THE CHARITY KNOWN AS COBTREE MANOR ESTATE

COBTREE MANOR ESTATE CHARITY COMMITTEE

20 NOVEMBER 2009

REPORT OF THE COBTREE OFFICER

Report Prepared by: Brian Latimer – Cobtree Officer

1.                           COBTREE MANOR GOLF COURSE – BUGGY PATH

1.1                        Issue for Decision

1.1.1                   To consider a request for a contribution towards the construction of an all-weather buggy path at the Cobtree Manor Park Golf Course.

1.2                        Recommendation of the Cobtree Officer

1.2.1                   It is recommended that Members that Members consider favourably the requested contribution of £57,495 to towards the cost of constructing the all-weather buggy path at the Cobtree Manor Park Golf Course.

1.3                        Reasons for Recommendation – Background

1.3.1                   At the last meeting of the Committee a request from the golf course management contractor was submitted for consideration; that request was for a significant financial contribution towards the construction of an all-weather buggy path.

1.3.2                   It was resolved that consideration of the request for a contribution be deferred for the submission of a detailed business case and a review of the proposed funding arrangements.

1.3.3                   The report set out the details of the request by Mytime.  The contribution was to assist in the cost of the construction of an all-weather path around the Golf Course to allow the use of electric buggies throughout the year.  The cost of construction was estimated to be £104,500. The Council acting as Corporate Trustee was asked to contribute £57,945 (unspent funding of £19,055 from 2008/09 and £38,890 in the current financial year) and the Council acting as local authority asked to contribute unspent funding of £5,445 from 2008/09 and £11,110 in the current financial year.

1.3.4                   The Committee felt that it needed further information to assist it in its consideration of the request, including an assessment of the likely increases in footfall and revenue in return for its investment.

1.3.5                   Information provided by Mytime Active suggests an anticipated increase in the number of rounds over the winter period in the order of the following:

1.3.6                   The “return on investment” to be anticipated by the Council would be though the contractual profit share arrangement.  The Council will receive 35% of all turnover based on the threshold agreed during the tendering stages; Charity will receive a 7/9th share of that income.  Mytime Active has indicated that income is currently close to the agreed threshold and that, with the addition of the path, there is a good chance of overachieving to enable a profit share payment to be made. 

1.3.7                   Usage does dramatically decline during the winter period due to the unavoidably poor conditions on certain parts of the course; the path will assist with retaining a number of customers that migrate in the winter to other courses that allow the continuing use of trolleys etc.

1.3.8                   The Council, acting as local authority, has indicated that it will not be prepared to give this request a high priority within the limited funding it has available for capital project within the leisure portfolio.  In essence, the Charity is thus being asked potentially to fund the whole contribution requested in the sum of £74,500.  Mytime Active had indicated, however, that should the Charity Committee be favourably disposed towards granting the initially requested amount in the sum of £57,495, it will seek to make up the shortfall.

1.4                        Alternative Action and why not Recommended

1.4.1                   The alternative course of action is to reject the approach from Mytime Active.  This is not recommended as the buggy path has been considered a positive improvement to the facilities of the golf course for a number of years, and it will enhance the reputation of the course in the area and thus maintain its popularity.

1.5                        Impact on Charity Objects

1.5.1                   The Charity’s objects include the provision of facilities for sport and recreation.  This proposal is designed to enhance the reputation of the of the Cobtree Manor Park Golf Course.

1.6                        Risk Management

1.6.1                   The risk to the charity is that making this contribution does not result in an increase payment through the profit share mechanism.

1.7                        Other Implications

1.7.1                            

1.7.2                   The requested payment will need to be included in the estimates for the next financial year and if agreed will extend the period within which the Charity will repay its debt to the Council.

Background Documents