A confidential cabinet report leaked to the Stray Ferret warns the Harrogate Convention Centre “will not survive” unless councillors approve a £46.8 million renovation project. 

The document presents councillors with three options: do nothing, do minimum or full renovation. 

But it says the first two options are “not economically viable” and urges members to vote for the third. 

Alternative proposals, such as selling the centre to a private buyer or changing its use, are not on the agenda. 

What’s the proposal? 

The council believes renovation will significantly increase income at the centre as well as in the town’s hotels, bars and restaurants. 

The report spells out the stark need for change, saying the centre’s financial performance has “declined significantly since 2008/9”. 

The venue is forecast to lose £710,000 in the last financial year 2019/20.  

Most recent figures show the centre’s income at £4.6m, a drop from £7.1m in 2008.

Long before it became a Nightingale, bookings had fallen as some longstanding visitors look elsewhere. 

Insurance conference Airmic, once regularly held in Harrogate, had jumped ship to the Edinburgh International Conference Centre. 

Other events previously held in Harrogate, including the Chartered Institute of Personnel and Development annual conference and exhibition, and the Royal College of Nursing’s conference, were scheduled for Manchester and Liverpool respectively this year. 

The loss of exhibitions, which are more profitable and less prone to change locations than conferences, has been particularly acutely felt. 

The report says there is a “critical need” for investment. “If the council does nothing, there is a very real risk that the venue will not survive,” it adds.  

To add to the woes, the centre faces £19m maintenance costs over the next 20 years. 

The report said the backlog maintenance bill for the HCC will be around £19m over the next 20 years.

The document said:

“Compensation has increasingly been incurred as a result of heating and cooling failures caused by declining mechanical and electrical systems.”

The report describes the 40-year-old centre as “ageing” and of “poorer quality” than competitors, such as ACC Liverpool, Manchester Central and Hull Venue. 

Full renovation, it says, is necessary.  

Will it work and who will pay? 

The council report says the “do nothing or do minimum options are not economically viable to the centre nor the district as a whole”. 

So if councillors agree to full renovation, the authority will pay consultants £1.1m to develop plans for the upgrade and appoint a project manager, costing £155,000 over three years. 

The Rebuild:  

Phase 1: costing £18.7m, would see the refurbishment of the auditorium and halls Q and D and the creation of break-out rooms for 1,250 delegates in studio 2. 

Phase 2: costing £28.1m would see halls A, B and C demolished and the construction of a new 5,000 square metre hall, costing £15m. 

The second phase also includes work to improve the connectivity between the centre and the Royal Hall and a new glazed facade on Kings Road. 

The council would need to find £22m upfront to begin full redevelopment and hopes to find funders to share the costs. 

The report said: 

“Every council that has refurbished a similar venue or has built similar from scratch has received significant funding support from government, or match funding.” 

“The council will continue to explore opportunities to attract upfront grant funding via public bodies such as the local enterprise partnerships, West Yorkshire Combined Authority, Visit England etc.” 

Even so, there is no guarantee of success despite a projected increase in visitors.   

Is the council best placed to deliver? 

This is a huge investment by the taxpayer. The question is whether the investment will work and whether a local authority is best placed to run a venue like the convention centre.  

Most other venues are privately owned. 

Paul Colston, managing editor of Conference & Meetings World, which covers the meetings industry, says investment in Harrogate has been frugal compared to its rivals and recommends the town considers copying Birmingham, where the city council’s sale of the NEC led to significant new investment.  

Mr Colston said: 

“I wonder, whatever the good intentions, whether local authorities can be the best managers of our convention crown jewels. 

“Look at Liverpool’s strides forward with its ACC Liverpool events campus built on its capital of culture campaign in 2008; Newcastle is now expecting a brand new convention centre on the Tyne and Manchester Central’s complex is drawing in many of the conferences and shows that used to come to Harrogate.” 

A 2016 council-commissioned report prepared by Sally Greenhill, of The Right Solution consultancy, described the council business ethos as “less dynamic than that of many of HIC’s competitors”. 

The report said:  

“Council processes are very risk averse whereas risk is a necessary part of events business”.  

The report added that “political aims can be distracting from the running of the facility”, and the council pay grade “makes it difficult to recruit the talent needed”. 

It recommended creating an arm’s-length operating company wholly owned by the council as “the most effective operational model”. This has yet to happen. 

The council’s approach 

Paula Lorimer’s appointment as centre director last year led to a new business strategy focusing less on the declining exhibitions sector and more on conferences. 

If the work is done, the council forecasts business from national associations will increase from 25 per cent to 45 per cent while exhibitions will decline from 36 per cent to 14 per cent over the next five years. 

The Conservative Party’s decision to host its spring conference in Harrogate was a coup, although it never went ahead due to coronavirus. 

But the council believes renovation will set the council on a course that will benefit not just the centre but the entire town. 

The report said: 

“The wider economic impact of the proposals on Harrogate, the district and beyond is likely to be significant and understanding this is critical to the wider case.” 

Doing nothing, the council warns, may lead to the centre’s demise.  

Spending £50 million in such a competitive market however, is also fraught with risk. 

Read more:

• Why has the convention centres value to the local economy dropped from £60 to £35m? 

For the past decade, Harrogate Borough Council has publicly sold the HCC as having an economic benefit to the town of around £60m.   

Yet at a full council meeting in December last year that figure dropped to a value of £35 million.   

This week councillors will take a step towards taking one of the biggest financial decisions in recent decades – £47 million worth of investment of taxpayers’ money in the HCC in an effort to make it profitable.  

The question is – what is the real value of the HCC to the local economy?

Read more:

• Council considers £47m redevelopment of Harrogate Convention Centre
• Why some councillors think Harrogate should be compensated for the Nightingale
• How the extension of the Nightingale contract is a “huge blow” for local businesses

The £60 million figure has been included in almost all local authority reports, including its annual report in 2019.   

That figure has been based upon annual economic impact summaries carried out by the council and includes a range of assumptions, such as average visitor numbers, how much each individual spends and length of stay.   

An example of an economic impact summary used to assess the value of the HCC in 2016/17.

In its annual report in 2019, the council said: 

“We are responding to the challenges of the changing nature of the conference industry by redeveloping the Harrogate Convention Centre site.  

“The facility contributes around £55 million a year to the local economy and has an important role to play in the district.” 

That was until December that year when council leader, Richard Cooper, was quoted at a full council meeting as saying the HCC is worth £35 million to the town.

Minutes from the meeting said: 

“The leader reported on the performance for the last year and advised that the Visit Britain methodology was now being used to calculate the economic impact for the district. 

“The number of conferences and exhibitions had remained the same and using the new methodology it was estimated that the HCC would drive approximately £35 million of economic impact for 2019/20.”   

It brings into question how the council had previously reached a figure almost double that and whether it felt some pressure to justify continued investment.

And is that value just to Harrogate alone? There are those outside the town who argue that a huge amount of public money is spent on a centre that does not bring significant economic benefit to the wider district.

Convention Centre losses  

In the last 12 financial years, the centre has reported a loss on eight occasions and seen its income drop from £7 million in 2008 to £4 million 10 years later.

As a subsidised economic driver for the town, the HCC relies on taxpayer money to be able to operate the way it does.  

According to the council’s own statement of accounts, in the years where the HCC made a loss the total cost to the public purse was £5,793,606.

Harrogate Convention Centre.

Meanwhile, council papers leaked to The Stray Ferret show that it reported a £710,000 cost for 2019/20.  

Explaining the loss, the report said:  

“This is largely attributed to the increasingly ageing facilities which are of a poorer quality and scale than HCC’s growing number of competitors (many of which have also been redeveloping in recent years).   

“This in turn has led to a loss of market share and a fall in the number and scale of events.” 

It paints a picture of an operating model that requires radical change in order to better serve its customers.  

Years of indecision  

Four years and four consultants on, the HCC and its future remains uncertain.  

2016 –  The Right Solution published a report into the future of the centre and listed recommendations including an arms length company. Paid £32,572.

2018 – IPW Consultancy is brought in to review market analysis of conferences and exhibition centres and 

2018 – Property advisor Cushman and Wakefield was appointed by the council to come up with a business case for the site. Paid £137,550.

2018 – Group Ginger was also appointed to develop a masterplan of the redevelopment. 

But a further £40,000 was granted in November 2019 to commission a consultant to look into a different option for the site following a change in leadership at the HCC.

The borough council appointed Cushman and Wakefield as the consultants for the plan. 

The report said: 

“The HCC redevelopment project poses significant commercial, reputational and financial risks to the council and in order that we are able to make sound recommendations for investment decisions, we are now seeking to commission further specialist advice to test and compare how the alternative, client-led option performs against the status quo position and the original project objectives.” 

Now again in 2020 the borough council looks set to spend £1 million, most of which will be borrowed, to consult further on one set of design proposals.

Is there a different vision? 

The decision going to the council offers only one vision – to keep the site as a convention centre. The only question put to councillors is how much money they want to spend on refurbishing it.

Could there be a different vision for the site that could provide a sustainable economic driver for Harrogate? That is not on the table.

The borough council it seems has put all of our eggs in one basket in the hope the centre will finally start to make a profit and bring more income to Harrogate.

Read more:

• EXCLUSIVE: Leaked report reveals dire financial state of Harrogate Convention Centre

Harrogate District Diving Club has expressed its frustration that it has not been given a date for training to resume at the Hydro.

Indoor swimming pools are allowed to reopen from tomorrow but Harrogate Borough Council is yet to confirm when it will open its pools. The diving club has been left unable to make plans or reassure its members.

The lack of a decision has left the club worrying about the impact on its members’ mental health. As a team sport, diving develops social as well as physical skills and, after months of lockdown, the club is desperate to give its members a date to look forward to.

Leanne Jalland, chair of the diving club, said:

“It is difficult to make plans without a date to return to training in the water.  We have to take each week by week, and come up with a variety of ways to keep our divers engaged and motivated but this is incredibly difficult. The response I have had from a lot parents is dismay and frustration, which is understandable.

“I am confident that by working with Swim England and the council we could ensure a safe return once it is allowed.  The club has received no official communication from the Hydro about any update for returning to the pool and only received a response from the council after pressing for a date to return last week.”

The club has trained in Harrogate for over 20 years with sporting stars including Olympic gold medallist Jack Laugher learning to dive at the club. It is a tradition the club hopes to continue once it starts up again.

The diving club are waiting for a confirmed date to return to training.

The council has said its reviewing the safety measures in place at the Hydro before opening.

Currently the club’s two coaches, both council employees, have been redeployed to other essential services by the council. The club has asked for one of its coaches to return to the team once the pool reopens.

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A council spokesperson said:

“We are working hard to reintroduce leisure facilities for all our residents – not just the diving club – but we need to make sure this is done in line with government guidelines so that our customers, and staff, are kept safe. We will then look at what additional services can be offered over the coming weeks.

“But this will only happen if staff can be relieved from providing statutory services. Any decision to do so will need to be carefully considered and the potential benefit for those people using leisure facilities balanced against the needs of residents and vulnerable people. The diving club has received several emails explaining this position already.”

Harrogate Borough Council is considering a major £46.8 million investment in the Harrogate Convention Centre.

The council will ask the cabinet next week to spend £1 million on detailed design and project work. The majority of that £1 million will be borrowed. It is unclear how the council will fund the full refurbishment.

Harrogate Convention Centre is now over 40 years old and the council has acknowledged that the infrastructure and equipment are both reaching the end of their useful life.

Council documents estimate that without investment, it would cost £19 million in long term maintenance costs and the “venue will not survive.”

It is also unclear when the project would start as the NHS has extended the Nightingale Hospital contract over the past few months.

The Prime Minister recently confirmed it could stay until March 2021, though no agreement has been reached with the NHS.

Read more:

• How long Harrogate’s Nightingale will remain in place
• Why some councillors think Harrogate should be compensated for the Nightingale
• How the extension of the Nightingale contract is a “huge blow” for local businesses

The council is proposing to refurbish the conference centre, auditorium and two of the main halls. They also plan to divide the space known as Studio 2 to create “breakout facilities” for up to 1,850 delegates.

Plans also include “refreshing the look” of the outside of the building and improving access between internal spaces. To improve the centre’s energy costs the council also plans to improve the heating, ventilation and air conditioning systems.

The second phase of the plans also proposes demolishing a part of the site to make way for a new 5,000 square metre events space. The report assumes a three year delay between the first and second phases.

The centre’s managers said they are moving away from focusing purely on exhibitions to include large national association conferences, attracting more than 500 delegates. They said this will increase the £35 million economic impact brought to the town by the venue.

Paula Lorimer, the director of Harrogate Convention Centre, said:

“Our exciting plans will reinvigorate and re-establish the convention centre. My ambition is for us to return to the top tier of conference and exhibition centres in the UK as we attract new – and bigger – events in the future. This will have a significant, positive, impact on the local economy.”

Two borough councillors have been appointed onto Green Hammerton Parish Council after the authority was left with only one member and unable to conduct business.

Calls for four new parish councillors went out in April when the number of members shrunk to three.

Following the resignations of Councillor Jackson in June and Councillor Knight in July, membership was further reduced to one.

An election would normally have been held to fill the vacancies. However, the coronavirus pandemic has forced elections to be postponed until May 2021.

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This left the parish council with just one member and unable to conduct its business properly.

Harrogate Borough Council agreed yesterday to appoint district councillor Ann Myatt and county councillor Andrew Paraskos onto the council for a maximum of three months.

The authority will now be quorate, meaning it can co-opt new councillors to fill the remaining vacant seats and continue to operate.

Had they not been co-opted, HBC’s alternative proposal was to dissolve the parish council, which has an electorate of 677 people,

A report before HBC’s General Purposes Committee said there was interest in the remaining vacancies.

It said:

“The parish clerk has advised that there are currently several applicants that would like to be considered for co-option into the vacant seats. This can be actioned once Cllr Myatt and Cllr Paraskos are appointed to the council.”

Housing developers in the Harrogate district will have to pay more money for schools, doctors surgeries and roads after the council identified a £98m infrastructure shortfall.

Harrogate Borough Council will introduce a Community Infrastructure Levy (CIL) in October to complement Section 106 agreements that are agreed between the authority and developers.

Both are designed to pay for infrastructure that might be affected by new housing. For example, as part of a recent planning application for 170 homes on Kingsley Road, Harrogate High School asked for a Section 106 contribution of £307,435.

Unlike Section 106, CIL contributions will be calculated by floor space, meaning a housing development in central Harrogate, Knaresborough or Ripon would be charged up to £50 per square metre. Developments outside of town centres will not be subject to CIL charges.

Retail developments would also be subject to CIL contributions of up to £120 per square metre.

Read more:

• Burton Leonard residents ‘about to erupt’ over housing development

• Harrogate loses ‘feel good factor’ due to new housing

Harrogate Borough Council published its long-awaited Local Plan in March that includes a pipeline of over 13,000 new homes from 2014 to 2035 across the district.

To introduce the CIL, HBC has to demonstrate to central government there is a shortfall in funding between the cost of infrastructure needed to support development – which the council has estimated is over £98m over the next 15 years, including £42m for schools.

HBC will publish a list of infrastructure it intends to fund via CIL before the end of 2020.

A parish or town council with an adopted neighbourhood development plan will be eligible to receive 25% of the CIL receipts generated.

Residents in Burton Leonard are “about to erupt” over a housing development which they say has breached planning conditions around the invasive plant Himalayan balsam.

Chartford Homes has planning permission to build 31 homes at Flats House in the village but an ecology report found there is an infestation of the plant on the site. Himalayan balsam is infamous for its impact on the environment and its explosive seed heads spread very easily.

According to Harrogate Borough Council planning documents, there is a condition attached to the development that says there must be an exclusion zone to remove the plant before construction can begin.

However, Keith Townson from Burton Leonard Parish Council told the Stray Ferret that construction workers were ignoring this for weeks and potentially spreading Himalayan balsam around the village.

Mr Townson said HBC’s planning enforcement department has been “as much use a chocolate fireguard” and called on them to pause the development until the problem is dealt with.

He said:

“Once you know there’s an invested area you have to fence it off but they’ve had trucks and land rovers through it. We’re worried it will spread all over the village. They were supposed to have a tyre washing but they’ve not got that in place either.

“It’s disgraceful. Harrogate Borough Council is allowing the developers to ride roughshod over planning conditions.”

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Harrogate Borough Council said: “We have attended the site, spoken to the developers and the parish council and can confirm there are no further issues at this time.”

Chartford Homes declined to make a comment when asked by the Stray Ferret.

New documents show that Harrogate Borough Council referred to contractors tasked with restoring the Stray as a “local supplier”, despite being based in Lancashire.

Borough council officials awarded Glendale Services the contract for the Stray back in April – seven months after the UCI World Cycling Championships.

As revealed by the Stray Ferret in May, the contract, worth an estimated £40,926.29, was handed to the company under “urgent circumstances”.

Now, local Liberal Democrat councillors have criticised the council for “denying the opportunity” to local firms to tender for the work.

A previously exempt document before the council’s cabinet member for environment on May 29 stated that the authority had “engaged with a local supplier” to carry out the works.

Read more:

• UCI Championship organisers to pay towards Stray cost
• Why bring in Lancashire contractors to restore the Stray?
• Council Stray repairs contract given under ‘urgent circumstances’

Glendale Services, which is based 65 miles away in Chorley, began work on site which was met with fierce criticism from local suppliers. At the time, Mark Smith, managing director of local contractor HACS, said he was “disgusted” with the decision.

Geoff Webber, Liberal Democrat councillor on North Yorkshire County Council, said he was disappointed that the contract did not go out to tender:

He said:

“The report now shows that they accepted the recommendation to award the contract to Glendale on the basis that it was a ‘local supplier’.

“I find it incredible that Chorley, only eight miles north of Wigan, is considered to be local. So much for supporting local businesses.”

Grass has started to show on West Park Stray since the reseeding work.

Glendale has carried out groundworks elsewhere in Yorkshire, including at Kirklees College in Huddersfield.

But senior councillors have insisted that the company has offices in the county.

Cllr Andrew Paraskos, cabinet member for environment at the authority, told a full council meeting last week that the council had to bring in a contractor because the authority did not have the equipment to do it in-house.

“We always had to bring in outside contractors to do it.

“The drainage was done by a company out at Green Hammerton way and the other contractors do have local offices

“The rumours that we contracted it out to outside bodies, even though one of them has a head office in Lancashire, they do have a local office in the district.”

It comes as the council expects the overall works to the Stray to cost  £129,971:

• £38,105 for repairs to grassed areas of West Park Stray
• £65,385 for pavement, footpaths, Heras fencing, bedding and verge repairs, reinstatement of bins and benches plus any additional council work
• £20,156 to fix longstanding drainage issues
• £6,325 project management and delivery costs

Yorkshire 2019, the organisers of the UCI, has agreed to pay £35,500 to help restore the Stray.

Residents in North Rigton say they will continue to fight council plans to build more homes on their street.

The battle started in 2006 when Harrogate Borough Council planned to demolish all of the garages in Brackenwell Lane for more homes.

Harvey Alexander, chairman of the North Righton Community Association, said they managed to get the council to partially back down then.

Read more:

• Why a seven-month-long road closure could kill this Harrogate pub
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They argued that the space in front of the garages is the only turning point and the grass there is also where kids play.

Years later Harvey says the council has broken its promise to leave the area alone. He fears that, if the development went ahead, it would also create a “nightmare parking” situation.

“You can see how crowded the street is at 6.30pm and it gets worse later on. It’s going to be a parking nightmare. The council are going against the promise they made back in 2006, it is frustrating. This would cause chaos, there are plenty of other places to build homes. We don’t have the amenities.”

Six garages could be demolished for development.

The council has proposed to demolish the six-car garage to erect two dwellings on Brackenwell Lane, losing ten car parking spaces in total.

Currently, there is no date for the council to make its decision on the development. The Stray Ferret approached Harrogate Borough Council for a comment but did not receive a reply.

Senior Harrogate councillors have approved a public consultation over three plots of land to be designated for the Stray.

Last night, senior councillors on Harrogate Borough Council’s cabinet agreed to hold a 12 week public consultation this summer over which plot is the most suitable.

It follows length discussions between the authority and the Duchy of Lancaster over land to be exchanged for verges on Otley Road which will be removed for a multi-million pound cycle route

As part of the Stray Act, a suitable plot of land must be offered in exchange.

Read more

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The three areas identified are:

• Wetherby Road land next to the war memorial (preferred option)
• St James Drive verges
• Arthurs Avenue verges

It comes as North Yorkshire County Council looks to press ahead with the cycle route on the stretch of road between Harlow Moor Road and Beech Grove.

The area of land outlined in Harrogate Borough Council documents earmarked to be exchanged as part of the Otley Road cycle route.

The project has already been delayed and the negotiations over the Stray land have been a further stumbling block for the second phase of the scheme.

Borough council leader, Richard Cooper, said the authority had to show it was in favour of sustainable means of travel.

He said:

“We talk about sustainable transport a lot and now we are delivering some.

“It is important that we do that because when we campaign against things like the relief road nearby the Nidd Gorge and say we are in favour of sustainable measures, but fall at the first fence when they are put forward it dampens our credibility when we say we are in favour of sustainable transport.”

However, earlier this week, the Stray Defence Association (SDA) raised concern over the amenity value of the second and third options outlined by the council.