Issue - meetings

Report ES16035

The Football Association (FA) had previously indicated to FC Elmstead that they would support improvements to the pitches and clubhouse at Chislehurst Recreation Ground, the club currently having a Delegated Management Agreement (DMA) from the Council to use the facilities.

Following ground levelling and pitch drainage works supported by £47k grant funding from the Premier League and FA Facilities Fund (delivered by the Football Foundation), along with additional funding from the Council and Chislehurst Playing Fields Association (CPFA), the newly restored pitches were launched  in 2015.

To retain and grow the club’s activities (as per its Football Development Plan), a new modern clubhouse, compliant with current FA standards, was required to replace the existing poorly conditioned pavilion. In addition to changing facilities, showers, toilets, a club room, a café space with associated male and female accessible toilets, storage would also be provided which would include use by the local Friends Group. The club secured planning permission for the redevelopment (reference 14/04436/FULL1) in March 2015.

The total cost of the improvement works was estimated by the club to be in excess of £360k including contingency, professional fees, and VAT. In meeting the sum, the club had been successful in securing a number of external grants from a variety of partners, including a grant of £258,865 from the Football Foundation, as well as contributing some of its own funds.

A number of conditions were associated with accepting the grant from the Football Foundation and Report ES16035 considered two potential options available to the Council to meet these conditions. Given a number of risks associated with Option 1 (as highlighted in the report) Option 2 was recommended whereby the club would be solely responsible for the grant monies, including procurement and delivery of the project.

To take the project forward, consent was sought for (i) FC Elmstead being granted a 25 year lease on part of Chislehurst Recreation Ground and (ii) acceptance of a grant from the Football Foundation of £258,865 to be awarded to FC Elmstead to assist in constructing the new pavilion. Conditions associated with the grant award – in line with taking forward Option 2 - were also recommended for acceptance, including a legal charge upon the club’s leasehold title of the pavilion and a restriction upon the Council’s freehold title of the pitches during the 21 year Clawback period.

RESOLVED that:

(1) Option 2 outlined in Report ES16035 be pursued;

(2)  a 25 year lease be granted to FC Elmstead for part of Chislehurst Recreation Ground, on terms to be agreed by Strategic Property;

(3)  the acceptance of a grant from the Football Foundation be solely awarded to FC Elmstead to assist in funding the construction of the new pavilion at the location; and

(4)  acceptance of the legal conditions associated with award of the grant to the club be approved, including a legal charge upon the club’s leasehold title of the pavilion and a restriction upon the Council’s freehold title of the pitches, during the  ...  view the full minutes text for item 28

Report to follow

Report ES16035

The report sought consent to grant a 25 year lease to FC Elmstead for part of Chislehurst Recreation Ground. The report also asked Members to agree the approach for accepting a grant from the Football Foundation to enable the construction of a new pavilion building at this location, as well as agreeing to accept the conditions associated with this grant.

FC Elmstead had been successful in securing funding of £365,000 to redevelop the pavilion. £258,865 of this funding was secured from the Football Foundation, and had a number of conditions attached to the acceptance of the monies. The report set out in detail two potential options available to the Council for meeting the grant conditions:

Option 1: joint delivery with the Council becoming a joint applicant with FC Elmstead.

Option 2: sole delivery with FC Elmstead being solely responsible for fulfilling the terms and conditions of the grant and therefore be solely liable for the any risks associated with the construction of the pavilion and its on-going use etc.

In both of the potential options detailed in the report, the club would be holding the Football Foundation grant monies, carrying out procurement and the build themselves. The club were currently assessing tender returns for the capital works.  Although the total project budget could not be finalised until the tender had been awarded, the final project costs should include the capital works, contingency, professional fees, VAT and the Community Infrastructure Levy payment. There were specific timescales around when the club needed to make its grant claims to the Foundation.

Given that there were a number of risks associated with Option 1 and that the Council may be liable for costs of £14,000 to ensure that a number of measures were in place to mitigate some, but not all, of the risks, Members were advised to agree Option 2, that the club be solely responsible for the grant monies including procurement and delivery of the project.  In Option 2, the Football Foundation had agreed to accept the proposal from the Council that the 25 year lease for the area of the pavilion be amended to include a right to use the pitches, rather than granting a separate lease. This Option significantly reduced the risks to the Council, in that FC Elmstead would be the sole recipient of the grant and therefore solely responsible for the building over the 25 year term of their full repairing lease.

To mitigate the risks further, it was recommended that;

·  the club undertook the surveys outlined in 3.12 of the report;

·  the club took out a Performance Bond to the value of 10% of the works

·  appropriate conditions relating to the construction period were included in the agreement for lease or lease (as appropriate) to protect the Council’s interest during that period

·  the building works were signed off via the Building Control process

·  a 25 year full repairing and insuring lease be issued to ensure the club was responsible for all repairs to the  ...  view the full minutes text for item 7