FUNDING
The centre’s new look will help attract a
different demographic
INNOVATIVE THINKING
Client: Ramsgate Leisure Centre, UK Supplier: Alliance Leisure
“With the current financial pressures on leisure provision, local authorities need to overcome two major challenges,” explains Sarah Watts, MD of Alliance Leisure, which has partnered with more than 30 local authorities and leisure trusts over the past 12 years. “First, the lack of direct access to sufficient capital investment. Second, many existing leisure sites are housed in old building stock, in urgent need of redevelopment.” This month sees completion of one
of the company’s latest redevelopment projects: a £4m extension and refurb of Ramsgate Leisure Centre in partnership with Your Leisure, Thanet District Council and lead contractor ISG. Representing an enhanced replacement
of Ramsgate’s ageing, standalone pool, construction has focused on the addition of a new-build to the council’s dry sports centre – now home to a 25-metre swimming pool, learner pool, day spa, group cycling studio and a toning suite –
as well as the upgrade of CV equipment in the onsite gym. The business case for this million-
pound build has been based on savings of around £100,000 being achieved through the consolidation of two operations into a single site, as well as enhanced revenue streams being realised with the inclusion of commercial facilities that go beyond usual local authority leisure provision – namely, an affordable spa and suite of toning machines, called Your Feelgood Factory, for a maturing population. Alliance Leisure raised the required
funding from the city against Your Leisure’s commitment to pay back the investment over 20 years, using surplus revenues generated by the new facilities. Breaking down the fi gures, Alliance Leisure’s commercial director Paul Cluett explains: “The net revenue improvement of the development (at membership maturity) is forecast at £462,000 per annum. Through careful design and construction, the cost of building is £4.08m. Utilising our access to fi xed-price capital over a set period, this results in an annual repayment of signifi cantly less than the revenue opportunity, which will reduce the need for subsidy by the council.” Although existing memberships to the leisure centre remain unchanged, a
“Commercially-orientated additions such as public sector day spas can bring in new users”
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new level of membership – costing £55 a month – will cover gym, swim and classes, as well as use of the thermal spa facilities. It will also provide a 20 per cent discount on therapies given in one of the four spa treatment rooms. Spa- only membership (£30 a month) is also being introduced, as is a membership for the toning suite (£25 a month). Alliance Leisure charges a fee for
delivery as well as arranging funding. In some projects, as is the case here with Your Leisure, the company also partners with the operator to assist with ongoing sales and marketing. “What’s innovative about this robust
business model is the facility mix that we’ve been able to drive into old stock, at no extra cost to the council,” observes Watts. “We’re not building the same old thing – we’re thinking about the users of the future. Commercially- orientated additions such as a day spa in the public sector can create revenues, introduce new demographic groups and help with retention.” Steve Davis, MD of Your Leisure,
adds: “Increased participation in physical activity and the improved wellbeing of our communities will only be achieved if we offer modern, family-friendly services. This requires signifi cant investment at a time when local councils are struggling with reduced fi nances. “The Alliance Leisure model offers
cost-effective project management and access to funding to enable facilities to be both upgraded and made more commercial, with improved revenues being used to fi nance investment.”
July 2013 © Cybertrek 2013
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