Loss of 15-day festival will have ‘limited’ economic impact on Harrogate

The director of Harrogate Convention Centre has said the loss of the 15-day International Gilbert and Sullivan Festival will have a “limited additional economic impact” on hotels in the town.

Festival directors Janet and Neil Smith announced last week they will stage next year’s event at Buxton Opera House in Derbyshire from July 29 to August 12.

Harrogate’s Royal Hall had hosted the festival, which attracts thousands of visitors from around the world, since 2014. It provided a major boost to the town’s hospitality sector.

The directors claimed the cost of the Royal Hall had doubled and that no compromise had been forthcoming. By contrast, Buxton Opera House had “pulled out every stop to accommodate the festival,” they claimed.

The absence of Gilbert and Sullivan aficionados for 15 days will be keenly felt by numerous Harrogate hotels, bed and breakfasts, bars and restaurants. But Paula Lorimer, director of the convention centre, said the summer timing would reduce the impact.

Ms Lorimer also said the event had received “a discount of over 90% on venue hire”.

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In a statement, she said:

“Over the past eight years, Harrogate Convention Centre and the Royal Hall has been proud to have supported the Gilbert and Sullivan festival to the tune of over £200k of in-kind services and support.

“We have also supported the festival with a discount of over 90% on venue hire.

“We tried to explore with the organisers how their event could change to reduce the costs to the venue however the organisers wished to retain the same event with the same levels of support despite dwindling numbers attending.

“Our feedback from the hospitality sector indicated that the timing of the festival, in the middle of the summer holidays, was at time when hotels are generally at capacity resulting in limited additional economic impact from the festival.

“We regret to see them leave but respect their commercial decision and wish the festival all the best for their future.”

Council explores move to protect Harrogate Convention Centre with limited company status

Harrogate Convention Centre could come under the control of a limited company as part of a potential bid by the borough council to protect its most prized asset.

With the abolition of Harrogate Borough Council fast approaching, the convention centre is set to be handed over to the new North Yorkshire Council next April as the venue also pushes ahead with plans for a £49 million redevelopment in the face of growing competition.

But borough council bosses have this week revealed they are working with consultants on new models for how the venue could be run.

This includes the possibility of creating a limited company which would be run by a board of directors, including senior staff and councillors, although it would still be owned and funded by the new North Yorkshire Council.

Paula Lorimer, director of Harrogate Convention Centre, told a meeting on Monday that events venues in Manchester, Liverpool and Glasgow operate in this way and that this “would be my recommendation”.

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Wallace Sampson, chief executive of the borough council, also said the convention centre could follow the “success” of the district’s leisure centres which were brought under the control of the council’s new leisure company Brimhams Active last year. He said:

“Clearly our view is that Brimhams has been a success in terms of creating a local authority controlled company – it has got a very clear focus and strategic vision.

“There is now a model in place which gives it a degree of freedom to operate, notwithstanding the fact that there is a board with representation from the borough council.”

Mr Sampson also stressed that the council was looking into a variety of different business models for the convention centre and that this work with consultants KPMG “hasn’t concluded yet”.

As well as Brimhams Active, the council’s tourism company Destination Harrogate is also set to be handed over to the new North Yorkshire Council.

But what will happen to the companies after this major change for local government in seven months’ time remains unclear as council staff continue to plan how all services across North Yorkshire should be run in the future.

Councillor Pat Marsh, leader of the opposition Liberal Democrat group, said she was worried that decisions about the convention centre “won’t be in our hands” without a limited company and that she had seen the benefits that such a move could bring as a board member on Brimhams Active. She said:

“We need to have that business as most councillors think the convention centre underpins the economy of this town.

“Without it, I wouldn’t like to think how Harrogate would be.”

The proposed £49 million redevelopment of the convention centre recently moved to the next design stage – although a final decision on the major plans is still just under a year away.

It will be in July or August next year when that decision is made and because of local government reorganisation, it will be taken by the new North Yorkshire Council.

The proposals come after warnings that the venue “may fail to survive” and suffer losses of up to £250 million over the next 40 years unless the redevelopment is carried out.

How Harrogate objections have halted Leeds conference venue – for now

When Leeds City Council met to approve plans for a new conference venue last week, the authority would have hoped for a straightforward decision.

But that was not the case after a flurry of objections came in at the eleventh hour from Harrogate groups who fear the proposals could drive business away from the town and its convention centre.

Those objections were spearheaded by Paula Lorimer, director of Harrogate Convention Centre, who slammed a study which suggested the impact of the Leeds venue would be minimal as “flawed, inaccurate, out of date and in some areas, totally wrong”.

The proposals for the former Yorkshire Bank HQ were submitted in March and Ms Lorimer claimed there had been an “absence of dialogue” from Leeds City Council.

She said she only found out about the plans last week – just days after they had been recommended for approval.

Yet the city council hit back by saying Ms Lorimer and Harrogate Borough Council’s chief executive Wallace Sampson had been alerted to the proposals months before they were submitted.

A city council officer said:

“This was August last year… we haven’t heard anything since.”

Ms Lorimer responded to say the proposed venue was now a third bigger than originally planned and that the study which suggested up to 6% of trade could be diverted away from Harrogate Convention Centre had been underestimated by 50%.

She told last Thursday’s meeting:

“We would have expected to be consulted in advance of this application.

“If this had taken place we may have avoided having to take the route we have done today by objecting.

“Unfortunately we were left with no choice.”

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Harrogate Borough Council’s tourism body Destination Harrogate and the town’s Crown Hotel have all come out against the plans.

Harrogate District Chamber of Commerce and Harrogate Business Improvement District are also objecting.

In a letter to the city council, Destination Harrogate said the Leeds venue could have a “hugely detrimental impact” on Harrogate’s tourism offer which it described as the “very lifeblood of this town”.

Harrogate Convention Centre.

Harrogate Convention Centre.

The letter also said it is “essential” that a proposed £49 million development of Harrogate Convention Centre is supported, while the Leeds plans should be “re-evaluated”.

It said:

“Failure to do so exposes the Harrogate district and its hospitality sector to significant employment threats and economic damage.”

‘Just taking 1% will have an impact’

David Simister, chief executive of Harrogate District Chamber of Commerce, also said in another letter: 

“Harrogate Convention Centre plays a significant role in the Harrogate district’s economy – it attracts visitors from all over the world to events, exhibitions and shows.

“It helps support a wealth of businesses – hotels, guest houses, restaurants and in turn their suppliers and it brings jobs.

“Having worked in the hospitality sector, I know how vital Harrogate Convention Centre is to Harrogate town centre, and even taking 1% of trade will have an impact on the town and businesses.”

Bringing a conference venue to Leeds has been a long term ambition of the city council which will no doubt be determined to push ahead with the plans.

The question is how much weight it will give to the objections from Harrogate Convention Centre, business groups and the borough council which have always been considered friendly neighbours to Leeds.

The proposals will now be brought back to another meeting of the city council in September.

Fears for Harrogate Convention Centre if new Leeds venue goes ahead

Senior figures in Harrogate are angry with plans to build a multi-use conference centre in Leeds, as they fear it could drive business away from the North Yorkshire town.

Provisional plans to build an events space on the doorstep of Leeds Arena were discussed at a meeting by the city’s councillors on Thursday.

But Harrogate Convention Centre, Destination Harrogate and the town’s Crown Hotel have all come out against the scheme.

Harrogate District Chamber of Commerce and Harrogate Business Improvement District (BID) are also objecting.

An independent study commissioned by Leeds City Council suggested the impact on Harrogate Convention Centre would be minimal.

That is hotly disputed by the objectors.

Speaking to Leeds councillors at Thursday’s meeting, Paula Lorimer, centre director at the convention centre, said the study was “flawed, inaccurate, out-of-date and in some areas totally wrong”.

She claimed it had under-estimated the adverse impact on the centre itself by around “50 per cent” and relied on out of date figures.

Ms Lorimer also said there was upset in Harrogate over an “absence of dialogue” from Leeds City Council about the scheme. She claimed she’d only found out about the plans at the end of last week – just four days before they were due to potentially be approved in principle.

She told councillors:

“We would have expected to be consulted in advance of this application.

“We are hoping this is an inadvertent oversight (that we weren’t).

“If this had taken place we may have avoided having to take the route we have done today by objecting. Unfortunately we were left with no choice.”

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The meeting was told that Harrogate Borough Council‘s chief executive and Ms Lorimer had been made aware of the original plans last year, but that no response had been forthcoming.

But Ms Lorimer said that the proposed centre was now a third bigger in size than had been originally touted last year.

If approved, the venue would be built on land vacated by the planned demolition of the old Yorkshire Bank HQ on Clay Pit Lane, which is now redundant.

Two blocks of student flats would also flank the venue on either side. That aspect of the development is less controversial with the Harrogate objectors having stated they’re not opposed to that.

Councillors voted to defer the application until next month before making a decision.

Praise for A1 junction 47 upgrade – but overspend remains unknown

The full extent of the multi-million pound overspend on the upgrade to junction 47 on the A1(M) has still not been revealed, months after the delayed scheme was finally completed.

The project, which had an original budget cost of £7.7m, finished in April — seven months later than planned.

North Yorkshire County Council revealed 10 months ago the costs had spiralled to £10m and has not given an updated figure since.

The council issued a press release today in which business leaders praised the initiative, at Flaxby, for improving traffic flow and attracting enterprise.

It said the junction was “already having huge benefits for commuters, residents and holiday-makers amid the summer tourism season”.

Cllr Keane Duncan, the council’s executive member for highways, said:

“The upgrades to junction 47 have made a significant difference, reducing congestion and improving road safety.

“The scheme unlocks future growth in and around Harrogate, with the changes helping to manage significant residential and commercial development anticipated along the A59 corridor.”

David Simister, chief executive of Harrogate District Chamber of Commerce said:

“Having used it on a number of occasions since its completion, it is not only benefitting commuters exiting the A1(M), but also those accessing it as well as those travelling along the A59.

“Improving transport links to and from the Harrogate district will benefit business too.”

(from left) Y&NY LEP board member Jan Garill, NYCC project manager Richard Binks, Farrans operations director Jonny Kerr, National Highways head of service delivery Kate Wood, Farrans project manager Shane Daly, AECOM site supervisor Kevin Atkinson and Cllr Keane Duncan.

The scheme involved widening three of the four slip roads onto and off the roundabout to increase capacity, as well as a number of junction improvements.

Traffic signals have been installed on the roundabout to improve traffic flow and added to the T-junction between the A168 and the A59 a short distance from Junction 47 on the York side to benefit drivers turning onto the A59 and to improve safety.

To the west of Junction 47, between the A1 and the Flaxby roundabout, a lane has been added for traffic travelling east, so there is two lanes in each direction between those two roundabouts.

‘Bring more events to Harrogate’

Paula Lorimer, director at Harrogate Convention Centre, said:

“We welcome the upgrade as it has significantly reduced congestion and improved road safety for our visitors.

“The shortened travel time strengthens our competitive advantage and will help us bring more large-scale events to Harrogate.”

Delays were blamed on the discovery of a protected species, great crested newts, which legally had to be relocated, as well as poor ground conditions on the southbound slip road.

Asked why it was taking so long for the final costs of the project to be revealed, a council spokeswoman said:

“The latest estimated costs are the subject of detailed discussions with the county council’s contractor and will be publicly available once they have been agreed.”

 

Harrogate council officers earning more than £100,000 named on rich list

Four Harrogate Borough Council officers earning more than £100,000 have been named in an annual public sector “rich list” published by the TaxPayers’ Alliance.

The pressure group, which claims to speak for ‘ordinary taxpayers fed up with government waste’, published its Town Hall Rich List 2022 report today.

The list covers authority officials across the country who earn in total more than £100,000 as part of their renumeration for the last financial year.

Paula Lorimer, director of Harrogate Convention Centre, was named the top earner in Harrogate with a total pay package of £121,536.

Meanwhile, Wallace Sampson, chief executive of the borough council, earned £118,505.

The Harrogate officers in the report are:

Elsewhere, 10 North Yorkshire County Council officials were included on the list.

Richard Flinton, chief executive, was the top earner at the county council with a total pay package of £212,667.

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Others included Stuart Carlton, director of children and young people’s services, with £161,776 and Gary Fielding, director of strategic resources, with £157,078.

John O’Connell, chief executive of the TaxPayers’ Alliance, said:

“Taxpayers facing a cost of living crisis want to know they are getting value for money from their local authority leadership.

“With households having suffered through the pandemic and now struggling under colossal tax bills, the country needs councils to prioritise key services without resorting to punishing tax hikes.

“These figures will allow residents to judge town hall bosses for themselves and hold their local councils to account.”

Harrogate Borough Council has been approached for comment.

Council refuses to say if jobs at risk at Harrogate Convention Centre

Harrogate Borough Council has refused to say whether any jobs are at risk of redundancy as part of an ongoing staffing review at Harrogate Convention Centre.

The review began last year and is expected to conclude in April.

It is being headed by centre director Paula Lorimer who has a core team of 21 staff including managers, accounts and admin staff and events planners.

The council, which owns the venue, said in a statement that changes to the staffing structure are being considered because the reopening of the centre after covid restrictions had “highlighted a need” to review how events are delivered.

However, the council refused to say if any jobs were at risk of redundancy.

A council spokesperson said: 

“Following on from successfully redeploying two-thirds of the convention centre’s employees to assist in delivering our critical frontline services, the return to providing event operations in a post-pandemic industry has highlighted a need to review how these are delivered.

“This review is ongoing and is anticipated to be concluded in the spring.

“At this stage, there is nothing further to add.”

The staffing review is due to be discussed at a meeting of the council’s human resources committee on February 10.

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The committee previously discussed the changes behind closed doors in December, and it is likely this will happen again at next week’s meeting.

Ms Lorimer – who is one of the council’s top earners with a £104,502 salary – said in a report that the convention centre did not earn any income from events in 2021/22.

She said this was because of covid cancellations and the venue’s use as an NHS Nightingale hospital, although she added events have since made a positive return.

Ms Lorimer said: 

“Following venue reinstatement and the reopening of the events industry we have welcomed back a significant number of existing and new clients, contributing to the prosperity of the district.

“Our sales strategy continues to focus on attracting larger association conferences.

“There have been a number of events attracted to the convention centre as a result of both the sales strategy and the national publicity regarding the use of the venue as a NHS Nightingale.”

£47m refurbishment in pipeline

The staffing review comes after the council created a new destination management organisation in 2020 when Gemma Rio was appointed as its head to promote the Harrogate district as “exceptional place to visit, meet and invest”.

It also comes as the council is pushing ahead with plans for a major redevelopment of the convention centre.

This week the council’s cabinet backed the spending of £2.8 million in cash reserves to speed up the first phase of the works at the venue’s studio two.

Overall, the whole project could cost up to £47 million over three phases if approved and involve three exhibition halls being demolished to make way for a new 5,000 sq m hall and a refurbished auditorium.

A decision on the plans is expected from councillors in summer.

Major 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.”

Harrogate Convention Centre re-development to be speeded up over £475,000 loss fears

Harrogate Borough Council is set to bring forward part of its redevelopment of the town’s convention centre over fears it may lose £475,000 in bookings.

A report due before the council’s cabinet next week will recommend setting aside £2.8 million from its reserves to accelerate creating “breakout rooms” in studio 2.

Paula Lorimer, director of the convention centre, said previously that bringing the studio part of the project forward needed to be a priority as it would be a “game changer”.

The work to studio 2 will include the creation of seminar rooms to cater for up to 1,200 people. Currently, the studio only caters for 570 delegates, which can deter some organisations from booking.

The work for studio 2 is now expected to be considered as a standalone project, while approval for the wider first phase of the project is likely to return before councillors at a later date.

The report to councillors says:

“If the studio 2 package is not ready by April 2023, the potential negative impact on the HCC order book would be significant.

“It is highly likely that the contracted events for the period 2023/24 would be lost, as without studio 2 these conferences would exceed the current breakout capacity of the venue.”

£12.9m hit to local economy

The council estimates that if the acceleration of studio 2 is not approved then the authority faces a loss in income of £475,000 and an associated economic impact on the district as a whole of £12.9 million.

This is because events for the convention centre are often booked 18 months in advance.

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Ms Lorimer told a cabinet meeting in December 2021 that there was a “strong case” to bring the studio project forward.

She 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 2 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 remainder of the project has yet to receive a final go-ahead from councillors and could cost up to £47 million over three phases if approved.

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

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.