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10
Mar
Cost of Harrogate Convention Centre upgrade increases by more than £2.3 million
The cost of a project to upgrade Harrogate Convention Centre has increased to £9.4 million.
In December 2024, Conservative-run North Yorkshire Council's executive agreed to reconfigure studio two at the centre and create additional conference breakout space.
At the time, the project was expected to cost £7.1 million.
Increasing breakout space is seen as key to attracting larger conferences and generating more income.
The planned transformation of studio two, which would provide breakout conferencing facilities for about 1,200 delegates, could generate an extra £1.7 million annually, the council has claimed.
Some designs of the breakout rooms at Harrogate Convention Centre.
However, according to a report due before the council’s executive on Tuesday (March 17), the cost of the project has now increased to £9.4 million.
The report only attributes the cost to a contract tender process, which the council deems to be at "market value rates".
However, details of the contract — which are included in the papers at the executive meeting — have been kept secret from the public.
Councillors will be recommended to approve the funding and the award of a contract for the construction at the meeting next week.
The report adds that the the increased cost of the project will also mean the payback of the investment increases from eight years to 10 years.
It says:
Following further design development and as result of the tender process, the project budget has increased to £9.4m.
This has extended the payback to just under 10 years. Though this reflects an extended payback period it still represents an acceptable investment proposal. The report therefore recommends the approval of the final business case and that £9.4m is allocated from the Strategic Capacity Unallocated Reserve to deliver the scheme.
Subject to approval, the council estimates that building work could start as early as this summer.
In a press release issued this morning, Cllr Gareth Dadd, Conservative deputy leader of the council, said:
The Harrogate Convention Centre brings thousands of visitors to North Yorkshire every year and contributes more than £45 million for our economy through the retail and hospitality sectors.
It is a key economic driver which promotes both the town and North Yorkshire on a national stage. It is vital that it continues to play a leading role in the economic success of Harrogate and the wider region.
Developing studio two by creating larger breakout conference rooms to complement the existing 2,000-seater auditorium can ensure the venue stands alongside the very best centres of its kind in the country, competing in what is an extremely competitive market.
It can only strengthen the centre’s economic impact in the years ahead, while at the same time, allow us to reduce our subsidy and protect taxpayers’ money.
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