Next week councillors will meet to discuss a major investment in Harrogate Convention Centre to make sure it can continue to support the town’s multi-million pound visitor economy.
They’ll be talking about sidelining proposals for development plans, and instead look at more affordable options to bring long-awaited improvements.
Executive director for finance, Cllr Gareth Dadd, who is the authority’s deputy leader, said: “The convention centre is a very important venue for both Harrogate itself and the county’s wider economy, and we are therefore committed to ensuring that it continues to play a key role in the future.
“However, all major projects are being affected by the high rates of inflation and the rising costs of materials and labour.
“We need to make sure that we are providing the best value for money for residents and businesses across North Yorkshire, and we will carefully consider the options that are available for renovating the Harrogate Convention Centre.
“We need to decide how best to take the re-development plans forward while protecting the impact that would have on the public purse and the economy of the town.”
Members of the executive will be told that a two-phase development plan for the building was drawn up eight years ago, with the first stage due to revamp the existing building.
The second phase of the re-development outlined in the plan would see the existing exhibition halls replaced with a new event space, and the overarching project was expected to cost £47 million at the time when the proposals were drawn up.
However, when a business case revealed that the first phase alone was estimated to cost £48 million, the second stage of the development was deferred.
A bid for £20 million in funding from the Government’s Levelling Up Fund proved unsuccessful, and rising costs have meant that the first phase of the re-development is now expected to be in the region of £57.2 million. In addition, there would be lost revenue when the building closed for the wide-ranging programme of work.
Convention Centre Director Paula Lorimer said: “We recognise that there is a real need for investment in the building, but more affordable options should also be explored. Alternative plans that are being considered would prevent shutting large parts of the venue for significant periods of time to avoid the loss of valuable revenue.
“This building is integral to the visitor economy of Harrogate. Its conferences, exhibitions, corporate events, banquets and live entertainment provide jobs and business to the town’s shops, bars, cafes, restaurants and hotels – worth about £45 million a year to the local economy.
“I do back the recommendation that is due to be discussed by the executive, as I have been a long-standing supporter of investment in the convention centre for a number of years and the venue must remain open during the works.”
Paula added that this year’s income from lettings is at the highest level since 2014, and the number of forward bookings is also the highest in recent memory.
She said: “This demonstrates that the venue is doing well, and tactical investment is the way forward to keeping the venue operational.”
However, the building has problems with ageing heating and air conditioning systems and there are also increasing maintenance and utility costs, as well as a layout that presents challenges for many events and conferences.
