Decision Maker: Executive

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: October 14, 2025

Purpose: To agree the ongoing funding commitment associated with the long-term lease of the leisure facility in Kettering

Content: RESOLVED   KEY DECISION    That the Executive   a)       Approved that North Northamptonshire Council enters into a new Management Agreement relating to schedule 3 of the underlease with Phoenix Leisure Management Limited for the operation of the Arena Sports element of the Kettering Leisure Village site;   b)       Approved the funding commitment for the period of 10 years from 2025 to 2035;   c)        Delegated authority to the Assistant Director Communities and Leisure, in consultation with the Executive Member for Health and Leisure, to undertake any activity to finalise, enter into and oversee the delivery of the Management Agreement.      Reasons for Recommendations: To ensure schedule 3 and the associated Management Agreement is up to date and is reflective of the new strategic priorities as set out in the North Northamptonshire Active Communities Strategy, adopted in January 2025. Secondly to confirm the funding commitment by the Council to ensure the sports facilities at KLV are available for community use over the next 10 years.    Alternative Options Considered: The alternative option would be to not review and refresh schedule 3 and propose a new Management Agreement. However, this is not recommended. Council officers gave formal notice in relation to the break clause in February 2025 so as to take the opportunity to update the Management Agreement. The Council is now required to either put a new Management Agreement in place or be at risk of Phoenix Leisure seeking to terminate the lease, leaving Kettering Leisure village without an operator which would be detrimental to the communities of North Northamptonshire and to the reputation of the Council.   The Council could have left the previous Management Agreement in place but this was outdated and did not align with the Council’s priority outcomes outlined in the Active Communities Strategy. If notice had not been served the Council would have been locked into the outdated terms of the previous Agreement for the remainder of the lease until 2116.