Issue - meetings

This report seeks approval for a low-risk invest to save development of super huts on the seafront at Fisherman’s Walk, Bournemouth, designed to generate a net capital receipt after all scheme costs of c.£280k to the Council from a capital investment of £454k.  The project follows a well-established model of development from 6 previously successful similar schemes since 2005. 

The project would see the Council build 15 super huts by Easter 2021.  The huts would be sold on a first come first served basis with a full repair and maintenance lease for 25 years.  At the end of the period, the sites would revert back to the Council.  The attached report models projected capital and revenue returns based on a prudent sensitivity analysis of previously schemes and a higher than actual cost of borrowing.  It also models a worse case option whereby the super huts do not sell and are retained in house for casual rental.

Scheme costs include the relocation of existing beach huts to adjacent sites.  Engagement with any existing hut tenants likely to be affected would take place prior to the scheme coming forward for planning consideration.

RESOLVED that:-

(a)           Cabinet approve delivery of the scheme, subject to securing planning consents, and the sale of the super huts on 25 year leases; and

(b)           Cabinet delegate to the Service Director the setting of the final sales price which will be subject to market review closer to the time (Easter 2021)

Voting: Unanimous

Portfolio Holder: Tourism, Leisure & Communities

Reason

To maximise efficient use of Council assets, generating substantial new capital return whilst maintaining and improving ongoing revenue from existing beach huts.

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

Cabinet were requested to approve a low-risk invest to save development of super huts on the seafront at Fisherman’s Walk.

The Chairman of the Overview and Scrutiny Board addressed the Cabinet advising that at their recent meeting the Overview and Scrutiny Board made the following recommendation to Cabinet:

‘Cabinet be recommended to retain one of the proposed super huts for use by the Council for good causes and charitable purposes.’

In relation to the recommendation from the Overview and Scrutiny Board the Portfolio Holder advised that they would be exploring ways in which those who wouldn’t ordinarily be able to access the beach huts would be able to have access by way of community groups having access to one or some of the huts.

RESOLVED that:-

(a)          Cabinet approve delivery of the scheme, subject to securing planning consents, and the sale of the super huts on 25 year leases; and

(b)          Cabinet delegate to the Service Director the setting of the final sales price which will be subject to market review closer to the time (Easter 2021)

Voting: Unanimous

Portfolio Holder: Tourism, Leisure & Communities