Decisions

To seek approval for the concept design, budget cost and funding arrangements for the remodelling of Ferneham Hall into a new community and arts entertainment venue.

Ferneham Hall is becoming dated and tired, and its operating costs are escalating.  Transforming Ferneham Hall into a new arts and entertainment venue with a community focus was identified as priority in the Council’s Corporate Strategy 2017-23.

An initial vision for remodelling Ferneham Hall into a new community arts and entertainment venue was approved by the Executive on 9 July 2018, alongside the establishment of both a Member Working Group and Officer Working Group to oversee the project.  The vision was subsequently updated in December 2018 following a wide-ranging consultation, with the size of the main auditorium increasing to around 800 seats (originally 400-500) and a greater flexibility being placed on spaces for hire.

This vision has been the central point of reference during the design process and an exciting concept design has been produced which best matches this vision as well as the needs of the preferred operator.

Whilst every effort has been made to minimise costs and not overprovide facilities, the Council’s ambitious vision is reflected by the project’s budget cost of £12.35m.

It is proposed that funding for the remodelling project will be provided by current and future Community Infrastructure Levy (CIL) receipts.  The Council’s capital reserve derived from CIL currently stands at £4.7m.  Funding of the project will therefore require the Council to commit future CIL receipts of £7.65m to the project.

It is projected that it will take between 5-8 years to receive sufficient CIL receipts to cover the project cost. Therefore, it is proposed to supplement the current CIL reserve of £4.7m with prudential borrowing of £7.65m.  In addition, potential grant opportunities provided by external organisations are currently being explored to supplement the CIL contributions.

A significant commitment of CIL funding towards the new venue will restrict the Council’s ability to fund other, new community-related projects that would ordinarily utilise CIL.  It will not, however, have any impact on the community-based schemes (such as play area improvements) that are already approved in the Council’s capital programme, or other schemes that can be self-financed.

This report seeks approval of the concept design and project cost, as well as to allocate project funding through a combination of current and future CIL receipts, supplemented by prudential borrowing.

RESOLVED that the Executive approves:

(a)  the concept design of the remodelled Ferneham Hall, as outlined in Appendix A to this report, and that this be submitted as part of a planning application;

(b)  the budget cost of £12.35m;

(c)  the funding of the project through current and future CIL receipts, supplemented by prudential borrowing and external grant funding where available, as set out in the report.

(d)  that congratulations and thanks be extended to officers and members who worked on this project; and

(e)  that gratitude and thanks be extended to all staff working at Ferneham Hall over the years.

This report seeks approval to award the contract to operate the remodelled Ferneham Hall on behalf of the Council to the preferred bidder.  

The skills required to programme and operate the remodelled Ferneham Hall means that management by an experienced Leisure Trust operator is required.  At its meeting on 9 July 2018, the Executive approved the procurement of an experienced operator to run the new venue.

A joint approach to procuring operators for Ferneham Hall and the Council’s two Leisure Centres, Fareham and Holly Hill, was approved by the Ferneham Hall Project Member Working Group on August 2018.

This report seeks approval for the operator of the remodelled Ferneham Hall.  A report will follow in November seeking approval for the appointment of an operator to run the two Leisure Centres.

Following a detailed procurement exercise, the two final bidders have provided submissions that offer a varied and high-quality programme of events and activities.  Both will enable Ferneham Hall to be a vibrant venue with activity throughout the day and evening. The evaluation of the submissions and preferred bidder are provided in confidential Appendix A to the report.  

The Member Working Group agreed to the preferred bidder being presented to the Executive for approval on 4 September. The Leisure and Community Scrutiny Panel was provided with a confidential presentation regarding the procurement process, tender evaluations and preferred bidder on 23 September. The comments of the Scrutiny Panel were reported to the Executive at its meeting on 26 September.

RESOLVED that the Executive agrees that:

(a)  the tender submitted by the contractor ranked 1^st as set out in the confidential Appendix A to the report, being the most advantageous tender received, be accepted and the contract awarded to the company; and

(b)  the 2^nd ranked contractor, as set out in the confidential Appendix A, be appointed reserve bidder.