Issue - meetings

Report of the Deputy Chief Executive (Place)

The Cabinet considered a report of the Deputy Chief Executive (Place), which set out proposals to proceed with an investment into Coombe Abbey Country Park and Coombe Abbey Park Ltd (CAPL) on a commercial arms length basis.

A corresponding private report was also submitted to the meeting setting out the commercially confidential matters of the proposal.  (Minute 55 below refers.)

In December 2017 the City Council purchased 100% of the shares in Coombe Abbey Park Ltd (CAPL), the operator of Coombe Abbey Hotel.  Following this purchase, officers have been reviewing a variety of different projects to increase partnering between CAPL and the wider City Council.

The report set out three proposals, which included the provision of a capital loan facility to CAPL; entering into a lease to enable a high wire assault cause to be built; and entering into a lease with CAPL on the existing catering space in Top Pool Lodge to establish a second café for Coombe Country Park and undertake de minimis works to the property before doing so.

The Council refinanced CAPL on 29^th November 2013 with a loan which is repayable over 15 years, ending in November 2028.  CAPL continues to service this debt from its existing revenue streams under the City Council’s ownership and the securities from this loan remain in place for a further 10 years.  It is proposed that a maximum facility of £1.95m is made available to CAPL over the next 10 years this period being in line with the Council’s existing loan facility to CAPL.  The new facility will ensure that appropriate security is obtained in order to protect the Council.

Upon first use, a one off arrangement fee of £15k would be payable from CAPL to the City Council.  Monies advanced to CAPL would be subject to interest rates based on commercial rates, and all drawdowns will be repayable by the term of the loan.

Coombe Country Park, whilst owned and operated by the City Council sits within the planning authority of Rugby Borough Council.  Within the Coventry boundary, the updating and establishment of play areas and parks is primarily funded from S106 contributions and grant monies obtained by the City Council and/or friends groups.

Whilst hugely popular with Coventry residents, no formal friends group exists for Coombe Country Park.  Also S106 money raised in Coventry cannot be spent in Rugby Borough Council’s area.  Therefore, the funding of new facilities in Coombe Country Park has to come from a limited parks budget or through more innovative schemes. 

An opportunity has arisen for CAPL to build a high wire assault course and tree top experience in Coombe Country Park.  CAPL have been in dialogue with a supplier of tree top high wire assault courses.  A provisional deal has now been reached where CAPL will enter into an agreement with the supplier to deliver a high wire facility in Coombe Abbey Country Park.

CAPL will pay a rent to the Council on the park land required for the development of  ...  view the full minutes text for item 49