Decision details

Members considered the Freedom Leisure report presented by Councillor Clark.

Councillor Boden referred to paragraph 5.9 of the report and said that the prospect of the management fee starting to be paid in part in only three months’ time is significantly better than anticipated when the budget for this financial year was first set. The levels of activity have exceeded our best hopes and it is hoped that this can continue for Freedom Leisure. He added that Councillor Clark was correct to emphasise that January 2022 memberships would be crucial, and it will be the first opportunity to compare the position with pre-pandemic figures.

Cabinet AGREED that:

·           Fenland District Council provides the Phase VI financial relief to Freedom Leisure set out in these recommendations and detailed in section 5 of the report.

·           FDC defers the monthly management fee of £38,000 per month for October 2021 – December 2021, at an estimated cost to the Council of £114,000, repayable in accordance with the terms set out at paragraph 3.4 of these recommendations.

·           FDC continues to support Freedom Leisure on an open book basis by providing financial support from the remaining NLRF grant. The current estimated cost of operational support for the period is £25,260.

·           Repayment of the £114,000 described in these recommendations shall become payable through an annual deduction of 75% of any profit generated in excess of the levels predicted in the LOBTA (Leisure Operators Base Trading Account). This is a change from the current 50/50 profit share and will be subject to the performance of the business over the contract period.

·           The Monitoring Officer and s.151 Officer are authorised to put in place all necessary arrangements to give effect to the agreed recommendations to include entry into the necessary legal arrangements and expenditure of the amounts described from existing budget provisions.