Agenda item

            The Committee considered the undernoted report:

 

“1          Relevant Background Information

 

            Belfast Visitor & Convention Bureau and the Belfast Welcome Centre

 

1.1       At a special meeting on 22 February 2011 the Development Committee considered a report on the potential relocation of the Belfast Visitor & Convention Bureau and the Belfast Welcome Centre (BVCB/BWC), including an economic appraisal.

 

1.2       The Development Committee agreed to note the information which had been provided within the report and agreed further to allocate £15,000 towards the development of a full business case for each of the options, subject to the SP&R Committee agreeing that the project be included within the Capital Programme.

 

1.3       An extract from the minute of the meeting of the Development Committee is attached as Appendix A to this report.

 

1.4       This minute was subsequently amended at Council on 2nd March for further sites within the City to be included as options for the relocation of the BVCB/BWC.

 

            Options for Development of Conference Facilities in Belfast

 

1.5       At their meeting of 15 February 2011 the Development Committee considered a report on the options for development of conference facilities in Belfast.

 

1.6       The Development Committee agreed to an economic appraisal being undertaken to provide a detailed financial and operational appraisal on the available options.

 

1.7       An extract from the minute of the meeting of the Development Committee is attached as Appendix B to this report.

 

1.8       This minute was subsequently amended at Council on 2nd March for other parts of the City, particularly the North Foreshore, to be considered within the options for the development of conference facilities within the City.

 

2          Key Issues

 

2.1       The main issue for the SP&R Committee is that both the BVCB/BWC and the Conference Facilities are emerging uncommitted proposals for the capital programme and there are currently no capital funds available.

 

2.2       To move these proposals forward the SP&R Committee would need to agree that they should be committed to, subject to capital funding being agreed at a future date, and for a full business case and economic appraisal (respectively) to be developed to facilitate the submission of fully informed applications for funding from the NITB capital grants scheme and other potential funding sources, subject to the Gates process.

 

            Belfast Visitor & Convention Bureau and the Belfast Welcome Centre

 

2.3       The recommendation of an economic appraisal undertaken by the Development Department is that the most advantageous available option would be for the BVCB/BWC to relocate to ground floor premises in Donegall Square North.

 

2.4       The existing first floor facility opened in April 2001 and, although the premises were suitable at the time, the tourism product has changed significantly and the BVCB/BWC had an aspiration for some time to move to ground floor premises.

 

2.5       The lease on the current premises expired at the end of July 2010 and whilst the landlord initially made an application to the Lands Tribunal for renewal of the lease for a further 10 year term, they have subsequently indicated that they will now seek a new 5 year term. The Council had, however, applied for a new lease for 1 year from August 2010 and monthly thereafter. However, given that the programme for any relocation is likely to extend beyond August 2011, Council officers would now propose to seek agreement to a new lease term of 3 years from August 2010 or, alternatively, a 5 year lease with a break option at the end of year 3 or earlier.

 

2.6       In any event the time taken to select an option, agree funding and lease arrangements at a new site together with design, procurement and fitting out may take around 18-24 months.

 

2.7       Although it would be beneficial for a new BVCB/BWC to be available at the beginning of 2012, the outcome of the NITB grant application is unlikely to be made in time for a relocation to be completed by then and for the Council to agree capital funding of the balance and arrange the design, procurement and completion of fit-out works. In any case, relocation by the start of 2012 is not deemed to be essential; rather, as there will be a considerable tourism draw arising from next year’s events, a new facility would subsequently promote sustainable tourism development following 2012.

 

2.8       This would enable a programme to be developed for the opening of a new facility by August 2013, on the assumption that a 3 year lease term is agreed. Negotiations are ongoing with the landlord but the matter is still scheduled for determination by the Lands Tribunal if agreement cannot be reached between the parties and there is no guarantee that the Lands Tribunal will award a term shorter than 5 years.

 

            Options for Development of Conference Facilities in Belfast

 

2.9       There are several options available for this proposal and the economic appraisal will consider each in detail and make a recommendation as to that which is most advantageous for reporting back to the Committee for further consideration.

 

3          Resource Implications

 

3.1       These proposals are currently two of a number of emerging, uncommitted capital programme proposals and are only being brought forward due to the Development Committee decisions.

 

            Belfast Visitor & Convention Bureau and the Belfast Welcome Centre

 

3.2       Implementation of the recommended option would require a capital funding requirement of £1.62m, although there may be consequential revenue savings in funding support by BCC of c£46,750 per annum. It is proposed that an application will be made to NITB for funding under their capital grants scheme, for which a short window of opportunity for applications will soon become available.

 

3.3       However, to advance the proposal to the next, Gate 2, stage would require approximately £15,000 to develop a full business case.

 

3.4       Should the SP&R Committee agree to this, the proposal would advance in the capital programme as a committed project subject to the Gates process, with the outcome of the full business case to be presented to the Committee on completion to enable the SP&R Committee to consider the proposal further.

 

3.5       There would be no commitment at this point to any expenditure beyond the development of the full business case.

 

3.6       Furthermore, to be realistic the SP&R Committee would need to agree to an amendment of the minutes which approved a full business case for each option in the economic appraisal and to include further options.

 

3.7       To advance this proposal would need a business case to be completed for a generic city centre location and selection of a site from available options at the appropriate time following future decisions on availability of grant and capital funding.

 

            Options for Development of Conference Facilities in Belfast

 

3.8       Implementation of options would require a capital funding requirement of up to £22.2m. It is proposed that an application will be made to NITB, the EU Sustainable Competitiveness Programme and other relevant potential funding sources.

 

            To advance this proposal would need an economic appraisal to be undertaken for available options, at a cost of approximately £30,000, with future decisions to be based on availability of grant and capital funding.

 

4          Equality and Good Relations Considerations

 

4.1       None.

 

5          Recommendations

 

5.1       It is recommended that the Committee consider, from a financial perspective, these proposals from the Development Committee and agree to:

 

1.      approve the development of a full business case for the Relocation of Belfast Visitor & Convention Bureau and Belfast Welcome Centre; and

2.      the undertaking of an economic appraisal for the Options for Development of Conference Facilities in Belfast.

 

6          Decision Tracking

 

6.1       The outcome of the full business case, the economic appraisal and the funding applications will be presented to the Committee when available to permit the Committee to consider the proposal further.

 

7          Key to Abbreviations

 

7.1       BVCB/BWC – Belfast Visitor & Convention Bureau and the Belfast Welcome Centre”

 

            The Committee adopted the recommendations.