Issue - meetings

To consider a business case to provide a loan to LeisureSK Ltd to refurbish the gym equipment at Grantham Meres Leisure Centre. Appendices 1 and 2 to this report contain commercially sensitive information and are exempt from publication.

Purpose of the report

To consider a request from LeisureSK Ltd. for a loan to finance a refurbishment of the gym area at Grantham Meres Leisure Centre.

Decision

That Cabinet:

1.    Approves the inclusion of a budget allocation of £240,000 to the capital budget for 2025/2026 to provide a loan to LeisureSK Ltd to facilitate a refurbishment of the gym area and equipment at Grantham Meres Leisure Centre.

2.    Delegate authority to the Deputy Chief Executive and s151 Officer in consultation with the Deputy Leader and Cabinet Member for Leisure and Culture, to agree the final terms and conditions of the loan and sign the loan agreement on behalf of the Council, subject to Council approval of a budget allocation.

Alternative options considered and rejected

The Directors for LeisureSK Ltd. had explored leasing options to refresh the equipment at Grantham Meres Leisure Centre. This identified that the cost of doing so would be more expensive and therefore not provide best value for money. It may also be necessary for the Council to provide a parent company guarantee should a leasing option be progressed.

Reasons for the decision

The Council had previously provided a loan to LeisureSK Ltd. to refurbish the gym area at Bourne Leisure Centre. The company were meeting the loan repayments and had seen an increase in the income and membership numbers at Bourne Leisure Centre as a result.

There was a requirement to refurbish the gym equipment at Grantham Meres Leisure Centre. The equipment was reaching the end of its life, which could limit the gym’s appeal to new customers. It would also potentially lead existing members to join rival facilities.

The request for a loan from LeisureSK Ltd. could be incorporated and considered within the Council’s budget proposals for 2025/26.

Councillor Philip Knowles took no part in the debate or vote due to his role as a Director on the LeisureSK Ltd. board.