Issue - items at meetings - Two Riversmeet Studios

The report details the feasibility and financial considerations for capital borrowing to fund a two-storey extension to Two Riversmeet Leisure Centre (2RM) to address the identified need for dedicated studio space in Christchurch. The investment aims to enhance the centres health and fitness offer, increase membership and income whilst supporting community wellbeing and aligning with the Councils corporate strategy.

The Audit and Governance Committee is asked to consider and recommend to Council the approval of an increase in the authorised borrowing limit of the Council to accommodate the £1.8m financing for the extension at Two Riversmeet Leisure Centre proposal.

NOTE: In relation to this item of business, the Committee is asked to consider the following resolution in relation to any discussion on the exempt appendix 2 to the report:

“That under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Schedule 12A of the Act and that the public interest in withholding the information outweighs such interest in disclosing the information.”

The Portfolio Holder for Destination, Leisure & Commercial Operations presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'E' to these Minutes in the Minute Book.

The report detailed the feasibility and financial considerations for capital borrowing to fund a two-storey extension to Two Riversmeet Leisure Centre (2RM) to address the identified need for dedicated studio space in Christchurch. The investment aimed to enhance 2RM’s health and fitness offer, respond to growth in the leisure industry, increase membership and income whilst supporting community wellbeing and aligning with the Council’s corporate strategy. The Portfolio Holder explained in more detail the reasons for providing these facilities and why this should be on site rather than in a separate location. Cabinet on 14 January 2026 had recommended to Council to agree the recommendations in the report including approval of option 2, subject to planning permission.

The Assistant Chief Financial Officer clarified that the proposal sought to take out borrowing against the Council’s set limit rather than exceed it. He advised that the word ‘limit’ be deleted from recommendation d. of the report. The Committee was asked to consider whether the information provided gave sufficient assurance about the project and the ability to pay back the borrowing in order to recommend to Council that the increasein the authorised borrowing be approved.

The Portfolio Holder and the Head of Leisure and Events responded to questions and comments on the following key lines of inquiry:

What were the risks associated with borrowing?

Risks included not achieving the anticipated membership sales uplift and the income needed to repay the borrowing. This should be balanced against the risks of doing nothing which included losing members by not responding to the demand.

What other options had been considered?

Remodelling/repurposing the existing space and the use of separate location had been looked at but discounted for various reasons including structural constraints, operational challenges and disproportionate costs.

Why was 2RM being taken forward now rather than holistically as part of the forthcoming leisure centres transformation?

The option of including 2RM in the wider review had been considered. However, there was a need for targeted investment in facilities now, a need to apply for planning permission and to avoid ever-rising costs.

Were there other methods of delivery which provide more options and funding streams, such as BH Live or community partnerships?

The Portfolio Holder acknowledged that there were different governance models for leisure centres, these were not risk free either. He commented on the various complexities involved in dealing with BH Live, the difficulties around grant funding as a local authority and the Government’s view that leisure centres were commercial operations.

How was the borrowing figure of £1.8million agreed and how was the 18% uplift in membership arrived at when sector growth was 6.1%?

There had been input from the Facilities Management and Project Management teams in the costings and these had been reviewed at every stage with the Finance ... view the full minutes text for item 85

The report details the feasibility and financial considerations for capital borrowing to fund a two-storey extension to Two Riversmeet Leisure Centre (2RM) to address the identified need for dedicated studio space in Christchurch. The investment aims to enhance the centres health and fitness offer, increase membership and income whilst supporting community wellbeing and aligning with the Councils corporate strategy.

The Portfolio Holder for Destination, Leisure and Commercial Operations presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'C' to these Minutes in the Minute Book.

Cabinet was advised that the report detailed the feasibility and financial considerations for capital borrowing to fund a two-storey extension to Two Riversmeet Leisure Centre (2RM) to address the identified need for dedicated studio space in Christchurch, and that the investment aimed to enhance the centres health and fitness offer, increase membership and income whilst supporting community wellbeing and aligning with the Councils corporate strategy.

Councillor Patrick Canavan addressed the Cabinet questioning the priorities of the Cabinet and whether this was an essential choice, the timing of the report and the appropriateness of the involvement of the Audit and Governance Committee.

In relation to this the Chief Financial Officer advised that there was a requirement for such recommendations to go to the Audit and Governance Committee in order for them to be satisfied with the project and assured of the ability to pay back additional prudential borrowing.

Cabinet members spoke in support of the recommendations and of the important investment highlighting that the investment would subsequently generate the additional income to cover the borrowing and that the scheme was in effect a stand-alone scheme.

Further to this Cabinet members emphasised the need to invest in all of the council leisure centres in the future.

RECOMMENDED that Council: -

(a) agrees to option 2 approving the building of a two-storey facility extension at Two Riversmeet Leisure Centre (2RM) creating two brand new multi-use studios costing £1.8m, subject to planning permission;

(b) notes the detail in the financial and legal implications; and

(c) delegates to the Director of Commercial Operations in consultation with the Portfolio Holder for Destination, Leisure and Commercial Operations, the implementation of this decision.

It is RECOMMENDED that Audit and Governance Committee recommend to Council: -

Approval of an increase in the authorised borrowing limit of the Council to accommodate the £1.8m financing for the extension at Two Riversmeet Leisure Centre proposal.

Voting: Unanimous

Portfolio Holder: Destination, Leisure and Commercial Operations

Reason

Enhancing 2RM Leisure Centre with dedicated studio space will allow for the centre under BCP Leisure to grow and develop enhancing the financial position by giving a fresh dedicated offer within Christchurch. The project aligns with the corporate strategy ensuring people can be active and healthy maximising opportunities for our communities.

Councillor Millie Earl declared a non-pecuniary interest in this item as a BCP Leisure member and remained present for the discussion and voting thereon.