its market appeal and align with the strategic goals for the wider Yorkshire region.

7)               Scope and implement immediate sustainability improvements and develop a long-term strategy, including identifying external funding opportunities.

8)               Prioritise essential property maintenance repairs to ensure the safe management and operation of HCC and explore delivering essential works via a small in-house team utilising existing North Yorkshire procurement frameworks.

9)               Delegate authority to Officers to continue engaging with potential external operators or buyers of HCC, with further reports as required to be brought back to Members.

10)            Delegate authority to the Corporate Director Resources, in consultation with the Assistant Chief Executive for Legal and Democratic Services, to review and approve specific officer delegations, for the HCC Director, to support commercial operating.

Considered – A report of the Corporate Director Resources informing Executive of the results of the soft market testing (SMT) carried out by 31Ten for the Harrogate Convention Centre (HCC), and providing recommendations for the next steps including the development of Studio 2 and the consideration of adopting a more commercial operating model.

The Executive Member for Open to Business, Councillor Mark Crane, welcomed Paula Lorimer, the Director HCC, to the meeting and referred to the importance of the HCC to the economy of Harrogate. 

Paula Lorimer then gave an overview of the soft market testing undertaken and made the following key points:

·        Executive had agreed not to continue with the £57m redevelopment due to escalating costs, the prospects of large parts of the venue being closed for three years and failure to get Levelling Up funding.  The SMT had been undertaken to determine the best way forward.

·        The objectives set by the Council for the SMT were to look at ways of retaining the £45m benefit to the economy of Harrogate, protecting the public purse, reducing carbon emissions and exploring alternative operating models

·        Findings of the report indicated there would be little market interest in running such a venue and local authority venues normally operated at a loss.  Market feedback on the venue was positive, though Studio 2 could facilitate conferences better.  Ongoing maintenance was critical and further income could be leveraged from developing partnerships with local organisations.

·        Five options were identified, as set out at paragraph 3.9 of the report, with Option 3 being the recommended way forward: commercial investment of £7m in Studio 2 to create breakout spaces for larger conferences and an escalator for easier access, which was projected to generate an additional £1.5m in annual income

Gary Fielding, Corporate Director Resources, thanked Paul Lorimer, Nick Edwards and Paul Foster for their work on this and confirmed that the venue required investment.  There was a need for match and other funding to be sought and it was hoped that the Council’s willingness to invest would means others would be confident to come forward with funding.

Resolved (unanimously) – that

1)               Executive agree in principle to support the Soft Market Testing recommended Option 3 - the creation of Studio 2 and explore the shift to a more commercial operational approach.

2)               Officers scope and tender the most cost-effective construction works to create Studio 2, engaging with NYC Align Property Partners and utilising preparatory work already completed, with cost estimates indicating a budget of £7 million.

3)               a new Business Plan for HCC be developed including investment in Studio 2, commercial operating models and the future vision for HCC supported by financial, operational, and sustainability plans.

4)               authority be delegated to the Corporate Director Resources, in consultation with the Corporate Director Community Development, Executive Member for Finance and Resources, Executive Member for Open to Business, the authority to approve the business case to implement the improvements to Studio 2 to the value of £7m and to undertake  ...  view the full minutes text for item 583