PAPER E

Purpose : For Decision

Committee : EXECUTIVE

Date : 8 OCTOBER 2002

Title : LEASE ARRANGEMENTS FOR NEW HEALTH AND FITNESS CENTRE, WESTRIDGE, RYDE

PORTFOLIO HOLDER - RESOURCES

SUMMARY/PURPOSE

The Executive has authorised that discussions take place between the Council, Wight Leisure and Waltzing Waters for the Council to take back the old restaurant at Westridge and by means of new lease arrangements enable the development of a new health, fitness and well-being centre. The new lease arrangements are now being proposed to the Executive and are detailed in the Confidential Paper appended.

BACKGROUND

On 2 July the Executive authorised that negotiations be commenced with Wight Leisure and Waltzing Waters as to the possibility of providing a large community health and fitness centre by way of new lease arrangements on terms to be recommended to the Executive. Whilst in the past, other sites have been considered for this use, the Leisure Centre at Westridge is the preferred location and the possible availability of the old restaurant area is considered to provide the best opportunity for the new health and fitness centre. It is anticipated that Wight Leisure Limited will trade 1 January 2003.

Wight Leisure now has some £650,000 of confirmed funding available through partnership monies and business borrowing and capital allocation and is supported by Sport England and the European Federation of Disabled Sport. The proposed health, fitness and well-being centre at Westridge will provide a facility for the community that currently does not exist on the Island.

The project is a fully inclusive facility and designed to meet the needs and demands of disabled and able bodied within the community. It will provide a ‘state of the art’ health, fitness and well-being facility with programming to support community needs, whilst meeting a demand for a quality health and fitness product available to all.

The programmes will include activities to reduce coronary disease, improve the quality of life and well-being and tackle the inequalities of social exclusion.

The facility will include:

· 80-100 Station fitness area, including cardio-theatre

· Creation of a multi-function area suitable for dance and aerobics and classes

· Pilot healthy living consultation and personal fitness, including dieticians, complementary therapies

· Creation of relaxation and refreshment area

· Provision of new changing facilities, including sauna and steam rooms

· Deliver specific programmes for youth development and health education programmes and youth classes, which do not currently exist on the Island.

The business funding available needs to be committed during October.

Members will recall from the earlier paper that Waltzing Waters (Isle of Wight) Limited which operates the Water Theatre at Westridge acquired the old leasehold interest of the restaurant from the liquidator. Under this interest Waltzing Waters can be required by the Council to put the property back in repair and pay the outstanding rent arrears. Waltzing Waters had originally planned to use the old restaurant area as a catering facility for visitors to the Water Theatre. Waltzing Waters is prepared to surrender this lease to the Council for the same area to be used as the location for the Health, Fitness and Well-being Suite, on the basis that a new longer term lease is granted to Waltzing Waters for the Water Theatre and entrance foyer. Waltzing Waters currently has one year to run on its existing lease.

Negotiations with both Waltzing Waters and Wight Leisure for the surrender and grant of new lease arrangements have been on-going over the last months and this Paper now brings back to the Executive, terms being recommended to the Council as set out in the Confidential Paper appended.

PLANNING

Planning permission for the proposed Health, Fitness and Well-being Suite is not required. Consent would be required for a new entrance, as well as minor amendments to disabled parking facilities.

OUTCOME OF CONSULTATIONS

This scheme delivers a community project that meets a number of Council corporate objectives. It also delivers a project and contribution to targets contained within the Council=s continuous improvement plan from the Wight Leisure Best Value Review, as formulated from a wide ranging consultation.

FINANCIAL IMPLICATIONS

Revenue income to the Council will be reduced initially under the new agreement with Wight Leisure over a period of five years, but the scheme will bring an inward investment to the area of some ,650,000. The Council will also need to write-off the arrears of rent owed under the lease of the restaurant.

LEGAL IMPLICATIONS

There will need to be legal documentation of a lease surrender and renewal with Waltzing Waters and the grant of a lease to Wight Leisure Limited when that company is formed.

OPTIONS

1. That the Council authorises the grant of new lease arrangements as set out in the Confidential Paper appended.

2. That the Council writes-off the rent arrears as set out in this Paper.

3. That the Council asks Wight Leisure to develop the Health, Fitness and Well-being Centre elsewhere and leave the restaurant at Westridge as a catering facility under the existing arrangements.

RECOMMENDATIONS

Options number 1 and 2.

BACKGROUND PAPERS

Report to Executive Committee 2 July 2002.

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

M J A FISHER Strategic Director Corporate and Environment Services

R R BARRY Portfolio Holder for Resources