Update on the Basingstoke Ice Rink Cllr Bound, Cabinet Member for Communities and Community Safety Cllr Izett, Cabinet Member for Property and Development Report to Community Environment and Partnerships Committee Ward(s): South Ham Key Decision: No Appendix 1: Ice Rink Usage Figures (Confidential) Responses to questions raised at Full Council on 22 Appendix 2: February 2018 Foreword – Cllr Bound, Cabinet Member for Communities and Community Safety: The successful Basingstoke Bison ice hockey team and ice rink make a valued contribution to the sporting life of the borough. We benefit from facilities and teams in a range of different sports - this is part of why we have a reputation for high quality leisure. The ice rink has been part of the life of Basingstoke for the last three decades. This is why the agreement with NewRiver includes the requirement to put together a proposal for the development of a new ice rink, subject to a suitable operator, who is able to make it economically viable to run being found, and there being demand for it. But I can totally appreciate the concerns of the fans that a solution is found that will keep the ice rink functioning as the venue for their team in the interim. I’m sure that they will also appreciate that both the team and the rink are run on a commercial basis by Planet Ice, a private company, and that it would be hard for the council to justify subsidising this to benefit a private business at public expense. The council has been working with the existing owner, the long leaseholder Standard Securities, and Planet Ice to focus on practical ways to keep the rink open in the short term. I’m pleased that a solution appears to have been found to do this while the longer-term options are investigated. I look forward to hearing the views of the committee members. 1 of 11 Views of the committee are sought on: . The approach adopted to date and options for future actions 2 of 11 Background, corporate objectives and priorities The Chair of Community, Environment and Partnerships Committee has requested an update on the Basingstoke Ice Rink following public concerns raised about the deteriorating condition of the rink in recent years. Whilst this facility is run commercially by a private business, it is a key element of the current Leisure Park that contributes to the Council Plan priority to Enhance Leisure and Cultural Facilities. Glossary of terms Term Definition Special Purpose Vehicle – a company set up for a sole purpose SPV or to hold a specific asset Any advantage granted by public authorities through state resources on a selective basis to any organisations that could State Aid potentially distort competition and trade in the European Union (EU). Peppercorn rent A lease with no rent payable Main considerations 1 Executive Summary 1.1 Concern has been raised by the public and Members about both the long term and the immediate future of the Basingstoke ice rink and the Bison ice hockey team. Extensive questions were raised at Full Council on 22 February 2018 by a member of the public. 1.2 Community Environment and Partnerships Committee has requested an update on the current position be bought to the committee at the earliest time. 1.3 An interim solution to keep the ice rink and associated ice hockey team has been agreed while the long-term options are considered. 2 Background 2.1 Public concern has arisen over the past few years about the condition of the Basingstoke ice rink and hence the future of both skating and the Bison ice hockey team. Extensive questions were put to Full Council on 22 February 2018 2.2 The ice rink is one of a number of key leisure attractions at the existing leisure park. The rink was originally built and managed by the council, latterly using external operators. Latest usage figures for the rink and comparison to the refurbished Planet Ice rink at Milton Keynes have been provided by Planet Ice (Basingstoke) Ltd on a commercially confidential basis and are set out in confidential appendix 1 3 of 11 2.2.1 The rink fulfils two primary purposes and that is participative skating including pleasure, lessons, learning hockey, parties etc and as a home for the Basingstoke Bison. The Bison is a semi-professional ice hockey team founded in 1988 and wholly owned by Planet Ice. The team has had a good recent success record and now plays in the National Ice Hockey League South 1 alongside nearby Bracknell Bees and Swindon Wildcats. 2.3 The detailed questions raised at Full Council seek information on the condition of the rink going back to the original construction in 1988. The council’s Leisure Services Committee and Policy Committee considered and authorised the policy approach and the future of both the Lido and Ice Rink at meetings between 1998 and 2000. 2.3.1 The council’s document retention policy means that records from pre-2000 are not routinely retained, albeit there are some limited archived files that provide some history but by no means comprehensively. 2.3.2 Responses to the questions raised are in Appendix 2 to the extent information has been retained. The questions raised also contain a number of statements but in the main, these cannot be validated or commented upon on an informed basis. 2.4 The legal position is set out in S5 and the current position is that Basingstoke and Deane Borough Council is the landlord, Standard Securities Ltd is the head tenant under a 115 year peppercorn lease sold to it by the council in July 2000 and Planet Ice (Basingstoke) Ltd has an occupational lease till 2061, paying their rent to Standard Securities Ltd. The council receives no rental income from the ice rink for the duration of the 115 year lease. 2.5 The history of repair pre-2000 is thought to be of little, if any, legal relevance given the key contractual event, being the grant of the 2000 headlease and the unequivocal covenant to repair within that lease. 2.6 The rink has developed structural problems with the ice pad. Planet Ice has structural surveyors retained, who advise that water is getting beneath the ice pad into the chalk subsoil. As this freezes, creating a “permafrost”, the rink is subject to an upward heave from below. Planet Ice is managing this by keeping the surface flat but the resultant ice pad is a “lens shape”, rather than flat, with significantly more depth at the edges. 2.7 It is unclear when the issue became apparent but no specific reference was made to it in July 2011 when a joint inspection was carried out by the council’s surveyor and representatives of Planet Ice. There was however reference to cracking in various areas such as stands that were the subject on an insurance claim at the time. It is understood that the insurance claim was not successful 2.8 In 2013, Planet Ice (Basingstoke) advised the council at a meeting, that the cause of the structural cracking was the ice pad heave and that the repair costs would be beyond the company’s means. 2.9 Following public concerns raised in 2016, the council’s Environmental Health and Building Control teams visited the ice rink. It was felt that whilst not 4 of 11 correcting the fundamental structural issue, Planet Ice (Basingstoke) Ltd had professional advisors on board and were carrying our works to keep the facility open and safe for users, albeit with a reduction in facilities. 2.10 The ice pad movement has resulted in resultant damage to stands and surrounding structures. Planet Ice (Basingstoke) Ltd has carried out remedial works and closed off some areas. The latest survey by external consultants, employed by Planet Ice (Basingstoke) Ltd was in April 2018. This suggested various further remedial works to cope with the continuing movement of the ice pad. The council has been provided with copies of the 2016 report and the results of the latest inspection. 2.11 Planet Ice (Basingstoke) Ltd advise the existing ice pad may last for a further short but unquantifiable period but ultimately, it would need removal and relaying at a cost in the region of up to £1m+ (as advised by Planet Ice (Basingstoke) Ltd). This sum has not been verified by the council but it is clear the repair works would be extensive and time consuming, requiring digging out the “permafrost” and relaying the rink. 2.12 The council entered into a Development Agreement with NewRiver Leisure Ltd on 19 March 2018 to regenerate the whole park. The agreement provides for the retention of the existing Milestones museum only, albeit there will be continuity with provision of a new Aquadrome and the private club of Loddon Bowls will also have continuity of operation, potentially off site. Other existing uses will be reviewed as part of the masterplan development. 2.12.1 The Development Agreement is on the basis that NewRiver Leisure Ltd will acquire the existing interests and the council has agreed in principle to seek a Compulsory Purchase Order to support site assembly if necessary. 2.12.2 The Development Agreement recognises that the ice rink has been an important part of the life of Basingstoke for three decades and NewRiver is required to explore options for a new rink as part of the wider leisure proposals. This would, of course, rely on a suitable operator, who is able to make it economically viable to run, being found and there being demand for it.