Agenda item - Saltdean Lido Restoration

Report of the Executive Director Economy Environment & Culture (copy attached)

126.1       RESOLVED:

(1)  Agrees to the request from Saltdean Lido CIC and underwrites the shortfall in funding of £1.600m towards the restoration of Saltdean Lido to secure the HLF grant of £4.200m;

(2)  Agrees that if the Saltdean Lido CIC fails to identify alternative sources of funding that the council will provide funding of up to £1.600m pursuant to a funding agreement;

(3)  Agrees that if the council provides the funding of up to £1.600m it shall fund the contribution by borrowing and be included in the capital investment programme;

(4)  Notes the Saltdean Lido CIC have an outstanding loan of £0.220m and agrees to reschedule the loan repayments with a deferment of 9 months as set out in paragraph 7.4;

(5)  Grants delegated authority to the Executive Director Economy, Environment & Culture to agree the terms of the funding agreement and take all necessary steps to implement the recommendations above; and

(6)  That the committee requests that Officers assist the Saltdean Lido CIC by undertaking such activities as they consider appropriate in connection with fundraising for the Lido restoration, including the match funding required to support the HLF grant, and requests that the Executive Director Economy, Environment and Culture bring a biannual report to PRG Committee detailing the progress made.

126.1      The Committee considered the report of the Executive Director for Economy, Environment & Culture which considered the Council support for the restoration of the Council owned Saltdean Lido to enable the long term sustainability of the facility since the surrender of the previous leaseholder in 2011.

126.2      The Saltdean Lido Community Interest Company (SLCIC) has received a conditional grant of £4.2m from the Heritage Lottery Fund (HLF) upon the SLCIC achieving match funding. Applications to Coastal Communities Fund (CCF) and Power to Change have been unsuccessful. The Council has been requested to support the restoration with the shortfall of £1.6m to enable the restoration work of the main building to go ahead.

126.3      The report considered the options to the Council to assist with the funding shortfall and the potential implications if assistance is not provided to restore the grade II* heritage asset listed structure on the Buildings at Risk register.

126.4      Councillor Janio set out the following amendment:

‘To add the word ‘and’ to recommendation (5) and the additional recommendations (6) as set out below in bold italics:

That the committee requests that Officers assist the Saltdean Lido CIC by undertaking such activities as they consider appropriate in connection with fundraising for the Lido restoration, including the match funding required to support the HLF grant, and requests that the Executive Director Economy, Environment and Culture to bring a biannual report to PRG Committee detailing the progress made.

126.5      The amendment was seconded by Councillor Bell.

126.6      Councillor Janio commented that the Lido was highly valued asset and he supported the underwriting the shortfall. He also stated that he was keen that the Council keep-an-eye on the scheme and that Council officer’s should support developers and that CIC should look at other funding wherever possible.

126.7      Councillor Sykes stated his support for the amendment and asked if the business case for the CIC was robust and what were the VAT implications on the restoration project.

126.8      He was informed that CIC would be able to recover VAT and the CIC business plan seems realistic, in a robust position and operating reliably on a sound basis.

126.9      Councillor Peltzer Dunn asked, as the Council was the leaseholder, what would happen if CIC failed and would legal charges be incurred involving the leaseholder and tenant, both of whom were the Council.

126.10   He was informed that if CIC failed the lease would revert to the Council and that security was in place with fail clauses.

126.11   Councillor Wealls asked if the lease had conditions to repay monies.

126.12   He was informed that the Council interests were protected and that the monies were not a loan but a grant.

126.13   Councillor Bell noted that the item numbering on page 29 was out of sync and under 7.7.2 Governance - the authority could have increased governance including the oversight of the tender process for works. The Member was pleased to also note that the HLF monitors expenditure and stated that he felt that the Members had a duty of care on behalf of residents to monitor expenditure and that East Brighton had few tourist attractions and the Lido was a valuable asset.

126.14   The Chair noted the comments and put the recommendations to the vote.

126.15   RESOLVED:

(1)  Agrees to the request from Saltdean Lido CIC and underwrites the shortfall in funding of £1.600m towards the restoration of Saltdean Lido to secure the HLF grant of £4.200m;

(2)  Agrees that if the Saltdean Lido CIC fails to identify alternative sources of funding that the council will provide funding of up to £1.600m pursuant to a funding agreement;

(3)  Agrees that if the council provides the funding of up to £1.600m it shall fund the contribution by borrowing and be included in the capital investment programme;

(4)  Notes the Saltdean Lido CIC have an outstanding loan of £0.220m and agrees to reschedule the loan repayments with a deferment of 9 months as set out in paragraph 7.4;

(5)  Grants delegated authority to the Executive Director Economy, Environment & Culture to agree the terms of the funding agreement and take all necessary steps to implement the recommendations above; and

(6)  That the committee requests that Officers assist the Saltdean Lido CIC by undertaking such activities as they consider appropriate in connection with fundraising for the Lido restoration, including the match funding required to support the HLF grant, and requests that the Executive Director Economy, Environment and Culture bring a biannual report to PRG Committee detailing the progress made.