Purpose

To seek approval of the preferred delivery
model for the Hawth Theatre following an options appraisal and
tender process.

Content

Exempt Paragraph 3
Information
relating to the financial or business affairs of any particular
person (including the authority holding that information)
 

RESOLVED

That the Cabinet:

1)            
approves entering into a contract extension with
Parkwood Theatres from 1February 2026 for a term of five years with
the option to extend for a further five years under the terms set
out in paragraphs 6.19 – 6.21 of report HPS/044.  

 

2)            
authorises the Head of Corporate Finance, Head of
Governance and Head of Major Projects and Commercial Services to
enter into a contract variation based upon the terms set out in
paragraphs 6.19 - 6.21 of report HPS/044.

Reasons for the Recommendations

 

a)            
The option to extend the contract with Parkwood
Theatres enables the Hawth to continue as a valuable and valued
service for Crawley residents. Nearly half of the visits to the
Hawth are from Crawley residents and the venue offers a wider
economic benefit from a variety of sources. The Hawth has also
significantly grown its community and participation programmes and
this option enables these to continue.

b)            
The extension significantly reduces the revenue cost
to the Council of running the Hawth. Although an improved offer
could be achieved through a competitive process, an assessment from
specialist consultants indicates that, given the venue size, the
offer from Parkwood is at or indeed above market expectations.
There is also a risk that market conditions may not be as positive
when bids would be invited (in approximately 12 months) and
competition is limited as a result.

c)            
The extension secures a significant saving on the
2025/26 revenue budget. This option is the only viable means of
achieving this within the current contract period. This option
continues to provide risk transfer for the Council and protects
from potentially volatile market conditions and cost volatility as
experienced with energy costs in recent years.

 

d)            
The option to extend the contract secures a
significantly improved revenue position while balancing the
capacity and resourcing requirements for the Council. A competitive
tender would be a significant resource undertaking and the
negotiated option is less impactful enabling resources to be
applied to other priority projects.