Briefing Note - Petition to Urge Perth and Kinross to Build an Ambitious PH2O Facility
Perth and Kinross Council · 26 February 2025
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PERTH AND KINROSS COUNCIL 26 February 2025 Petition: Urge Perth and Kinross Council to Build an Ambitious PH2O Facility Briefing Report by Strategic Lead - Property Services (Report No. 25/34) 1. Purpose 1.1 The purpose of the report is to provide initial professional and/or technical advice to Council in response to the petition. 2. Background 2.1 On 4 September 2024, Council approved Thimblerow as the site for the m new PH2O with the following facilities mix (Report 24/242 refers). 25m Pool 8 lane (Moveable Floor) Further options and costs of adding leisure water to be explored as part of the next stage of design work. 12.5m x 8.5m Teaching Pool (Moveable Floor) Toddler splashpad Indoor Play Area (potential Clip n’ Climb or other family play activity) Games Hall Fitness Gym Studio 1 (flexible) Studio 2 (flexible) Studio 3 (flexible) Café 2.2 Approval of the Thimblerow site recognised a number of additional benefits: Avoiding loss of either swimming or ice provision during the construction period (approx. 2 years) as Perth Leisure Pool and the Dewars Centre can continue to operate unimpeded during the construction phase, which would not be possible if the original business case to build on the same site was implemented; Avoiding job losses which may have resulted from existing buildings closing for construction work; Anticipated increased footfall in the city centre from bringing PH2O closer; Opportunity for curling community to develop Dewars Centre through lease agreement. 2.3 The PH2O site decision was also made as part of a wider series of integrated investment proposals for Perth city centre which together offer a series of related benefits to create additional public value for residents, visitors and businesses.
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These included: A new future for Bell’s Sports Centre – public consultation has recently concluded on options, with the majority of respondents supporting it becoming an unheated multi-use sports pitches space bringing additional capacity for in-demand all weather pitches. Further analysis of the responses and additional feedback received is ongoing. Purchase of Pullar House and development as a customer-facing public sector hub which will be an addition driver for increased footfall alongside the city centre swimming pool and sports facility. Purchase of Kinnoull Street multi-storey car park creating a more consistent car parking offer in Perth city centre, with the currently under- used car park being reviewed to create a more appealing offer and offset the reduction of car parking spaces at Thimblerow. In line with Council policy land freed up on the current Perth Leisure Pool site could become social/ affordable housing to answer the demand for accommodation in the city. 2.4 Work is ongoing to deliver the decisions of Council, including working with curling representatives and providing funding to support their feasibility study for the Dewar’s Centre. Outcomes and progress updates, particularly in relation to the leisure water options for the Thimblerow site and the future of Bell’s Sports Centre, will be reported back to Council in due course. 3. Petition 3.1 A valid petition has been received by the Council in relation to the PH2O proposal. 3.2 The petition seeks: Perth and Kinross Council to reconsider and/or cancel plans for Perth Leisure Pool & Dewar's replacement to be built at Thimblerow and to instead approve & construct a fit for purpose, ambitious replacement facility at the current, and originally proposed site at Glover Street. This facility should, at a minimum, have the following - Dedicated Leisure Pool/Water with flumes, kids water play park (Similar to the current Monkey Jungle at Perth Leisure Pool) 25m six or eight lane training pool Ice Rink/Hall Large commercial Gym (Similar to the arrangement at Bell's Sport Centre before closure) Fitness Studios Sports Halls Bowling Hall/Events Hall capable of holding events currently held at Dewars
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4. Main issues 4.1 The ask of the petitioners is to construct PH2O on the existing Glover Street site and to provide (as a minimum) the facilities mix specified above, which aligns with the Outline Business Case (OBC) presented to Council and subsequently approved at a cost of £85-£90 million as part of the Capital Budget in February 2022 (Report 22/36 refers). 4.2 In March 2023, the Council decided to pause the project and instructed officers to undertake a Transformation Review of Leisure Assets (the ‘Leisure Asset Review’), on the grounds of overall project affordability with increased loan charge rates, energy price rises and general inflation pressures (Report 23/73 refers). 4.3 Taking into account the findings in relation to usage, market trends and affordability, the recommendations from the review were to reduce the facilities mix proposed in the Outline Business Case and to co-locate PLP/Dewars/Bells onto one site to generate further efficiencies and savings from property costs. (Report 24/19) 4.4 The review findings and affordability factors informed the revised proposal (set out above at section 2) which was approved by Council in September 2024. 4.5 The facilities mix proposed by the Petitioners is the same as that contained in the original OBC which was deemed unaffordable by Council. The original borrowing costs, inflation costs, energy and operating assumptions have been updated for the information of Council, and the table below represents the current estimated cost of the Petitioner’s proposed facilities mix. Sept 2024 Scope and Costs Petition Scope Variance Capital Cost £61M £105M £44M Loan Charges £2.5M pa rising to £4M pa by year 40 £4.7M rising to £7.3M pa by year 40 £2.2M rising to £3.3M Yr 1 Subsidy £1.2M £1.6M £400K Total Yr 1 Cost £3.7M £6.3M £2.6M Total Borrowing Costs (40 years) £118M £213M £95M Visitor Numbers 380,143 459,376 79,233 4.6 While the September 2024 capital cost is below the £90m which remains allocated to PH2O, the balance of funding would also contribute to delivery of other elements of the leisure assets review including sustaining and maintaining other leisure facilities in Perth and Kinross and transforming Bell’s Sports Centre.
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4.7 Comparison of the facilities mix requested by the petitioner and the decisions of Council through the Perth city integrated investment plan. Petition request Existing Council decision Comparison Dedicated Leisure Pool/Water with flumes, kids water play park (Similar to the current Monkey Jungle at Perth Leisure Pool) Agreed: - 8 lane training pool timetabled for leisure swimming - Toddler splashpad Future decision: - Officers to bring back options for leisure water as part of next stage of design work Full comparison not possible as options for leisure water being developed 25m six or eight lane training pool 25m 8 lane training pool Met No request for teaching pool 12.5m x 8.5m Teaching Pool Additional to petition requests Ice Rink/Hall Engage with curling/ community groups to explore interest in a user- led ice sports facility at Dewars Centre. Both options provide for maintaining ice sports in Perth, with the agreed option aligning with Council approach to empowering communities to deliver. Large commercial Gym (Similar to the arrangement at Bell's Sport Centre before closure) Fitness gym Met Fitness studios 3 x flexible use studios Met Sports hall Games hall Met Bowling hall/ Events hall capable of holding events currently held at Dewars No indoor bowling – previous decision of Council based on low user numbers No specific events hall space Point of difference
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5. Conclusion 5.1 The professional and technical advice from officers is that reinstating the original OBC would face the same overall project affordability challenge which led to Council deciding to pause and review the project in 2023, and more so due to the increased estimated costs. The decision of Council in September 2024 to site PH2O at Thimblerow as part of the Perth city integrated investment plan remains the most cost-effective solution, making the project affordable, optimising the use of our Perth city estate to deliver better value to our communities, and supporting opportunities to invest in the wider leisure estate in Perth and Kinross.