PAPER E3

Purpose : For Decision

Committee :    EXECUTIVE

Date :              2 JULY 2002

Title :              LEASE OF PROPOSED HEALTH AND FITNESS AREA, WESTRIDGE, RYDE

PORT FOLIO HOLDER - RESOURCES

SUMMARY/PURPOSE

An opportunity is available for the Council to take back the restaurant area at Westridge and by means of new lease arrangements enable the development of a new fitness centre. The arrangements require the grant of new leases to Wight Leisure and Waltzing Waters. Part of the funds for this project will come from Leisure Partners Limited. The scheme is being recommended to the Council.

BACKGROUND

For the last two years Wight Leisure has been exploring the possibility of providing a large health and fitness centre for use by all the community. Whilst in the past details of costs and operation have been built up, the availability of funding has been a shortcoming. However, funding of some £650,000 is now available to Wight Leisure through partnership funding and business borrowing supported by Sport England and capital allocated to Wight Leisure. This business funding having become available since the Council authorised Wight Leisure to progress its transfer to a Not for Profit Leisure Trust which will be put forward to the Executive in the next few months.

The best location to develop for a new fitness and health suite is considered to be Westridge because of its existing use, location, accessibility and available parking. Initially the idea was to convert part of the squash courts area, however with the closure of the old restaurant area, formally known as Bobby G's, a new opportunity has arisen.

The situation is that the liquidator for the leaseholder of the restaurant area offered the benefit of the lease for sale by assignment, subject to the Council's consent. After a period of marketing with several enquiries coming forward, including another nightclub operator, a transfer of the lease was agreed to Waltzing Waters (IOW) Limited. Consent to assign the lease was given on the basis that the Council's consent cannot be unreasonably withheld. The consent does include requirements to put the property back into repair and the payment of outstanding rent arrears. Waltzing Waters plan to use the old restaurant area as a catering facility for visitors to the theatre. Whilst this could be a suitable use for the restaurant area such a use might not fully utilise the capacity of the area available and your Officers have been in discussion with Waltzing Waters about the possibility of the area being surrendered back to the Council as the location for the health, fitness and wellbeing suite.

Waltzing Waters has indicated that such a proposal might be agreeable but the company would wish to improve the security of its existing lease arrangements with the Council in the reception and theatre areas adjoining. Waltzing Waters currently has one year to run of its existing lease.

To progress this idea Members are being asked to authorise negotiations with Waltzing Waters and Wight Leisure for the Surrender and grant of new lease arrangements. Given that recommendations can be drawn from negotiations then a future paper would come back to the Executive for consideration. Details of current lease arrangements are set out in the confidential paper appended.

LEGAL IMPLICATIONS

None at this time.

FINANCIAL IMPLICATIONS

None at this time.

OPTIONS

1.        That the Council authorise discussions with Waltzing Waters and Wight Leisure as indicated in the report and invite the Liaison Committee to consider whether there are any Select Committee issues that require consideration

2.        That the existing lease arrangements at Westridge remain unchanged.

RECOMMENDATION

Option 1.

BACKGROUND PAPERS

None

Contact Point : Tony Flower, Head of Property Services ☎ 823263