Notice Information
Notice Title
Deed of Variation to Lease for Riviera International Conference Centre
Notice Description
On 25 July 2019 Torbay Council awarded a lease for the operation of the Riviera International Conference Centre (RICC) to Parkwood Leisure Ltd, with the intention that Parkwood Leisure Ltd would take over operation of the RICC on 01 April 2020. This notice relates to changes in the lease arrangements which were not included in the original procurement and that have been brought about as a direct result of the impact of the COVID-19 pandemic.
Lot Information
Lot 1
On 25 July 2019 Torbay Council awarded a lease for the operation of the Riviera International Conference Centre (RICC) to Parkwood Leisure Ltd, with the intention that Parkwood Leisure Ltd would take over operation of the RICC on 01 April 2020. In March 2020, the Council and Parkwood Leisure Ltd had a completed lease in readiness for signing ahead of the 1st April 2020; setting out all the commercial terms along with the capital investment to be delivered in 2020 and 2021. Due to restrictions imposed in response to the pandemic the RICC was closed and signing of the lease was deferred until such time as it could be agreed by both parties that Parkwood Leisure Ltd could take over its operation. The Council and Parkwood Leisure Limited have agreed that the originally proposed twenty five year lease will go ahead from 01 April 2021 and this will remain the basis for the medium to long term future of this partnership. However, in order to capture and address the impact of Covid-19 the Council intends to enter into a short term deed of variation with Parkwood Leisure Ltd, subject to approval through the Council budget setting process. This deed of variation will cover a financial support package that will be in place for the first twenty four months of the lease, which will be capped at approximately PS830,000. This funding is being provided to enable Parkwood Leisure Ltd to move the RICC from the deficit position that has been created during the pandemic, in order to ensure the long term sustainability and viability of the business. It is expected that the support package will be made through the payment of a fixed fee quarterly in advance.
Options: The financial recovery of the RICC will be subject to ongoing monitoring to establish whether at the end of the 24 month period the business has recovered from COVID-19 to a level acceptable to both parties and that there is confidence this will continue. In the event this is not the case, taking into consideration the level of uncertainty surrounding the recovery phase of the pandemic and the impact of any potential future lockdowns, the Council may need to consider further financial intervention.
Procurement Information
The Council and Parkwood Leisure Ltd were in the process of finalising the lease when the first national COVID-19 lockdown commenced. In accordance with government guidance the RICC ceased operation whilst restrictions were in place. Due to uncertainty of the date for re-opening and the cancellation of booked conferences/events signing of the lease was stalled. In June 2020 the Council assumed responsibility for the RICC management company to provide some surety for staff, whilst options for the RICC's future were explored: 1) Parkwood Leisure Ltd take over the lease and commence operating the RICC with the addition of a short term agreement to provide funding to support recovery. Parkwood Leisure Ltd.'s tender submission provided a sound basis for negotiation, offering an expedient solution and reducing risk to staff and the business. 2) Retender for an operator. Market uncertainty in relation to post COVID-19 recovery and timescales for putting new arrangements in place would increase the risk to staff, extend the time for the RICC to recover and impact on the local economy. 3) Council continue to manage the RICC. The Council's lack of experience and expertise in this specific area would increase the risk to staff, extend the time for the RICC to recover and impact on the local economy 4) Close the RICC. This would put all of the staff at RICC at risk and have a significant/long term impact on the local economy. Options 2 and 3 would be further considered should agreement with Parkwood Leisure Ltd not be reached. The Council entered into negotiation with Parkwood Leisure Ltd on the basis set out in II.2.4 above. Subject to the outcome of the negotiations and approval through Council governance processes, the Council intends to enter into a short term agreement with Parkwood Leisure Ltd, with a view to moving to a lease only arrangement once recovery has been established. The Council would enter into agreement under clauses 2(b)(ii) and 2(c) of Article 32 Use of the negotiated procedure without prior publication of Directive 2014/24/EU. The justification under clause 2(b)(ii) is that Parkwood Leisure Ltd was the successful economic operator under a Competitive Dialogue Procedure as outlined within Article 30 of the Directive (2014/24/EU) and implemented in the UK by The Public Contracts Regulations 2015 (SI 2015/102). The Council received two bids through this tender process, the second bid being rejected as non-compliant. This meant Parkwood Leisure Ltd was the only credible option in terms of enabling the re-opening of the RICC in a timely manner, minimising the risk of job losses or complete closure of the site. They have a sound track record in operating similar facilities and demonstrated through the procurement process and subsequent renegotiation that they are in a position to take on operation of the site within a reasonable timescale. The justification under clause 2(c) is that neither the Council nor Parkwood Leisure Ltd could have foreseen the outbreak of Coronavirus or the impact it would have on all aspects of everyday life. The Council had undertaken a compliant procurement process to appoint Parkwood Leisure Ltd, but the requirement to close the RICC and uncertainty around timescales for re-opening have impacted on their business plan for the site. The closure will result in a significant reduction in income including future conference bookings, putting at risk the ability for any organisation to effectively operate the RICC, resulting in its closure and loss of jobs for all staff. This risk would increase with any delay in reaching an agreement with an economic operator to take on the lease. The RICC plays a significant role in the visitor/tourism economy of Torbay and its effective operation is vital to rebuilding that economy. To safeguard as many jobs as possible and support the local economy through operating the RICC, the Council considers there is an urgent need to commence rebuilding the business.
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-h6vhtk-028991
- Publication Source
- Find A Tender Service
- Latest Notice
- https://www.find-tender.service.gov.uk/Notice/000573-2021
- Current Stage
- Award
- All Stages
- Award
Procurement Classification
- Notice Type
- Award Notice
- Procurement Type
- Standard
- Procurement Category
- Services
- Procurement Method
- Limited
- Procurement Method Details
- Negotiated without publication of a contract notice
- Tender Suitability
- Not specified
- Awardee Scale
- Large
Common Procurement Vocabulary (CPV)
- CPV Divisions
55 - Hotel, restaurant and retail trade services
71 - Architectural, construction, engineering and inspection services
92 - Recreational, cultural and sporting services
-
- CPV Codes
55000000 - Hotel, restaurant and retail trade services
71000000 - Architectural, construction, engineering and inspection services
92000000 - Recreational, cultural and sporting services
Notice Value(s)
- Tender Value
- Not specified
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- £830,000 £500K-£1M
Notice Dates
- Publication Date
- 12 Jan 20215 years ago
- Submission Deadline
- Not specified
- Future Notice Date
- Not specified
- Award Date
- 3 Dec 20205 years ago
- Contract Period
- Not specified - Not specified
- Recurrence
- Not specified
Notice Status
- Tender Status
- Complete
- Lots Status
- Not Specified
- Awards Status
- Active
- Contracts Status
- Active
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- TORBAY COUNCIL
- Contact Name
- Miss Tracey Field
- Contact Email
- tracey.field@torbay.gov.uk
- Contact Phone
- +44 1803208391
Buyer Location
- Locality
- TORQUAY
- Postcode
- TQ1 3DR
- Post Town
- Torquay
- Country
- England
-
- Major Region (ITL 1)
- TLK South West (England)
- Basic Region (ITL 2)
- TLK4 Devon
- Small Region (ITL 3)
- TLK42 Torbay
- Delivery Location
- TLK42 Torbay
-
- Local Authority
- Torbay
- Electoral Ward
- Tormohun
- Westminster Constituency
- Torbay
Further Information
Open Contracting Data Standard (OCDS)
View full OCDS Record for this contracting process
The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.
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