Agenda item

To advise the Committee on progress.

The General Manager – Mr Loudfoot advised the meeting that, as many were already aware, the Firoka Group gave formal notice of withdrawing its interest as preferred bidder for the future development of the asset on 18 August 2008.  The Board, at a special meeting on 26 September 2008, considered a number of matters relating to the future of the asset, including an independent review of the Licence arrangements entered into with the Firoka Group (a copy of that review was available for any Member at this meeting). The resultant recommendations arising from that review regarding the future governance arrangements relating to the Palace had been endorsed by the Board.  Mr Loudfoot further advised that the Board had also discussed, and as referred to by Councillor Cooke earlier in the meeting, had agreed that an away day be arranged to discuss the future of the asset, and the way forward in the next 6/12 months.

In response to points of clarification from Councillor Whyte in relation to outstanding monies owed in respect of utility bills by the Firoka Group, Mr Loudfoot advised that this matter was still unresolved and was being pursued.  The issue of the future of the ice rink had been answered earlier and Mr Loudfoot reiterated his comments concerning the life of the ice rink and the costs attributed thereto.   In response to points of clarification from the Chair and Mr Aspden Mr Loudfoot advised that in terms of the costs of bringing the whole building back into use, this had been assessed at circa £35 million for the repair to the shell/core of the building.  In terms of general maintenance, the annual figure was in the region of £250k.  The reassessment had been carried out recently and was an up to date and realistic assessment figure.

In response to points of clarification from Mr Aspden as to the references on page 50, paragraph 53 and page 52, paragraph 58 of the review as to whether the lease had or had not been signed, Mr Loudfoot advised that he was unable to clarify this point but that there was a difference between signing of, and completion/concluding of a lease agreement.  

Mr Aspden commented that, when the issue had been raised with the former General Manager at the 23 January 2007 meeting, the Committee had been advised by him specifically that the lease had not been signed.  In response, Mr Loudfoot advised that the master agreement and project agreement had been signed in November 2006, subject to the granting of an order by the Charity Commission.  In response to clarification from Councillor Oatway Mr Loudfoot advised that the completion would have been reliant upon the order being granted by the Charity Commission.

The Committee then briefly discussed the findings of the independent review, the main points being:-

·        the considerable concern and disquiet at the findings of the independent review into the granting of a Licence to Firoka to carry out  the functions of the trading company

·        the entering into  a licence on such terms had been in direct contradiction to the repeated  assertion by the Board that it had to ensure that it  obtained  the best possible return reasonably obtainable  from the assets of the Charity;

·        The need to ensure that before any future such arrangements are  entered into by the Board they be brought to the Advisory Committee to ensure that their views are duly taken into account  by the Board;

The Chair summarised the discussions and it was then:

RESOLVED

i.                    That this Committee notes with considerable concern and disquiet  the findings of the independent review into the granting of a Licence to Firoka to carry out  the functions of the trading company in its place, and that this Licence seemingly ran counter to the previously expressed requirement  that the Board had at all times to ensure that it  obtained  the best possible return reasonably obtainable  from the assets of the Charity;

ii.                  That this Committee repeats its earlier concerns at the lack of consultation by the Board  in respect of the proposed terms of the License to the Firoka Group, and requests that they be fully consulted, and that the Board ensures all relevant matters be disclosed to it in advance of any decision in respect of the Board’s plans for the future of the asset; and

iii.                That in respect of the planned consultation about the future of the Palace (the “Away Day”) the Board widen the invitations to attend to representatives of both the Advisory and Consultative Committees, in order to obtain input from representatives of the local community.