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Report on the National Indoor BMX Centre To Manchester City Council Item 8 Executive 22 July 2009 Manchester City Council Report for Resolution Report To: Executive – 22 nd July 2009 Subject: National Indoor BMX Centre Report of: Chief Executive Chief Executive, New East Manchester Ltd. Summary This report updates the Executive on proposals to develop a National Indoor BMX Centre at Sportcity along with associated public realm as part of a wider Velopark and the vision for the overall development of Sportcity going forward. The report requests that the Executive recommend to the Council that the Capital Programme is increased and authority is delegated to the Chief Executive and the Chief Executive of New East Manchester Ltd (NEM) to negotiate and agree terms with third party funders, to procure contractors to undertake the works and to agree long term governance and leasing arrangements for the Velodrome and the new BMX Centre. Recommendations: The Executive is asked to: 1. Note the progress made in developing proposals and securing funding for a new National Indoor BMX Centre at Sportcity in East Manchester and to approve the project; 2. Recommend to the Council that the Capital Programme is increased by a total of £24.35; financed from capital grants of £15.88 million and a Capital Fund Contribution of £ 8.47million. 3. Delegate to the Chief Executive and the Chief Executive of NEM, in consultation with the City Treasurer, Head of Leisure and the Executive Member for Arts and Leisure, authority to provide grant support to the British Cycling Federation of a maximum of £80,000 to facilitate their move into temporary office accommodation; 4. Delegate to the Chief Executive and the Chief Executive of NEM, in consultation with the City Treasurer and Executive Members authority to negotiate and agree terms with any third party funders; 5. Delegate to the Chief Executive, the Chief Executive of NEM, the City Solicitor and the Head of Leisure authority to agree with Sport England and others long term governance arrangements for the new BMX Centre together with the Velodrome supported by a long term sustainable business plan; Manchester City Council Item 8 Executive 22 July 2009 6. Delegate to the Chief Executive and the Chief Executive of NEM authority to negotiate and agree the terms of disposal of the facility at nil consideration in order to implement the long-term governance arrangements; and 7. Delegate to the City Solicitor authority to complete all the necessary documentation, to obtain any necessary statutory consents and take all other steps necessary to implement the above decisions. Wards Affected: Ancoats and Clayton Community Strategy Spine Summary of the contribution to the strategy Performance of the economy of The new National Indoor BMX Centre aims to the region and sub region further the economic growth of Manchester and the sub region by enhancing Sportcity as world class sporting destination. Reaching full potential in The development of the National Indoor BMX education and employment Centre will provide a number of direct and indirect employment opportunities and will provide a catalyst for a range of wider business opportunities. It will become the long-term permanent home for the British Cycling Federation and lead to the creation of 64 net full time jobs and safeguard 100 jobs. Individual and collective self The National Indoor BMX Centre will provide esteem – mutual respect opportunities to three key groups, including elite athletes, schools and the wider community to participate in a range of sports activities. Neighbourhoods of Choice The National Indoor BMX Centre will build on East Manchester’s established portfolio of world class sporting venues, which are accessible to local communities and will further enhance the area’s profile and attractiveness. Programmed access for local schools will be accommodated within the Business Plan for the new facility. Full details are in the body of the report, along with any implications for: • Equal Opportunities Policy • Risk Management • Legal Considerations Manchester City Council Item 8 Executive 22 July 2009 Financial Consequences - Revenue Manchester City Council currently provides an annual grant to the Velodrome Trust of £26,000 and has agreed the application of discretionary rates relief for the building. A revenue business plan for the Velodrome and BMX Centre has been drafted and a break even position is achieved subject to an annual revenue grant of £230,000 from Sport England and Manchester City Council being responsible for all planned repairs and maintenance of the structure and fabric of both the buildings. Provision of revenue grant support to the British Cycling Federation of a maximum of £80,000 to facilitate their move into temporary office accommodation; to be funded from corporate contingencies. Financial Consequences – Capital The total proposed capital costs of the scheme is £24.350 million, this includes £19.55 million estimated cost for the construction of the BMX centre, and £4.8 million for the first phase of public realm works to support the development of the wider Velopark and deliver a sense of place. The bid to Sport England has received an outline commitment for grant funding of £3 million subject to final approval; in addition NWDA have agreed provision of £8.08m grant funding in principle for the BMX Centre subject to final approval in September 2009. The first phase of the public realm will be funded from a grant from the Homes and Communities Agency (HCA) of £2.4 million and £2.4 million ERDF funding pending application approval, a decision is expected in September 2009. Manchester will be asked to make a capital contribution in the region of £8.47 million over the two years of construction 2009/10 to 2010/2011 The City Treasurer has confirmed the Capital Fund can meet this total contribution of £8.47 million. The recommendations in this report, if approved, will increase the capital budget by £24.350 million (£2.618 million in 2009/10, £21.007 million in 2010/11 and £0.725 million in 2011/12). Subject to a review of trust arrangements for the Velodrome and the BMX Centre the Council will also have the additional costs of landlord responsibilities for both buildings. The lease of the new facility and the Velodrome will be transferred at nil consideration. Contact Officers: Name: Eddie Smith Position: Chief Executive, NEM Telephone: 0161 223 1155 E-mail: [email protected] Manchester City Council Item 8 Executive 22 July 2009 Name: Karen Tierney Position: NEM Telephone: 0161 223 1155 E-mail: [email protected] Name: Des Gardner Position: Head of Regeneration (Legal) Telephone: 0161 234 4599 E-mail: [email protected] Name: Ceri Taylor Position: Head of Corporate Finance Capital Finance, Projects and VAT Telephone: 0161 234 3458 E-mail: [email protected] Background documents (available for public inspection): The following documents disclose important facts on which the report is based and have been relied upon in preparing the report. Copies of the background documents are available up to 4 years after the date of the meeting. If you would like a copy please contact one of the contact officers above. Report to the Executive, 23 rd July 2008, Sportcity. Manchester City Council Item 8 Executive 22 July 2009 1.0 Introduction 1.1 New East Manchester Ltd (NEM) and the City Council are working to bring forward a comprehensive approach to the future development of the Sportcity site in East Manchester ensuring that it maximises its contribution to strengthening the destination role of East Manchester by building upon its sporting and leisure facilities; improving the site’s integration with the wider area; and expanding employment opportunities for local residents. 1.2 As part of the overall strategy for Sportcity, NEM and the City Council are bringing forward plans to develop a new National Indoor BMX Centre adjacent to the National Cycling Centre: Velodrome along with associated high quality public realm enhancing its function as a velopark. This report sets out these proposals in further detail; seeks approval to the project and recommends the Council approve an increase in the Capital Programme to fund the project, in accordance with Section 2 of the Local Government Act 2000, which gives the Council power to support projects where it considers them to be in the interests of promoting the social, economic or environmental well-being of the area and having regard to the Community Strategy. 2.0 Background 2.1 Members received a report in July 2008 on actions taken to bring forward a comprehensive approach to development at Sportcity. Considerable momentum has been generated at Sportcity over the past 12 months and this has resulted in an emerging vision for its future development that seeks to build on its sporting identity and success to create a new destination for the city and the region. 2.2 The new National Indoor BMX Centre is a critical component of the strategy to enhance and extend Sportcity’s world class sporting infrastructure and aims to support further economic growth in the City of Manchester and the sub region by enhancing Sportcity as a world-class destination for sporting participation, activity and events. The National Indoor BMX Centre will be the first of its kind in Europe, capitalising on one of the fastest growing cycling disciplines. It will ensure that Manchester becomes the long term, permanent home of the British Cycling Federation, and will allow the North West to make a major contribution to the London 2012 Olympics. 2.3 The National Indoor BMX Centre builds on Sportcity’s established portfolio of world class sporting venues and will further add to the successful Events Strategy which includes a rolling programme of National, European and World Events in various sports.
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