Trust that took responsibilty for council leisure now wants £5.2m loan

COUNCILLORS who off-loaded leisure facilities on to a charitable trust almost two years ago are being asked to loan its bosses more than £5m for improvements to gyms and other facilities.

Doncaster Culture and Leisure Trust (DCLT) was handed responsibility for the borough’s leisure centres and swimming pools, including Doncaster Dome, in April 2011 in a bid to reduce the pressures on the council.

But this week the trust will ask Doncaster Council for £5.2m to bring facilities at three centres up to scratch, because it cannot secure a loan in the private sector as a result of pension liabilities.

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The lending will have to be approved by members of the council’s ruling cabinet, and at present they are being advised to provisionally accept the plan, subject to a series of checks by officers.

The three centres which require the investment are the Dome, Adwick Leisure Centre and the Dearne Valley Leisure Centre, between Mexborough and Conisbrough.

At the Dome the trust wants to spend £1.9m expanding the gym, which is apparently oversubscribed and at Dearne Valley £500,000 is required, also to expand the gym and provide more car parking.

In Adwick, the trust says £2.8m is needed for the expansion of health and fitness provision, introduction of a 10-pin bowling alley, soft play area and additional car parking.

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In a report, councillors will be told: “There is a risk of the income targets not being met which would then require DCLT to reassess their business plan in order to ensure they meet the loan repayments.

“A further risk is that a quality leisure private provider may open within the current drive time area, so putting pressure on the trust’s ability to meet the membership usage and income figures due to increased competition.

“In order to mitigate these risks further information has been requested from DCLT regarding income, usage figures and background supporting information for the proposal.”