Brentwood Leisure Trust (BLT) receives a fee of £141k per year from the

Council to manage the community halls.

This report seeks approval to phase out the management fee paid to BLT

over 2 Brentwood Leisure Trust (BLT) receives a fee of £141k per year from the Council to manage the community halls.

This report seeks approval to phase out the management fee paid to BLT

over 2 years and to provide loan financing to ensure the trust has sufficient cash to invest in improving facilities that benefit the community, increase usage and promote community health.

Cllr Mrs McKinlay  MOVED  and Cllr Hossack SECONDED  the recommendations in the report and following a full discussion a vote was taken on a show of hands and it was RESOLVED.

1.         To approve an Improvements Loan of £180,000 to the Brentwood

Leisure Trust for a term of 5 years, following a 2-year payment  and interest holiday. Interest rate to be charged at 1.5% based on the Council’s cost of PWLB borrowing over 7 years.

2.         To approve a 2-year payment and interest holiday on the existing

loan to BLT (approximately £163k outstanding by 31st March 2018) and repay the balance over a term of 5 years, following the 2-year payment holiday. Interest to then be charged at 1.5% as above.

3.         To reduce the payment of a Community Halls Management Fee to

BLT by £100,000 (to £40,800) from 1st April 2018 and withdraw it

completely from 1st April 2019.

4.         To extend the lease and service level agreement for the Halls for a

further year and delegate authority to the Chief Executive in

consultation with the Chair of P, P & R to finalise the lease.

Reasons for Recommendation

This is an “invest to save” opportunity for the Council and sets out a way

forward for the Council to save money and for the Trust to be able to

invest in improvement works that will in turn increase facilities available to

the community, community health and also its own income levels.

(Cllr Ms Rowlands and Cllr Kerslake declared a non-pecuniary interest under the Council’s Code of Conduct by virtue of her position as a Trustee for Brentwood Leisure Trust.  Cllr Ms Rowlands and Cllr Kerslake were advised by the Monitoring Officer, due the sensitivity finance interest, that they should both leave the room and not take part in the debate or vote. 

Cllr Kendall and Cllr Hossack declared a non-pecuniary interest under the Council’s Code of Conduct by virtue of being a Members of the Brentwood Centre (BLT)).