Delayed completion date for new Hartlepool leisure centre revealed as £25m cost also rises
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Yet Hartlepool Borough Council bosses have reiterated that work on the new Highlight Leisure Centre, on the Waterfront, are set to commence in autumn 2023, subject to revised funding plans being approved.
A report from officers notes “due to a number of factors outside the council’s control, the procurement phase has taken longer than initially programmed” while the construction market has “evolved significantly post Covid-19”.
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Hide AdCouncil bosses have confirmed the landmark leisure centre now has a planned completion date of summer 2025 compared to the previous estimate of November 2024.
The initial budget totalled £25.65million, which covered the cost of the leisure facility, infrastructure and public realm works.
The majority of that funding is from Tees Valley Combined Authority (TVCA) with a further £2 million coming from Sports England grants.
Updated estimates, however, indicate that the development will cost up to £34.65million, which includes £2.79million in additional project fees and a £1.86million risk and contingency fund.
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Hide AdCouncil bosses are planning to address the £9million budget shortfall through a further £500,000 grant from Sport England, reviewing capital funding allocations, using contingency funds and £4.5million of borrowing.
It comes after Wates Construction, a leader in the sport and leisure sector nationally, were identified as the preferred contractor to progress the development.
Officers noted since original budgets were agreed in 2020 that “inflation, energy costs and other factors have had a huge impact” on the market.
They added research found additional costs “do not appear to be abnormal” with other high profile projects national being “subject to similar pressures” and that their plans still offer a “balanced funding strategy”.
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Hide AdA report from council bosses warns not progressing with Highlight at this stage “would risk loss of money already invested” as well as losing Sports England funding.
It said: “This development will have major long term benefits for Hartlepool, demonstrating the council’s commitment to regenerating the town, raising aspirations and supporting improved health outcomes for local people.”
It added the development will provide key leisure provision and is “fundamental” to waterfront regeneration plans.
The report goes to the finance and policy committee on Monday before, if approved, going before full council.