Technical Notes 2022, Issue 73 - Marketing of Kirkintilloch Community Sports Complex

The purpose of this Technical Note is to update Members regarding the marketing of the Kirkintilloch Community Sports Complex.

2. Members will recall that at a special meeting held on 6^th September 2021, Council agreed the following –

1. to consider the Options set out within Paragraph 3.18 of the Report, in conjunction with the comparative analysis of each set out at paragraphs 3.19 and 3.20 of the Report; 
2. to determine that Option C, set out at paragraph 3.18 of the Report should be progressed, having regard always to the comparative analysis at Paragraphs 3.19 and 3.20 of the Report; and
3. to instruct Officers to take such action as is necessary to deliver Option C - Construct the Facility and market for lease nearer completion of construction.                              

3. Following the decision of Council a press release was issued including the following –

 “The Council will fund the £5 million development and undertake a comprehensive marketing exercise of the facility as it nears completion, giving prospective tenants a clear picture of what is on offer and how it might work for them.  It will also require prospective tenants to commit to the delivery of a programme of community activities throughout the duration of the lease.”

4. In addition, Council officers and external representatives advised both Kirkintilloch Rob Roy and its advisers of the Council’s decision to construct and then market the new facility nearer completion.

5. Construction of the new facility is projected to complete in October 2022, with the complex being ready for occupation and use shortly thereafter.

6. Given the progress made, the new facility will shortly be offered to the market for lease as per the decision of Council on 6^th September 2022.  The marketing particulars will include a draft lease and detailed terms and conditions which are currently being finalised.  The intention is that marketing will commence in late May with all offers reported to an appropriate service committee or Council in September 2022 for consideration.  

7. The criteria for selecting a preferred bidder will be detailed in the marketing particulars.  The provision of access to the facility for community use will be a key consideration.

8. Members will be aware that the disposal of land by the Council (whether by sale, lease or otherwise) is governed by s74 of the Local Government (Scotland) Act 1973 and the Disposal of Land by Local Authorities (Scotland) Regulations 2010.  Essentially, local authorities are empowered to dispose of land subject to obtaining the best consideration available.  The legal requirement to obtain the best consideration that can reasonably be obtained is subject to exception where the provisions of the 2010 Regulations apply; the legislation recognises that there may be circumstances where the Council considers it appropriate to dispose of land for a consideration less than the best consideration, which include placing a value on non-monetary benefits and disbenefits.  In doing so, the Council is still required to undertake appropriate appraisals and comparisons of costs v benefits and must be able to demonstrate that there has been rigorous evaluation supported by evidence.

9. As stated above, the inclusion of community benefits will form part of the marketing requirements and will be assessed as part of the wider evaluation.  This will ensure that the Council complies with its legal obligations under both the 1973 Act and 2010 Regulations.

10. The inclusion of the draft lease and other key conditions will ensure that all interested parties are aware of the Council’s requirements.  This, in turn, should ensure that bids are compliant and that there is minimal negotiation once bids are evaluated and a preferred tenant approved.