Agenda item

Octagon Theatre Development

Meeting of District Executive, Thursday 4th March 2021 9.30 am (Item 275.)

Decision:

RESOLVED:	That District Executive:-
	a.	noted the confidential appendices, including the report by Charcoal Blue and associated business case documents, to refurbish the existing site and facilities; and to extend the site with both additional educational and income earning facilities, which will assist in repaying the costs of the proposed project over time.
	b.	recommend to Full Council to approve the underwriting of the total project costs by SSDC, of up to £23.01m, to be partially offset by successful future grant funding applications, yet to be applied for; with the remainder of the capital sum to be repaid as proposed in the business plan attached to this report.
	c.	recommend to Full Council to give delegated authority to a Project Board that consists of the Portfolio Holder for Health & Well-Being (Chair), the Leader of the Council, the Portfolio Holder for Economic Development, the Portfolio Holder for Finance & Legal Services, the Director of Commercial Services and S151 Officer to progress the project, take appropriate decisions for the project governance set up and reporting arrangements to District Executive on project progress.
	d.	recommend to Full Council to approve the cashflow forecast in the business plan.
Reason:	To recommend to Full Council the proposal to refurbish and develop The Octagon Theatre and underwrite the full value of the project, up to £23.01 million (excluding VAT that is recoverable in respect of this project), subject to the successful application for various forms of grant funding which would partially offset the overall project costs.

Minutes:

The Portfolio Holder for Health and Well-Being noted that District Executive had agreed in principle to the project at their meeting in January 2021. Officers had investigated if VAT could be reclaimed on the project and it had been confirmed that it could which was a significant impact upon the project. He was also pleased to announce that the Arts Council budget had set aside £10m for the project which was good news to help fund the project. He noted that if the project did not go ahead as planned then significant refurbishment work would still need to be carried out at the theatre. He proposed the recommendations be progressed to Full Council.

The Arts and Entertainment Venues Manager said the confirmation of the funding from the Department of Culture, Media, and Sport upon the recommendation of the Arts Council was very welcome towards the project and the financial projections would be updated prior to presentation to Council.

During discussion, the following points were made:-

· the £10m grant made the project more viable.

· The scale of the expenditure being underwritten by the Council was still large and it was a substantial public project.

· The highest level of scrutiny during the project was required.

· The period of closure during the rebuilding work must be minimised.

· A user requirement document needed to be produced and the seating arrangements must be laid out correctly.

· This was good news for Yeovil and the surrounding area.

· The theatre was surrounded by car parks within a 5 minute walk.

The Chairman of the Scrutiny Committee said that some members had expressed concern at the impact on the smaller theatres across the district. They had also asked for information on progress reports during the development however, they had voiced their support for the project.

It was proposed and agreed that the Project Board also include the Portfolio Holder for Finance and Legal Services and recommendation c. was amended to reflect this.

At the conclusion of the debate, Members confirmed the amended recommendations to Full Council.

RESOLVED:	That District Executive:-
	a.	noted the confidential appendices, including the report by Charcoal Blue and associated business case documents, to refurbish the existing site and facilities; and to extend the site with both additional educational and income earning facilities, which will assist in repaying the costs of the proposed project over time.
	b.	recommend to Full Council to approve the underwriting of the total project costs by SSDC, of up to £23.01m, to be partially offset by successful future grant funding applications, yet to be applied for; with the remainder of the capital sum to be repaid as proposed in the business plan attached to this report.
	c.	if approved, recommend to Full Council to give delegated authority to a Project Board that consists of the Portfolio Holder for Health & Well-Being (Chair), the Leader of the Council, the Portfolio Holder for Economic Development, the Portfolio Holder for Finance and Legal Services, the Director of Commercial Services and S151 Officer to progress the project, take appropriate decisions for the project governance set up and reporting arrangements to District Executive on project progress.
	d.	recommend to Full Council to approve the cashflow forecast in the business plan.
Reason:	To recommend to Full Council the proposal to refurbish and develop The Octagon Theatre and underwrite the full value of the project, up to £23.01 million (excluding VAT that is recoverable in respect of this project), subject to the successful application for various forms of grant funding which would partially offset the overall project costs.