Agenda item

CINEMA DEVELOPMENT

Decision:

RECOMMENDED: 1) Agree to proceed with the Corn Exchange cinema proposals and amend the Capital Programme as detailed in the report at 2.4.5.

2) Include options in the tender for ground floor toilets, façade, foyer area as separate cost items.

3) Delegate authority to the Executive Director, Commercial Services in consultation with the Portfolio Holder to proceed with the procurement and construction of the cinema screens and associated works.

Reason for Decision

To enable the cinema proposal to proceed, reduce the revenue cost of the Corn Exchange, contribute to the Council’s cost reduction plan and assist with creating a vibrant town centre leisure offer.

Minutes:

Councillor Mrs Nockolds presented a report which detailed progress on the proposal to construct two cinema screens in the upper bar area at the Corn Exchange.

The original proposal had been developed to a detailed design to allow a tender exercise to take place. Cabinet approval was requested to changes from the original report considered by Cabinet in November 2018, the main issues were;

· Revised capital costs including roof replacement to the bar area

· Final Design

· Consideration of ground floor toilet improvements

· Works to façade and foyer area

A full detailed design had now been produced for the cinema offer and costed at 2^nd quarter 2020 construction rates. This increased the cost of the scheme substantially. The revenue budget for the proposals had also been revised based on the detailed scheme. The original proposal delivering a 22% rate of return on capital investment, the revised scheme deliver a 15% rate of return.

Subject to Cabinet approval the construction works would be tendered in July and August with the aim to let the contract in September and works to commence in January 2020 and completion in May 2020 with cinemas opening in June.

Under Standing Order 34 Councillor Lowe addressed the Cabinet on the proposed development of the cinema, he expressed concerns about the affordability of the proposals for lower earners. The Leader responded to the comments by way of commenting on the freedom of choice to attend either venue and the additional boost it would give to the town centre economy.

Under standing order 34 Councillor Ryves commended the proposal and the offer of an alternative to the current provision, he expressed the hope that the highest quality seating would be provided and asked about the borrowing arrangements and terms, and whether free parking would be provided.

Under standing order 34 Councillor Pope agreed with the comments expressed by the previous councillors, and commented that he felt it was too much to spend on such a development which he considered would be short term.

Under standing order 34 Councillor de Whalley expressed some concerns at the business plan, and felt that the capital expenditure should be paid back over 5 years. He referred to the reduced space available at intervals which he felt could be off putting.

It was explained that the money for building elements would be borrowed over a 50 year period, the sound and seating equipment would be over 10 years. The Exec Director also explained that it was proposed to future proof the lift design in case of any future amendments in years to come.

Councillor Gidney supported the proposals which he considered widened the scope of the Corn Exchange, and agreed with the comments on the best seating possible.