MIDDLESBROUGH COUNCIL

Hemlington Recreation Centre, adjacent land and buildings

Deputy Mayor and Executive Member for Regeneration: Charles Rooney

Executive DirectorforCommercial &Corporate Services: Tony Parkinson

11th August 2015

PURPOSE OF THE REPORT

  1. The purpose of this report is to update the Executive on the recommendation made on the 9th December to remove Hemlington Recreation Centre from the Alternative Delivery Model (ADM)for Sports and Leisure Service and seek approval for expressions of Interest for a Community Asset Transfer (CAT) of both adjacent land and buildings
SUMMARY OF RECOMMENDATIONS
  1. That Executive approves:
  • That the Hemlington Recreation Centre, adjacent land (playground area and allotment), depotand Hemlington Hall Farmhouse building are offered as a potential CAT.
  • That expressions of interests are invited both from large community organisations for the management of thebuildings and for small community groups and partnerships for discreet elements of the site namely the allotment plots and the Hemlington Hall farm house building.
  • That whilst the management and maintenance of the lake, amenity areas and the football pitches will remain with the Council’s parks service, potential bidders for the facilities in scope should be offered the opportunity to utilise these facilities for enhanced community usage within their proposals.
  • That a further report is brought to Executive recommending the preferred option for the future community use of the land and buildings following evaluation of the expressions of interest from potential partner organisations and associated business cases.

IF THIS IS A KEY DECISION WHICH KEY DECISION TEST APPLIES?

It is over the financial threshold (£150,000) / x
It has a significant impact on 2 or more wards
Non Key

DECISION IMPLEMENTATION DEADLINE

  1. For the purposes of the scrutiny call in procedure this report is

Non-urgent / x
Urgent report

BACKGROUND AND EXTERNAL CONSULTATION

  1. Hemlington Recreation Centre, associated buildings and land in close proximity were withdrawn from the project scope related to the ADM for Sports and Leisure Services. It was considered that this was more suitable to offer for a potential Community Asset Transfer (CAT)
  1. A CAT would fall in line with the Council’s Land and Property Estate Strategy to support communities as agreed by Executive on the 17th March 2015 reducing pressure on Council resources, assisting in supplementing/supporting current Council services and allowing for local/national charities, voluntary organisations and community groups to deliver within the community.
  1. The buildings and associated land included in thescope of the potential Community Asset Transfer include (detailed in Appendix One):
  1. Recreation Centre
  2. Hemlington Hall Farm building
  3. Play Area
  4. Allotment Plots
  5. Linx Project pod
  6. Depot
  1. Whilst the management and maintenance of the lake, amenity areas and the football pitches will remain with the Council’s parks service, it is recommended that potential bidders for the facilities in scope should be offered the opportunity to utilise these facilities for enhanced community usage within their proposals.
  1. The facilities are currently valued on the Council’s Asset Register as follows:

Facility / Status / Net Bok Value
Recreation Centre (inc Linx Pod) / Operational Building / £743,666.69
Hemlington Hall Farm / Operational Building / £22,800
Allotments / Community Land / £10,325
Play Area / Community Land / £89,215
Depot
  1. The scoped buildings and land provide for over 14 different service users. These are all shown along with income generated in Appendix Two.
  1. Some initial informal discussion has taken place with user/stake holder groups and as expected they are keen to ensure that provisions are in place to secure opportunities for them to continue to deliver their various activities

IMPACT ASSESSMENT

  1. The Community Asset Transfer process has been subjected to a Stage One Impact Assessment. The continued use of the facilities and site would ensure that no negative differential impact on diverse user groups and communities from the implementation of the process. It will be encouraged in the Expressions of Interest that organizations’ show a due regard for supporting the existing community activities and in some cases partnership opportunities

OPTION APPRAISAL/RISK ASSESSMENT

  1. There are several options available to the Council:
  1. Close the facility and demolish the buildings and play area. This would result in:
  • Loss of facilities.
  • Reduction in service provision in a deprived ward.
  • Limiting community access to health, sport and well-being interventions and activities.
  1. Community Asset Transfer thescoped buildings and facilities to one large voluntary sector organisation.
  1. Community Asset Transfer the scoped buildings and facilities as separate discrete CATs to a number of different organisations.

FINANCIAL, LEGAL AND WARD IMPLICATIONS

13Financial – Hemlington Recreation Centre and associated land/building current annual expenditure is £164,000 per annum.

14This budget comprises £77,000 for wages and admin, £56.4k for building costs and a further £30.7k for support costs. It generated an income of £7I.6k. The full breakdown on the income is provided in Appendix Two

  1. Based on current income and expenditure potential annual savings amounting to £92,000 could be made. However this may be offset initially by negotiated tapered support subject to evaluation of business cases. Any savings would contribute towards the Change Programme in relation to Sport & Leisure services and PropertyAsset Management.
  1. Ward Implications –The Centre and grounds are used by residents predominantly living in Hemlington, however some of the user groups accessing the farmhouse and Lake come from across Middlesbrough. This is an opportunity to provide for greater community engagement across the whole of Middlesbrough.
  1. The Ward Councillors have been briefed in respect of these proposals to the land and facilities.
  1. Legal Implications-The land is subject to a number of covenants relating to use.This date from the 1970s when MBC transferred the land to Yuills for the wider housing estate – i.e. the covenants were the type of ones you would see on a residential housing estate.
  1. Now it has been transferred back, the Council have both the burden and the benefit of those covenants (in legal terms); even although the covenants relating to use for aclub would be breached by the CAT use, they should not cause an issue, on thebasis that the Council would not enforce covenants against itself.
  1. However veryoccasionally covenants imposed in this way can be enforced by anyone on thehousing estate, not just the named beneficiary; however, if that is raised by theCAT’s solicitors then Council Legal Officers can look at this should it arise.
  1. The Centre and associated areas are currently managed by two Duty Officers (15 hour contracts and both Grade H), two Park Officers (22 hour contracts both Grade E) and one Assistant Park Officer (18 hour contract on Grade D). Further discussion will be needed regarding the future employment of these officers.

SCRUTINY CONSULTATION

  1. The Community Safety and Leisure Scrutiny Panel Included the subject of “Future Alternative Delivery Models for Sports and Leisure Services” in their work programme for 2014-2015. Hemlington Recreation Ground was included in that process.
RECOMMENDATIONS
  1. That Executive approves:
  • That the Hemlington Recreation Centre, adjacent land (playground area and allotment), depot and Hemlington Hall Farmhouse building are offered as a potential CAT.
  • That expressions of interests are invited both from large community organisations for the management of the buildings and for small community groups and partnerships for discreet elements of the site namely the allotment plots and the Hemlington Hall farm house building.
  • That whilst the management and maintenance of the lake, amenity areas and the football pitches will remain with the Council’s parks service, potential bidders for the facilities in scope should be offered the opportunity to utilise these facilities for enhanced community usage within their proposals.
  • That a further report is brought to Executive recommending the preferred option for the future community use of the land and buildings following evaluation of the expressions of interest from potential partner organisations and associated business cases.
REASONS
  1. This is in keeping with Council’s Land and Property Estate Strategy to support communities in reducing pressure on Council resources, assisting in supplementing/supporting current Council services and allowing for local/national charities, voluntary organisations and community groups to deliver within the community.
  1. Safeguards a very important community asset in Middlesbrough and encourages a more sustainable strategy for further development and investment in Hemlington.
BACKGROUND PAPERS
  1. The following background papers were used in the preparation of this report:

Future Delivery Model for Sports and Leisure Services Executive Report 9th December 2014

Management of the Council’s Land and Property Assets Executive Report 17th March 2015

AUTHOR: Gamini Wijesinghe

TEL NO: 01642 728410

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Address:

Website: http://www.middlesbrough.gov.uk