Bognor Regis Watersports Centre. Feasibility Study. Prepared By University Of Chichester 25th February 2011 FUNDED BY

Transcription

1 Bognor Regis Watersports Centre Feasibility Study Prepared By University Of Chichester 25th February 2011 FUNDED BY

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3 Contents page 1.0 INTRODUCTION OBJECTIVES METHODOLOGY BACKGROUND (INC STRATEGIC CONTEXT) SUMMARY OF FINDINGS Need and Demand Benchmarking Case Studies Site Analysis Options, outline design and configurations BUSINESS CASE Benchmarking Indicative Capital Costs for Options considered Procurement Funding strategy Management vehicle Viability - Usage, charges and revenue assumptions ECONOMIC AND SOCIAL IMPACT Introduction Economic and Social Impact Examples REVIEW OF OBJECTIVES RECOMMENDATIONS (INC NEXT STEPS) Introduction Recommendation Next Steps Outline Implementation Plan 31 1 Bognor Regis Watersports Centre Feasibility Study Executive Summary

4 1.0 Introduction

5 1.0 Introduction 1.0 Introduction The full Bognor Regis Watersports Centre Feasibility Study report including appendices is available at This summary aims to provide a concise précis of the report. The concentration is on the findings, the options identified as a result, the recommendations and next steps to take the project forward. The Study evolved from the Bognor Regis Seafront Strategy produced in 2009 by Arun District Council which proposed a radical agenda for the redevelopment of the seafront from Felpham to Aldwick. One of the key components of this revolved around Butlins Skyline Ltd. and an associated Watersports Centre. The strategy proposed that the new Watersports Centre be built on the Gloucester Road car park, in an iconic and environmentally-friendly building with new slipway access to the sea. This building could step over the promenade (with pedestrians passing beneath unhindered), bringing visitors closer to the sea and creating space for a raised terrace café with panoramic views. The Centre may provide kite surfing, jet skiing, a scuba school and other activities to residents, visitors and the students of University of Chichester. It is important to note that the café should be viewed as an addition to the whole seafront offer, not just the Watersports Centre. The facility has the potential to fulfill a role similar to Littlehampton s East Beach Café in that it can become a visitor attraction in itself, serving a range of good food to suit tired and wet watersports enthusiasts as well as other dry visitors. Reference n/seafront_strategy/draft_bognor_regis_seafront_strateg y.pdf In March 2009, it was agreed that Butlins Skyline Ltd, Arun District Council and the University of Chichester would jointly fund a Feasibility Study leading to the creation of a Business Case for the proposed development. The Study would be undertaken by the University and be funded by a contribution of 20,000 from each partner with the University s contribution being in kind. In October 2010 this Study was commissioned. 3 Bognor Regis Watersports Centre Feasibility Study Executive Summary

6 2.0 Objectives

7 2.0 Objectives 2.0 Objectives The principal objective of the Study is to establish the commercial and operational feasibility and viability of the proposition to establish a watersports facility on the Bognor Regis Seafront and to create a business case for its development. Within this, specific aims include establishing: To what extent would the Centre make a positive economic contribution to the regeneration agenda for Bognor Regis? To what extent would the Centre provide destination appeal to visitors in its own right whilst remaining commercially viable and at the same time supporting Butlins strategic aspirations? How the Centre might contribute to the world-class sports science in watersports reputation of the University and provide a focus for adventure education students and the student populace in general? How the reputation of the University in sports science, physical education and adventure education can contribute to the success and profile of the Centre? Those features, services and ingredients (including design and associated features) which would raise the overall quality of the proposition and attract potential users of the facility to Bognor Regis. The most appropriate location for the Centre based on an assessment of the Gloucester Road site co-owned by Arun DC and Butlins Skyline Ltd. To what extent can the facility become a standalone, all year round attraction to visitors as well as residents of Bognor Regis, Arun District and the wider community in the region? 5 Bognor Regis Watersports Centre Feasibility Study Executive Summary

8 3.0 Methodology

9 3.0 Methodology 3.0 Methodology The research has been undertaken using a broad base of quantitative and qualitative methods; numerous face to face interviews and four workshops supported by questionnaires aimed at different target groups as well as accompanying secondary data. The results provide substantial data and information for effective analysis of the potential development of a Watersports Centre in Bognor Regis; a business case and viable financial model. The key elements of the research were: Benchmarking - using three established multiwatersports centres at Boscombe, Dover and Plymouth. Quantitative - questionnaires via Arun Times, Wavelength survey to establish demand and potential usage by local residents, schools and colleges. Qualitative face-to-face discussions with visitors to the area watersports enthusiasts and other key individuals. Analysis and consultation with National Governing Bodies (NGB)s of a broad cross section of water and sand based sports. Stakeholder workshops as a follow up to the Seafront Strategy consultation. Experts workshops to understand site conditions, restrictions and opportunities. Review of local, regional and national strategies in respect to tourism, regeneration, business and sports development. 7 Bognor Regis Watersports Centre Feasibility Study Executive Summary

10 4.0 Background (inc strategic contest)

11 4.0 Background (Inc strategic context) 4.0 Background (inc strategic context) The Study has researched the feasibility of a Watersports Centre in Bognor Regis at local, regional and national level. The focus being on how the Centre would contribute to the regeneration of the area; including business and employment opportunities, development of watersports facilities and participation, growth in visitor numbers and broadening of profile, alignment with both Butlins Skyline Ltd and the University of Chichester s future development plans. 4.1Regeneration The regeneration of Bognor Regis is established as a key aspect of the strategies of the local and district councils, with the aim of bringing wealth creation and employment opportunities to the area. Tourism is a fundamental aspect of this, with the ambition to fully exploit the resources the coast provides to attract visitors and local residents alike and in doing so drive spend on associated goods and services. This is reinforced with the formation of the Capital to Coast Local Enterprise Partnership which aims to support the long term development of sustainable tourism, linking closely to the cultural and creative sectors which underpin the visitor economy. (SEMAL) in the historic Dome building, the construction of the new Learning Resource Centre and the creation of business incubator units over the next two years. This will provide resources for entrepreneurs, businesses and the local community and support business creation and growth. It will also enable the University to work towards providing a sustainable vibrant campus community for students and staff to enjoy. Supporting the creation of a sustainable future for Bognor Regis and the wider West Sussex Coastal strip is a core plank of the University s own strategy; To make a significant contribution to the sustainable economic, cultural, social and educational regeneration of the communities that the University of Chichester serves, particularly in coastal and rural West Sussex. The strategy continues to state, The decision in 2007 to retain and invest in the Bognor Regis campus remains central to the University s Strategy and to the achievement of its priorities. The ambitions for this site require sustained and highly focused partnership working, and will have a positive impact on the economic, social, educational and cultural prospects for the area. A landmark Watersports Centre will support these strategic aims and be; An attraction to students thinking of coming to the University A centre for watersports education on a number of courses A source of employment both for adventure education and business students 4.2 Butlins Skyline Ltd Butlins Skyline Ltd continued investment in the area, with a further 40m earmarked for a new multi-story hotel and redevelopment of the pool complex reinforces the company s confidence in the area s potential to grow and deliver return on this investment. Butlins Skyline Ltd visitors are a ready-made market for the Watersports Centre hence the company are interested in further involvement with it in respect of operating aspects like the catering offer. 4.3 University of Chichester The development of a Watersports Centre on the Bognor Regis Seafront will bring significant benefit to the University of Chichester which has a strong presence within the town. The University operates its second campus from a site opposite Hotham Park. This site is currently being developed with the establishment of the School of Enterprise Management and Leadership 4.4 Watersport Development Sport England through National Governing Bodies (NGBs) of sport and County Sports Partnerships, in this case Active Sussex, aims to grow and sustain the numbers of people participating in sport and improve talent development to help more people excel. Watersports are a key and growing aspect of delivering these objectives. Sport England has the capacity to support the development of a Watersports Centre which would make a contribution to delivering its objectives through a newly launched Iconic Sports Facilities fund linked to the Government s Olympic legacy commitment. The Centre would also contribute to delivering the West Sussex County Council Ahead of the Game plan of growth in participation in sports following the 2012 Games. 9 Bognor Regis Watersports Centre Feasibility Study Executive Summary

12 5.0 Summary of Findings

13 5.0 Summary of Findings 5.0 Summary of Findings 5.1 Need and Demand In this aspect of the research the national, regional and local picture was considered in terms of the demand for a Watersports Centre in Bognor Regis and the current availability of facilities in the area. Likely participation levels from visitors, local residents and students of all ages in a wide range of water and sand sports and the requirements to attract non-participating visitors to a Watersports Centre all year round. Nationally in 2009, 13.2 million adults (16 +) participated in at least one of the 21 main watersport activities. This was a significant increase from 2008 (Watersport and Leisure participation Report, 2009). Discussions with NGBs and local clubs identified a growing interest in participating and competing in water and sand based sports driving a need for additional facilities and qualified instructors Tourism The watersports market can provide a significant niche for UK tourism. In 2001 activity-led holidays accounted for just over 10% of UK holidays which translates to approximately one million holidays in the South East alone (Tourism South East, 2001). Today, with the economic recession and increased threat of terrorism to the UK, domestic travel has started to climb. In 2009, overall, domestic trips within the UK increased by 7% to 126 million after a noticeable rise in demand for this type of holiday (The UK Tourist Statistics, 2009). Furthermore and particularly relevant to Bognor Regis, an estimated 631,470 staying trips were spent in Arun alone in 2009 compared to 604,366 in Additionally, Arun experienced a significant increase in day visitors with 3,231,000 in 2009 which was up by 7.8% from (The Economic Impact of Tourism, Arun, 2009). The 2001 UK Tourism Survey estimated that 1.5 million holiday trips were made by UK residents within the UK where the main purpose of the trip was watersports - scuba diving, motorboat cruising, sailing or jet skiing. This represented a significant 1.5% of market share and accounted for 2.2% of all holiday spend. (Catching the Wave, 2004) These statistics should be seen as an opportunity for the potential development of a Watersports Centre in Bognor Regis to be positioned as a destination for staying and day guests to participate in watersports at all levels from beginners have a go to experienced enthusiasts. Figures from the United Kingdom Tourism Survey (UKTS) suggest that 2009 was without doubt the year of the Staycation, with just over 18.2 million overnight trips undertaken in the South East by domestic visitors, an increase of 12.0% compared to The number of nights spent in the region also increased, up 11.2% to over 52 million, as did visitor spend, up 10.4% to just over 2.5 billion. Bognor Regis is well placed to take full advantage of the Staycation trend and deliver against regional tourist objectives with the introduction of a Watersports Centre creating a real destination attraction Local Residents/Visitors During the Study two methods were used to engage with the local community: Wavelength Survey, and Online/offline questionnaire via Arun Times the District Council magazine distributed to 60, 000 households. And with visitors Watersports Enthusiast Survey and the Bognor Regis Visitor Survey It is clear from the results that a Watersports Centre would be a very welcome addition to the Bognor Regis seafront and it is evident that there would be good usage levels amongst the local population and a greater tendency for visitors to return. Key watersports to include would be sailing and kayaking followed by scuba diving, windsurfing, jet skiing and potentially surfing through the development of a standing wave. Fitness circuits and children s play area would also be popular additions. With regards to facilities, the inclusion of a cafe would be essential accompanied by a watersports retailer and a panoramic restaurant which would provide an ideal area for spectators The University, Colleges and Schools The University identifies a very keen interest in a Watersports Centre in Bognor Regis for both academic and recreational benefit for its students. Potential usage includes: i) integral teaching and learning, coach education, work experience, practical and teaching experience, linked to its Adventure Education degrees and other sports related courses; and ii) developing student club and recreational opportunities through the Student Union Sports 11 Bognor Regis Watersports Centre Feasibility Study Executive Summary

14 5.0 Summary of findings Development programmes; there are strong, existing links with the RYA, a foundation for developing substantial use of the Watersports Centre from students across the University; and iii) beach based sports such as beach soccer, beach volleyball, sand fitness training, all growing in popularity; the proposed sand/sports element would allow for the development of student clubs, competitions and entry into leagues and national competition; all would be strongly supported and promoted by the SU. An Adventure Sports Club was launched by the Student Union in 2010/11, bringing together the existing Paddling, Surfing and Climbing clubs and a home base is being sought for these and other watersports activities. Although the response rate from schools and colleges is relatively low, the results and findings are valuable to the research for a variety of reasons. Firstly, respondents included the main schools/colleges in close proximity to the proposed Watersports Centre. The results were also very consistent with findings from the other surveys showing a high demand for short courses and taster sessions. They also demonstrate the popularity of sailing, kayaking and windsurfing. With regards to facilities results show a clear demand for a cafe/restaurant area Local Watersports Clubs All local watersports clubs were invited to the Stakeholder Workshops held on 17th November 2010 and 10th February 2011 and the feedback from these meetings was supplemented with individual discussions with: Bognor Jet ski and Boat Launch (BJL) Bognor Regis Yacht Club (BRYC) Bracklesham Boardriders (BBR) Felpham Sailing Club (FSC) Pagham Yacht Club meeting (PYC) West Wittering Windsurf Club (WWWC) It was predominantly recognised by all the clubs that Bognor Regis is in need of something to regenerate the town and it could therefore be beneficial to include a Watersports Centre though it was clear that some sailing clubs were concerned of the competition this might pose and therefore the potential threat to their individual objectives to grow and develop. This mainly related to the local market in terms of impact on potential membership from Bognor Regis residents at the local clubs rather than the visitor/tourist opportunity. The emphasis will be for the proposed Watersports Centre to work in conjunction with the local sailing clubs through offering have a go and introductory courses on a regular basis, which the clubs are less able to do, then encouraging visitors of the Centre and beginners to join a local club perhaps through the RYA onboard scheme. In contrast, BBR, BJL and WWWC all expressed a real interest in being part of the proposed Watersport Centre development. The option to move the Jet Ski launch in house was suggested and both BBR and WWWC expressed a potential interest in running a school (including windsurfing and kite surfing) from within the facility Catering and Retail Seafront restaurant/cafes between Gloucester Road and the Norfolk Hotel are: The Beach Restaurant situated on the Esplanade and across the road from the sea; offers good quality fish and chips and target customers include senior citizens. The Prom A combined pizza restaurant, café, sports and real ale bar. A Thai restaurant on the same side of the road. A Brewers Fayre with garden seating, a Casino and a sea facing restaurant at The Royal Norfolk Hotel. The other catering outlets along this stretch of the seafront comprise a number of huts, some with limited deck seating on the beach itself and serving a combination of coffee, crepes, milkshakes, candy floss, ice-cream and hot and cold snacks. Adjacent to the pier is a specialist fresh fish and shellfish traditional style wooden café. All of these are seasonal business and closed during the winter. The remaining restaurants and cafes in the area are a combination of fast food chains, ethnic cuisine and small independent outlets. For quality dining with sea views, residents and visitors to Bognor Regis have three out of town choices: The Pagham Beach Café, the Thomas Heatherwick designed East Beach Café in Littlehampton and The Lobster Pot in Felpham which is becoming increasingly popular having recently extended its opening hours to include evenings. Seafront retail outlets Along the same area of the Esplanade there are two shops selling typical seaside merchandise. In town, swimwear can be bought in chain stores such as Peacocks and one or two fashion independents; there is 12 Bognor Regis Watersports Centre Feasibility Study Executive Summary

15 5.0 Summary of findings no specialist watersports retail outlet. The Centres reviewed in the benchmark case studies all emphasised the importance of a good quality retail offer. 5.2 Benchmarking Case Studies The study looked in depth at: The Boscombe Overstrand Building (near the artificial reef in Bournemouth). The Dover Sea Sports Centre. The Mountbatton Watersports and Activities Centre in Plymouth. This was supported by further desktop research on other facilities including the Fistral Surf Centre in Newquay, Hayling Island Sailing Club, the Weymouth and Portland National Sailing Academy, the Portsmouth Watersports Centre, the Yellowwave Centre in Brighton, Cobnor Activities Centre, Chichester Watersports Centre and the impacts of the coastal defence work undertaken at Folkestone. 5.3 Site Analysis The site being proposed for the Watersports Centre development is the Gloucester Road car park. It is important to note that the development is not constrained to this location however; the site is ideal for a variety of reasons including its position on the seafront, and due to the fact that it is jointly owned by Butlins Skyline Ltd and Arun District Council. When analysing the proposed site, the research has looked at its suitability with regards to: Weather, wind and tide conditions throughout the year to determine the opportunities and constraints on which watersports can be undertaken and their seasonality Ground conditions, planning, building and access to determine what type of facility could be built on land and sand/sports which could be accommodated This analysis was conducted through consultation with; BAQUS Building and Quantity Surveying Consultancy. The Environment Agency. Arun District Council experts in Building Control, Coastal Protection, Environmental Health, Foreshores, Planning, Site Conditions and Car Parks. West Sussex County Council Highways Dept. Different options for the proposed site were discussed, including a main Watersports Centre building along with the potential for a Standing Wave or Brush Board (housed in a separate building) and a sand/sports area for sports like volleyball and beach football. At both the Stakeholders and Experts workshops the potential increased pressure on car parking and access to the current slipway was discussed. With the Watersports Centre facilities occupying 35% of the existing car park, and the need to accommodate additional visitors coming to its facilities in the form of sports participants, spectators or visitors enjoying the ancillary facilities such the panoramic restaurant, it was felt that, especially at peak times, the Centre could become a victim of its own success and in anticipation solutions should be sought to mitigate any potential access or parking issues. For example, adequate parking and access to the slipway would be needed for boat owners with trailers, one option suggested would be a segregated unloading zone near the current slipway at certain times. (Dover Sea Sports Centre, 2010) The potential of a Watersports Centre and its impact on traffic, access and parking should be considered along with all that of all other developments in the town as part 13 Bognor Regis Watersports Centre Feasibility Study Executive Summary

16 5.0 Summary of findings of the overall Bognor Regis Transport Masterplan. Should the project go ahead a detailed traffic, access and parking assessment would be required as part of a future planning application. The predominant winds in Bognor Regis are south westerly which, according to discussions suits wind sports such as Kite surfing, Windsurfing and Sailing. In exploring what could be developed at sea. It was concluded that the most feasible option would be the idea of extending and modifying the existing groynes (or building new groynes) in order to create a sheltered harbour area ideal for teaching watersports and providing a family friendly safe area for swimming. Inspiration for this came from Folkestone in Kent, where groynes were built for coastal protection reasons but a knock on effect was the creation of protected a more sheltered bathing area Weather Bognor Regis averages (Weather2, 2011) (Met Office, 2011) Bognor Regis is one of the sunniest places in Britain with an average of hours of sunshine per year with the majority of sunshine hours being between May and August. Due to its location on the coast it experiences an oceanic climate resulting in moderately cool summers and comparatively warm winters. This helps to make Bognor Regis an ideal location for watersports activity Bognor Regis Wind Speed (kph) As shown in figure, between December and February which generally would be the more extreme season for watersports participation, average wind speeds do not get above 21kph (11 knots). 14 Bognor Regis Watersports Centre Feasibility Study Executive Summary

17 5.0 Summary of findings 5.4 Options, outline design and configurations Opportunities Sea Based To develop a sheltered area suitable for teaching watersports through extending and adapting current Groynes or building new ones (as in Folkestone example). The above development could help to create a sandy beach naturally through sediment transportation. To introduce mini sandpits on the gravel beach for family friendly play areas. To improve beach and sea access, including for families and the disabled. To improve signage enhancing user awareness and beach safety Opportunities Land Based The building would face south south-east running along shore providing excellent views of the seascape. An iconic building, built to BREEM excellent standards and fully Equality Act compliant would align with the architecture of the new flats on Gloucester Road. The development of such a facility would also fit with Butlins Skyline Ltd. plans. Building on the proposed site would make the facility very visible from Gloucester road and along the shore. To include main building (1050 M2, 3 storeys high), Standing Wave and 2 volleyball courts predominantly on upper level of car park therefore minimising loss of car parking space by 35%. To integrate other facilities into the Watersports Centre which are currently fragmented along the seafront in order to create a more focal area. This could include the Foreshore Office and Visitor Information Centre. The building has the potential to go higher than 3 storeys if necessary. To introduce a parking strategy that includes the option to use University of Chichester parking space during peak time and the BT car park on Gloucester Road at weekends as suggested for consideration in the Arun DC Car Park Strategy May 2009 In response to the results of the research three main options with a number of variables for each were considered. Option 1 illustrated below most closely meets the strategic objectives and was taken forward for analysis in the Business Case: (Concept visual for new groyne development) (Image taken using Google Earth) 15 Bognor Regis Watersports Centre Feasibility Study Executive Summary

18 5.0 Summary of findings Option 1 Iconic Watersports Centre indicative costs million (excluding VAT). (Concept Visual) Variables 1 - Standing Wave weather protected for all year round use 2 - Brushboard area instead of Standing Wave permanent or temporary 3 No Standing Wave Surf Centre or Brushboard area 4 No Sand/sports area 5 - Full size Sand/sports area for beach football and rugby Advantages/Benefits Maximises all year round sea and sand sport offer, sporting visitor numbers and breadth of visitor profile. Aligns and delivers against regeneration ambitions and seafront strategy. Delivers against NGB, Sport England (SE) and Olympic legacy targets to grow participation in sport. Opportunity to attract funding and other support from SE, NGBs and sports bodies. Generate inward investment and therefore job creation from commercial partners. Standing Wave Surf Centre, a real unique attraction Currently only 3 in the UK, one in West Country, the others inland major destination attraction to the large surfing population on the south coast, and across the country, providing all year round participation, competition and event opportunities. Meets aim to improve visitor experience in Bognor Regis, ties in with Visit Britain, regional and local tourism objectives. All year round sport and non-sport participation offer for residents, visitors and Butlins guests. The inclusion of groynes and new slipway will enable safe beach and sea access under a broader spectrum of wind and tide scenarios to both watersports and general visitors including disabled, pushchairs, young and old. It is feasible that it will allow sand to settle to greater depths. The location will connect the town centre to the Watersports Centre to the East. Education Centre for both watersports and beach environment field trips for schools, colleges and the University. Relocating tourist/visitor info/foreshore office would free up the buildings currently occupied by these services for other use/income. Relocating tourist/visitor info centre would draw attention to Centre and shift focal point to Seafront. Positive impact on brand image of BR help to shift perception from Bugger Bogner to Brilliant Bognor! A panoramic restaurant, offering good quality dining all year round would add to the Iconic look and feel of the building. 16 Bognor Regis Watersports Centre Feasibility Study Executive Summary

19 EXTERNAL SECURE STORAGE (293m2) STANDING WAVE (22.000m x m includes 2.000m surround) BEACH VOLLEY BALL (20.000m x m includes 1.000m surround) BEACH VOLLEY BALL (20.000m x m includes 1.000m surround) GLOUCESTER ROAD GLOUCESTER ROAD GLOUCESTER ROAD MANAGERS OFFICE LIFEGUARD / FORESHORE OFFICE HIRE CENTRE STAFF ROOM MALE W.C RETAIL UNIT 1 FEMALE W.C DISABLED W.C OFFICE DRYING ROOM INFO POINT STAIRS / LIFT STAIRS LIFT LIFT PLANT ROOM LIFT LOW LEVEL CAR PARK CLASSROOM BALCONY PROMENADE LOW LEVEL CAR PARK STORAGE AREA PLANTROOM PANORAMIC RESTAURANT RETAIL UNIT 2 RETAIL UNIT 3 PROMENADE LOW LEVEL CAR PARK PROMENADE 35.00m DISABLED W.C / CHANGING / SHOWER MALE CHANGING / SHOWERS FEMALE CHANGING / SHOWERS KITCHEN WALK IN WET CAFE MALE W.C FEMALE W.C BUTLINS BUTLINS BUTLINS 5.0 Summary of findings FIRST FLOOR PLAN 1:100 GLOUCESTER ROAD EXISTING LOW LEVEL CAR PARK PROMENADE LEVEL PLAN 1: m BOGNOR WATER SPORTS CENTRE (35.000m X m) ACCESS RAMP TO PROMENADE PROMENADE LOWER CAR PARK LEVEL PLAN 1:100 LAYOUT PLAN OPTION 1 (Site plan for recommended option) Disadvantages/Challenges Cost, therefore securing the capital and revenue funds required. Dependent on location/size of groynes may need Environment Agency and Crown Estate approvals, due to ownership and control issues. Management and Safety of sea environment - zoning the sea area inside and outside the groynes to maximise all year round, multi-skill use, subject to further study regarding the impact of sedimental drift. Full size sand/sports area reduces car park space by 62% which is not desirable and unbalances the focus of the Centre. Seven-a-side rugby and five-a-side football can be played on the 2 volley ball court size sand area. 17 Bognor Regis Watersports Centre Feasibility Study Executive Summary

20 6.0 Business Case

21 6.0 Business case 6.0 Business Case The Study has considered the Business Case for a Bognor Regis Watersports Centre from a number of perspectives: Indicative capital costs for the options considered. Identification of a possible development/management model. Indicative usage and revenue assumptions for the main activities. Peripheral or ancillary trading activities. Options for operational arrangements and impact upon revenue. Contribution to the economy through employment and wider tourism. Long term viability and sustainability. The success of a Bognor Regis Watersports Centre will ultimately be measured against its stated objectives. Measures of success will relate to levels of participation (local people and visitors, clubs, educational establishments), skill development and coach education, commercial activity, safe management and control, meeting financial projections, and long term viability and sustainability. 6.1 Benchmarking Discussions have been held with comparative Watersports Centres in Bournemouth (Boscombe), Plymouth and Dover to ascertain strengths and weaknesses of their operations. We have taken account of difficulties experienced by each of these facilities in addressing issues relevant to the business case. Key conclusions are: The importance of partner commitment, including revenue support if required, to deliver the substantial benefits to the community, town centre regeneration and for all stakeholders. An independent commercial enterprise would also need to be contractually commited to Arun District Council s short and longer term social objectives for the scheme. The need to establish a Management Board, drawing representation from the commercial expertise of stakeholders, responsible to oversee its management and operation. The importance of sports development and marketing committed time and resources by the operator and stakeholders year on year. The benefits of commercial partnership providing resources and expertise to the scheme; this might include the sharing of risk with potential franchisees (eg catering, retail, watersport delivery). The need for all year round facilities (eg sports, classroom/function room, restaurant) to enhance viability. The need to focus on core watersports which can provide the basis of a viable operation. 6.2 Indicative Capital Costs for the Options considered The options presented at this stage (with indicative capital cost breakdowns provided by Baqus Boxall Sayer) are: Option 1 - a three storey building combining wet and dry service areas, equipment hire and catering facilities (wet café and public restaurant), storage (internal and external of small equipment and watercraft), and dedicated areas for Standing Wave and sand sports facilities (excluding roof structures); access to water and protective groynes. Indicative capital cost c million (excl. VAT) Option 2 - similar to option 1 without groynes. The watersports activity mix would be reduced requiring a smaller building (approx 2/3 size) for watersports support facilities. The restaurant would remain the same. Indicative capital cost c million (excl. VAT) Sub options might include: 2a Exclude the Standing Wave (or leave to a later phase of development) 2b Reduce the size of the sandsports area by approximately half The capital costs shown above are inclusive of waterside access facilities, groundworks and services, and professional fees, but exclude VAT. Specialist advice will be sought regarding the payment of VAT taking account of the nature of partnership, ownership and arrangements for VAT payment on income, in discussion with HMRC. 19 Bognor Regis Watersports Centre Feasibility Study Executive Summary

22 6.0 Business Case Consent from the Crown would be needed for water access and agreement with the Environment Agency would be needed for the development of the groynes dependent on their location and potential environmental impact. 6.3 Procurement The options for procurement are either: the traditional route using an architect to work up the outline then detailed design through to full planning permission, then to project manage the contractor(s) to completion; or a Design and Build route which may have financial advantages in securing the development of the scheme; the specialist nature of the waterside facilities would require specialist advice and expertise. The Procurement Programme will need to take account of: Timescales for Committee and Board approvals of potential partners. Timescales to progress funding applications through Stage 1 and Stage 2 procedures. The working up of detailed architectural design for the development. Progress through the planning permission process including the necessary environmental and traffic surveys, for example. The need or otherwise to follow European Procurement Regulations and timescale for the building contractor tender process, based upon the final capital cost identified. We are advised that the following programme could be achieved: 2011/ Progress feasibility, funding applications, Committee and Board approvals, outline planning Detailed design, environmental surveys, full planning permission, procurement regs. and tender process Construction phase Opening - Early Summer In view of the integral nature of activities and facilities we consider that phasing of build would be detrimental to the objectives of the development. 6.4 Funding strategy We have identified a number of possible funding opportunities which will be subject to the timescale of any development project going forward and the conditions of the awarding body at the time of application. These are set out in section 8.1 of the main report. They include possible funding from the main partners (Arun DC, Butlins Skyline Ltd, the University of Chichester) and grant aid from such as Sport England s Iconic Facilities Fund, Charitable Trusts, national governing body development funds (Lottery generated) and commercial loans. Funding organisations frequently require the development partnership to commit to some 50% of the capital cost with the balance achieved through other funding agencies, stakeholder contribution, and fundraising, for example. Indications are that the scheme could be attractive to funding organisations subject to their rules and the arrangements and legal management entity that is established between partners. We recommend that a funding application to the Sport England Iconic Buildings Legacy fund should be made for a grant in the order of 2 million. This may require match funding from the lead partners and other grants from other agencies, which could include from charitable trusts or a third sector bank for example. We consider that revenue funding might be achieved to assist development and marketing of programmes. The Coastal Development Officer at Bournemouth is part funded by Sport England, for example. 6.5 Management vehicle We have explored possible options for managing and operating the Watersports Centre and identify the need for: i) a vehicle for the development and ownership of the asset; and ii) a vehicle for day to day financial management, operation and marketing. 20 Bognor Regis Watersports Centre Feasibility Study Executive Summary

23 6.0 Business Case Option A: Development and ownership of the asset (land, buildings, waterside facilities) could be by a Charitable Trust formed by the partners (eg Arun DC, West Sussex CC, the University of Chichester, Butlins Skylime Ltd, a Watersports consortium). The Trust would set up a Management Board to oversee the centre s management, operation and promotion. The management vehicle could be: Direct appointment of staff by the Charitable Trust/Management Board, in which case the Trust would reinvest surpluses in the purpose of the Trust (the Watersports Centre) and would be responsible to subsidise any operational deficit; such a vehicle would have the benefits of charitable status acquired from the parent organisation or could be separately incorporated as a charitable trading company from which any surplus would be dedicated to the operation or the charitable purpose; OR Appointment of an external partnering commercial leisure management contractor (if this was to be Butlin s, for example, then Butlin s could not be a voting partner on the overarching Chartable Trust as this would create a conflict of interest); in this scenario the Trust would receive a management fee and/or income or profit share negotiated with the commercial operator that would be reinvested in the Centre in pursuit of the Trust s charitable objectives. Further legal advice may be required to determine if such an arrangement would be eligible for charitable benefits such as NNDR as the position between charitable asset ownership and commercial operation could be blurred under such arrangements; OR An external partnering social enterprise or Trust such as, for example, Freedom Leisure (the largest trust managing public leisure facilities in Sussex), or Inspire Leisure (the trust set up to manage leisure centres in Arun District); a management fee would be payable to the overarching Charitable Trust in this scenario. However, as the managing trust would only be enabled to invest any surplus in activities consistent with its own charitable purposes, it might be necessary to set up a local charitable trading company to ensure that reinvestment is restricted to the Watersports Centre. A soft-marketing exercise could be carried out to ascertain the interest of potential charitable partners. Within each of the above management scenarios franchisees might be engaged for operating trading activities such as equipment hire, retail, catering, for example. A partnering contractor or trust could bring the advantage of a capital payment up front in return for a long lease. A charitable trust would bring NNDR benefits (80% statutory reduction and 20% discretionary). Other capital and VAT benefits could also accrue to the public sector partners, subject to the proper structuring of the capital arrangements; further advice from a specialist should be sought on these issues. Option B: An alternative could be to create a Private Development Consortium (PDC), modelled on the government s Private Finance Initiative (PFI). Such an arrangement would be responsible for delivering Funding (eg Butlins Skyline Ltd, other). Development (selected developer). Management (eg Butlin s or appointed operator as above) as part of a PFI type consortium, in return for a long lease and operating agreement. Such arrangements have been common for schools and other public buildings and there is a limited experience of delivering leisure facilities through this means. The Management operator would be incentivised to take the risk on a commercial basis. A Management Advisory Board could be created including representatives from ADC, WSCC, the University, a Watersports Consortium, for example. The PDC approach would need to be contractually required to deliver the community and sport development objectives of the District Council. The above options and legal implications will need to be explored in depth and with potential partners who might be party to such an arrangement in order to establish the preferred management vehicle for the Bognor Regis Watersports Centre. Options considered at this stage for managing the catering service at the Watersports Centre are: Both outlets managed by one concessionaire on a term lease. Each outlet managed by a different concessionaire on term leases. One or both outlets managed by Butlin s (as an extension to their existing catering operations nearby) on a lease or other suitable arrangement. 21 Bognor Regis Watersports Centre Feasibility Study Executive Summary

24 6.0 Business Case 6.6 Viability - usage, charges and revenue assumptions Within Section 8 of the main report we have set out the core watersports, ancillary activities such as sand sports, and indicative seasonal programming and charges, further to our consultations with community, club, agency and similar facility representatives. Core Sports Seasons Sailing, Kayaking, Windsurfing, Kite Surfing, Jet Skiing May to September (Inclusive) Beginners + anyone September to November Intermediates + Experts December to March Experts March to May Intermediates + Experts Key user groups within the programme of activities are identified as: Watersports clubs and governing bodies - instruction, club use, competition. Commercial watersports operators - courses, equipment hire. The University, colleges, schools (education, courses and recreational). Butlin's - a substantial programme of short breaks for specific watersports activities; Butlin s strategic development plan includes refurbishment of the leisure pools complex and an opening up of their complex visually and with access from the promenade. Local community groups (incl. uniformed groups); and Sailability, and all related affiliated groups and disciplines for watersports for the disabled. The University has identified a very keen interest in a Watersports Centre in Bognor Regis for both academic and recreational benefit for its students, including for teaching, learning and work experience, and student club and recreational use through the Student Union Sports Development programmes; these would include sand based sports such as beach soccer, beach rugby and beach volleyball, sand fitness training, which are all growing in popularity. Butlin's has indicated its strong interest in securing use of the Watersports Centre linked to short beak packages throughout the year involving watersports instruction and 'have a go' sessions, sand sports, to enhance its holiday offer, bring greater use to its hotels, and to establish a stronger profile linking Butlin's with the sea. The company has also expressed a possible interest in management of the facilities or catering. The charging policy would need to accommodate affordable activities for all the community, for all levels of ability, whilst ensuring commercial viability. Financial estimates for the operation will depend upon the governance and management structure and management philosophy selected. Issues affecting revenue planning and projections therefore depend upon: Potential lease/rental/management arrangements for a combination of watersports activities, (for equipment hire and retail, for the sandsports and standing wave areas, and for wet café and main restaurant); and Indicative building and waterside life-cycle maintenance and structure replacement costs over time linked to asset ownership and responsibility. The evaluations and assessments undertaken are based upon the assumptions already outlined for the full range The key summary table is shown below: Year 1 Year 3 Year 5 Expenditure 510, , ,000 Income 619, , ,500 Surplus 109, , ,500 The projections include at this stage: A net return to the operating account for trading activities (e.g. standing wave, catering, retail - activities which may be franchised), and therefore actual income generated by the centre would be significantly higher. The cyclical cost of replacement of boats, engines and equipment from Year 3; and A contribution to a Sinking Fund for eventual replacement of buildings and infrastructure. 22 Bognor Regis Watersports Centre Feasibility Study Executive Summary

25 6.0 Business Case The revenue projections would need to be adjusted subject to the management and contractual arrangements which may include payment of a management fee by the operator and/or payment of rent and income share for franchised activities. Based upon the detailed assessments and analyses of the business case, the study has identified the potential operational viability and sustainability of developing a Watersports Centre in Bognor Regis that will meet the community, activity and commercial objectives of its partners and stakeholders. The business model to be adopted will be dependent upon further discussions between potential partners to determine the preferred contractual and operating arrangements and policies. 23 Bognor Regis Watersports Centre Feasibility Study Executive Summary

26 7.0 Economic and Social Impact

27 7.0 Economic and Social Impact 7.0 Economic and Social Impact 7.1 Introduction As stated The aim of the Seafront Strategy will help to establish Bognor Regis as a first class coastal destination. The seafront will be transformed with a year round quality offer to deliver fun, entertainment and enjoyment to both residents and visitors, through a total pleasure experience of outstanding architecture and design, arts and culture, sunshine and sports activities The creation of the Watersports Centre will support this programme of regeneration and has the potential to accelerate sustained social and economic recovery There is broad recognition of the connection between social and economic deprivation and the need to invest across a broad spectrum of initiatives in order to promote sustained regional regeneration. The regeneration programme instigated at Hastings (Hastings and Bexhill The economic development story, March 2008, is approached from 3 perspectives, Economic Inclusion, Economic Growth and Urban Regeneration. It is only by addressing all three that regeneration will become sustainable. Essentially they are linking the creation of a nicer place to live, a safer place to live, a skilled and aspirational workforce with sustained inward investment. The creation of the seafront Watersports Centre will target a number of the strategic objectives for the area as identified in the SEEDA Regional Economic Strategy, West Sussex Economic Development Strategy and the Coastal West Sussex Area Investment Framework:- Supporting culture and leisure-based growth harnessing the power of place and quality of life to stimulate wider economic transformation Creating cities and towns where people choose to live by investing in an urban renaissance, redeveloping and regenerating key town centres to stimulate development of local economies. Raising the quality of the offer to visitors; releasing the enterprise potential of the creative industries, leisure facilities and the visitor economy and expanding the cultural offer. Improving access to workplace learning for low-skilled, low-paid, low-status workers to enable labour market progression, and working with employers and other support agencies to bring the economically inactive back into work and training. Developing sustainable communities with affordable homes, and a healthier population with less crime Ensuring the maintenance of an attractive and high quality environment. Promoting Healthy communities Underpinning all of the above priorities is support for three wider themes. These cut across all objectives and are essential for sustainability: Social Inclusion. Community Cohesion. Sustainability and environmental awareness. 7.2 Economic and Social Impact Examples The Watersports Centre will: Create a spectrum of new jobs. Be a catalyst for inward investment. Attract a new higher net worth tourist. Create a nicer place to live with the potential to attract unrelated lifestyle business. Provide additional educational opportunities. Be an attraction for prospective university students. Promote a healthy lifestyle image. Support the Brighter Bognor aspiration. Have a wide ranging impact on the visitor economy. generating a broad spread of positive editorial. The CACI catchment analysis established for three key sports sailing, windsurfing and powerboating some 60,000 people within an hour s drive time would have the propensity to come to a Bognor Regis Watersports Centre. Assuming these are day visitors and based on an estimate of an average spend of 25 per head is conservative. At this level and based on 1 visit a year this would generate over 1.5million income alone for Bognor Regis. Analysing the Boscombe Reef and Overstrand Building development which opened in 2008 the publicity alone has been worth 10million of equivalent advertising value, generated on the back of the installation of the unique reef. The redevelopment of the Overstrand building and the development of the artificial reef in Boscombe have resulted in significant economic benefits for the town. 25 Bognor Regis Watersports Centre Feasibility Study Executive Summary

28 7.0 Economic and Social Impact These include, increased visitor numbers (32%) reduced incidents of anti-social behaviour (down by 40%), an uplift in local house prices (25%) and an additional 48 million of private sector investment. A Watersports Centre in Bognor Regis, especially with the USP of a Standing Wave could generate results of a similar level, driving curiosity to visit from far and wide. 26 Bognor Regis Watersports Centre Feasibility Study Executive Summary

29 Contents 8.0 Review of Objectives

30 8.0 Review of Objectives 8.0 Review of Objectives Regeneration The development of a Watersports Centre would enable the town to take advantage of the seafront and the sea which are without doubt its primary assets. It could make a positive economic contribution by working in conjunction with various local strategies and result in inwards investment. The Centre would create a variety of jobs including construction jobs during its development as well as leisure related jobs in areas such as catering, retail, instruction, event management and customer service once open. Attracting a new higher net worth tourist would have a positive knock on effect on local businesses and result in increased spending in Bognor Regis itself. The CACI catchment analysis established for three key sports that some 60,000 people within an hour s drive time would have the propensity to come to a Bognor Regis Watersports Centre. Assuming these are day visitors and based on an average spend of 25 per head during their visit, even at this level and based on 1 visit a year this would generate over 1.5million income alone for Bognor Regis. The Boscombe Spa Village Regeneration Scheme provides a useful benchmark and an insight into what could be achieved in Bognor Regis. Since the renovation of the Overstrand building and the development of the artificial surf reef in Boscombe, the town has experienced a 32% increase in visitor numbers, a 25% increase in house prices, a 40% reduction in anti social behaviour and an international PR value of 10 million has been achieved. Destination appeal The Watersports Centre would provide destination appeal to visitors through being a multi sports venue for all ages and abilities to enjoy whilst being supported by a range of ancillary facilities some of which would be unique. The Centre would offer unique facilities like the Standing Wave which could be the first of its kind in the UK and provide a new sand sports offer to Bognor Regis. Its seafront location with a quality restaurant and café would provide a year round attraction to visitors. It would enable Bognor Regis to expand its watersports offer and cater for sports based events and competitions attracting competitors and spectators alike. It would provide unique facilities for weddings, Watersports specialist retail offer. Provide a safe, family friendly area and attractions. Link with local, regional and national strategies for increasing sports participation and in this way contribute to the legacy of the upcoming Olympics and Paralympics. The Centre supports Butlin s strategic aspirations by supporting their aim of engaging with the sea more. The University of Chichester The Centre will provide integral teaching and learning, coach education, work experience, practical and teaching experience, linked to its Adventure Education degrees and other sports related courses. The proposed sand sports area would allow for the development of student clubs, competitions and entry into leagues and national competition; all would be strongly supported and promoted by the SU. It would provide a home base for the recently launched Adventure Sports Club. Students from the Adventure Education department will provide a ready source of instructors for the Centre. The University will be able to run specialist watersports coaching and training courses and conferences from the Centre raising its profile amongst a wider audience of practitioners. The Universities involvement in the Centre will be promoted widely through its prospectus and web sites targeted at students, alumni and other stakeholders. Quality of the proposition The Centre would have an iconic, modern design, taking full advantage of location whilst fit for purpose and complimenting the adjacent flats development. Fully compliant with the Equality Act for visitors and participants at all levels and abilities. The development would include the unique panoramic restaurant. Sand sports facilities, inspired by the successes of Yellowave in Brighton, for all ages and abilities hosting a variety of sports and activities. The inclusion of a Standing Wave could act as a unique attraction to the Watersports Centre and help to promote it as a year round facility. The development of a sheltered harbour area through building new rock groynes would help reduce the effects of the tides and extreme weather and therefore help to prolong the seasons in which beginners can take part in watersports. Other facilities that would raise the overall quality of the proposition include watersports specific retailers, NGB approved watersports schools, classroom facilities and the walk in wet cafe. 28 Bognor Regis Watersports Centre Feasibility Study Executive Summary

31 8.0 Review of Objectives Most appropriate location The Gloucester Road site is the most appropriate location for the Centre for a variety of reasons: The site is co-owned by Butlin s and ADC who are partners in the Study. There is good access to the sea via the existing ramp. The site has a history of being used for watersports activity. It is a large area of land with an existing car park that would support the Watersports Centre facility. The site is next to Butlin s and within walking distance of the University of Chichester, Bognor Regis campus. The site is reasonably close to the Town Centre and the groyne development would bring this closer. Standalone, year round attraction Key to the success of the facility will be its ability to operate on a year round basis. Prolonged watersports seasons through the development of new rock groynes. Standing Wave provided in an indoor environment to offer an all year round watersports option. Effective marketing of the Centre according to season. It will be important to market taster sessions and beginner s courses between May and September then market the facilities to more expert level participants during the winter. The inclusion of a sand sports area will help to attract a different type of visitor and again help to enhance the year round reputation of the facility. The panoramic restaurant would be open all year round. Event, function, conference and wedding location. Local schools, colleges and the University have all expressed an interest in using the facilities for a variety of sporting and non sporting activities. 29 Bognor Regis Watersports Centre Feasibility Study Executive Summary

32 9.0 Recommendations (inc next steps)