Agenda item

To consider proposals to discharge the provisions of the Section 106 Agreement on the development in respect of an outdoor sports area and proposed changing facility.

1(a)      That the outdoor sports area and, subject to (b) below) the changing facilities referred       to in the S106 Agreement, be transferred direct from the developer to Brockworth       Community Sports and Recreation Limited, subject to:

i)    the company establishing charitable trust status (within the period set out in the S106 Agreement) with the Objects of the charitable trust restricted to the promotion of community participation in sporting and recreational activities for the benefit of the inhabitants of Brockworth and the surrounding areas; and

ii)   the Council being satisfied in all other regards.

(b)       That, notwithstanding the provisions in resolution (a) above, the Head of Development Services, in consultation with local Ward Members, the Lead Members for Health and Wellbeing, Finance and Asset Management and Built Environment, the Head of Finance and Asset Management and the Borough Solicitor may, at any time, exercise the election under the S106 Agreement to receive the changing facilities contribution in lieu of the changing facilities being constructed.

2.         That, in the event of charitable status not being obtained within the period required set out in the S106 Agreement, the Council takes the transfer of the outdoor sports area, shown on the plan appended to the report, and elects to receive the changing facilities contribution.

3.         That, subsequent to the transfer of the outdoor sports area to the Council, and receipt by the Council of the changing facilities contribution, the Head of Development Services:

·      takes steps to identify an appropriate recipient of the outdoor sports area and the changing facilities contribution;

·      reports back to Executive Committee on the legal status of the proposed recipient, any undervalue implications and any representations received as a result of any statutory notices of the proposed disposal considered necessary; and

·      reports back to Executive Committee on the proposed measures for ensuring that the changing facilities contribution is properly applied.

39.1           The report of the Head of Development Services, circulated at Pages No. 265-270, recommended proposals to discharge the provisions of a Section 106 Agreement in respect of an outdoor sports area and proposed changing facility.

39.2           Members were advised that the Perrybrook development had been permitted by the Secretary of State following a public inquiry. The development was subject to a Section 106 Agreement which contained a number of clauses relating to the provision of on-site and off-site sports and recreational facilities as well as community infrastructure. Within the Section 106 Agreement there were two sets of assets; specifically a changing facility and an outdoor sports area which could potentially be transferred to the Brockworth Sports Foundation  -  this was a company limited by guarantee which existed to promote community participation in healthy recreation for the benefit of the inhabitants of Brockworth and the surrounding areas. The current position was that the Section 106 Agreement provided for either a fitted-out changing facility to be constructed by the developer or the payment of a changing facilities contribution of £685,000 (index-linked) to be used by the Council towards the provision of a new eight team sports changing facility on the development site, rebuilding of the clubhouse or other sports changing facilities within Brockworth. Under the terms of the Section 106 Agreement, before the 135^th dwelling on the site was occupied, the Council had to notify the developer if it wished to take the contribution for the changing facilities instead of the developer constructing it itself. If the Council decided to take that option, the contribution had to be paid prior to the occupation of the 255^th dwelling. In terms of the outdoor sports pitch, the laying out was to commence prior to the occupation of the 135^th dwelling and completed so that the outdoor sports area was ready for its intended use prior to the occupation of the 255^th dwelling.

39.3           Whilst Brockworth Sports Foundation was not currently ideally placed to take the outdoor sports area or the commuted sum as its application for charitable status was not yet concluded, it was anticipated that it would be completed in the near future. On 17 May, the applicant had formally offered the outdoor sports area and changing facility to the Council (not currently built) but also indicated that there would be no problem with the Council electing to accept the changing facility contribution in place of the changing facility if it so wished. The proposal would enable the Council to exercise greater control over the situation for the short term in order to achieve a sustainable option for sport within the Brockworth community. Following the grant of charitable status to the Brockworth Sports Foundation, the Council could transfer the outdoor sports area to it and provide the changing facilities contribution in the form of a grant agreement; a charge would also be put on the outdoor sports area/facility/existing clubhouse to secure compliance with the grant.

39.4           During the discussion which ensued, a Member questioned whether there was a time limit for Brockworth Sports Foundation to gain charitable status. In response, the Head of Development Services indicated that the reserved matters application was being negotiated now and it was understood that the first developer was looking to get on site as soon as possible. It was difficult to advise of a time limit although it would probably be at least a couple of years in terms of the general build out process. However, it was good practice to ensure the details were addressed as early as possible. The decision the Council needed to make was whether it should ask for the building or the money and the recommendation allowed for a delegation to the Head of Development Services, in consultation with Members, if it was decided to take the funding rather than the building. On the basis of the report before the Committee, it would be desirable for Brockworth Sports Foundation to aim to gain charitable status as soon as possible as that was how the Section 106 Agreement was designed. There were provisions to ensure the money was not lost if the Foundation did not achieve charitable status and the report sought to ensure this was understood.

39.5           In response to some concerns, the Chief Executive explained that the Council relied on community organisations to run facilities as it engaged local communities; however, this did come with risks. It was considered, particularly on larger developments such as these, that it was helpful to engage people that moved in and then it would be easier in the future for the community to take over the running of the facility. There were some first class organisations operating within communities around the Borough which was great news.

39.6           Having considered the details within the report, it was