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06
Oct
New operator sought for Harrogate's Sun Pavilion
A process to find a new venue operator for Harrogate's Sun Pavilion is expected to be approved at a North Yorkshire Council meeting next Wednesday (October 14).
The current contract is due to expire on May 31, 2027, and the council has taken the opportunity to review the existing arrangements and assess the available operating options.
Built in 1933, the Grade II listed Sun Pavilion primarily operates as a venue for weddings, private functions and small corporate events, and can hold up to 150 guests.
The alternative options
In a report published ahead of next week's meeting, Nic Harne, corporate director for community development at North Yorkshire Council, outlines the alternative options.
The sale of the Sun Pavilion is ruled out not least because:
...substantial capital investment would be required to bring the building to a standard that would maximise its commercial value and achieve an attractive sales price.
Using the venue for some other use is also rejected. The lack of local parking spaces would be a problem, and, notes Mr Harne, the viability of the Magnesia Well Café could be undermined by any new competing operation.
The Magnesia Well Café in Harrogate's Valley Gardens.
Crucially, any alternative use could come with a financial penalty. The Sun Pavilion was substantially restored in 1998, thanks in part to funding from the National Heritage Memorial Fund (NHMF). Using the venue for some other use could oblige the council to repay £440,449 of the original grant back to the NHMF.
Mr Harne adds:
Given the unique nature of the building and its location, the Estates Team has advised that there is no readily identifiable alternative use that would deliver equivalent or greater value or strategic benefit.
Another option considered is management of the building in-house. Management responsibility for the venue transferred in 2007 to Harrogate Convention Centre, which has a dedicated in-house catering provider. But the report says the service is geared to providing catering operations only to the convention centre, and adds:
Incorporating catering services for the Sun Pavilion at this time would divert resources and management attention, particularly when the venue is focused on increasing business activity to support the Studio 2 development.
The Studio 2 development is a £9.4 million reconfiguration project to create flexible breakout facilities at Harrogate Convention Centre.
Another option considered for the Sun Pavilion is installing a tenant under a lease arrangement. But under the current deal, the council retains free use of the premises for up to five days per year and holds keys enabling access to the building at any time, and the report notes:
The estates team identified no compelling reason to replace the current concession arrangement, as the absence of exclusive possession means current arrangements do not create a landlord and tenant relationship.
The Sun Pavilion in the Valley Gardens.
Current model 'delivers positive outcomes'
Ultimately, Mr Harne concludes that the current arrangements, which generate a minimum annual fee of £36,000 for the council, offer the best solution.
He therefore recommends that a competitive procurement process be approved to appoint an external contractor to operate the soft facilities management, bar and catering services for the venue, for a term of five years with an option to extend for a further five.
He states:
The concession contract model has historically delivered positive outcomes for the Council. It has ensured that the venue remains well-utilised while generating a strong financial return.
The model is also consistent with industry best practice for catering and hospitality arrangements of this nature and provides the most effective means of maintaining continuity of service for customers with bookings already secured for 2027.
The matter will be discussed at a meeting of North Yorkshire Council's community development directorate at 10am on Wednesday, October 14.
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