Agenda item

AGREED that Executive note the information in the public report:

 

1.    Notes the principles of the lease agreement set out within the agreed Heads of Terms for the Southlands Community Facility and Sporting Hub, between the Council and Middlesbrough FC Foundation;

2.    Notes the delegated authority for the Director of Regeneration and the Director of Finance, to approve or amend the lease agreement, in line with the Heads of Terms insofar that such approval or amendments protects the Council’s position or enhances the sustainability of the Southlands scheme

3.    Notes the business case that outlines how Middlesbrough FC Foundation will manage and finance the site;

4.    Notes the passporting of liabilities to the partner organisation and how these will be managed through the lease agreement;

5.    Notes the long-term risks and liabilities that could arise, in the event that the partnering organisation ceases to exist.

 

AGREED That the decision be taken once all the exempt information had been considered.

The Executive Member for Development and the Executive Member for Finance submitted a report for Executive’s consideration.

 

The purpose of the report was to seek Executive approval of the Heads of Terms for Middlesbrough Council to enter into a lease agreement with Middlesbrough FC Foundation, who would manage the facility Southlands Community Facility and Sporting HUB once construction was completed. The report also informed Executive of the long-term risks and liabilities associated with the facility and how those will be mitigated through the lease agreement.

 

Work was ongoing to redevelop the site, providing a new state-of-the-art sporting hub.  The Council had secured an approved capital funding commitment of £3.876m for the redevelopment of the Southland site, of which £1.158m was Council Capital funding, £1.442m was from the IGF Fund, and £1.276m from the Towns Fund.  £0.363m of the budget had been spent to date.

 

The Council saw significant benefits of partnering with an organisation with the appeal and credibility of Middlesbrough FC Foundation, who were keen to commit to an initial 25-year lease to manage the redeveloped site. The Foundation would also contribute funding to assist with the site construction for specifications above and beyond the base-build specification.   

 

By using their years of experience, together with Middlesbrough FC, their mission was firmly established to raise aspirations, help realise individual potential and improve the life chances of people across the Tees Valley. The strategic objectives of Middlesbrough FC Foundation were detailed in the table at paragraph 11 of the report.

 

The Council had worked closely with a Project Representative Group, made up of local residents and Ward Councillors, to develop the proposals.

 

The partnership with Middlesbrough FC Foundation would continue this work and would aim to deliver a site which sat at the heart of the community and engaged local people. 

 

Middlesbrough FC Foundation aimed to establish the Southlands as a flagship centre for staff and participants, and the site would offer a chance to create a state-of-the-art facility, to inspire the local communities and people across Teesside.

 

This would be strengthened by the development of a new Community Use Agreement which will accompany the proposed lease agreement.

 

Southlands would host a wide range of provision aligned with Middlesbrough FC Foundations strategic themes as well as local consultation and insight. These included:

 

·         Education and Employability through workshops, courses and school visits;

·         Health and Wellbeing including mental wellbeing sessions, physical activity circuits and social groups;

·         Social Inclusion including free after school football for children and young people, targeted mentoring and adult football which brings the community together;

·         Updated, quality facilities which sit at the heart of the community and engage local people; and,

·         Middlesbrough FC provision including links to the Women’s team, Academy and Middlesbrough Girls.

 

The proposal was to relocate the Foundation’s headquarters and activities to the Southlands site, which presented a huge opportunity for further collaboration between the Council and the Foundation and enable further engagement with the local communities.

 

AGREED that Executive note the information in the public report:

 

1.    Notes the principles of the lease agreement set out within the agreed Heads of Terms for the Southlands Community Facility and Sporting Hub, between the Council and Middlesbrough FC Foundation;

2.    Notes the delegated authority for the Director of Regeneration and the Director of Finance, to approve or amend the lease agreement, in line with the Heads of Terms insofar that such approval or amendments protects the Council’s position or enhances the sustainability of the Southlands scheme

3.    Notes the business case that outlines how Middlesbrough FC Foundation will manage and finance the site;

4.    Notes the passporting of liabilities to the partner organisation and how these will be managed through the lease agreement;

5.    Notes the long-term risks and liabilities that could arise, in the event that the partnering organisation ceases to exist.

 

AGREED That the decision be taken once all the exempt information had been considered.

           

OPTIONS

 

The Council could have chosen to manage the new facilities at the Southlands in- house, or through a competitive tender exercise and sought an alternative operational management organisation. 

 

Before approaching the Middlesbrough FC Foundation, the Council engaged with a consultant to identify demand for the site. Having received local grassroot club contact information from North Riding County Football Association, consultation took place over a two-month period. Of the clubs identified only three came back with any potential usage, which totalled less than six hours across the full week, meaning the viability of a new facility was in jeopardy. 

 

Middlesbrough FC Foundation approached the Council with a proposal to relocate their headquarters and activities to the Southlands, which presented a huge opportunity for further collaboration between the Council and the Foundation and to enable further engagement with the local communities. Currently, the Foundation engaged 35,000 people each year, 17,000 of which were through the centre in South Bank which the Council would expect to be similar to attendances for Southlands and was expected to attract the required usage to ensure the sustainability of the site.

 

The Foundation was also committed to contributing towards the delivery costs of the new facility. As a charity, the Foundation was also able to apply for a variety of grants and funds, including those from the associated charities of the Premier League and EFL to deliver projects which aim to support the following reduction in crime and anti-social behaviour, increase physical activity, improve community cohesion, improve mental wellbeing and increase employability.

 

It was felt that no other external organisation and/or the Council itself could offer the trusted brand and sustainable management structure that would rival that offered by Middlesbrough FC Foundation. 

 

REASONS

 

Following consultation with the local community in 2018 it was clear there was a strong desire for fit-for-purpose community facilities in East Middlesbrough.

 

Particularly, to replace the old and dilapidated Community and Sport Centre which had been subsequently demolished to make way for a new facility.

 

Sport England had previously imposed a condition to the planning application for the current housing development at Marton Avenue site, as the proposals resulted in a net loss of playing field area. The Southlands site was identified as the location for the reprovision to mitigate this legacy condition. 

 

All partners involved in the potential redevelopment of the Southlands site were aware of the need to identify an appropriate delivery timeline which bound all parties to delivery of all aspects of the Southlands project and met the conditionality of residential development at Marton Avenue – Marton Avenue being a critical aspect for delivering housing growth objectives and the projected income requirements of the Medium-Term Financial Plan (MTFP).

 

The Council was committed to providing quality and safe playing provision which aims to increase the opportunity for the participation in sport and physical activity.  The Council acknowledged the positive contribution to quality-of-life sport can bring to individuals. 

 

The delivery of a new Community Facility and Sporting Hub at the Southlands site accords with the Council’s priorities set out in the Council Plan 2024 to 2027, including:

 

a)    a successful and ambitious town;

b)    safe and resilient communities; and,

c)    a healthy place.

 

The development of and access to, a new community building was a major priority all local residents and community groups, with the proposed creation of a sporting hub embedded in Middlesbrough Council’s adopted Playing Pitch Strategy and local Football Foundation plans.