Project Cost and Funding
The total budget for the project to create both a new leisure complex and bus station is £39.92m.
Prior to the extraordinary council meeting on July 19, 2017, the council had approved a budget of £26m for the leisure complex and £6.25m for the new bus station – a budget £32.25m.
£20m was first approved on December 16, 2014, followed by an uplift of £6m August 12, 2015 and £6.25m for the bus station on January 25, 2016.
The budget of £32.25m was funded as follows:
• New Homes Bonus - £18m (to date £10.9m received, the rest to be recovered over the next seven years)
• CIL - £8m
• Capital Receipts - £6.25m
At the extraordinary meeting on July 19, 2017, members backed a revised budget for the project of £39.92m.
The increase of £7.67m includes the build costs and the on-costs associated with delivering the development such as obtaining vacant possession, off-site temporary bus station works and the procurement of an operator.
The additional £7.67m will be funded by:
• Section 106 Contributions - £1.4m (to date £0.589m received)
• Borrowing - £6.27m
At current rates the annual cost to the General Fund of financing £6.27m is £231,500 per annum. This charge can be managed, when considered in conjunction with the forecast profit share from the facility.
Therefore the cost of servicing this debt will be covered by the anticipated income generated from the Leisure Complex.