Purpose

This report outlines the
business case for the refurbishment of two Multi-Use Games Areas
(MUGAs) as part of the Football Foundation PlayZone project. It also sets out recommendations
and seeks a decision for the signing of the formal grant agreements
and the leases for the management of the sites following
investment.
 
The PlayZone project is a national initiative aimed at
refurbishing Multi-Use Games Areas, led by the Football Foundation
in collaboration with local authorities and their partners. For
approved PlayZone sites, the Football
Foundation provides 75% of the build cost, with the remaining 25%
to be secured through partnership funding. The approach proposed in
this report is to accept the following confirmed funding
avenues:
 
- Site One, Ashburton Park: 75%
Football Foundation / 25% Community Infrastructure Levy (CIL,
approved by Infrastructure Funding Group)
 
- Site Two, South Norwood
Lakes: 75% Football Foundation / 25% London Marathon Foundation;
 
An integral part of the
Playzones programme is that projects
are rooted in local communities and applications have been
developed and informed by a programme of local community
engagement. Playzone projects around
the country have generally been delivered by local consortia and in
Croydon’s case this has been led by Croydon Voluntary Action
(CVA), Oasis Academy, Palace For Life
Foundation and the Council.
 
The partners sought to identify
a shortlist of potential sites for application. Through this
process, two locations were identified as having the strongest
potential to secure funding for refurbishment, obtain planning
permission, and demonstrate a viable business case to ensure both
short- and long-term sustainability:
 
- Site one: Ashburton Park,
which currently contains an underutilised and deteriorated netball
court, and
 
- Site two: South Norwood
Lakes, which currently contains a tennis court and a basketball
court in a deteriorated condition.
 
Under the PlayZones proposal, each location will be
refurbished and converted into a Multi-Use Games Area (MUGA). The
Playzones project preserves existing
provision whilst introducing new, flexible facilities that expand
community access and secure long-term external
investment.
 
A condition of the grant is
that operating plans are in place for the PlayZones in order to
enable sufficient community access and ensure long term maintenance
will take place. Both proposed locations are currently operated by
Greenwich Leisure Limited (GLL) under the leisure operator
agreement. The terms of this agreement allow for only minimal
maintenance, activation or community engagement programme. Under
these arrangements the site management would not meet the
eligibility for the Football Foundation grant criteria.
In order to secure the external
investment, a different approach needs to be taken.
 
As part of the project’s
development, the possibility of leasing the sites has been
explored, with Croydon Voluntary Action (CVA) expressing interest
in managing the South Norwood Lakes site and Oasis Academy
proposing to take on the management of the Ashburton Park site
under lease agreements. GLL have indicated they are open to
releasing both sites from the leisure operator agreement should the
Council decide to proceed with these arrangements. Both CVA and
Oasis have demonstrated their ability to meet the Football
Foundation’s funding requirements through their maintenance
and community access plans. The recommendation regarding site
management is based on ensuring long-term sustainability, alignment
with the Council’s strategic priorities, and whether the
Council could still leverage the funding without adopting this
approach.
 
Other options considered are
detailed below in section 5. These include keeping both sites
within the leisure operator agreement with revised terms (and cost
implications) or the Council taking on the direct management of the
sites. However, both alternatives present challenges. In both cases
the council would need to ensure full compliance with the grant
terms, including specific maintenance responsibilities, community
engagement and activation. This would incur either additional
direct cost to the council, or indirect loss of income through a
revision of the leisure operator contract.
 
In order
to meet the deadline for submission to
the Playzones grant scheme in March
2025, a high-level financial analysis was undertaken and considered
by the S151 Officer and Director of Commercial Investment &
Capital (detailed further below in section 8 and at Appendix E).
Two applications were subsequently submitted to the Football
Foundation, one for Ashburton Park, the other South Norwood Lakes,
both seeking 75% match funding. The applications outlined a
proposed management model for both sites involving leasing and
delegating the discharge of the grant terms to community partners
to operate the sites. However, the applications were clear that
this is subject to approval through the council’s internal
governance processes. The potential operators were detailed in the
application as Oasis Academy at Ashburton Park and CVA at South
Norwood Lakes.
 

Content

The Corporate Director of
Sustainable Communities, Regeneration & Economic Recovery
resolved to:
 

1.1.       
Agree to proceed with the PlayZone project detailed in this report, following
the successful grant award, and to sign the associated grant
agreements:
 

1.1.1.  
The Grant Agreement between the Football Foundation
& Croydon Council related to Ashburton Park for a value of
£215,004

1.1.2.  
The Grant Agreement between the Football Foundation
& Croydon Council related to South Norwood Lakes for a value of
£225,212

1.1.3.  
The Grant Agreement between The London Marathon
Foundation & Croydon Council related to South Norwood Lakes for
a value of £80,000
 

1.2.       
Note the timescales for delivery in line with the
PlayZone funding programme
 

Reasons for the decision

The Playzone project presents
an opportunity to leverage approximately £520,000 in external
investment into Croydon which will significantly improve the two
sites. A further £80,000 of match funding from the Council is
funded by CIL.
 
Both Oasis and the CVA hold
standing within the Croydon community and bring substantial value
to the proposed newly opened sites. Their planned involvement
supports the development of community usage and programmes aimed at
activating the facilities and engagement with harder to reach
groups including those from low socio-economic backgrounds, girls
and those with disabilities. These plans were outlined in the grant
applications to the Football Foundation and the London Marathon
Foundation, detailing how both organisations intend to reach these
groups through targeted programming, subsidised access and free
access.
 
Furthermore, both Oasis and CVA
possess a strong understanding of the Football Foundation’s
PlayZones ethos and they have been working alongside the Council to
develop the application and approval process from the Football
Foundation and the London Marathon Foundation
 
The terms and conditions of the
Playzones grant require funding and arrangements to be confirmed
for the maintenance and management of the asset over a period of at
least 15 years. The recommended model represents the best value
approach for the council to achieve this.
 
A model of working more closely
with VCFS partners to secure additional investment, deliver
services and meet need in the community also aligns with the
council’s Target Operating Model
 
The Council risks losing this
investment opportunity if it does not follow this approach, as the
Football Foundation may lack confidence in the Council’s
commitment and capacity to meet the grant terms given its ongoing
financial pressures.
 

Alternative options considered

A longer list of potential
sites was initially considered. However, sites were discounted
based on their likelihood of meeting the criteria required for a
successful bid to the Football Foundation and their likelihood of
obtaining planning permission
 
The Council could choose not to
proceed, but this would leave two sites with minimal opportunities
for future redevelopment. Both facilities are currently in a poor
condition and continue to deteriorate. Consequently, usage of both
facilities appears quite low and the surfaces also present safety
hazards, particularly during adverse weather conditions.
 
If the Council decides to
retain the sites within the leisure operator agreement, it is
likely to reduce the chances of securing funding from the approved
bids. Given the Council’s financial position and GLL’s
indication that they would not invest in refurbishment, future
improvements to the sites are unlikely. Consequently, usage levels
may remain low, and the risk of injuries due to deteriorating
surface conditions would remain higher than if the sites were
refurbished.
 
The Council could choose to
invest in improving the sites itself rather than accept the
external funding terms and conditions. Ahead of submitting the
application to the Football Foundation, the Council’s finance
team prepared a high level analysis of this option in comparison
with the funding bid. Making some assumptions on potential profit
and income generated through the investment, this analysis found
that there would likely be a direct cost of around £300k (to
a lower specification than required by the FF) and a total cost of
borrowing of £140k assuming a 15 year lifespan and interest
at 6%. The model identified a breakeven period of 11 years, though
this would be contingent on income targets being met which would
not be confirmed. Overall this was viewed as a riskier option than
the one recommended in this report.
 
The council had considered
proceeding with the application while the leasing situation
remained unchanged. However, throughout the process, it has been
indicated by the Football Foundation that without the sub-lease
arrangement in place to secure the community engagement and give
confidence in long term maintenance and site management, the
likelihood of the grant being approved is reduced. This would
result in the Multi-Use Games Areas remaining in their current
condition, underutilised, and not benefiting from the substantial
funding available for renovation. The risk of missed investment and
failing to meet the Football Foundation’s criteria
underscores the importance of securing the sub-lease agreements to
fully realise the potential of these facilities for the
community.
 
By retaining management of the
sites, directly or under the leisure operator agreement, the
council would also assume full responsibility for meeting the
associated grant obligations. This includes not only ongoing
maintenance but also the structured delivery of community
programmes as stipulated by the funding conditions. Ensuring
compliance with these obligations would necessitate a sustainable
operational
strategy, encompassing
long-term maintenance planning, resource allocation, and structured
programme execution to maximise community engagement and fulfil
grant expectations. This would present an additional revenue cost
to the council, or loss of income if the council sought to include
the obligations in revisions to the leisure operator
agreement.