Agenda item

Hoylake Golf Resort

Minutes:

,PhilDavies

Councillor Phil Davies, Leader of the Council, said:

 

"The Hoylake Golf Resort will be a flagship development which will create hundreds of jobs for local people and support businesses across the borough. As a globally-significant tourism and leisure attraction, it will support growth in our vibrant tourism economy and attract thousands of additional visitors to Wirral every year.

 

“Building on the success of the 2006 and 2014 British Open Championships at neighbouring Royal Liverpool Golf Club Hoylake, the Golf Resort will cement Wirral’s leadership position with the international golf community, benefitting from the visitors, tourism revenues and global attention that recognition will bring with it.

 

“However, it is more than simply two new golf courses. Hoylake Golf Resort will be a key leisure destination with a high-end hotel, restaurants, spa and conference facilities. It will prove to be an attractive offer for international conferences and similar events.

 

“Working with partners with the expertise and reputation of Celtic Manor, arguably the

strongest brand in golf hospitality today, and north-west based Story Homes means we are confident we will deliver a resort of the highest possible quality.

 

“This is another example of Wirral Council being commercial, ambitious and innovative. By using our resources and skills to secure major private sector investment into our borough, we will create jobs for residents and generate revenue for the Council.

 

“The revenue this development will generate each year – significant sums in council taxes

and business rates – will be reinvested in supporting our frontline services, and will go some way to start replacing the funding Wirral has lost since austerity policies began in 2010.

We pledge to continue to talk to local residents and businesses to make sure their concerns are listened to and they are able to benefit from the once-in-a-generation opportunity to create a fantastic new destination."

 

Councillor Phil Davies introduced a report which informed that following the signing of a Development Agreement with the Nicklaus Joint Venture Group (NJVG) in November 2016, as reported to Members (Cabinet Minute No 55 and 61) the NJVG and their consultants Grant Thornton had submitted their Funding and Phasing Plan for the Hoylake Golf Resort project. The Council’s consultants had conducted a detailed analysis of the submission and their report, a confidential document, was appended to this report and was exempt from publication due to commercial sensitivity considerations under Schedule 12A of the Local Government Act 1972. (Cabinet Minute No. 76 refers.)

 

The Cabinet noted that this option had been selected from a range of development proposals as part of a competitive dialogue procurement process.

 

The Cabinet report set out the publicly available information which included:

 

(a)  the project description and proposed timetable;

(b)  the partners;

(c)   a summary of the assessment of the Funding and Viability Plan (with the commercial detail in the exempt appendix);

(d)  the requirement for prudential borrowing;

(e)  arrangements for funding highway works in the area if grant is not secured for these works; and

(f)  a recommendation to move the project forward to the next stage so the NJVG can prepare a planning application.

 

The Hoylake Golf Resort project supported the business category of the Council’s 2020 Pledges and, in particular, the priority to create a vibrant tourism economy. It also linked to the priorities to increase inward investment and create greater job opportunities in Wirral. The report was of greatest relevance to the Hoylake and Meols Ward but the wider economic impacts would have implications for all wards.

 

Councillor Davies informed that the report was in fact seeking the Cabinet’s agreement to the principle of Prudential Borrowing, up to a maximum of £26m subject to the satisfaction by the NJVG to the Council, of all the following conditions set out below. The Development Agreement between the NJVG and the Council governed how the relationship would operate including the completion of key criteria to the satisfaction of each party. Normal dispute processes had been provided for in the case where arbitration was necessary.

 

·  Ensure the whole development has planning permission. The essential documents required for the planning application are;

 

-  Environmental Impact Assessment (subject to screening)

-  Traffic Impact Assessment/Transport Assessment

-  Flood Risk Assessment including drainage

-  Habitats Regulations Assessment (subject to screening)

-  A Design and Access Statement

-  A Planning and Regeneration Statement

-  Economic Impact Assessment

 

·  Produce a detailed and fully costed development programme of all costs and timescales and milestones,

·  Have completed all third party land acquisitions including Council land,

·  All equity funds should be received in full,

·  All construction contracts should be executed by the NJVG,

·  All residential land sales contracts should be executed,

·  The operating contract for hotel and golf operations shall be executed,

·  Step in documents must be in place,

·  Submission of a ten year operational business plan,

·  Other conditions – including funding and viability, highways, footpath and the Royal and Ancient (R&A) conditions.

 

The subject of the report was a key decision for the Council.

 

Councillor Davies informed that the project would provide a key leisure destination.  As the Revenue Support Grant would cease after 2020 this initiative was important as it would help the Council to generate new income.  It was intended that there would be a whole series of studies carried out at no cost to the Council and the project was subject to planning permission being granted.  There would be appropriate consultation and alternative proposals would be considered.  Councillor Davies was aware that some people had passionate views on this proposed Golf Resort as he and other Cabinet Members had received emails that had made this clear.

 

Councillor Angie Davies was of the view that going ahead with the project was the right thing to do but she was aware that people were asking about the impact it would have and various concerns had been expressed.  She informed that if the Golf Resort came to fruition it would be a boost for the local area and a good example of how the Council was able to do things differently.

 

Councillor Janette Williamson was keen to take this project to the next stage and address all the concerns satisfactorily as it would provide a means to generate income.

 

Councillor Matthew Patrick informed that some residents had engaged very positively with this project.  The Cabinet was listening to the views being expressed and was commissioning reports to obtain the information that was needed to ensure that the environment was protected and sound.

 

Councillor Phil Davies referred to the list of studies being commissioned (as detailed above).  It wanted to make sure that any development that went ahead avoided any environmental damage and so an informed view was required before any decision was taken to take the project forward.

Councillor Bernie Mooney informed that the independent reports that were being commissioned would be placed in the public domain.  She considered that if the conditions were right, the development would be good for the Wirral and she was aware that a number of Wirral residents shared this view.  It was a planning decision, it was a sensible way forward and the commissioning of reports was the first step.

 

Councillor Phil Davies referred to the Council’s serious financial position and the need to explore all options that had the potential to bring in income.  He moved, Councillor George Davies seconded and it was

 

RESOLVED (unanimously): That

 

(1)  the Hoylake Golf Resort project progresses to the next stage which allows the Nicklaus Joint Venture Group to carry out the detailed studies, at their cost, to enable them to prepare a planning application for the project;

 

(2)  subject to planning permission being secured for the golf resort project and all the conditions of the loan being satisfied by NJVG as set out in this report, the Cabinet approves the use of the Council’s access to prudential borrowing under the terms reported and agrees to enter an investment agreement with the Nicklaus Joint Venture Group; and

 

(3)  should the application for Liverpool City Region Strategic Investment Fund for highway works be unsuccessful, to recycle the land receipt funding into a contribution to the construction of a new adopted public highway to open up the golf resort and provide a new link road to and from Hoylake to benefit the wider highway network and businesses local residents.

Supporting documents: