Agenda item

Agenda item

National Cycling Centre

Report of the Strategic Director - Neighbourhoods attached

Minutes:

The Executive considered a report of the Strategic Director – Neighbourhoods, which set out proposals to refurbish the National Cycling Centre (NCC) to ensure that it remained fit for purpose and to secure Manchester’s future as the home of British Cycling for the next 25 years.

 

The NCC was an internationally recognised cycling facility, having supported the delivery of the 2002 Manchester Commonwealth Games it had helped put Manchester on the international sports map for the last two decades for both major events and the success of British Cycling.  Whilst the NCC was extended in 2010 to incorporate the UK’s first dedicated indoor BMX centre and improved office space for British Cycling (BC), café, shop and public realm, the Velodrome element of the facility was now 28 years old and as such, a stock condition survey has confirmed that this part of the NCC requires significant investment due to items being life expired.  Investment was necessary in order to reduce the carbon footprint of the venue, sustain the existing service offer, as well as keep pace with more modern facilities located in London and Glasgow.

 

The revenue implications during the construction phase were estimated at £2.112m, due to loss of income and the need to rent alternative accommodation. It is proposed that this is funded from joint funds held by Manchester City Council and Sport England.

 

The total capital cost of the scheme was estimated at £26.178m.   A capital budget of £22.456m was required, as £1.577m was already approved in the Asset Management Programme to reach the end of the RIBA Stage 4 design.

 

It was proposed that the budget would be funded £20.566m from borrowing and £1.890m funded from borrowing on a spend to save basis, funded from joint funds held by Manchester City Council and Sport England.  It was estimated that, based on current interest rates, the borrowing (excluding that to be charged to joint funding held by Manchester City Council and Sport England) would create an estimated annual cost of c.£1.23m in interest and minimum revenue provision. This would be funded from the existing capital financing budget.

 

The remaining £2.145m would be funded from the existing Public Sector Decarbonisation Scheme budget.

 

The timetable for progressing the scheme meant that works were required to start before the next Council meeting, with an estimated capital cost of £0.9m. It was proposed that these were progressed, funded from Capital Fund, acknowledging that if the scheme did not progress for any reason they would be classed as abortive costs and would need to be charged to revenue. If Council approval was received, these works would form part of the scheme and be funded from borrowing.

 

Decisions

 

The Executive:-

(1)       Note the options presented in the report and approve proceeding with the full refurbishment of the NCC at a cost of £26.178m.

(2)       Recommend that Council approve the establishment of a capital budget for the refurbishment of the NCC of £22.456m, funded from £20,566m borrowing and £1.890m on a spend to save basis funded by joint funds held by Manchester City Council and Sport England.

(3)       Recommend that Council approve a virement from the Public Sector Decarbonisation Scheme budget of £2.145m

(4)       Approve the use of joint funds held by Manchester City Council and Sport England to fund £2.112m of revenue costs expected to be incurred as a result of the project.

Supporting documents: