PAPER B

 

                                                                        Purpose: for decision

                                                                                                                                                      

                       

                        REPORT TO EXECUTIVE

 

Date:               2 JUNE 2004

 

Title :               SEAVIEW FOOTBALL CLUB

 

JOINT REPORT OF THE PORTFOLIO HOLDER FOR EDUCATION AND COMMUNITY DEVELOPEMNT AND THE PORTFOLIO HOLDER FOR RESOURCES

IMPLEMENTATION DATE: 14 June 2004

SUMMARY/PURPOSE

 

 

1.                  To give approval for making an application to the Football Foundation to rebuild the existing changing and community facilities on Seaview Recreation Ground.

 

BACKGROUND

 

2.                  The Recreation ground at Seagrove in Seaview has historically been used as a pay and play facility for Seaview Football Club and Open Space for locals and tourists alike. The current membership of the Club is approximately 65 people.

 

3.                  The freehold of the Recreation Ground is owned by the Council with Seaview Football Club responsible for all outgoings of the Pavilion and grounds through a long term lease, with annual ground rent of £50.00.

 

4.                  Two years ago the Club approached the Council regarding the possible development or replacement of the existing clubhouse facilities.  This request followed an audit by the Isle of Wight Football Association who concluded that the facilities were well below standard and were in great need of improvements. It was also noted that if improvements were not made, the Club could be excluded from the Island leagues. 

 

5.                  Council Officers advised that the best route to attract the necessary funding was the Football Foundation, which administers grants focused on Football development only.

 

6.                  An application has been developed in partnership between the Club and Council Officers during the last two years. The costs of the project at this time are estimated at £200,000 (excluding VAT).  Funding of £20,000 has been identified towards these costs from the Club, local sponsors and pledges from the local community.  The Parish Council has also supported the project as it has developed.

 

7.                  In August 2002 the Executive agreed to support the development of the Football Club by granting a long lease for the building, if the Football Foundation supported the application.  The Club have agreed to take over the responsibility for the maintenance of the new Clubhouse on the terms previously agreed. 

 

STRATEGIC CONTEXT

                                                                                               

8.                  The application to the Football Foundation makes reference to the club’s Development Plan.  In this document the club are tasked with focusing on 3 main areas:-

 

·        The development of Young People

·        Expanding Community Activities

·        Improving Physical Activity opportunities

 

9.           The Development Plan produced by the Club links to a number of key Corporate Objectives. Raising Achievement for example is addressed in the new coaching and teaching programmes identified in the Plan to new community groups. Specific reference is made in establishing a new junior section on the site. The activities relating to the sport means that it also contributes to the Improving Health and Quality of Life theme, identified in the Council’s Corporate Plan.

 

10.       This project has been identified as a priority through the Isle of Wight Playing Pitch Assessment commissioned in 2002 which sets out development priority areas in regard to football pitches and open space.

 

11.       The new framework for Sport in England recently publicised by Sport England, supports the development of local facilities to deliver sporting improvements at a local level.

 

12.       The Council has developed successful applications in the past to external funding bodies.  Ryde Marina Bowls Club is an example of such a partnership where the Council lead the application process, but the local club lead service delivery and development work.

 

CONSULTATION

 

13.             The Club throughout the development of its application has consulted widely with a range of its partners. Project development meetings have been held with community partners, including; Officers from the Isle of Wight Council, Seaview Parish Council and local businesses.

 

14.             The second phase of consultation involved more detailed meetings between Club officials and project managers from Property Services, who supported on the submission of details relating to the Capital Building Programme and its related costings.

 

15.             The Club have been working hard during the last two years in local fund raising activities and consultation.  The net result of this work has meant that the partnership funding requirement for the application has been met and indeed exceeded (minimum 10% requirement).

 

FINANCIAL/BUDGET IMPLICATIONS

 

16.             If the Council were to submit the application for Football Foundation funding in the sum of £180,000 (excluding VAT), then VAT on project expenditure would be recoverable, therefore reducing the project costs and increasing the percentage of partnership funding.

 

17.             The above VAT expenditure would count towards the Council’s partial exemption threshold, but on its own would not have any budgetary implications.

 

18.             By becoming the applicant for external funding, the Council will have to take on all related grant conditions. If the Club were unable to deliver its Development Plan, encountered financial difficulty and was unable to continue, clawback conditions would apply on the grant for which the Council would be liable.  In this case if the Club dissolved its function and the Council wanted to use the site for another purpose, the clawback conditions would kick-in and the Council would need to pay back the grant over a 21 year period.

 

19.             All associated project management costs have been included in the application.  There are no other costs to the Council arising out of the project.

 

LEGAL IMPLICATIONS

 

20.             The Council’s powers to become the applicant and support the club are set out below:-

 

·        Section 19 of the Local Government (Miscellaneous Provisions) Act 1976 provides, in part, that a local authority may provide grants or loans to assist voluntary organisations to provide recreational facilities. The authority may also provide such facilities itself.

 

·        Part 1 of the Local Government Act 2000 provides the Council with the power to do anything which it considers likely to promote the economic, social and/or environmental well-being of its area.  The authority must give due regard to the details of the Community Strategy in choosing to exercise this power. As the request for assistance does not fall within the traditional use of s19, but is significantly consistent with the Community Strategy, the Part 1 powers are relied upon for the lawfulness of this transaction.

 

OPTIONS

 

i)                    To submit the application to Football Foundation, to develop and improve community facilities at Seaview Recreation Ground.

 

ii)                  Not to support the application to the Football Foundation.

 

EVALUATION/RISK MANAGEMENT

 

21.             The Club currently has some operational responsibility for the site. If the project was not to progress, the Club has indicated that the local Football Association have given it a period of time to improve and redevelop the facilities, to secure the future of the teams playing there.

 

22.             The Club has a significant role to play in delivering the outputs relating to the sports development plan. However, it must be noted that as a voluntary organisation there will also be a risk of the Club ability to deliver the objectives related to this project.

 

23.             If unsuccessful, it will be necessary to review urgently the current state of the existing building.  Immediate financial implications would include  a very high level of repair and maintenance  of the existing Clubhouse structure.

 

24.             One of the key liabilities of becoming the applicant relates directly to the funding conditions attached to each project. Football Foundation Conditions clearly state that it can “clawback” from the applicant any grant issued over a 21 year period if the applicant fails to deliver any part of the project objectives or in this case, if the Club associated with the project:-

 

 

25.             The risks are therefore high for the applicant (The Council) as it relies heavily on a third party’s (Seaview Football Club) long term stability and structure to deliver its objectives, which if failed, could result in the Council having financial responsibility for the pavilion in the future.

 

26.             As the freeholder to the site with a long history of physical activity (football) associated with the recreation ground the risk to the Council would be if the Club became bankrupt and folded.  In this event the consequences would be that the Council would have an improved community amenity available to the public for continued use of football.

 

 

RECOMMENDATIONS

 

The Head of Community Services, in consultation with the Portfolio Holder for Education and Community Development has a specific delegation to agree Option 1, subject to indemnities being given by the club to minimalise the identifiable risks associated with the option

 

 

BACKGROUND PAPERS

 

            Seaview Football Club File   (some parts confidential)

            Football Foundation Award Conditions

            Playing Pitch Assessment

            Hampshire Football Association Facilities Strategy       

 

 

 

Contact Point :           LEE MATTHEWS, Sport & Recreation Manager ( 823818

                                    [email protected]

 

 

D PETTITT

Strategic Director of

Education and Community Development

 

J WAREHAM

Portfolio Holder for Education and Community Development

 

R BARRY

Portfolio Holder for Resources