Agenda item

To consider a new lease and under lease of Coronation Hall for up to 99 years.

Note – In accordance with Section 100B(2) of the Local Government Act 1972, copies of Appendices 1, 2 and 5 to the report are excluded from inspection by members of the public as it contains information as described in Schedule 12A of the Act, as amended by the Local Government (Access to Information) (Variation) Order 2006, as follows:-

Paragraph 3 - Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Summary

Councillor Ashcroft, Economy, Culture and Leisure Portfolio Holder outlined the proposal to enter into a 99 year lease for the Coronation Hall on the draft Heads of Terms set out in Part II Appendix 6, with appropriate delegations to agree to finalize the terms.

Subject to the completion of the Coronation Hall 99 year lease, it is proposed that the Council will undertake a procurement exercise and subsequent contract award in relation to the replacement of the lift at Coronation Hall with funding as approved by the Council in February 2022 for the 2022/23 budget.

Subject to the completion of the Coronation Hall 99 year lease, it was proposed that the Council commits to a grant funding award in the sum of £79K to Ulverston Coronation Hall CIO for investment in public spaces within the Coronation Hall. The sum of £79k is the sum of Capital monies remaining from the Capital funding set aside for the projects related to the closure and transfer of Ulverston Town Hall.

It was proposed that the grant award was to be made only upon completion of the lease for the Coronation Hall and would be subject to appropriate terms and conditions including but not limited to clawback provisions if the funding is not spent within a specified period on upgrades to public spaces within the Coronation Hall in order to help implement the CIO’s new business plan in Appendix 1. This includes for example renovations/improvements to the Coronation Hall (e.g. Supper rooms, additional meeting rooms) with the aim of improving the Coronation Hall’s potential to generate revenue income.

The Cabinet also considered, subject to the completion of the Coronation Hall 99 year lease, the award of a grant of £150k as outlined in the report as a ‘transition grant’ to support the Coronation Hall and Ulverston Markets in acknowledgement of the time lost due to the pandemic and support required to bring the assets to a point at which they are financially viable.

Cabinet also considered whether a further report should be brought to Cabinet on receipt of the feasibility/options appraisal commissioning by UCE in relation to the Market.

Councillor Webster congratulated progress and stated that this was needed, with support of the proposed 99yr lease. Councillor Webster raised the issues of the external appearance of the Market Hall building confirming that significant improvement is required. Bird droppings and other factors were relayed to Members.

Councillor Ashcroft advised that we had been waiting for the business plan and that these things take time. He confirmed that it was a great step forward and a fantastic example of collaborative working.

The Operational Lead - Delivery and Commercial Services confirmed that the Council would work with teams on the building maintenance issues provided by Councillor Webster.

Councillor Bingham requested that on working with the parties involved in the restoration of the Hall; to be mindful of refurbishment and that it was fit for purpose, noting that the structure and internal decoration needs to be maintained in a modern fashion. Councillor Ashcroft noted that decisions on internal decorations had been delegated to teams.

The Chair and Members gave thanks for consistent support and financial input into the Coronation Hall enabling the community to thrive. Members were delighted to support this proposal, particularly with reference to overcoming the pandemic issues highlighted. They were grateful for this step forward and found it very encouraging.

Decision

RESOLVED – That:-

(1)        a 99 year lease for the Coronation Hall be approved with the Ulverston Coronation Hall Charitable Incorporated Organisation (CIO) on the terms as attached in Part II Appendix 7 with the guarantee of Ulverston community Enterprise and;

(2)        authority be delegated to the Director of Customer and Commercial Services in consultation with the Lead Specialist for Legal, Governance and Democracy, the Lead Specialist for Finance and the Portfolio Holders for Finance and Resources and Economy Culture and Leisure to agree terms and enter into the lease; and;

(3)        Subject to completion of the lease agreement described in 2.1 (1),  that a procurement exercise be undertaken by the Council in accordance with its Contract Procedure Rules in respect of a Lift replacement for the Coronation Hall as per the approved Capital programme and;

(4)        Subject to completion of the lease agreement described in 2.1 (1),  a grant award in the sum of £79k to Ulverston Coronation Hall Charitable Incorporated Organisation for investment in the public spaces within the Coronation Hall as described at paragraph 3.9.3 or the report, and that authority be delegated to the Director of customer and Commercial Services in consultation with the Lead Specialist for Legal, Governance and Democracy, the Lead Specialist for Finance and the Portfolio Holders for Finance and Resources and Economy Culture and Leisure to agree terms and enter into the grant agreement; and;

(5)        Subject to completion of the lease agreement described in 2.1 (1),  an additional grant award to the UCE of £150k to support the Coronation Hall and Ulverston Markets in acknowledgement of the time lost due to the pandemic and the support required to bring the assets to a point at which they are financially viable and that authority be delegated to the Director of Legal, Governance and Democracy, the Lead Specialist for Finance and the Portfolio Holders for Finance and Resources and Economy Culture and Leisure to agree terms and enter into the grant agreement.

Reasons for Decision

The proposed way forward is a bespoke solution, utilising the strengths and support of the Ulverston community. It would enable a local community solution managing a range of facilities, deliver regional growth, and create opportunities which contribute to the wellbeing of the town. Markets are seen as an opportunity to increase footfall to the town centre. Growing the revenue of markets enables future cross subsidy of the Coronation Hall.

Alternative Options Considered and Rejected

There is an option not to enter a long term lease with UCE for the Coronation Hall. The likely effect of this would be that UCE would cease operations. SLDC would have the premises returned and would need to determine whether to operate a service from the Coronation Hall, seek a new tenant or consider disposal of the freehold. This option is not recommended as it would not enable the benefits which can be achieved through local management and investment to be realised. It would prevent the option of enabling a local community solution to be developed further. If in the future, the proposed long term lease proves unworkable, this option would need to be reconsidered.

Transfer the Coronation Hall only and keep the Markets under direct SLDC control and operation. This option is not recommended as the UCE purpose and business model is developed on the principle of managing a range of facilities which contribute to the wellbeing of the town. Markets are seen as an opportunity to increase footfall to the town centre. Growing the revenue of markets enables future cross subsidy of the Coronation Hall.

To make the opportunity to run the Coronation Hall and Markets available to the open market and consider a competitive process. This option is not recommended as the drive to find a locally managed solution has come from within the Ulverston community. The operation requires a high degree of voluntary effort, matched with the revenue earning and sponsorship potential of the assets to be successful. The proposed way forward is a bespoke solution, utilising the strengths and support of the Ulverston community. An open process runs a high risk of a deliverable solution not coming forward. If in the future, transfer proves unworkable, this option could be reconsidered. The Council also failed to find a new operator for the Kendal indoor and outdoor market when the service was tendered and therefore unlikely that there would be greater interest in the Ulverston Markets.