Issue - meetings

Report of the Director of Business, Investment and Culture

The Cabinet considered a report of the Director of Business Investment and Culture, which set out proposals to award a grant of £2.908m towards a capital project at the Albany Theatre, and required borrowing.

The proposed project comprised improvements to the studio theatre, building of three new studio spaces and improvements to the café and front of house areas.  The project had been developed to create a viable future business model for the operator, Albany Theatre Trust, which was currently unsustainable.  The proposed investment would increase the Trust’s potential to generate earned and contributed income through growth in hires, the public-facing cultural programme and associated secondary spend.

The Albany had been identified as a significant cultural asset for the City. In recent years the theatre had been increasing its attendances, its outreach and training programmes.  The improvements to the premises would build on previous investment, facilitate increased use and opportunities for cultural participation for the benefit of the residents of the City.  This would contribute to the legacy of the City of Culture title.

The report indicated that £500,000 of the funding required had been earmarked from the City of Culture Capital Fund managed by the Council.  The remaining capital sum of £2.408m required to meet the total cost of the capital project was proposed to be funded from prudential borrowing, and the resulting debt repayment cost incorporated into the formal budget setting report for 2021/22.

RESOLVED that the Cabinet recommend that Council:

1.  Approve a grant of up to £2.908m be provided to the Albany Theatre Trust to support the capital proposal summarised in Section 2 of the report submitted, subject to the conditions set out in Section 6.2.

2.  Noting that £500,000 of the required total has been earmarked from funds already approved, approve that additional capital expenditure for this purpose of up to £2.408m is added to the approved capital programme, to be funded from prudential borrowing.

3.  Note that, subject to the approval of the report submitted, estimated annual debt services costs of c£250k will be incorporated into the 2021/22 (and ongoing) budget report for approval by full Council.

4.  Delegate authority to the Director of Business, Investment and Culture and the Director of Finance, following consultation with the Cabinet Member for Housing and Communities and the Cabinet Member for Strategic Finance and Resources, to take all necessary steps to negotiate and enter into all necessary legal agreements to effect the recommendations in the report submitted.