£60m or £35m: What is the value of Harrogate Convention Centre to the district?

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?

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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 will have 500 beds when it opens as a Nightingale hospital

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.

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Harrogate diving club pleads for a date to resume training

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.

Harrogate Hydro swimming school

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.”

 

Council considers £47m redevelopment of Harrogate Convention Centre

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.

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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.”

Councillors appointed onto parish council with just one member

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.”

New housing in Harrogate district creates £98m infrastructure shortfall

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.

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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.

Burton Leonard residents ‘about to erupt’ over housing development

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.

Lancashire Stray contractors referred to as ‘local suppliers’

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.

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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.”

The Stray starts to turn green

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:

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

North Rigton residents stage last ditch attempt to fight ‘nightmare’ build

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.

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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.”

Harvey Alexander standing next to the garages

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.

Council agrees consultation over Stray exchange land

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.

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The three areas identified are:

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.

Council defends civic centre costs

Harrogate Borough Council has defended its decision-making on its new civic centre following an investigation by The Stray Ferret.

After our reports were published on Monday morning, Harrogate Borough Council posted a series of tweets in response.

In response to articles published on the Stray Ferret website about the supposed cost of civic centre in #Harrogate, the articles are not accurate. The figures are based on a wide range of assumptions backed up by unnamed experts.

— Harrogate Borough Council (@Harrogatebc) July 13, 2020

As outlined in our reports, in the course of our investigation we contacted and interviewed a number of established, independent estate agents, architects and quantity surveyors. Each gave us their honest opinion based on their expertise but, as they all work in the local area, they asked us not to identify them in our reports.

Land value

The land at civic centre did not cost the council £4.5million. We already owned it, so the cost was £0. Including the assumed value of land when working out the cost of a building is not a methodology we ever used.

— Harrogate Borough Council (@Harrogatebc) July 13, 2020


The Stray Ferret has looked through all the available documents at the time, including the appraisal of the Hornbeam site and others. They sum up the council’s view that none of them was as suitable as Knapping Mount.

Though the council can argue it did not spend any money on the Knapping Mount site because it already owned it, this misses a central point of our investigation. The land was potentially extremely valuable and, if sold, could have brought in sufficient income to buy and build on a cheaper site elsewhere, with resulting savings for taxpayers.

Without having achieved planning permission, the council could never have had a clear value of the land in order to make an informed decision about whether to sell it or build on it.

Other options

It is true that one of the sites we considered was at Hornbeam Park. A full appraisal of this option was put to cabinet and council in October 2014 and rejected as not viable. You can read more at: https://t.co/w0ZnpRLyyB

— Harrogate Borough Council (@Harrogatebc) July 13, 2020


What has never been released, however, is the full detail of those sites, how the costs were calculated and why they were dismissed as less favourable than Knapping Mount. A full report was done by an external consultant – but this has always been kept under wraps.

As outlined in our report, the council referred to areas including Pannal and Beckwith Knowle, but did not specify which sites, or whether they were buying buildings or land to build a new office on.

These details were never part of any public consultation or even discussion. Without this information being made public, local taxpayers are unable to judge whether the council made sensible use of their money.

Final costs

At the moment, we cannot reveal the final cost of the building as we have not agreed a final bill with the developer. It is now in receivership. We are waiting for an update from the official receiver. As soon as the final cost is known to us, it will be made public.

— Harrogate Borough Council (@Harrogatebc) July 13, 2020


The final cost of the build is only part of the picture. We know the contract was agreed at £11.5m and the council views that as the fixed cost. The contractor has argued for more money and only in time will we find out what has to be paid.

But there is more to it than that. The additional value of the land has never been discussed publicly, and nor have the costs of fitting out the building – everything from flooring to light fixtures, IT infrastructure and more. There is no reason why the council cannot release these details now, more than two-and-a-half years after the building was occupied, and we call on them to do so.

Savings

Civic centre represents excellent value for the council tax payer of the district. It saves us around £1million a year compared to running and maintaining the previous network of offices. This is money that was sorely needed to keep our public services running in recent months.

— Harrogate Borough Council (@Harrogatebc) July 13, 2020


The council argues that the civic centre saves £1m per year and we don’t dispute that those savings have been made. However, any money saved was through reducing staff numbers, working on one site instead of five and moving to a modern, efficient building.

All of those savings could have been made with a move to any new office – it did not have to be Knapping Mount. A cheaper site and a cheaper build would have given the same results AND left taxpayers enjoying the benefit of the same savings.

Questions still to be answered

A number of key points in our investigation have still not received a response from HBC.

We found that their choice of a round building – designed to ‘express the nature of democracy’ – made the project more complex and therefore more expensive. The council has not defended this choice.

Nor has it responded to the continuing threat of devolution which could mean the new civic centre is no longer needed, or is too large or even too small for changing requirements in Harrogate in the next few years. These discussions began before the council committed to the new building and are continuing now:, with change expected within two years.

There has been no justification for the need for a town centre office, which dominated HBC’s decision-making process and bumped up the cost of out-of-town options, as it argued it had to retain another central office as a customer service centre.

Finally, the council has still not explained why, when the Knapping Mount site was earmarked for housing, it did not attempt to get planning permission in order to asses the true value of that land before deciding to where to build the new civic centre. Without that, we can never know what the land could have been worth.