Meeting documents
Cabinet
Wednesday, 11th October, 2006
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Bath & North East Somerset Council |
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MEETING: |
Council Executive |
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MEETING DATE: |
11th October 2006 |
AGENDA ITEM NUMBER |
12 |
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TITLE: |
Proposal to Licence a Small Casino in Bath |
EXECUTIVE FORWARD PLAN REFERENCE: |
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1524 |
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WARD: |
All Bath wards particularly Abbey & Kingsmead |
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AN OPEN PUBLIC ITEM |
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List of attachments to this report: Appendix 1 - Categories of Casino & Casino Advisory Panel Scores Appendix 2 - Questions from the Casino Advisory Panel and Basis for Response Appendix 3 - Potential Casino Sites Appendix 4 - Extract Note from Full Council meeting 14th September 2006 (Draft) |
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1 THE ISSUE
1.1 The Council in November 2005 recommended that the Executive agree that an expression of interest be submitted to the Casino Advisory Panel for licensing a casino in Bath & North East Somerset and that the Head of Economic Development be instructed to investigate further the case for a casino. These recommendations were agreed by the Executive and subsequently a bid for a licence for a small casino in Bath was submitted to the Panel in March this year.
1.2 The Executive required that a further report be made in due course. A report was presented to the Council in September 2006 reporting on progress with the project. The Council resolved to agree that it is willing, in principle, to license a small casino in Bath, subject to proper consideration through licensing procedures. (See appendix 4) The Council also recommend to the Executive that it undertake further work as outlined in Appendix 1 to this report.
2 RECOMMENDATION
The Council Executive is asked to:
2.1 Agree that the proposal for a small high quality casino in Bath continue to be developed as an early action in taking forward the Future for Bath Vision, on the basis set out in this report.
3 FINANCIAL IMPLICATIONS
3.1 The work proposed in this report will be undertaken within existing resources.
3.2 If the Council is granted the ability to licence a small casino a charge will be made for the licence in accordance with Regulations to be issued by the Government.
3.3 In addition, financial contributions will be negotiated as appropriate through the competitive tendering process to select the casino operator and through the planning process in relation to section 106 contributions.
3.4 Depending on the site ultimately selected, if the Council is successful in obtaining a licence for a small casino, the project may also generate a capital receipt or income to the Council through land sale or lease. This will need to be considered in accordance with Standing Orders and relevant policies and procedures at the time.
4 COMMUNITY STRATEGY OUTCOMES
4.1 The proposals in this report will make a contribution towards the following Community Strategy outcomes
Improving local opportunities for learning and gaining skills
Improving our local economy
Improving our local environment
5 CORPORATE IMPROVEMENT PRIORITIES
5.1 The proposals in this report will make a contribution towards the following Council priorities
Reducing fear of crime
Developing a sustainable economy
Improving the public realm
6 CPA KEY LINES OF ENQUIRY
6.1 By helping to take forward the "Future for Bath" Vision the proposals in the report will contribute towards the following CPA Lines of Enquiry
Ambition for the community - i.e. What the council, together with its partners, is trying to achieve
Prioritisation of ambitions
7 THE REPORT
Process
7.1 The Gambling Act recently passed by Parliament will allow three new types of casinos to operate: one regional, eight large and eight small (see appendix 1 for definitions). The Government has instigated a competitive bidding process for determining which areas of the country will be able to issue casino licenses. This process is overseen by the Casino Advisory Panel which will report its recommendations to the Secretary of State for Culture Media and Sport in December.
Proposal for Bath
7.2 Following the earlier Council and Executive resolutions a proposal was submitted to the Casino Advisory Panel seeking to enable the Council to licence a small casino in Bath.
7.3 The concept for Bath envisages a small, high quality casino with an emphasis on gaming tables. It seeks to take forward the Future for Bath Vision by:
o Broadening the Bath visitor offer.
o Developing a `mature' evening economy.
o Re-establishing Bath's gaming tradition.
o Drawing on the European model of spa towns and casino provision.
o Acting as a catalyst for wider regeneration and community benefit.
o Provision of a financial injection to the local economy.
7.4 The intention is to create a venue to add to the unique Bath experience and which will compliment the city's leisure offer for both visitors and local residents alike. While significant social impacts are not anticipated, this is nonetheless regarded as an important issue to be monitored and managed as an integral part of the project.
7.5 Following submission of the proposal to the Casino Advisory Panel, `without prejudice' discussions have taken place to exchange information with operators that have expressed interest in Bath. The operators have confirmed an ability and a desire to provide a small casino of high quality appropriate to the character and nature of Bath. If the proposal for Bath is successful, the licence would be issued through an open competitive process, in accordance with Regulations to be announced by the Government.
Current Position
7.6 The Panel received a total of 67 bids. These have been assessed under standard headings, set out in the bidding form, and the Panel has announced a shortlist of 32 proposals for further examination. The shortlist is split between those authorities who bid for a regional casino and those that bid for a large and/or small casino. The proposal for Bath, which was specifically for a small casino, was in the latter list.
7.7 The Casino Advisory Panel has published scores for each of the submitted proposals. The proposal for Bath was ranked 6th out of the 53 submitted bids seeking either a large and/or small casino and joint second out of the nine of those that proposed a small casino only. The scores for the proposal for Bath are shown in Appendix 1.
7.8 The Panel allowed a period for regional bodies and the public to make representations on the proposals. The Panel subsequently published a letter acknowledging that there had been some confusion over the consultation process and whether those local authorities not included on the shortlist could make further representations. As a result the Panel allowed a period for submission of up to 5 pages of further information from both shortlisted and non-shortlisted bids. In response supplementary information has been submitted to support the proposal for a small casino in Bath.
7.9 The Panel has requested further information from local authorities to assist in evaluating their proposals.
Next Steps
7.10 Development of the proposal will include responding to the request for further information by the Casino Advisory Panel, continuing to develop community engagement and development of arrangements for delivery. A workshop for community/voluntary sector service providers plus meetings with individual groups are in hand to consider monitoring and management of potential social impacts and measures to maximise community benefit.
7.11 The proposed basis of further work is set out in Appendices 1 and 2.
7.12 In terms of delivery, a range of potential sites have been considered. These have been reduced to a list of six sites, based on consideration of suitability and deliverability, taking into account information from potential operators. The list of six sites is shown at Appendix 3. This list does not preclude the consideration of other potential sites on their merits.
7.13 If the Council's proposal is successful a licence for a small casino will be issued through a competitive process. The identification of a shortlist of potential sites is intended to enable operators and developers to respond to a range of opportunities in putting forward proposals and ensuring economic and community benefit. The development of any of the sites to incorporate a small casino will require permission through the planning process in addition to licensing procedures.
7.14 The Executive is requested to agree that further work to develop the Council's bid, based on the summaries set out in Appendices 1 and 2, is undertaken as an important early action in taking forward the Future for Bath Vision, including continuing to develop community engagement and provisions for ensuring community benefit as part of this process.
8 RISK MANAGEMENT
8.1 A risk assessment related to the issue and recommendations has been undertaken, in compliance with the Council's decision making risk management guidance.
9 RATIONALE
9.1 Under the existing legislation, the number of licences for casinos is not restricted but casinos can be located only in certain areas of the country known as permitted areas. Bath and North East Somerset is not a permitted area. The Gambling Bill will allow applications to be made to open casinos in all local authority areas and provides an opportunity for the Council to develop proposals, or not, for a casino in Bath and North East Somerset. In view of the Council's regeneration and economic development aims, particularly for the City of Bath, it is considered appropriate to develop a proposal for a small high quality casino in Bath.
10 OTHER OPTIONS CONSIDERED
10.1 Consideration has been given to not progressing a proposal for a casino in Bath. This has been dismissed on the basis that a significant regeneration and economic development opportunity for helping to deliver the Future for Bath Vision may, as a result, fail to be properly considered.
11 CONSULTATION
11.1 The Council's Casino proposal has been developed by a cross service project team involving officers from Development & Major Projects, Planning, Policy & Partnerships, Property and Licensing and including the Executive Member for Economic Development. Members of the project team have been consulted on this report. Initial consultation has been undertaken through the Development Team in respect of potential sites.
11.2 A presentation has been made to the Local Strategic Partnership and the Initiative for Bath & North East Somerset. A workshop and meetings are scheduled with various local stakeholder and community groups to discuss how any social impacts can be managed and community benefits maximised.
12 ISSUES TO CONSIDER IN REACHING THE DECISION
12.1 The Council's Project Team have considered and would propose to address the following issues in relation to developing the Council's Casino bid : social inclusion : equality : sustainability : property : other legal considerations particularly licensing
13 ADVICE SOUGHT
13.1 The Council's Monitoring Officer (Council Solicitor) and Section 151 Officer (Resources Director) have had the opportunity to input to this report and have cleared it for publication.
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Contact person |
Mel Clinton 01225 396593 or John Cox 01225 477294 |
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Background papers |
Report to Council November 2005 - Gambling Act 2005 - Casinos Report to Council Executive December 2005 - Gambling Act 2005 - Casinos The Revival of Gaming in Bath - Proposal to the Casino Advisory Panel and Supplementary Submission, 2006. |
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Please contact the report author if you need to access this report in an alternative format |
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Categories of Casino
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Category |
Definition |
Proposed Number |
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Regional |
Minimum customer area of 5,000m2, up to 1,250 Category A unlimited jackpot gaming machines. Permitted to offer bingo and betting. |
1 |
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Large |
Minimum customer area of 1,500 m2, up to 150 category B gaming machines with a maximum jackpot of £4,000. Permitted to offer bingo and betting. |
8 |
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Small |
Minimum customer area of 750 m2, up to 80 category B gaming machines with a maximum jackpot of £4,000. Permitted to offer betting. |
8 |
Casino Advisory Panel Scores
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Heading & Score |
Response & Further Work |
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Social Impact (8/10) |
Develop joint working with community and voluntary organisations through targeted research involving the Primary Health Care Trust, Police and a workshop meeting for community and voluntary organisations. Refer to intention to secure a contribution to monitoring and managing any impacts Develop local employment provisions Establish links with City of Bath College re. local training |
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Need for Regeneration (3/10) |
Scores low because Government instructed Panel to use unemployment & deprivation data. Cover Bath's role in providing employment for a wider catchment area: job losses in Midsomer Norton/Radstock area: spreading the benefits of tourism in Bath & North East Somerset. Identify short listed sites and highlight potential benefits from development. |
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Willingness to Licence (6/10) |
Council resolution 14 Sept. |
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Probability of Implementation (7/10) |
Further work on sites - developed shortlist to provide a range of suitable opportunities for operators and developers to respond to. Initial assessment by Development Team. Informed by `without prejudice ` discussions with casino operators - all consider a casino in Bath highly deliverable. |
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Regional Context (6/10) |
Refer to city region growth area business case, emerging, Wof E Tourism Development Plan and Wider Business Plan for Bath & North East Somerset. |
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Community Benefits (5/10) |
Establish the potential for links to Quartet Community Foundation Develop section 106 provisions. Scope licensing and operator selection proceedures Outline potential local purchasing links. Outline benefits arising from regeneration of an area of the City. |
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Unique Characteristics (8/10) |
Build in links to the opening of the Spa and proposed new Gainsborough 5 star Spa Hotel. |
Questions from the Casino Advisory Panel and Basis for Response
1) Type Of Area
What are the 93seeds of decline94 that you refer to in S.1 of your proposal? Is it the 93declining visitor numbers94 referred to in Ernst and Young's 93Bath Business Plan? If so, evidence for this assertion, please.
Set out the analysis on the visitor economy contained within the Bath Business Plan prepared by Ernst Young focussing on:
o Dependence on public sector employment.
o Relatively low average wages.
o Low growth compared to rest of the region.
o Fall in retail ranking position.
o Specifically with regard to the visitor economy:
Fall in visitor numbers in an increasingly competitive market.
Need to expand and develop Bath's visitor offer.
Hotel offer limited & occupancy levels high.
Little business tourism for a university City.
2) Social Impact
How do you expect a small casino would attract more visitors to the city?
Focus on:
o The role a casino would play in enhancing and expanding Bath's visitor offer.
o The good fit between a high quality small casino and Bath's visitor profile.
o Building on Bath's strengths and links with other attractions to develop a distinctive leisure and wellbeing offer, drawing upon the European model of spa towns with casinos.
o Potential for a casino to stimulate/enable new hotel provision.
o The role of a casino in developing business tourism.
3) Need for Regeneration
How do you believe you proposals will secure sustainable development in economic, environmental and social terms?
Focus on:
o Regional growth proposals and the role of Bath.
o Development of Bath as an exemplar sustainable city.
o Proposal to locate in the City centre to help take forward the Future for Bath Vision.
o The role a casino would play in complementing other facilities.
o The role a casino would play in helping to enable physical regeneration in the City centre.
o Minimise additional journeys through city centre location.
o Securing community benefits.
The 2005 `Future for bath' and the Ernst and Young Bath Business Plan' did not appear to have specific recommendation regarding a casino. Why does the Council want one?
Focus on:
o Specific reference to a casino in the Future for Bath Vision.
o The need to improve visitor and business tourism facilities identified in the Business Plan.
o Proposal for a casino will help to implement these recommendations.
What was the result of the H.O. Economic Developments investigation into the case for a casino? (Requested by Council 17/04/2005 and Council Exec 7/12/2005)
Focus on:
o Establishment of a cross service project team.
o Finding that a small casino would help deliver the Future for Bath Vision and would be deliverable.
o Confirmation of the finding s in the submitted proposal.
What is the evidence base for a claim of `200 new jobs (being) created by the development of a small casino'?
Focus on:
o Information from operators.
o Research evidence.
o Potential complementary facilities.
o Multiplier effects.
4) Willingness to Licence
Has Full Council approved the proposal for a small casino?
Focus on:
o Council resolution.
What if any local concerns have been expressed since submitting the bid which may influence the Councils drive for a casino? How has the council addressed them?
Focus on:
o Concerns raised in respect of potential gambling addiction and associated financial and social problems.
o Evidence from other UK and European casino locations.
o Planned briefings and workshops with community and voluntary groups.
o Community engagement to help shape development of the project.
Please tell us your thinking for this proposal to license two casinos and why you have chosen not to submit a proposal or fall back proposal for just one casino.
o Confirm that the proposal is to license one small casino only.
5) Probability of Implementation
What is the status of the "proposed new city centre Spa Hotel" and what are the "cultural facilities at Green Park Station".
Focus on:
o Current position regarding the proposed spa hotel.
o Concept for revitalisation of Green Park to complement the existing City offer and linking to Bath Western Riverside.
o Cultural centre feasibility work.
Bath is well known as a World Heritage Site. It also has a reputation for being "a tough city to get a planning permission." What evidence can you give that a casino could be quickly implemented?
Focus on:
o Role of Development & Major Projects.
o Development Team service within Planning Services.
o Identification and assessment of sites.
o Early discussion through the Planning Service's Development Team.
o Early `without prejudice' discussions with potential operators.
6) Regional and Local Context
Whilst the remit of the Panel is to advise only on the broad location of casinos, you have chosen in your proposal to identify three specific locations in or near the City Centre Are you satisfied that such readily accessible locations would not exacerbate problem gambling? If so, why?
Focus on:
o Importance of a City centre location to provide an attraction that is part of a wider Bath experience.
o Currently no indication of significant gambling related problems.
o Proposals to monitor and ensure appropriate management arrangements.
o The high quality nature of the proposed casino.
POTENTIAL CASINO SITES APPENDIX 3
SITE A: GREEN PARK STATION
The site covers a footprint of some 20,000 m2 and contains the former Green Park Station, a grade II listed building, and a Sainsbury's Supermarket. The Council is the major landowner. Discussions are underway to secure the relocation of the supermarket as the operator wishes to build a larger facility. It is envisaged the site would incorporate a 3,250m2 casino generating 250-300 jobs. The development would be a catalyst for the revitalisation of Green Park Station as a specialist niche retail and leisure destination complimenting the city centre.
SITE B: BATH WESTERN RIVERSIDE EAST
The site has a footprint of 46,000m2. It is in private sector ownership and is proposed for a high density, employment led mixed use development in the Supplementary Planning Guidance for Bath Western Riverside. Implementation relies on relocation of the existing Homebase store and Pines Gate employment units and removal of the Sainsbury's petrol station. Provision would be made in the scheme for a 3,250m² casino linked to a 4,000 m² 500 delegate cultural centre/conference facility and a 150 bed 3-4 star hotel generating 450-500 jobs.
SITE C: SAWCLOSE
The site has a footprint of 3,400m² and incorporates Bluecoat House, Regency Ballroom and Palace Bars. A number of the buildings are grade II listed and will need to be incorporated into an overall scheme to regenerate the area including the creation of a high quality urban square as a setting for the existing Theatre Royal and new 2,300 m² casino and 40-45 bed 'boutique' style hotel generating 300-350 jobs. The site, apart from a small area owned by the Primary Care Trust, is owned by the Council. Discussions have been held with the Primary Care Trust, a Development Brief produced and negotiations undertaken with potential developers.
SITE D: PODIUM AND FORMER CATTLEMARKET
Covering a footprint of approximately 14,000 m² the site incorporates the existing Podium Shopping Centre, Public Library, Hilton Hotel, decked car parking and the former Cattlemarket site currently used as a surface public car park. Development proposals have been brought forward, which could include the relocation of the Public Library, the expansion of the shopping facilities and the redevelopment of the existing Hilton Hotel to provide an additional 55 bedrooms with modernised and extended conference facilities linked to a 3,250 m² casino. Employment generation is estimated at 500-600 jobs. The casino would be a key element in the redevelopment of the wider site which would generate improvements to the sub-standard public realm in the area and the creation of a positive link to Walcot Street, the artisan quarter of the city centre, through physical development and increased footfall.
SITE E: TERRACE WALK AND EMPIRE UNDERCROFT
Formerly the location of the Lower Assembly Rooms, one of the original gaming establishments in Bath, the site is wholly owned by the Council and is Grade II listed. It has the potential to incorporate a 1400m² casino generating 200-250 jobs, partly in a new 2 storey building on the site of the former Island Club with the main gaming areas and associated bars and restaurants located at the lower Parade Gardens level. The development would create a new high quality public space on Terrace Walk which would improve pedestrian links between the historic core of the city, Parade Gardens and the River Avon.
SITE F: MANVERS STREET/SOUTH PARADE
A key development site in the City Centre it has a footprint of 13,400m² and is proposed for a high density employment led mixed use scheme. The Council is part owner of the site with the remainder being held by the Police Authority and Consignia plc both of whom are seeking to relocate their on-site facilities. The existing Council owned public car park, together with the Police Station could form the first phase of an overall development scheme incorporating a 3,250m² casino, 100 bed 3-4 star hotel and 1,500m² of conference space. The site is adjacent to Bath Spa Railway Station and the proposed new central bus station and would incorporate improvements to the public realm and pedestrian flows between the city's public transport interchange and historic core.
EXTRACT FROM DRAFT NOTES OF FULL COUNCIL - 14TH SEPTEMBER 2006
41 PROPOSAL TO LICENCE A SMALL CASINO IN BATH (Report 11).
The Council, on 14th September 2006, considered a report seeking confirmation that it is willing to issue a licence for a small casino in Bath, subject to consideration through the proper licensing procedures, which outlined how the matter would be progressed and identified a number of potential sites.
On a motion from Councillor Colin Darracott seconded by Councillor Nicole O`Flaherty it was RESOLVED that the Council:
(1) Agrees that, subject to proper consideration through the licensing process, in accordance with Regulations to be issued by the Government, the Council would be prepared in principle to issue a licence for a small casino in Bath.
(2) Recommends to the Council Executive that it undertakes the further work outlined in Appendix 1 to this report to develop the proposal for a small casino in Bath.
(Note: The resolution above was carried by a substantial majority with 15 Members voting against and 5 abstaining.)