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Mar

Last Updated: 04/03/2024

Consultants to look at alternative uses for Harrogate Convention Centre

by John Plummer

| 04 Mar, 2024

Harrogate Convention Centre

North Yorkshire Council is set to shelve a £57 million upgrade of Harrogate Convention Centre and test new operating models for the site instead.

A report published today reveals the council has appointed consultants 31ten to "help assess the options for the development and operation" of the events and exhibitions venue.

It said they will explore options for the future use and running of the site, adding:

"Options may include, but are not limited to, alternative delivery and funding models, partnership working, alternative uses for parts of the site, and asset ownership."

Harrogate Borough Council drew up plans eight years ago for a two-phase redevelopment of the ageing centre.

It estimated the first phase alone would cost £48 million and now North Yorkshire Council, which succeeded Harrogate Borough Council in April last year, has said the cost for phase one alone has soared to £57.2 million. Attempts to secure £20million government levelling-up funding towards this sum have failed.

The report to the Conservative-controlled council's executive also warns the phase one redevelopment would last three years and entail shutting large sections of the venue for up to 15 months at a time, jeopardising £14m of forward bookings. The report said:

"This income would be at significant risk if parts of the venue were to close. Current customers would be lost (possibly for good) and attracting new business would be challenging during the works."

'Soft market testing'

The report therefore urges councillors to undertake minor improvements while 'soft market testing' of long-term options for future viability models take place. It said conference centre owners, developers and operators from the public and private sectors would be consulted as part of this.

It adds:

"The aims of this work are to understand the market’s view of the Harrogate Convention Centre operation, and what can be learned from other enterprises across the country that involve the public sector.

"In particular this will seek views on: The physical asset – is the convention centre the correct use? Is the asset fit for purpose? How should it be updated to maximise its potential? The operating model – should it be operated by the public sector (in house or through a company), in partnership with the private sector or be privately operated?"

"Early review of the documentation shows there are a variety of options open to the council, including approaches that can bring in private sector investment and significantly change the operating model, all of which would have a potentially significant influence on what work should be undertaken and at what time."

Examining new options is due to be completed this month. A report recommending a way forward is then expected.

The report says one "more affordable" upgrade could be the creation of" much-needed break-out spaces which are expected to attract significant additional income each year".

Cllr Gareth Dadd, the council's executive director for finance, said:

“All major projects are being affected by the high rates of inflation and the rising costs of materials and labour.

“We need to make sure that we are providing the best value for money for residents and businesses across North Yorkshire."

'Tactical investment is the way forward'

Paula Lorimer, the convention centre’s director, warned last year Harrogate would "wither on the vine" if the convention centre closed and supported plans for a major upgrade. But she said she now backed the fresh approach:

“We recognise that there is a real need for investment in the building, but more affordable options should also be explored. Alternative plans that are being considered would prevent shutting large parts of the venue for significant periods of time to avoid the loss of valuable revenue.

“This building is integral to the visitor economy of Harrogate. Its conferences, exhibitions, corporate events, banquets and live entertainment provide jobs and business to the town’s shops, bars, cafes, restaurants and hotels – worth about £45 million a year to the local economy."

Ms Lorimer added that this year’s income from lettings is at the highest level since 2014 and the number of forward bookings is also the highest in recent memory.

She said:

“This demonstrates that the venue is doing well, and tactical investment is the way forward to keeping the venue operational.”

However, the building has problems with ageing heating and air conditioning systems and there are also increasing maintenance and utility costs, as well as a layout that presents challenges for many events and conferences.

North Yorkshire Council currently supports the centre with a subsidy of £2.7 million each year.

The centre opened in 1982 and has a 2,000-seat auditorium and 13,000 square metres of exhibition space.

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Consultants to look at alternative uses for Harrogate Convention Centre

'Soft market testing'

'Tactical investment is the way forward'

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