Agenda item - Saltdean Lido CIC - request for loan

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Agenda item

Saltdean Lido CIC - request for loan

Report of the Executive Director, Economy, Environment & Culture

Decision:

1)           That the Committee notes the progress made by SLCIC including the restoration of the pools which reopened for public use during the summer.

 

2)           That the Committee approves the granting of a loan of £0.22 million to SLCIC to enable a revised Stage 2 lottery bid for £4.2 million to be considered by the Heritage Lottery Fund.

 

3)           That the Committee delegates authority to the Executive Director Economy Environment & Culture to agree the terms of the loan with the CIC and take all necessary steps to progress these recommendations.

Minutes:

65.1      The Committee considered a report of the Executive Director, Economy, Environment & Culture that requested approval of a grant of £0.22m to Saltdean Lido Community Interest Company (SLCIC) to enable a revised Stage 2 lottery bid for £4.2m to be considered by the Heritage Lottery Fund (HLF).

 

65.2      The Chair asked what the impact may be if the decision was agreed at this committee but reversed at Budget Council in February 2018.

 

65.3      The Executive Director, Economy, Environment & Culture confirmed that the committee would be making a decision on the matter at this meeting and the capital proposals detailed on page 139 of the agenda did not include Saltdean Lido.

 

65.4      Councillor Wealls asked what the re-payment terms of the loan were if the HLF bid was successful.

 

65.1      The Head of Finance clarified that if the HLF bid was successful, half the loan amount would be repaid quickly with the other half repaid once the facility was operational and likely to be over four years, although that schedule would be subject to the revised business plan.

 

65.2      Councillor Mac Cafferty stated that whilst all political groups agreed on the principle of the restoration project, there would have to be a broader debate about the continued financial support provided if progress continued to stall and a potential focus on other projects. Councillor Mac Cafferty asked if the council would be able to recover the loan if the HLF bid was unsuccessful.

 

65.3      The Executive Director, Economy, Environment & Culture noted that £30,000 had been granted to SLCIC to date which drew a successful return in terms of progress made. The aim of the £220,000 loan was to deliver £7.8 million of investment and create a sustainable future for the Lido. The Executive Director, Economy, Environment & Culture stated that if the event the HLF bid was unsuccessful, SLCIC would find it more challenging to repay the loan and advised that the committee decision could be framed in the context of the council being freeholder of the site and therefore liable for costs if the CIC fails, and that the HLF bid represented the best opportunity for renovation of the Lido for many years.

 

65.5      Councillor Sykes stated that whilst all sides could be proud of the progress made, at the same time he did have concerns about reduced due diligence relating to the perceived lack of options and the popular appeal of the Lido. Councillor Sykes stated that the committee had been asked for significant funding yet no budget nor identification of how the funding would be used was included in the documentation.

 

65.6      The Head of Finance clarified that the SLCIC had provided a revised cost plan drafted by their retained experts and officers had gone through that and verified the costs associated. In relation to the use of the £220,000, the Head of Finance explained that SLCIC was run by volunteers with the assistance of experts and the sum would be used for technical information for the revised HLF bid.

 

65.7      Councillor Yates asked that in the event the committee did not approve the report, whether officers were of the view that the £7.8m cost of restoration would become the council’s liability.

 

65.8      The Executive Director, Economy, Environment & Culture stated that the £7.8m figure was an indication of the cost of restoration of the Lido. If the recommendations were not agreed by committee, the immediate impact would be that the SLCIC would find it difficult to fund a HLF bid and it would likely fail and in turn, SLCIC would find difficulty in meeting the terms of the lease. The Executive Director, Economy, Environment & Culture stated that the worst case scenario would be that SLCIC folds, the Lido would return to the council and a decision on its future would need to made by the council.

 

65.9      Councillor Bell stated that he felt a full business plan should have been provided to the committee as the report did not have sufficient detail to make a decision on a loan in confidence.

 

65.10   Councillor Sykes stated that on hearing the assurance that officers had been provided sufficient cost information from SLCIC, he was minded to support the recommendations.

 

65.11   Councillor Peltzer Dunn asked for assurance that officers were confident the loan would be repaid.

 

65.12   Councillor Hamilton noted that similar concern was raised about the i360 loan that was 150 times larger than the amount for decision and believed the Lido should be given every opportunity to be a success and he had trust in the judgement of officers.

 

65.13   RESOLVED-

 

1)           That the Committee notes the progress made by SLCIC including the restoration of the pools which reopened for public use during the summer.

 

2)           That the Committee approves the granting of a loan of £0.22 million to SLCIC to enable a revised Stage 2 lottery bid for £4.2 million to be considered by the Heritage Lottery Fund.

 

3)           That the Committee delegates authority to the Executive Director Economy Environment & Culture to agree the terms of the loan with the CIC and take all necessary steps to progress these recommendations.

Supporting documents:

 


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