ST. MARY’S
REPORT TO COUNCILLOR GARETH BACON, CABINET MEMBER FOR FINANCE AND
CORPORATE SERVICES – 17 MARCH 2015
DARTFORD COMMUNITY SPORTS CLUB – REQUEST FOR A LOAN
Decision Ref: FCS 03/14-15
ISSUES
The Dartford Community Sports Club (DCSC), which is located in Bourne Road, Bexley, has
approached the Council for a loan to finalise funding of a redevelopment project of their
facilities. The requested loan is for £35,000 repayable over a period of a maximum of 10
years at an interest rate of 4%.
The loan is needed to enable the Club to make the final payments on the project that is
expected to cost just over £0.8m, some 16% of which is funded from the Club’s own
resources. The balance of the funding is provided from a combination of grants and loans.
The Club initially approached the Council early in 2011 when it requested a loan of
£260,000. After it secured further external funding, it requested a contingency loan from the
Council of £35,000. In January 2012, the Director of Finance and Resources wrote to the
Club stating that the Cabinet Member for Finance and Resources had given his informal
approval to the loan, repayable over 10 years and at an interest rate of 4%. Repayments of
principal were still to be agreed and it was stressed that the offer was subject to a formal
approval in accordance with the Council’s normal constitutional processes.
In December the Club approached the Council again and have confirmed its request for the
loan as set out in the Council’s letter
OPTIONS
(1)
To agree the contingency loan of £35,000, repayable over a maximum of 10 years at
an interest rate of 4%
(2)
Not to agree the loan.
DECISIONS
(1)
That the contingency loan of £35,000 is agreed, repayable over a maximum of 10
years and an interest rate of 4%.
(2)
That the Director of Finance and the Head of Legal Services finalise the necessary
terms for the repayment of the loan, including principal repayments.
REASONS
The loan of £35,000 provides funding of about 4% of the total cost of the development
project and the repayment terms will ensure that the loan will be at no cost to the Council
Taxpayer.
Signed:
Councillor Gareth Bacon
LAST DATE FOR CALL-IN: 07/04/2015
Date:
24/03/2015
REPORT TO COUNCILLOR GARETH BACON, CABINET MEMBER FOR FINANCE AND
CORPORATE SERVICES – 17 MARCH 2015
DARTFORD COMMUNITY SPORTS CLUB – REQUEST FOR A LOAN
1. Introduction
The Dartford Community Sports Club (DCSC) has approached the Council for a
Contingency loan to finalise a redevelopment project of their facilities. The requested loan is
for £35,000 repayable over a period of a maximum of 10 years at an interest rate of 4%.
The loan is needed to enable the Club to make the final payments on the project that is
expected to cost more than £0.8m, some 16% of which is funded from the Club’s own
resources and the balance from a combination of grant and loan.
DCSC approached the Council about funding for its building improvement project initially in
2011 when it requested a loan of £260,000. This was then revised after it secured further
external funding and this culminated in a request for a contingency loan from the Council of
£35,000. In January 2012, the Director of Finance and Resources wrote to the Club stating
that the Cabinet Member for Finance and Resources had given his informal approval to the
loan, repayable over 10 years and at an interest rate of 4%. Repayments of principal were
still to be agreed and it was stressed that the offer was subject to a formal approval in
accordance with the Council’s normal constitutional processes.
In December the Club approached the Council again and have confirmed their request for
the loan as set out in the Council’s letter.
2. Background
The old clubhouse facility was built in the early 1960’s, with a view to providing male adult
rugby and cricket to its members. These facilities incorporated two mixed changing areas,
which both provided space for a maximum of 90 persons to change. There was one
communal shower containing 8 showers, but there are no facilities for official’s changing,
dedicated first aid room or suitable female facilities. .
Dartfordians Rugby and Cricket clubs have invested time and resources since 1995 to
significantly grow their membership and undertake a range of outreach and development
work in the community. Both clubs are very popular and successful local community sports
clubs and have seen impressive expansion and demand. The club is ‘open’ to any person
wishing to join and is not restricted in any way. Bexleyheath Photographic Club and the
Dartfordian Table Tennis Club also use the facilities during the week in the evening.
Over 2,200 people are members of the Dartfordians Community Sports Club (DCSC) either
as social members or affiliated club members from the clubs who use the building. A brief
description of the Rugby and Cricket clubs’ activities is set out below:
DCSC act as the management committee and leaseholders for this facility and multi sports
club. The freehold is owned by Old Dartfordians Association.
a) Rugby
Dartfordians’ RFC is one of the leading rugby clubs in Kent and received the Rugby
Football Union Mini / Youth Seal of Approval in February 2011. The club was also
successful in achieving the RFU Full Accreditation in October 2013.
The Club Accreditation scheme is based upon the six Key Drivers identified by the RFU
as being crucial to a strong club:






Retaining & Developing Players
Recruiting New Players
Recruiting & Retaining High Quality Coaches, Volunteers & Referees
Effective & Efficient Facilities
Effective & Efficient Management and Governance
Integration with the Local Community
Dartfordians RFC is one of only a limited number of clubs in Kent to receive this
recognition for the work it has undertaken with junior development and for achieving the
Full Accreditation status.
It now runs up to 5 senior rugby sides (including a veterans’ team) and has junior teams
at every age group from under-7 to under-21. The club has 50+ qualified coaches
available to lead training sessions.
The rugby club over the past few years has sent coaches in to many Bexley Primary and
Secondary schools to provide rugby coaching to all children. The club also works with
the RFU coaching coordinators to deliver rugby to schools that previously have not had
the opportunity to offer a series of linked rugby coaching courses to pupils.
This is further supported by offering additional coaching at the clubhouse on regular
training days and some evenings. The rugby club also offers help to support local
schools by providing rugby pitches, facilities, referees and on site coaching.
The club arranges Tag and Rugby festivals at Bourne Road for Bexley schools in
conjunction with Kent RFU which attracts many schools and young people. The club has
a long established and formal link with BETHS school, working with them in developing
sport and increasing participation in sport from local schoolchildren.
The club has 365 senior members (including 125 players) and 450 junior members, plus
some 900 parents who have joined and support the club. The success of the junior
section has been particularly gratifying, with the club’s facilities scarcely able to cope
with the number of children and young people enthusiastically taking up rugby.
b) Cricket
Dartfordians’ Cricket Club is affiliated to the Association of Kent Cricket Clubs, Club
Cricket Conference and Kent Regional League Division 4, North Kent Junior League.
The cricket club also achieved the ECB Club mark a few years ago.
Currently the cricket club have 4 teams that play on Saturday and 4 teams that play on
Sunday’s. It also has junior sides from age U11 through to U19, which attend the club
every week during the cricket season.
The club has grown extensively since 2005 from 6 to 12 teams with 150 playing
members and is struggling to accommodate the increasing demand for girls’ and
women’s cricket due to the poor nature of the facilities.
The club hosts the Bexley Teach Cricket event each year that attracts over 100 children
aged from 6 to 11.
3. Building Project
After consultation with Bexley Planning Department, the Dartfordians Community Sports
Club received planning permission to refurbish and extend the existing clubhouse. The
plans were made after involving the Rugby Football Union to ensure that the planned new
changing rooms were of the sizes and dimensions approved by the RFU and Sport England.
In summary the new building will provide 6 new self-contained changing rooms, two (male /
female) officials changing rooms, a first aid / physio room and a fitness gym of up to 42
fitness stations. The building has been designed to allow full wheelchair access to the site
and include disabled showers and a full wet room facility to encourage disabled users to use
this local gym facility.
The building works started late in 2012 and experienced delays in mid-2013 to mid-2014 and
is now almost complete.
4. The Sport and Community benefits
Membership of DCSC and associated Rugby and Cricket clubs has grown considerably in
recent years. The physical infrastructure is out dated and DCSC have recognised the
importance of providing up to date and fit for purpose facilities that will enable them to retain
membership and also respond to future areas of growth. These include women and girls’
cricket and rugby, more school club links and providing better facilities for their members and
the local community to be more physically active through the introduction of a new 42 station
fitness gym into the facilities.
a) The benefits
DCSC propose the new facilities will enable them to attract and additional 1600
participants in the first three years through the following activities:
New Activity
Gym users
Group
exercise
classes
New affiliated
members
Yr 9 girls’ ruby
ream
New
Rugby
coaches
Target
increase
s
800
New Activity
New Activity
Girls’
team
Yr 7 after school 120
cricket club
New
junior 10
cricket coaches
Cricket
8
volunteers
300
Cricket coaches
20
Mini rugby\junior 100
rugby
Rugby
25
volunteers
Table
tennis 5
members
Senior rugby
10
200
8
Target
increase
s
cricket 18
4
Target
increases
b) The new gym
The inclusion of fitness equipment at the site will be a welcome addition for DCSC
affiliated playing members, parents, spectators and local residents. DCSC have
sought the interest of a leisure operator to manage these facilities and ensure they
are open for use during the facilities operating hours.
It is proposed to market the gym as a low cost gym model. This is a relatively current
concept in the fitness industry and looks to provide an alternative package to the
fairly traditional mid or high end of the market gym provision. Low cost gyms are
generally around 50% cheaper each month than a mid-market gym and offer a very
different type of product.
Low cost gyms tend to be easy to join and membership tends to be instant and
online. The low cost gym tends to attract people who either want more affordable
fitness, want to use the gym only, people who tend to be “gym switchers” and don’t
have a particular loyalty to a facility. This will support other low cost gyms operated
in Bexley by the service provider and further enhance the facilities offered to Bexley
residents. Hopefully this will also provide an alternative product and experience to
Bexley’s current mid to high end market providers such as the three leisure PPP
centres and the David Lloyd club in Sidcup.
The low cost gym model is often located in an inner city area where people want
quick and easy 24 hour access to a gym to suit their working hours, in an area that is
more social deprived than the St Mary’s Ward or closer to main line stations to give
commuters easy access. The proposal for the new low cost gym at DCSC has been
developed by a leisure operator with the experience and the knowledge to
understand the market needs in Bexley and capable of understanding the benefits
and the risks associated with this type of development in the borough. This particular
scheme has the advantage at being based at a thriving sports club that has over
2,000 affiliated members.
5. Strategic Links
This project supports the Council’s objectives for physical activity and sport as set out in the
“More Active, More Healthy, More Successful” strategy document which covered the period
up to 2013. Whilst the document has not been refreshed the priorities the priorities are still
current and the project will contribute in the following ways:
-
Priority 1 Reducing inactivity and increasing participation - new low cost gym
option and activities for young people and increase in number of people taking part in
sport and physical activity each week.
Priority 2 Places and people - improving the accessibility, range and quality of
places for sport and physical activity, maximizing external investment and growth in
the number of coaches and volunteers.
Priority 4 Partnerships and better use of resources – developing a stronger club
network through working with local clubs and national governing bodies of sport to
secure external investment into the borough.
Priority 5 Pathways to Success – creating new recreational and competitive
structures for young people and adults
In terms of wider corporate aims, the project will also contribute to the following aims of the
Corporate Plan 2014 – 2018:
-
Growing a thriving economy - the club has created a creative and sustainable
business model and incorporated both voluntary sports clubs and commercial
leisure operator.
Living long, fulfilling and independent lives – the project will provide greater
opportunities across the age spectrum and better support people in continuing to
be active beyond competitive sport.
Providing value for money – the club has secured the majority of the funding
themselves and are only seeking 4% of the final project costs from the Council
and have agreed to a satisfactory repayment period.
6. Building Works
The total cost of the building works is estimated to be in the region of £821,000 and the table
below shows the funding of the project costs.
Description
Total cost of building and associated works
Funding
Grants
- Mayor for London
- London Marathon Trust
- Rugby Football Association
£’000
821
203
100
90
Description
- Greenwich Leisure Ltd (contribution)
Loans
- Natwest Bank
- Rugby Football Foundation (interest free)
DCSC resources
Total Funding
Shortfall – Contingency Loan requested
£’000
9
150
100
134
786
35
7. Summary of Legal Implications
It will be necessary to draw up a legal agreement to set out the terms of the repayment of
the loan. It is proposed that this is carried out by the Head of Legal Services in conjunction
with the Director of Finance.
8. Summary of Financial Implications
DCSC has requested a loan of £35,000 which will be repayable over a minimum of ten
years. The interest rate of 4% indicated by the former Director of Finance is based on the
Public Works Loan Board rate. This means that the Council’s costs of making the loan will
be covered in full.
DCSC has produced a business plan to demonstrate their ability to repay this and other
loans as part of the funding of the project.
9. Summary of Other Implications
Equal Opportunities
Membership of the sports club and the gym is open to all
HR Implications
None for the Council
Community Safety
None
Environmental Impact
None
Human Rights
Not applicable
Health and Well-Being of the Borough]
The new facilities will encourage participation in sport at the sporting facilities and the gym.
Asset Management Implications
None
LOCAL GOVERNMENT ACT 1972 – SECTION 100D
List of background documents
Letter from the Director of Finance dated January 2012
Contact Officer:
Reporting to:
Dick Passmore, Head of Finance, 020 3045 4963
John Peters, Deputy Director of Finance