Hotel, restaurant and retail trade services

Tender description

On 25 July 2019 Torbay Council awarded a lease for the operation of the Riviera International Conference Centre (RICC) to Parkwood Leisure Ltd, with the intention that Parkwood Leisure Ltd would take over operation of the RICC on 01 April 2020. This notice relates to changes in the lease arrangements which were not included in the original procurement and that have been brought about as a direct result of the impact of the Covid-19 pandemic. On 25 July 2019 Torbay Council awarded a lease for the operation of the Riviera International Conference Centre (RICC) to Parkwood Leisure Ltd, with the intention that Parkwood Leisure Ltd would take over operation of the RICC on 1 April 2020. In March 2020, the Council and Parkwood Leisure Ltd had a completed lease in readiness for signing ahead of the 1 April 2020; setting out all the commercial terms along with the capital investment to be delivered in 2020 and 2021. Due to restrictions imposed in response to the pandemic the RICC was closed and signing of the lease was deferred until such time as it could be agreed by both parties that Parkwood Leisure Ltd could take over its operation. The Council and Parkwood Leisure Ltd have agreed that the originally proposed 25-year lease will go ahead from 1 April 2021 and this will remain the basis for the medium to long term future of this partnership. However, in order to capture and address the impact of Covid-19 the Council intends to enter into a short term deed of variation with Parkwood Leisure Ltd, subject to approval through the Council budget setting process. This deed of variation will cover a financial support package that will be in place for the first 24 months of the lease, which will be capped at approximately GBP 830 000. This funding is being provided to enable Parkwood Leisure Ltd to move the RICC from the deficit position that has been created during the pandemic, in order to ensure the long term sustainability and viability of the business. It is expected that the support package will be made through the payment of a fixed fee quarterly in advance.