Harrogate Convention Centre: council gives update on key decisionMajor redevelopment of Harrogate Convention Centre could start in October

A major redevelopment of Harrogate Convention Centre could get underway in October after councillors backed spending £2.8 million of cash reserves to speed up the first phase of works.

Members of Harrogate Borough Council’s cabinet last night agreed to the spend after warnings that the local economy could miss out on up to £14.9 million through cancelled events unless the centre’s studio two gets an upgrade sooner than originally planned.

The works would see the creation of flexible events space for up to 1,200 people, which centre director Paula Lorimer said was the most crucial part of all the plans.

She told last night’s meeting: 

“The convention centre has an auditorium with a capacity of just under 2,000, but it only has breakout space for 560 delegates.

“This in my opinion is one of the biggest reasons why we have not been able to attract some of the larger conferences.

“The studio two package is a game changer for the convention centre – and it is also a crucial part of the redevelopment to rebuild confidence in our venue.”

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If approved by all councillors, a competitive tender process would be launched under the next stage of the studio two works, which could be completed by February 2023.

Overall, the full redevelopment plans could cost up to £47 million and involve three exhibition halls being demolished to make way for a new 5,000 square metre hall and a refurbished auditorium.

The proposals were first revealed last year when the council said the 40-year-old centre was in “critical need” of an upgrade to keep its national appeal and that without investment its maintenance costs could reach £19 million over the next two decades.

A decision on the whole project is expected from councillors in summer.

Centre unable to attract ‘large and lucrative’ events

The studio two works are being accelerated after Ms Lorimer said the centre had been unable to attract “large and lucrative” events due to competition from more modern conference venues elsewhere in the country.

She said events are planned at least 18 months in advance and that without an upgraded studio two, the centre could lose £1.1 million in lettings revenue in the coming years with businesses also missing out on an economic impact of £14.9 million from the venue.

Cllr Richard Cooper, leader of Harrogate Borough Council, said he supported the plans because of the wider economic impact.

He told last night’s meeting: 

“Nearly everybody in the Harrogate district knows somebody or have themselves worked in the hospitality and tourism industry.

“That to me always underlines the critical importance of the convention centre to our local economy.”

£1.5m spent on unapproved plans for Harrogate Convention Centre redevelopment

More than £1.5m of taxpayers’ money has already been spent on plans for a major redevelopment of Harrogate Convention Centre before the project has been approved.

In what is set to be one of its biggest decisions in recent history, Harrogate Borough Council will next summer vote on the proposed project, which is currently at the design stage and could cost £47m over three phases.

Figures obtained by the Local Democracy Reporting Service show £1.1m has so far been spent on contracts for design and feasibility works, while £275,000 has been spent on a first phase business case and £179,050 on an outline business case.

Councillor Graham Swift, deputy leader and cabinet member for economic growth at the council, said these works have been a key part of the planning process and that they will help the authority weigh up the benefits and risks before making a final decision. He said:

“By appointing specialists – such as Cushman and Wakefield, Arcadis and KPMG – we will have a comprehensive understanding of the feasibility of the project.

“It is crucial that we redevelop the ageing site as well as introduce much more flexible spaces that will allow us to attract a broader customer base and substantially strengthen this economic impact.

“These changes are essential to stay relevant for the changing conference trade and optimise space for the future.

“The delivery of this project will also be key to the district’s covid economic recovery plan.

“Therefore, it is essential we get it right.”

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Now over 40 years old, the council says the centre is in “critical need” of an upgrade and that there is “very real risk” it will not survive without investment.

It was estimated before the pandemic that the venue attracted more than 150,000 visitors a year with an annual economic impact of £35m. However, there are now questions over how quickly the events industry can bounce back.

Even before covid, Harrogate’s position in the industry was under threat as major conferences began taking their business to bigger and newer arenas.

This growing competition has led to warnings from centre director Paula Lorimer who last week said the venue will miss out on “large and lucrative” events unless the redevelopment plans are accelerated.

‘Major failing’

The project was first revealed in 2020 when the council’s opposition Liberal Democrat group signalled its support for the plans, although it criticised the Conservative-run authority for what it described as a lack of investment in the past.

The Liberal Democrats have also accused the council over failures in planning for the initial convention centre build over 40 years ago, adding that these “mistakes” must now be avoided by ensuring the redevelopment plans are well prepared and fully costed.

The party said in a statement:

“Any potential project of this magnitude needs to be fully costed and investigated before any decision is made to go ahead.

“This was a major failing the council made when it proceeded with the conference centre development in the 1970s.

“The project increased in price from just over £8m to over £34m by the time it was ready to open in 1982 and took twice as long as originally planned.

“The future of the conference and exhibition business is probably going to be one of the most important economic decisions to be made for our area for years to come.

“We must get it right and learn from past mistakes.”

Harrogate Convention Centre boss warns big events ‘at risk’ unless £47m refurbishment is accelerated

The director of Harrogate Convention Centre has warned the venue and local economy will miss out on big events unless plans for a major refurbishment are accelerated.

Paula Lorimer said upgrading the centre’s studio two needed to be made a priority as it would be a “game changer”.

Speaking at a meeting of Harrogate Borough Council’s cabinet on Wednesday, she said this part of the centre currently has limited “breakout” space and that this has meant it has been unable to attract “larger and more lucrative” events.

Ms Lorimer said:

“We are lucky to have one of the largest and most gorgeous auditoriums in the country with just over 1,900 seats, but we only have breakout space for 570 people.

“These larger conference rooms that we are hoping to have in studio two will mean we will attract much larger conferences.

“We therefore believe there is a very strong case to accelerate this part of the project.”

The project has yet to receive a final go-ahead from councillors and could cost up to £47m over three phases if approved.

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It was revealed at this week’s meeting that the plans have already been delayed due to the covid pandemic, with a report warning that this could have an impact on contracted and potential events booked from April 2023 onwards.

‘Important event’ coming to Harrogate

It also said there is an “important event” planned for early 2023 which will require the works on studio two to be completed, however, the council said it was unable to confirm the details as it is not a public event.

The report added:

“If the studio two package is not ready by April 2023, the potential negative impact on the Harrogate Convention Centre order book would be significant.

“It is highly likely that the newly contracted events for the period 2023/24 would be lost.

“It also runs the risk of not being able to bid for these conferences again until post 2025.”

The plans were first revealed in July last year when the council said the 40-year-old centre was in “critical need” of an upgrade to keep its national appeal and that without investment its maintenance costs could reach £19m over the next two decades.

150,000 visitors a year

It was estimated before the pandemic that the centre attracted more than 150,000 visitors a year with an annual economic impact of £35m.

However, covid has now raised questions over how quickly the industry can bounce back to pre-pandemic levels and what risks this could mean for the potential £47m redevelopment.

A final decision on the project will be made by councillors next year and the council has yet to put forward any funding proposals, although it said a business case would play a key part in supporting bids for government cash.

It was agreed at yesterday’s meeting that a further report would be brought back to cabinet to decide whether the works on studio two should be accelerated.

It was also agreed that further design and feasibility works are continued.

Other plans as part of the project could involve three exhibition halls being demolished to make way for a new 5,000 sq m hall and a refurbished auditorium.
Around £20m would be needed to complete a first phase of redevelopment, with another phase later.

Council to award business case contract for £47m redevelopment of Harrogate Convention Centre

A potential £47 million redevelopment of Harrogate Convention Centre looks set to move another step closer with the awarding of a contract to assess the economic impacts of covid.

Trevor Watson, Harrogate Borough Council’s director of economy, environment and housing, will hold a meeting next Tuesday to approve the contract ,which will also involve work on a full business case and planning updates for the proposed project.

It follows a competitive tender process during which the council only received a single bid for the business planning works.

If approved, a decision would be made by the council on the business case in March 2022. The authority said this would fit with the timescales of the reorganisation of local councils in North Yorkshire.

The borough council will no longer exist by May 2023 as part of government plans to scrap the county council and seven districts and replace them with one super authority. It means it will no longer have control over the HCC.

The value of the contract and the bidder is not yet known – and will only be made public if it is agreed by both parties.

In a report to Tuesday’s meeting, Rebecca Micallef, economy and transport officer at the council, said the bidder’s proposals were “excellent overall” and that the business planning works would help form a final decision over whether the redevelopment should go ahead.

She said:

“The work will look in detail at the wider economic impact of the  redevelopment proposals on Harrogate, the district and beyond and help us to better understand the implications of covid on the industry and therefore the case for investment.

“Harrogate Convention Centre is a vital economic driver for the Harrogate district and wider region, providing a unique offer for the conference and exhibition market.

“The redevelopment of the venue offers the potential to deliver an exciting and major transformational project and is critical to the covid economic recovery plan for Harrogate district.”

After warning the 40-year-old convention centre may not survive without investment, the council awarded design firm Arcadis a £1 million contract earlier this year to produce design proposals.

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Can the events industry bounce back?

The venue was struggling financially before the pandemic hit and it was then used as an NHS Nightingale hospital for almost a year.

The 500-bed hospital did not treat a single coronavirus patient and after being dismantled in spring, several conference events have now made a return.

It was estimated before the pandemic that the convention centre attracted more than 150,000 visitors a year with an economic impact of £35 million. However, there are now questions over if the events industry can bounce back to pre-covid levels and what risks this could mean for the £47 million redevelopment.

There is also the question of how the project would be funded, with council leader Richard Cooper previously saying he hoped the government would provide cash to repay the “goodwill” of the convention centre’s use as the Nightingale hospital.

Economy and transport officer Rebecca Micallef also said in her report to Tuesday’s meeting that the development of the business case would play a “crucial part” in supporting bids for external funding.

Plans to rebuild the venue could involve three exhibition halls being demolished to make way for a new 5,000 sq m hall and a refurbished auditorium.

Around £20 million would be needed to complete a first phase of redevelopment, with another phase later.

If this is not done, a report previously estimated the venue’s maintenance costs over 20 years could reach £19 million.

Andrew Jones MP calls for debate on stricken conference sector

Harrogate and Knaresborough MP Andrew Jones has called for a Commons debate on the stricken conference industry.

Speaking in Parliament, Mr Jones said the sector was “central to the economy” of both towns he represented but faced “real hardship” due to the pandemic.

Mr Jones said:

“One sector of business that has faced real hardship is the conference industry, a sector with a long and diverse supply chain, ranging from hospitality to exhibition stand construction.

“Please may we have a debate about that sector, to consider what can be done to ensure that it bounces back quickly, as it is so important for jobs and it is central to the economy of not only Harrogate and Knaresborough, but, of course, other constituencies around the UK?”

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Leader of the House of Commons Jacob Rees-Mogg did not agree to the request but said event venues and organisers could make use of initiatives such as the furlough scheme and various grants.

He added:

“I join my honourable friend in praising the Harrogate convention centre for becoming a Nightingale hospital and therefore being able to help the community widely.”

NHS Nightingale Hospital Yorkshire and Humber, based at Harrogate Convention Centre.

NHS Nightingale Hospital Yorkshire and the Humber, based at Harrogate Convention Centre.

Judith Rogerson, the Liberal Democrat parliamentary spokesperson for Harrogate and Knaresborough, described Mr Rees-Mogg’s response as “wholly inadequate”.

She added:

“It is striking that Jacob Rees-Mogg’s response on behalf of the government does not answer the question.

“Instead he has talked about the Harrogate Convention Centre helping the community by becoming a Nightingale hospital.

“I’d like to know what the government has planned to help restore the convention centre so it is ready to re-open again as soon as it is safe to do so.”

The convention centre was turned into a Nightingale hospital at breakneck speed last spring for covid patients in Yorkshire and the Humber, but has yet to treat a single person with coronavirus. It has been used for CT scans.

Knock-on effect

The effects of the pandemic on the conferences and events sector in the town have been profound, with several businesses closing their doors for good.

The Kimberley Hotel closed in December, citing the impact of covid and in October family events firm Joe Manby Ltd folded after 46 years.

This month would have seen the convention centre host the BIGGA turf management exhibition, which is an annual three-day conference for green-keepers that is one of the year’s biggest money-spinners for Harrogate — with hotels full and bar tills ringing.

Mr Jones urged Boris Johnson to provide financial support for the conference and exhibition industry at Prime Minister’s Questions last year but that plea also went unheeded.

Conference sector ‘cut adrift’, says Harrogate events company

The exhibitions and conference sector has been “cut adrift” and left without support, says a Harrogate events company.

Andrew Manby, director of family events firm Joe Manby Ltd, said the Chancellor’s announcement today offered no specific support for the industry which already faces a “long way back” financially.

Rishi Sunak, Chancellor of the Exchequer, outlined billions of pounds’ worth of support for businesses, including subsiding part-time workers’ pay.

But Mr Manby said he had hoped for sector specific measures for an industry which has been closed down since March. Harrogate has seen a string of major events, conferences and exhibitions cancelled during the pandemic and its convention centre converted into a Nightingale Hospital.

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Mr Manby said today’s announcement did not appear to offer any ray of hope and added that the outlook was bleak for the sector.

He said:

“We need to reflect on what has been said, but on first glance it looks very grim indeed.

“it is an extremely difficult situation and where that leaves the exhibition market long term, I have no idea.

“It was always going to be a long haul back anyway.”

He added that further restrictions on events, which the Prime Minister said could last for six months, leave the industry in a difficult position. Live events, including sport, were due to have pilot events from October for the first time since the pandemic started.

But Prime Minister Boris Johnson abandoned the pilot schemes earlier this week after he outlined further restrictions to tackle an increase in coronavirus cases.

In an effort to offer more support to businesses, Mr Sunak outlined a range of measures in the House of Commons which included an extension to the VAT cut for the hospitality and tourism sector.

Some Harrogate businesses welcomed the move, but added that further support would be needed for other firms.