Agenda item

To consider a report (copy attached) to approve the development of the “Rhyl Waterpark and Leisure Attraction”.

 

The Leader, Councillor Hugh Evans, introduced the report (previously circulated) for Members to consider proposals for the development of the “Rhyl Waterpark and Leisure Attraction” – working title (RWLA).

 

The future upgrading of the leisure and tourism offer on the coastal front was considered the most critical element of the overall regeneration of Rhyl – serving as a better place to live as well as a great place to visit.  The sequence of events leading to the development proposal had spanned over 6 years.

 

It was important to note that the proposals for the new “Waterfront” had been developed in such a way as to compliment the whole coastal regeneration plan and, because of its location, serving as a catalyst for attracting more footfall into Rhyl and driving increased visitor numbers through the Town Centre.

 

The location close to the town centre had been considered to be very important with regard to the regeneration and footfall creation of objectives of the development.

 

During the term of this council, there had taken place more strategic planning.  The Rhyl Aquatic Centre was to be an investment for generations with the hope Rhyl would move from a challenging regeneration project to one of economic development.

 

The Corporate Director: Economic and Community Ambition confirmed to Members the current strategy was to move Rhyl to an area of economic development and the key project was to increase footfall into the town to create more jobs and allow more opportunities for local residents. 

 

The previous phase of regeneration had created new homes with active residents and work would now commence with the waterfront development. 

 

The Economic Impact Assessment showed additional finance into the town together with 60 additional jobs for local people who would be well placed for those jobs when made available.

 

The Head of Facilities, Assets and Management introduced a presentation to expand on the details of the Rhyl Waterpark and Leisure attraction.  An explanation of the two options was detailed and reasons why officers considered Option 2 to be the preferred option, both on grounds of cost but more importantly customer and resident experience.

 

Rhyl Town Council were to make a capital contribution of £2million, together with a contribution from the Welsh Government of £800,000.  Those contributions would reduce the Council’s capital contribution and Prudential Borrowing costs by approximately £159,000.

 

For the purpose of the business case, the income targets were extremely conservative and those were expected to be exceeded.  Local Partnerships were comfortable that the business case income assumptions based on 60% occupancy were achievable by year 5 and were a prudent basis of budgeting.   The Council’s current track record (strong leisure model – Nova) was 76% occupancy level across its other facilities.

 

The next steps were to start the planning process with full public engagement regarding the planning elements of the scheme.  If planning approval were to be obtained in July 2017, the project would commence on site in September 2017 with the opening of the new facility in early 2019.

 

The Head of Finance explained the options for funding years 1-4.

 

The Lead Member for Finance, Corporate Plan and Performance confirmed the recommendation from the Strategic Investment Group had been to agree to Option 2.  Reassurances had been given that this had been a very rigorously reviewed project.  It would be largely dependent on the occupancy hitting the 60% target and by year 5 the council would be looking at a cost neutral proposal for the project.

 

During intense discussion, the following points were raised:

·       Lessons learnt since the Nova project – time needed to be taken on the Rhyl Waterfront attraction as it was to be such a vast facility.  Detailed studies had taken place of the water sports north of the A55 and detailed analysis of the Sun Centres final years.  The facility approach had always been to compliment other attractions.

·       It had been a difficult decision to close the Sun Centre but the new waterfront attraction would be an asset to the coast and Denbighshire as a county.

·       Rhyl Leisure Centre were to retain the swimming pool as local schools and swimming clubs utilised the facility for swimming lessons.

·       The new waterfront attraction would include an indoor and outdoor splash park – the indoor facility would remain open all year round.  A large climbing structure, food and beverage offer, indoor and outdoor spectating, indoor and outdoor changing rooms, were to be included within the facility.

·       The skate park was to be relocated following discussion with the community and young people who utilised the park.

·       Regarding affordability and travel to the facility.  It will be positioned centrally for easy access to buses, trains and car parking.  A discount price was to be offered to Denbighshire residents who were holders of a leisure card.  The current predicted cost of a family ticket would be £39.

·       The underground car park located near to the sky tower area, was to be upgraded to ensure maximum use by car users.

·       A number of Councillors expressed concern regarding risk with regards to the amount of £2million due from Rhyl Town Council.  A question had been raised as to how the Town Council proposed to generate the funding.  The Corporate Director: Economic and Community Ambition clarified to Members that Full Council was not the forum for raising this issue and it was a matter for Rhyl Town Council of how they raised their funding.

·       The waterfront facility would provide year round employment for local people which would aid with the regeneration of the town.

·       Marketing of the facility would be paramount and the council would provide excellent marketing in terms of social media, online presence etc.  With the framework, Alliance Leisure and Neptune were to partner the council to assist the facility up to its occupancy levels.

·       It was stated that profit was needed to be put back into leisure and there had been future plans for work to be carried out on various leisure centres throughout the county.

·       Road and pathway signage would achieve accreditation to assist navigation of people through the town and from the A55.

 

The Leader, Councillor Hugh Evans PROPOSED the recommendation, SECONDED by Councillor Barry Mellor.

 

Thanks were extended to the whole team for their work and willingness to press forward to invest in, and improve Rhyl.

 

VOTE:

For – 27

Abstain – 1

Against – 0

 

RESOLVED that Council:

·       Approve the recommendation of the Strategic Investment Group to adopt Option 2 of the business case for development of a new Waterpark and Leisure Attraction in Rhyl as part of the overall Rhyl Regeneration and Waterfront development programme as described in Appendix B.  this includes assumptions of financial contributions of £2million from Rhyl Town Council and £800,000 from the Welsh Government TISS fund.

·       Agree the funding strategy set out in Section 6

·       Instruct officers to progress with the next stages of implementation, including seeking planning approval and securing funding contributions from Rhyl Town Council and Welsh Government, enabling the facility to be operational by early 2019.