Decision details

To agree new 20 year Lease Agreement between East Sussex County Council and Rye Town Council and under lease by Rye Town Council to the Rye Recreation and Wellbeing Community Interest Company. This is to enable the continuation of the curriculum and community use of Rye Sports Centre and swimming pool.

46.1     The Lead Member considered a report by the Chief Operating Officer together with exempt information in a later agenda item.

DECISIONS

46.2     The Lead Member RESOLVED to:

1) Subject to Rother District Council agreeing to terminate the existing property arrangements and their contract with Freedom Leisure by April 2025:

(a)   Approve the surrender of the existing property agreements at Rye Sports Centre and Swimming Pool;

(b)   Approve the County Council entering a 20-year lease with Rye Town Council at Rye Sports Centre and Swimming Pool to facilitate ongoing curriculum and community use. This represents best value under s123 of Local Government Act 1972 and is supported by a formal valuation report;

(c)   Approve the grant of a sub-lease between Rye Town Council and Rye Health and Well- Being Charitable Incorporated Organisation (CIO); and

(d)   Approve the capital investment to be undertaken at Rye Sports Centre and Swimming Pool following successful grant awards secured by Rother District Council (RDC) from Sports England and RDC Levelling Up Funding, having regard to the specific grant conditions.

2) Agree that a further report be brought to the Lead Member should Rother District Council not agree to terminate the existing arrangements as set out in 1 above; and

3) Delegate authority to the Chief Operating Officer to agree the terms of the property lease and other associated agreements and to carry out all actions necessary to give effect to the recommendations in the report.

REASONS

46.3     The County Council is keen, wherever possible, to seek ongoing community use of the dry and wet side facilities, but with the understanding that the County Council is not a leisure commissioner. The County Council owns the freehold of the dryside and wetside assets and therefore has sought to facilitate a smooth transition of services currently provided by RDC and Freedom Leisure (FL) to be managed by Rye Town Council (TC) and the CIO from 1 April 2025.

46.4     Under Option 1 detailed in the report, if the CIO is successful and continues to operate for the next 20 years, there are low scale risks to the County Council. However, this preferred route does present some potential risk to the County Council if the CIO was to fail within the next 20 years as set out in the exempt report later in the agenda. In essence, the County Council could at a future date be responsible for the wet side facilities and holding costs on an ongoing basis. The CIO has secured working capital as outlined in its business case and capital investment via Levelling Up Partnership (LUP) and Sport England as outlined in the report which will ensure the facilities are fit for purpose. The CIO are seeking to tap into latent demand from local residents to increase usage of the facilities and their business case has been reviewed and approved by Rye TC.

46.5     Proceeding with Option 1 above, noting the commercial aspects outlined in the exempt report, will enable the continuation of both the curriculum and community use of the facilities. At the same time, significant capital investment is taking place from external funding secured by RDC as outlined in the report.