Bath & North East Somerset Council
MEETING:	Bath Recreation Ground Trust
MEETING DATE:	5th OCTOBER 2007	AGENDA ITEM NUMBER		11
TITLE:	Outline Heads of Terms for major users of the Recreation Ground	EXECUTIVE FORWARD PLAN REFERENCE:
		E	1704
AN OPEN PUBLIC ITEM
List of attachments to this report: Exempt appendix 1 & 2 Appendix 1 is exempt by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 - public interest test document is attached

1 THE ISSUE

1.1 The Strategic Review was completed in June 2007 and determined its preferred future for the Recreation Ground as option 2 which included regularisation of the Leisure Centre position and redevelopment by the Rugby Club. Initial discussions have taken place and outline Heads of Terms are attached for consideration by the Board.

2 RECOMMENDATION

The Bath Recreation Ground Trust is asked to:

2.1 Note to the progress made to date in preparing outline Heads of Terms

2.2 Identify any further areas for discussion and development

2.3 Agree to the appointment of an Independent Valuer, to produce detailed Heads of Terms and whose brief should also include examining options for maximising benefits for the Trust in accordance with its charitable objects

2.4 Instruct officers to produce a detailed brief for the Independent Valuer as described in 2.3 above to be agreed with the Chairman of the Trust Board.

2.5 Delegate authority to the Chairman to approach Council for further financial resources (loan) should the cost of work exceed the finances (loan) already available to the Trust.

2.6 Consider a further report on detailed Heads of Terms and charitable benefits, following the work on the independent valuer and further legal advice on the suitability and validity of any options proposed in furtherance of the Trust Charitable Objects

3 FINANCIAL IMPLICATIONS

3.1 The Trust Board has received loan funding from the Council to support the Strategic Review process and support delivery of its outcomes. To date it has £21,000 remaining funding available which can be used to purchased external professional advice. Should the costs of advice exceed the funding available then the Trust Board will need to seek further loan finance from the Council as recommended in 2.5 above or will need to review its course of action

4 REPORT

4.1 The Strategic Review recognised the need to regularise the two breaches of Trust arising from the High Court Decision in 2002 and in pursuing option 2 is seeking to maximise the charitable benefits to the Trust within the constraints of the complex legal issues it is faced with.

4.2 Accordingly outline Heads of Terms received from the Rugby Club and Council in respect of the Leisure Centre are attached as a first draft of the range of issues to be addressed. A detailed brief will need to be prepared prior to the appointment of Independent valuer to act on behalf of the Trust in furthering these Heads of Terms. The Trust will also need to seek further legal advice as necessary before considering any preferred agreement structures.

4.3 The draft outline Heads of Terms are contained within exempt appendices 1 and 2.

5 RISK MANAGEMENT

5.1 The key risk remains the ability of the Trust to deliver the preferred outcome of the Strategic Review, and in particular the future of the Rugby Club and the Leisure Centre, upon the financial position of the Trust.

6 RATIONALE

6.1 The Strategic Review and preferred option 2 sets out the future direction for the Trust and its success is imperative on progress being made with all the issues of concern

7 OTHER OPTIONS CONSIDERED

7.1 None

8 CONSULTATION

8.1 Deputy Section 151 Finance Officer

9 ISSUES TO CONSIDER IN REACHING THE DECISION

9.1 Other legal considerations.

10 ADVICE SOUGHT

10.1The Council's Monitoring Officer (Council Solicitor) and Section 151 Officer have had the opportunity to input to this report and have cleared it for publication.

Contact person	Tony Bartlett (01225) 477302
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