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15.7.09 From the Berwick Advertiser www.berwick-advertiser.co.uk/news/850000-lifeline-for-Berwicks-Swan.5460948.jp
£850,000
lifeline for Berwick's Swan Centre By Ian Smith Reproduced in full
AN £850,000 investment to improve
facilities at the Swan Centre for Leisure in Tweedmouth has been agreed by
Northumberland County Council's ruling executive. It is planned to create a new
fitness suite and spinning studio, a new dance studio, new cafeteria, a new
soft play area, party rooms and refurbished men's and women's changing rooms.
Coun Isabel Hunter, who represents Berwick
West with Ord, said: "The Swan Centre has had no investment in it for many
years while Leisure Connection had the contract, so this is badly needed."
Coun Hunter, the executive member for
culture, also explained to members how important it was for the town to have
its leisure centre revitalised.
She said: "This is the only leisure
facility we have in the Berwick area so if we did not do it (invest) and it
closed we would end up with residents having to travel more than 30 miles to
access leisure facilities. It is demographically and economically deprived in
places but this is a great opportunity to deliver world class leisure
facilities to Berwick."
The executive was asked to consider three
investment options costing £1 million, £850,000 and £640,000. If no investment
was undertaken, new operators Tees Active had indicated its income would be
severely affected and it would have to increase the contract price
significantly, thus increasing the overall revenue cost to the council.
Coun Hunter proposed the second option, and
received the unanimous backing of members, which funds the works to a lower
specification and excludes the planned creation of new children's toilets. Officers
explained that the £640,000 option would also have excluded the new spinning
studio, dance studio and cafeteria upgrade from the plan.
Lynn Turner, the council's head of culture,
leisure and tourism, said: "Substantial capital investment of this nature
will bring significantly improved facilities to the users of the Swan
Centre."
The funding package needed to be agreed
before the new 10-year management contract with operator Tees Active Leisure
could be formalised. Tees Active was selected as the preferred bidder by the
now defunct Berwick Borough Council with its proposal to invest in capital
improvements to the Swan Centre a key factor.
This was to be funded through a loan/return
arrangement with their partners Alliance Leisure who specialise in this type of
funding capital investment arrangement. However, after substantial discussion,
county council officers are of the view that it would be more straightforward
and cost effective if the authority used its borrowing abilities to source the
funds and to contract Alliance Leisure direct to project manage and deliver the
capital works. Due to the preferential rates obtainable, officers believe this
approach will cost the council less than if Tees Active was to undertake the same
works funded commercially.
"If a decision to proceed with this
capital investment is delayed it would further delay the signing of the main
contract for the management of the facility with Tees Active, originally
planned for October 2008," explained Mrs Turner.
"We are very pleased with the work
they have done so far on an interim basis. They have already put in place a
number of improvements in training, monitoring of activities, planning for a
pilot programme and in looking at their pricing policy. However, there is a
need to finalise negotiations and the contract documentation quickly so that
the operation can be transferred to Tees Active as soon as possible."
A final decision will be taken by full
council. If agreed, the element within the Tees Active bid relating to the cost
of the capital investment will then be removed and the payment to the company
reduced accordingly. It is hoped the final details can be ironed out over the
next few weeks so that the contract can be in place by September 1.
The
Swan Centre's previous contractor, Leisure Connection, pulled out last October
with officials saying £100,000 losses accrued during the first nine months of
the year were unsustainable. Its 10-year contract had finished in March but it
agreed to stay on while Berwick Borough Council searched for a new operator. However,
it terminated the deal at short notice citing the economic downturn, the
increasing cost of utilities and the destabilising effect of short-term
extensions on staffing and the council took on the day-to-day running of the
centre until Tees Active came on board.
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