Agenda item

Decision

RESOLVED

a)    To agree now to the extension of the pier management contract at the end of its current ten-year term for five years to March 2033 (as allowed for under the contract) so that the additional costs / losses incurred by Openwide in supporting the contract over the past two years due to COVID might be recovered – i.e. Option 1 as detailed within Section 5 of the report.

b)    To agree, in principle, to explore further with Openwide a risk-sharing approach in underwriting the costs of investment in the 2022 Seaside Special production recognising the challenges presented by the COVID pandemic on audience figures during 2021 and the continueduncertainty for the 2022 summer season given that planning and investment in the 2022 production is already underway - i.e. Option 3 as detailed within Section 5 of the report.

c)     To make budgetary provision in the current financial year of up to £45,000 to upgrade the bar and food service area within the Pavilion Theatre

d)    To agree to working closely with Openwide to explore broadening the offer of the Pier as outlined in Options 4 and 5 of Section 5 of the report so as to attract new audiences, visitors and income to the Pier.

Reason for the decision:

For the Council to work with the company to manage future risks in the operation of the Pavilion Theatre.

The Portfolio Holder for Leisure and Culture, Cllr V Gay, introduced this item. She began by saying that the Council owned Cromer Pier a Grade II listed structure. The report looked at the management contract for the pier in the context of ongoing uncertainty around the pandemic. Cllr Gay explained that the contract had been awarded in 2019 and the onset of the pandemic and periods of lockdown had presented considerable challenges for the Pavilion Theatre. The 2022 season currently remained uncertain and the paper set out a series of recommendations intended to ameliorate the situation.

Cllr Gay said that extending the contract for a further five years would give Openwide an opportunity to recover the additional costs incurred during the last two years. This could be supported with the Council exploring a risk-sharing approach by underwriting the costs of investment in the 2022 Seaside Special production. Doing so would acknowledge the challenges presented by the pandemic on the 2021 season and the continued uncertainty for 2022. She then said that responsibility for facilities in the Pavilion Theatre sat with the Council and it was proposed that £45k was set aside to upgrade the bar and food service area. Finally, it was proposed that the Council worked with Openwide to explore broadening the offer of the Pier, with the aim of attracting new audiences and visitors.

The Chairman invited members to speak:

Cllr J Rest referred to the current catering facility on the Pier and asked that a high standard was maintained. He said that there was excellent local produce available and this should be preferred choice – rather than ‘dumbing down’. He said that it was a unique opportunity to provide something high quality. Cllr Gay replied that she understood that it was the recruitment of quality of staff that was causing the problem. It was a long standing issue that had been exacerbated by the pandemic.

Cllr C Cushing sought clarification on the expected cost if the Council opted for a risk-sharing approach and underwrote the cost of investment in the 2022 Seaside Special. Cllr Gay replied that the estimated cost was £300k – which indicated the amount for a 50% share. The Chief Executive confirmed this, saying that Openwide was looking for an investment on an ‘open book’ basis, if the show couldn’t run for another season (July to September 2022). The main issue would be around the size of the audiences and possible Covid related restrictions.

Cllr Cushing how the risk would be quantified and who would undertake the assessment. The Chief Executive replied that it would be on open book principles, so the Council would understand the investment made by Openwide, ticket sales and pricing. He added that there were regular contract meetings between the Council and Openwide and any information  provided would be assessed by the Council’s Finance team.

Cllr N Dixon said that he was mindful that the contract that was in operation had been running for a few years and that it had been agreed when it was re-awarded to Openwide in 2019 that some fundamental changes would be made but that due to the pandemic, there had not been the opportunity to try them out. He added that he too had some concerns regarding the risk-sharing proposals but he did recognise that the pier was a facility that was much appreciated and valued. Cllr Gay replied that any decisions taken under delegation would be reported back to members. She said that in previous years, the Council had provided a large subsidy to the Pier Theatre. This was no longer the case. She concluded by saying that the Seaside Special was unique – the last of the traditional seaside variety shows and it was the responsibility of the Council to continue to protect it.

The Chairman said that good progress had been made on the pier becoming self-sufficient but it had to be recognised that Covid had had an impact.  The Chief Executive agreed, saying that the Council was attempting to anticipate any possible problems and build in likely support at the start of the financial year.

It was proposed by Cllr V Gay, seconded by Cllr J Toye and

RESOLVED

a)    To agree now to the extension of the pier management contract at the end of its current ten-year term for five years to March 2033 (as allowed for under the contract) so that the additional costs / losses incurred by Openwide in supporting the contract over the past two years due to COVID might be recovered – i.e. Option 1 as detailed within Section 5 of the report.

b)    To agree, in principle, to explore further with Openwide a risk-sharing approach in underwriting the costs of investment in the 2022 Seaside Special production, recognising the challenges presented by the COVID pandemic on audience figures during 2021 and the continueduncertainty for the 2022 summer season given that planning and investment in the 2022 production is already underway - i.e. Option 3 as detailed within Section 5 of the report.

c)     To make budgetary provision in the current financial year of up to £45,000 to upgrade the bar and food service area within the Pavilion Theatre

d)    To agree to working closely with Openwide to explore broadening the offer of the Pier as outlined in Options 4 and 5 of Section 5 of the report so as to attract new audiences, visitors and income to the Pier.

Reason for the decision:

For the Council to work with the company to manage future risks in the operation of the Pavilion Theatre.