Agenda item

Councillor Roger Ramsey, Cabinet Member for Value, introduced the report.

The report sought Member approval to finalise negotiations with Morrisons to ensure that the Romford Leisure Development project could proceed, thus securing all the sporting, culture and regeneration benefits that had previously been reported to Cabinet.

The centre would feature a new competition ice rink and competition pool - delivering a boost to sport, health and wellbeing in Havering for generations to come. It would also back the Council’s wider aim of supporting the viability and vibrancy of the town centre.

Various costs had increased since the pre tender estimates were reported to Cabinet in June 2011, resulting in a requirement to increase the budget for the Romford Leisure Development project by £2m. 

This decision was subject to Council agreeing to an overall increase in the capital funding allocation for the Romford Leisure Development project, and the agreement with Morrisons becoming unconditional. 

Reasons for the decision:

The decision to recommend to Council the allocation of additional funding of £2m  for the Romford Leisure Development project had been taken to ensure that the project could be delivered as originally envisaged, securing all the benefits to Havering residents that had been set out in previous reports. 

Other options considered:

The option of not recommending an increase in the budget of £2m was considered, but rejected, because the project could not proceed as originally envisaged unless this extra money was provided.

The option of changing the design and /or the mix of facilities provided in the new facility was considered, but rejected, because that would undermine the Council’s objectives for the project.

Concern was expressed that additional capital would have to be found to underpin the project. Assurances were given that staff had done all they reasonably could do to minimise the cost.

Cabinet:

1.      Noted the effective current approved budget for the scheme of £26.848m.

2.       Agreed to an increase of £2m to this budget, making a revised capital budget of £28.848m, and referred this £2m increase to Council for final approval, subject to the Agreement with Morrisons becoming unconditional.