Agenda item

            The Committee considered the undernoted report:

 

“1     Relevant Background Information

 

1.1    Following a recommendation from Parks and Leisure Committee, the Strategic Policy and Resources Committee (SP&R) at its meeting on 9 December 2011 approved three schemes, to be partially funded under Sport NI Community Capital scheme, for inclusion in the Council’s Capital Programme. The schemes were –

 

-  A 3G pitch at the Hammer Complex in partnership with Shankill United

 

-  A 3G pitch at Marrowbone Millennium Park in partnership with the Ardoyne Youth Providers Forum

 

-  A mountain bike trail at Barnett Demesne in partnership with Outdoor Recreation NI

 

1.2    The maximum grant anticipated for each scheme under Sport NI funding was £245,000. SP&R Committee agreed a maximum total capital financial support of £375,000 (a notional £125,000 per project) towards these projects. Committee agreed however that the allocation of money to each particular project should include a degree of flexibility as necessary to assist each club achieve its project objectives.

 

1.3    SP&R Committee further approved the advancement of the three projects to tender and delivery including award of contracts, subject to the maximum total capital above and the requisite legal agreements being in place to satisfy the requirements of Sport NI.

 

1.4    At its meeting on 22 June 2012 the Strategic Policy and Resources Committee received an update report on the three schemes in relation to the legal agreements, which included the delivery agreements through which the Council would deliver the project on behalf of the applicants.

 

2    Key Issues

 

2.1

         An update in relation to the current status of these schemes is outlined below for Members.

 

         Hammer 3G Pitch

 

2.2    No planning was required for this project therefore the Council asked Sport NI to agree to commence works in this financial year. Having initially rejected acceleration of delivery, Sport NI has now agreed for works to commence in March 2013. This has also been agreed with the Shankill United.

 

2.3    Budget estimates prepared by the Council’s design team indicate that the initial costs provided by Shankill United were underestimated and site investigations have revealed that ground stabilisation measures will need to be included in the proposal. The estimated cost of project delivery has therefore increased by £100k, taking the total capital funding request from the Council to £225k and Committee is therefore asked to agree this difference in funding.

 

 

         Marrowbone 3G Pitch

 

2.4    An initial proposal estimate of £500k was provided by Ardoyne Youth Providers Forum (AYPF) with their application to Sports NI (SNI). Anticipated SNI funding of £245k meant that this left a projected shortfall of £255k with a notional £125k of this coming from the Council.

 

2.5    However an economic appraisal undertaken by the Council indicates that the estimated gross project cost of £500K has been underestimated in the original proposal and the anticipated projects costs are likely to be £765k. These costs will not be firmed up until the design is complete and pre-tender estimates can be prepared.

 

2.6    Planning permission for the proposal was granted to AYPF subject to some negative conditions related to potential contamination on the site. The Council has carried out the requisite investigations and have forwarded a report to the Planning Service and has written to the Northern Ireland Environment Agency (NIEA) asking for its requirements in relation to any contamination found on the site.

 

2.7    Although Sport NI had initially indicated that they were willing to fund this project they subsequently withdrew their funding on the grounds that the “project did not fully demonstrate a satisfactory state of readiness, as previously defined by SNI, by the deadline of 29 June 2012”. A copy of the SNI letter withdrawing their funding support has been circulated.

 

2.8    Due to the shortfall in funding that this left, a meeting was held with the Minister of Culture and Arts on 23rd October to examine other possible avenues of obtaining funding for this project. The Council was party to these discussions and have submitted an indicative delivery programme to the Minister, subject to a number of conditions including funding being secured from other external sources.

 

2.9    The Council has now been informed that the Department for Culture Arts and Leisure (DCAL) have indicated that they will seek to obtain £245,000 of funding to this project. The Department for Social Development (DSD) have also informed Council staff that they intend to provide £250,000 to Marrowbone. This leaves a shortfall of £270,000 less the £125,000 already committed by Council and Committee is asked to approve additional funding of £145,000 to the Marrowbone project. This will be subject to a letter of confirmation of funding being secured from DCAL and from DSD.

2.10   Although design work is continuing on the project, Members are asked to note that a contract for this work will not be let until letters confirming funding are received.

 

         Barnett Demesne Mountain Bike Trail

 

2.11   Tenders for this scheme have recently been returned with the most economically advantageous tenderer being awarded the contract.  Formal offers of grant have been received from Sport NI and the Rural Development Partnership leaving a net Council funding contribution for the delivery of this project at £95.4k.

 

3       Resource Implications

 

3.1    The SP&R approval of December 2011 was for a Council contribution of up to £375k comprising a notional £125k for each project.

 

3.2    A summary of the financial position for the projects is:                      

 

Project	Total Estimated Cost	External Funding		BCC funding (Dec 2011)	Shortfall
Hammer 3G Pitch (estimate only)	£470k	£245k (SNI)		£125k	£100k
Marrowbone 3G Pitch (estimate only)	£765k	£245k (DCAL)	£250k (DSD)	£125k	£145k
Barnett Demesne Mountain Bike Trail (based on tender return)	£445.4k	£225k (SNI)	£125k (RDP)	£95.4k	-£29.6k
Current projected Council contribution				£345.4k
Approved Council capital contribution (Dec 2011)				£375k
Outstanding shortfall and additional capital contribution requested					£215.4k
Total Council contribution				£590.4k

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.3    A contract for the Mountain Bike Trail has already been awarded; however, in order that the other two schemes can progress to completion, additional estimated funding of £215,400 from the Council is required.

 

3.4    The Director of Finance and Resource has confirmed that there is capacity within 2013/14 Capital Programme to accommodate the increase in the Council’s funding commitment for these projects to £590,400 should all the schemes progress.

 

4       Equality and Good Relations Considerations

 

4.1    There are no Equality Implications for these projects.

 

5       Recommendations

 

5.1    The Committee is asked to:

 

-  approve in principle the additional £100,000 towards the Hammer 3G pitch

 

-   approve in principle the additional £145,000 towards the Marrowbone scheme.  The is dependent on confirmation letters being received from DCAL and DSD that they will fund £245,000 and £250,000 respectively towards this project and it still being economically feasible following recommendations from NIEA in relation to existing site conditions

 

-  note that this means an additional £215,440 of funding towards these schemes which brings the Council’s overall contribution to £590,400

 

-  note that tender award for the mountain bike trail at Barnett Demesne”

 

 

            The Committee adopted the recommendations.