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10
Dec 2024
Council reveals new multi-million pound strategy for Harrogate Convention Centre
North Yorkshire Council plans to spend £7 million on improving Harrogate Convention Centre and seek commercial partners to help run the building.
It is also open to selling the site, but there appears to be limited interest from buyers.
The council outlined its approach in a new report, which you can read here, after spending £23,000 on a new batch of consultants to find a new way forward for the ageing, loss-making facility.
The consultants’ report has been kept secret by the council but their conclusions are contained in the council report.
The council's ruling Conservative executive is expected to rubber-stamp the new strategy at a meeting on Tuesday next week (December 17).
It is the latest twist in an eight-year council bid to develop and fund a viable strategy for the facility, which has already cost around £2 million in consultants’ fees.
Studio Two
What’s planned
The council estimates the centre contributes £45m annually to the local economy but it operated at a loss to taxpayers of £1.9 million in 2023/24 and £2.6m in 2022/23.
Built in 1982, the centre has one of the largest purpose-built auditoriums in the UK. However, a lack of larger breakout rooms has hampered its ability to host larger conferences.
The council therefore plans to spend £7 million on improving studio two to provide breakout conferencing facilities for about 1,300 delegates, which it estimates could generate an extra £1.5 million annually
It also wants to develop a new business plan and seek commercial partners, but the council report says the consultants found “there was limited interest in Harrogate Convention Centre from private developers”.
The report added there is a “very limited market of private operators” and that “local authority venues which have private operators tend to include other offerings such as an arena, concert hall or hotels, or be of a much larger scale and based in large cities, such as the London Olympia, Gateshead and Aberdeen”.
It also recommends forming partnerships between the centre and local government bodies or universities:
This could include collaborations with the wider Yorkshire region including, universities, colleges, airports, and the mayoral combined authority, potentially leading to a rebranding of Harrogate Convention Centre.
The 2,000-seat auditorium
Deterioration risk
The council report repeatedly cites the high running costs of running such an old building, as well as the fact that it is one of the largest carbon emitters in North Yorkshire. Utility costs of £2.36 million in 2022/23 amounted to 40 per cent of turnover.
It says the site has “numerous mechanical, electrical, and plumbing systems that require repair or replacement” and if they are not tackled the building will “continue to deteriorate, increasing the risk of operational failures”.
Consultants 31Ten identified five options. The council report concludes:
The recommended course of action is option 3, which involves the council developing studio two and adopting a more commercially driven operational approach.
While the preferred option represents a critical step forward, it does not immediately address major challenges at Harrogate Convention Centre, such as the need for replacements for mechanical and electrical systems. This option includes only an initial capital injection from the council, acknowledging that long-term investment in repair and replacement work will be essential to the venue’s sustainability.
The council must remain receptive to potential market opportunities, including offers for the freehold sale or alternative operating models. Although initial soft market testing indicated limited interest in a full sale, ongoing engagement with prospective buyers, such as the recent approach from a global conference operator, could uncover unexpected opportunities.
Paula Lorimer
Convention centre director Paula Lorimer said in a statement today:
“The proposals for studio two are very welcome and would significantly improve revenue opportunities for the Harrogate Convention Centre.
This venue is integral to the visitor economy of Harrogate. Its conferences, exhibitions, corporate events, banquets and live entertainment create jobs and business to the town’s shops, bars, cafes, restaurants and hotels.
In recent years, the centre’s performance has continued to improve, and the planned investment would help this trend to continue.
Cllr Mark Crane, the council’s executive member for open to business, said:
It is imperative that we look to ensuring that the venue remains at the forefront of the economy for both Harrogate and the wider Yorkshire region, and the proposals which will be considered by the executive are a means to ensuring this.
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