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DECISION UNDER DELEGATED POWERS DECISION CANNOT BE TAKEN BEFORE WEDNESDAY, 21 SEPTEMBER 2011 Title APPROVAL FOR THE TERMS OF THE DISPOSAL OF WATERSIDE POOL AND ADJACENT LAND TO THE WATERSIDE COMMUNITY TRUST DEPUTY LEADER AND CABINET MEMBER FOR THE ECONOMY, AND THE ENVIRONMENT

Report To

EXECUTIVE SUMMARY 1. This paper sets out how the Council proposes to provide support to the Waterside Community Trust so that this voluntary organisation is able to acquire Waterside Pool and the land adjacent to it and continue to make it available to the Ryde community. This will require the Isle of Wight Council to provide a capital investment of 50,000 in the pool, a start up cash grant of some 16,061 and to allow the Trust to receive the benefit of income the Council currently receives from the Ryde canoe lake caf and boats. This proposal prevents the closure of the pool which the Council has had to consider in order to achieve the significant savings required of it so that it can continue to deliver its legal obligations to the required standards.

PURPOSE 2. To agree the leasehold disposal of Waterside Pool and land adjacent to it to the Waterside Community Trust.

OUTCOMES 3. The Ryde community is able to sustain the retention of Waterside Pool as a community asset. Annual revenue savings of 224,400.

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BACKGROUND 5. At its meeting of 7 December 2010 the Cabinet agreed to advertise for proposals to be brought forward for the acquisition of Waterside Pool as a community swimming facility. It further agreed that unless a viable proposal at nil longer term cost to the Council was under active consideration at the time of the budget setting Council meeting in February 2011, a recommendation would be made to remove the 250,000 annual operating 1

subsidy from 2011/12 onwards, leading to the pools closure with effect from 31 March 2011. 6. The Cabinet confirmed this recommendation when it met on the 8 February 2011 to finalise its proposals for full Council in respect of the 2011/12 budget. The process to be used for seeking expressions of interest in the acquisition of the pool was agreed by a Cabinet Member delegated decision on 4 January 2011. Following this decision a marketing exercise was completed in which expressions of interest in the acquisition of Waterside Pool were requested from third party organisations. Eleven requests for further information were received but ultimately only one expression of interest was received which appeared to meet all of the necessary criteria. The organisation making the proposal, the Waterside Action Group became the Councils preferred bidder for the facility. It was not possible however to reach agreement with the Action Group on the terms for its acquisition of the pool in the time between the receipt of its proposal and the meeting of the Council in February 2011. Such agreement needed to meet the Councils aspirations that the pool be operated at nil longer term cost to the it, and be capable of ensuring that the Action Group could sustain the availability of the pool to the community in the medium to long term. On the basis that these negotiations were ongoing, when full Council met on the 23 February it agreed that, rather than close Waterside Pool on 31 March 2011, the Council would provide 100,000 of funding for the operation of the pool in 2011/12 to allow the negotiations to be concluded and hopefully avoid the closure of the pool for any period. As a consequence the Council planned to continue to directly operate the pool until, at the latest, the 31 October 2011. To achieve this the Council reorganised the then operational and staffing plans for the facility such that it could be operated within the 100,000 available budget for the main holiday and visitor season on the Island. This ensured the provision of the facility during the busy period but at reduced opening times. Discussions with the Waterside Action Group have continued since the decision of the full Council in February 2011. Officers have provided a significant amount of information, advice and guidance in order for it to develop its initial proposals into an offer which is sustainable for the Action Group and the Council. The Action Group has itself developed and become a formally constituted body, the Waterside Community Trust (WCT). It has also been able to strengthen the skills and experience of its main board and this has helped it to develop its initial proposal for the acquisition of the pool into that which is presented for consideration in this paper.

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Waterside Community Trust Proposal 14. WCT has provided the Council with an updated proposal for its acquisition of the pool in the form of a revised business plan demonstrating how it will be able to continue to provide swimming opportunities for the community in the first three years following its acquisition of the pool. The overall business plan is summarised in Appendix 1 to this paper but the key issues within it are set out in the following paragraphs.

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An important part of the revised proposal made by WCT was the provision of information in relation to its proposed operation of the facility. This information relating to proposals for the general operation of the building, staff training, marketing, building maintenance and legal compliance has been reviewed and is considered to be sufficient for the purposes of operating the pool. A summary of the financial elements of WCTs proposal is shown in Appendix 2. This identifies that Waterside Community Trust requires continued public sector subsidy in the sum of 230,835 over the three years of its plan. Its expectation is that this will be provided by (as a minimum) Ryde Town Council (77,018) and the Isle of Wight Council (153,818). WCT assumes that this Councils contribution will be made up by earned income for which it will take responsibility (76,800 over 3 years) plus a cash grant of 77,018 (average 25,673 per annum) over the three-year period of the business plan. The earned income will derive from the Trusts management and maintenance of the boats on Ryde canoe lake and also the canoe lake caf. Together these facilities currently provide an annual net income to the Council of 25,600. It is not clear whether WCT would require further funding from the Council beyond the end of its three-year business plan. If however, the Trust is not able to develop new income streams or reduce its operating costs to replace the annual average cash grant (25,673) payments to be made by the Isle of Wight Council in accordance with WCTs proposal, then it will require further funding; or to reduce the opening times and/or close the facility altogether. WCT proposes that it should acquire from the Council the land adjacent and to the west of the pool along with the pool itself as shown in the site plan in Appendix 3. It is WCTs intention to develop this area and create a surplus of funds that it would be able to reinvest in securing the future of Waterside Pool. WCT has identified the replacement of a boiler, a pool filter and the pool cover as essential to the successful delivery of its proposal and is seeking the Councils further support in undertaking these works prior to the transfer of the facility to WCT. The estimated cost of these works is 20,000. The Councils decision in seeking proposals for the acquisition of the pool was that it the acquirer must continue to provide for community swimming opportunities but at nil longer term cost to the Council. The proposals made by WCT require the Council to fund one off capital works costing some 20,000, to forgo an annual net income of 26,500 and also to provide a revenue grant of, on average 25,673 per annum in the three years following the Trusts acquisition of the building. Notwithstanding the proposed total revenue investment by the Isle of Wight Council of some 153,818 over this three year period, there is no guarantee that WCT will not seek further funding from the Council in future years. It must therefore be concluded that the current proposal made by WCT does not meet the Councils agreed intentions for Waterside Pool and is therefore unable to be recommended for acceptance.

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An Alternative Model for Supporting Waterside Community Trust

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There is however, much to commend the proposal made by WCT and there are a number of possible alternative funding models that the Council may wish to consider as an alternative to that proposed by WCT. Were the Council to allow WCT to acquire the canoe lake boats and canoe lake caf it could be considered to be providing the Trust with an opportunity to earn income through trading activities. Such income may be greater than is currently be the case and would be committed to supporting the operation of the pool. The Council may expect that in return for the transfer of these income generating activities there be no further requirement for public sector funding from it to WCT. If the Council were also to undertake some capital works to pump prime WCTs acquisition and management of the pool then it would provide the Trust with the opportunity reduce the running costs of the facility. The Council has previously identified for example that the conversion of the boilers from oil to gas at Waterside Pool could save as much as 10,000 per annum on the utility costs of the facility, for a one off capital cost of some 30,000. These works would be undertaken in addition to the 20,000 of replacement works requested by WCT in its proposal making a total capital commitment of 50,000. Any capital investment made by the Council may be conditional on its recovery by way of a charge on the land and property to be transferred to WCT such that if it were ever sold or developed by the Trust the Council would have the option to recover its initial investment of 50,000. In addition, there could be no expectation of further Council revenue funding of the Trust were it to offer capital investment of this nature. The revenue impact of the Council providing additional capital funding and forgoing the income from the canoe lake boats and caf on WCTs original proposal is summarised in Appendix 4. This identifies that the Council would be required to provide revenue support to WCT in the sum of 85,418 over the first three years following its acquisition of the pool. This would be largely (76,800) in the form of net income forgone but an additional grant payment of 9,561 to the Trust would be required at the point of transfer. It should be noted that revenue funding would still need to be secured from Ryde Town Council (or other funding sources) for this approach to be successful. The land adjacent and to the west of the pool provides WCT with the opportunity to create a surplus of funds that it would be able to reinvest in securing the future of Waterside Pool. The Council has previously identified the need for investment in the building and fabric of the pool and if it is not able to provide this itself then this land does offer an opportunity for WCT to secure funds for use at the pool. The Council may look to provide the land to WCT for these purposes only in order to support WCTs aspirations. The terms set out in Appendix 5 to this paper are considered sufficient to provide the Trust with the opportunity to develop the land to help reduce to the running costs of the facility whilst at the same time protecting the Councils interests in it. The Isle of Wight Council proposal would, if it were accepted in its entirety require the Council to fund one off capital works costing some 50,000, to forgo an annual net income of 26,500 and also to provide a one off revenue grant of 9,561 to the Trust. For the provision of this support the Trust would have to accept that there could be no further funding provided by the Council to WCT in future years. It may therefore be concluded that the Isle of Wight Council proposal along the lines set out in paragraphs 24 to 30 inclusive would more closely meet the Councils agreed intentions for Waterside Pool and is therefore more able to be accepted by Members. 4

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A comparison of the financial impact of the two proposals is shown in table 1 below. Ultimately it is expected that the same community benefits will be achieved in each.
IW C A lte rn a tiv e P ro p o s a l 2 0 0 ,8 3 5

T a b le 1 : C o m p a ris o n o f F u n d in g M o d e ls o f W a te rs id e C o m m u n ity T ru s t (to ta l o v e r 3 y e a rs ) ( ) W C T O p e ra tin g D e fic it Funded by Is le o f W ig h t C o u n c il -(in c o m e fo rg o n e + c a s h g ra n t) R y d e T o w n C o u n c il C a p ita l In v e s tm e n t b y Is le o f W ig h t C o u n c il

W C T P ro p o s a l 2 3 0 ,8 3 5

1 5 3 ,8 1 8 7 7 ,0 1 8 2 0 ,0 0 0

8 5 ,4 1 8 1 1 5 ,4 1 8 5 0 ,0 0 0

STRATEGIC CONTEXT 32. The provision of leisure opportunities contributes to the healthy and supportive Island theme of the Eco Island Sustainable Community Strategy (2008-2020). It is relevant to all of the four aspirations under this theme: 33. Reduce levels of obesity. Improve health, emotional well being and life expectancy across the Island. Support vulnerable people to live independent lives. Ensure people of all ages have places to live and things to do in their local area.

The provision of leisure opportunities is not a corporate priority in the Councils corporate plan (2011 to 2013). Such opportunities can however contribute to the priorities of Regeneration and the Economy and Delivering Budget Savings through Changed Service Provision. The proposals contained within this report are consistent with the future shape and direction of the Council that was agreed by the Cabinet in December 2010. In particular the proposals are consistent with the agreed principles to : Encourage local communities to take responsibility for their local area as a reliance on local Council funded initiatives reduces. For the Council to actively pursue and commission services through engagement with local communities. To actively seek to sell or dispose of assets that are surplus to requirements where practicable to maximise receipts or lease them where it is not (including through community asset transfer).

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CONSULTATION 35. A copy of this report has been shared in draft with Ryde Town Council and it has advised that it, has approved funding of 30,000 in 2011/12 towards the future operation of the Waterside Pool by the Waterside Community Trust. This release of this funding is dependent on the Town Council approving the Trust's Business Plan for the pool. The Town Council's Finance Committee will be considering the business plan when it meets on 20 September with a view to making a recommendation about the release of the funding to the Full Town Council on 3 October. The Trust has also written to the Town Council to request additional future funding of 40,000 in 2012/13 and a further 40,000 in 2013/14; 5

this request will also be considered in the first instance by the Town Council's Finance Committee on 20 September. 36. The Waterside Community Trust has commented to the effect that it is generally content with the recommendations made in this report but that it would like the Council to consider the following principles be applied should the Trust be unsuccessful in its operation of the pool: All WCT debts and liabilities to be cleared first The Councils 50,000 to then be paid back Any additional monies left over are ring fenced for groups/community groups in Ryde by mutual consent between WCT and the Council. 37. No comments in respect of the proposals contained in this report have been received from the local Ryde Members; a draft copy having been sent on 8 September. Any comments received will be considered when this delegated decision is made by the Cabinet Member.

FINANCIAL / BUDGET IMPLICATIONS 38. The 2011/12 revenue budget for operating the pool is 100,000. This is likely to be fully expended by 31 October 2011 whereupon the pool will have to close or be transferred to a third party. There are also costs associated with the redundancies of the staff employed at the pool, should it close. These would be in addition to the current budget for the pools operation. If the Council were to choose to allow the WCT to receive the income from the caf lease and the surplus from the operation of the canoe lake boats then it would be forgoing a total annual net income of some 26,500 which is currently provided for in its revenue budget. There is no revenue budget from which to meet this effective cost to the Council nor the cost of any additional grant aid that the Council may wish to provide to the Trust, but full Council could choose to allocate this funding. The transfer of the facility in November 2011 requires a payment from the Council of some 16,061 in the current financial year representing the necessary grant payment and a share of the caf lease income received in 2011/12. There is no current revenue budget with which to meet this cost, but full Council could choose to allocate this funding. If the Council were to undertake capital works to the building in the sum of 50,000 it would have to fund these works through prudential borrowing. The cost of such borrowing over a 20-year period equates to a cost to the revenue budget of 5,000 per annum for which there is no current budget provision. The Councils capital resources are limited and its main capital commitments outside of schools and transport have to be funded by capital receipts from the disposal of assets or from prudential borrowing. In considering this proposal the benefits to the local community need to be measured against the capital receipt that would otherwise be obtained. The cost to the Council is effectively the additional prudential borrowing costs that will need to be incurred on 250,000 to 350,000 that would otherwise have been met from a capital receipt. Over a 20-year period this would amount to a revenue cost of some 25,000 to 35,000 per annum. It is estimated that the cost of demolition of the building and making good the site on which it stands is in the order of 150,000 to 200,000. This cost would not be incurred if the 6

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pool is disposed of to WCT as a continuing operation, but the Council would incur the cost were the pool to close. 44. The overall potential maximum revenue costs to the Council of accepting the alternative proposal to provide support to the Waterside Community Trust are set out in the following table 2,
Year 1 25,600 16,061 5,000 35,000 81,661 Year 2 25,600 Year 3 25,600
Years 4-20 (annual cost)

Table 2: Total possible IWC contributions to Waterside Community Trust () Loss of revenue income (caf lease + canoe lake boats) Provision of grant aid Costs of providing 50,000 capital funding Impact of forgoing a capital receipt of 350,000 Totals

Year 21 25,600

25,600

5,000 35,000 65,600

5,000 35,000 65,600

5,000 35,000 65,600

25,600

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For this proposal to be accepted it is necessary to identify where the financial support for the Trust would come from and this can only be agreed by full Council. The mid term budget review to be presented to full Council on the 21 September by the Leader and Cabinet member for Resources will therefore be asked for approval to: Commit 50,000 of the current capital programme to Waterside Pool in support of this decision Allocate 16,081 from the revenue reserve to provide the start up grant to WCT Agree to the forgoing of 26,500 of income in the Councils revenue budget from 2012/13 onwards.

LEGAL IMPLICATIONS 46. The Council is able to provide leisure services by virtue of the powers conferred to it under sections 19, 144 and 145 of the Local Government (Miscellaneous Provisions) Act 1976. This provides that a local authority may provide inside or outside its area such recreational facilities that it sees fit. The introduction of the general power to promote and improve the well being of the geographical area for which the authority is responsible (section 2 of the Local Government Act 2000) allows the authority to do anything which it considers likely to promote of improve the economic, social or environmental well being of its area. The Council will need to be mindful of the Transfer of Undertakings (Protection of Employment) regulations (TUPE) 2006 which protect employees terms and conditions of employment when a business is transferred from one owner to another. In such cases the Council staff would automatically become employees of the new business on the same terms and conditions as they currently have as employees of the Council. The Council would be required to inform and consult staff affected directly and indirectly by the transfer to comply with TUPE and ensure that appropriate Legal and HR advice is taken during the process to avoid the cost of any potential Employment Tribunal actions for unfair dismissal or breach of TUPE regulations. . Staff at Waterside Pool will be at risk of redundancy and therefore subject to formal consultation in respect of the future of the pool, if the acquisition by WCT is not achievable. If there is no acquisition, the redundancy must be dealt with in accordance with Council policies and employment legislation to avoid any claims for unfair dismissal. 7

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PROPERTY IMPLICATIONS 50. The Cabinets decisions of the 7 December 2010 effectively declared Waterside Pool surplus to operational requirements allowing the Council to explore the opportunities for other organisations to take acquire the facility. The Council has the power to dispose of property under Section 123 of the Local Government Act 1972, for best consideration. Best consideration does not necessarily mean the highest price achievable, as this can be obtained by means other than purely monetary consideration, such as the additional benefits generated by and for communities whilst observing the Councils duty to make proper use of public funds and protect Council/local taxpayers interests and service delivery. The highest price achievable for the site may be through redevelopment for an alternative use. Although indications are that such a use may not be easily achievable. However the Council had specified within its marketing the need for investment into the property alongside some continued community use and access, and by adhering to these criteria the financial offer of 1 is likely to represent best consideration when taking the criteria into account The price agreed for the leasehold interest is 1 per annum, primarily reflecting the condition of the building and also the terms of the restricted user covenants in the proposed lease. Waterside Pool and the adjacent land is estimated to be worth 250,000 to 350,000 if sold without any restrictions on the use. The Council could therefore be considered to be forgoing a potential capital receipt of up to 350,000 in disposing of the pool and adjacent land to WCT.

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EQUALITY AND DIVERSITY 54. The Council as a public body is subject to general and specific duties under equality and diversity legislation and as such has a duty to impact assess its services, policies/strategies and decisions with regard to diversity legislation race, disability, gender, age, sexual orientation and religion/belief. None of the identified groups are likely to be adversely affected by this decision.

SECTION 17 CRIME AND DISORDER ACT 1998 55. There are no direct crime and disorder implications arising from the recommendations in this report in respect of the disposal of Waterside Pool. Should the facility close however, there would be a very high risk of vandalism and damage to the facility and also personal injury to people who may choose to trespass on the site. There is also a high risk of the pool tank being damaged after it has been drained as part of the closure works. Both risks will be mitigated by the Council demolishing the building and making good the site as soon as possible after its closure

OPTIONS 56. The options available to the Council are: i. Agree to the leasehold disposal of Waterside Pool and adjacent land to the Waterside Community Trust on the terms as set out in appendix 5 including:8

 WCT taking responsibility for the management and maintenance of the boats on Ryde canoe lake. The Council undertaking capital works of up to 20,000 in value to replace the changing room boiler, pool filter and pool cover. The Council providing 77,018 in grant aid to WCT over the three years commencing November 2011. The Council providing back office support to the Waterside Community Trust until 31st March 2012; in a form and to a value to be agreed by the Strategic Director of Resources in consultation with the Cabinet Member for Resources. ii. Agree to the leasehold disposal of Waterside Pool and adjacent land to the Waterside Community Trust on the terms as set out in appendix 5 including: WCT taking responsibility for the management and maintenance of the boats on Ryde canoe lake. The Council undertaking capital works of up to 50,000 in value to replace the changing room boiler, pool filter and pool cover and also to convert the pool boilers to gas fired. The Council providing a one off grant of 16,061 in the current financial year to assist the Waterside Community Trust to establish its trading position. The Council providing back office support to the Waterside Community Trust until 31st March 2012; in a form and to a value to be agreed by the Strategic Director of Resources in consultation with the Cabinet Member for Resources. iii. Not to agree to the leasehold disposal of Waterside Pool and adjacent land to the Waterside Community Trust and to close the Pool with effect from the 31st October 2011 and incur costs of 150,000 to 200,000 in demolishing the pool and making good the site. iv. Not to agree to the leasehold disposal of Waterside Pool and adjacent land to the Waterside Community Trust and to undertake a new marketing exercise for the Pool and adjacent land without any restrictions on their use RISK MANAGEMENT 57. There is a medium risk that the assumptions which underpin the business plan proposed by WCT are incorrect and as a consequence the actual costs for the operation of the pool will be higher than estimated. In this instance it is most likely that the pool would close and control of it would revert back to the Council. The Council has helped to mitigate this risk with the provision of a significant amount of information, advice and guidance to WCT, it too has spent a considerable time testing its assumptions and its business plan to the point that it was comfortable to present them to the Council. There is a medium risk that WCT will have short term negative cashflow that will have a detrimental impact on its operation of the pool in the period immediately following its acquisition of the facility. This has been taken into account in the analysis included in this paper but there remains the risk that the assumptions behind the financial projections are not correct. These will only begin to be firmed up once WCT better understands the facility and the potential market for it. 9

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One of the Councils considerations in seeking to dispose of Waterside Pool was the high estimated cost of repairs required to make the building more fit for purpose. The need for these works will not be obviated by the disposal of the facility to WCT. Although WCT does have plans to undertake many of the required cosmetic works to the building there is still a risk that a critical piece of plant or equipment may fail leading to the closure of the facility. The Council would mitigate this risk in part if it were to commit some capital expenditure to the building as part of the disposal process but should a critical plant breakdown occur it is unlikely that WCT would be able to continue to operate the facility. There is however a risk that the Council may not be able to see a return on this capital expenditure if the pool were to close following the woks being completed. It is possible that the Council may get some short term benefit from the works at other locations and that these works would improve the overall value of the site to a potential developer. WCTs business plan for the first three years following its acquisition of the building relies on a significant level of continued public sector support for the pool. After this initial three year period the intention is that it would have developed a greater range of income earning activities to make its overall operation less reliant on this support. Nevertheless there is a high risk that without continuing public sector support WCT may not be able to sustain its operation of the facility in the medium term. In such a case the pool would revert to the Councils control. There is a high risk that WCT will be unable to complete any development of the land adjacent to the pool and release the capital it requires to improve the pool and develop new income earning activities to enable it to reduce its reliance on further public sector funds. To mitigate this risk the Council has provided information and advice on the likelihood of WCT being able to develop this land in the future. The delivery of WCTs business plan is reliant on public sector funding, other than from the Isle of Wight Council, being made available to it for the first three years following its acquisition of the facility. At the time of writing this funding had not been secured and there is a high risk that it will not be available to the Trust. Were this to be the case then WCTs acquisition of the pool would not be able to proceed and the Council would need to take the necessary steps to close the pool with effect from the end of October 2011.

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EVALUATION 63. The Councils original intention for Waterside Pool was for its closure at the end of March 2011 in order to deliver savings to the revenue budget of 250,000 per annum contributing to an overall net savings target of 17.833m in the current financial year. Mindful of the strong community support for the pool the Council did however agree to seek proposals that would enable the pool to continue to be available to the community but at nil longer term cost to the Isle of Wight Council. The proposals contained within this report arguably only achieve the continued availability of the pool to the community. The proposal made by WCT and the work done with it by Council Officers have demonstrated the price the Council must consider paying in order to sustain community use of the pool and also that this price comes with a number of inherent and high risks. One of the major risks being the need for other public sector bodies to provide funding to the WCT in order that it is able to succeed. Ultimately the Council will not achieve its desired revenue saving of 250,000 a year through the acceptance of this recommendation. The likely saving will be 214,900 in the first year and 224,400 per annum thereafter. 10

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It must however be noted from Table 2 that the notional cost to the Council of accepting this recommendation will be 81,661 in the first year and then 65,600 per annum thereafter, only reducing to 26,600 in year 21 following the transfer. This reflects the opportunity costs that the Council in the disposal of the land and also the costs of borrowing the required capital support for the project and represent a significant total investment (above and below the line) in the success of WCT that warrants an expectation that it will provide no further funding to WCT above that provided for in the recommendation. Advice from the Planning department is that the capital receipt from the land to the west of the pool may be difficult to realise. It lies in flood zones 2 and 3, within the development envelope, adjacent to a conservation area and within reasonable proximity to a number of prominent listed buildings. There may be some limited opportunities for a revised development on the site to include a community facility alongside some other uses (e.g. new caf and possibly a hotel). In order to bring such opportunities forward a heritage statement would be required and it is also anticipated that some significant action would be required to mitigate the impact on the highway of a major increase in use of the site. The net income received from the canoe lake cafe and boats forms part of the Councils current revenue budget but can not be guaranteed in the longer term. There may come a point in the future when the Council would not have the benefit of this income; if for example the caf were unoccupied (with associated costs) or the canoe lake boats were no longer fit for use. If this income were to be lost for whatever reason it would be an effective cost to the Councils revenue budget. It is most likely that the fabric and structure of Waterside Pool would begin to deteriorate very quickly once the pool is no longer in use after its proposed closure on 31 October 2011. This would be prevented by a third party taking over the management of the pool as soon as possible after that date. This date is therefore a key driver in identifying and agreeing terms with an organisation capable of acquiring the facility.

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RECOMMENDATION 70. That the Council adopts option ii; subject to the agreement of the full Council meeting on 21 September to provide the required funding and agrees :To the leasehold disposal of Waterside Pool and adjacent land to the Waterside Community Trust on the terms as set out in appendix 5 including: WCT taking responsibility for the management and maintenance of the boats on Ryde canoe lake. The Council undertaking capital works of up to 50,000 in value to replace the changing room boiler, pool filter and pool cover and also to convert the pool boilers to gas fired. The Council providing a one off grant of 16,061 in the current financial year to assist the Waterside Community Trust to establish its trading position The Council providing back office support to the Waterside Community Trust until 31st March 2012; in a form and to a value to be agreed by the Strategic Director of Resources in consultation with the Cabinet Member for Resources.

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APPENDICES ATTACHED 71. APPENDIX 1 - Waterside Community Trust Proposal for the Acquisition of Waterside Pool and adjacent Land: Key Points within the Business Plan APPENDIX 2 -Waterside Community Trust three year financial projections APPENDIX 3 -Site plan Land and Buildings to be acquired by Waterside Community Trust APPENDIX 4 -Possible three year financial projections for Waterside Pool if the alternative model for supporting WCT is adopted APPENDIX 5 - Proposed heads of agreement for the acquisition of Waterside pool by the Waterside Community Trust.

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BACKGROUND PAPERS 76. None

Contact Point: John Metcalfe, Deputy Director Economy, Tourism and Leisure, 01983 823146 e-mail john.metcalfe@iow.gov.uk

STUART LOVE Strategic Director Economy & Environment Decision Signed Date

COUNCILLOR GEORGE BROWN Deputy Leader of the IW Council and Cabinet Member for the Economy and the Environment

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