FERMANAGH and Omagh District Council has said its “quite rich at present” as it has pledged £11 million of its current financial reserves towards the redevelopment of the Lakeland Forum.
Prior to the vote on the redevelopment of the Forum, councillors were informed that the cost of the project had risen to £70 million, compared to the previously reported figure of £57.4 million.
Head of Finance at Fermanagh and Omagh District Council, Catherine Leonard, delivered an in-depth breakdown of the proposed cost of redeveloping the 49-year-old Lakeland Forum.
The project has received a major boost from the ‘Levelling Up Fund’ from the UK Government, with a reported £20 million put aside to enhance the leisure centre in Fermanagh.’
It was also revealed at the Townhall meeting that £11 million towards the redevelopment of the Forum would come from Council reserves, which they claim is available for the project.
“There are capital reserves of the Council that are available to fund this project. I have estimated those to be in the region of £11 million,” explained Ms Leonard.
“The Council is quite rich at present in its cash balances and reserves. In line with its code of practice, there is the ability for the Council to utilise its reserves and its good practice to do so.”
The Council has also made calculations for borrowing, both internally and externally, with £20 million and £19 million bringing the total funding for the much-anticipated Forum to £70 million.
While the cost of redeveloping the Lakeland Forum will impact on rates, it’s expected that this will not kick-in until 2028/29 when the charge on rates will reportedly sit at 4.54-per-cent.
Reacting to calls to delay or postpone the redevelopment, the Council’s Chief Executive Officer, Alison McCullagh, said that it’s not financial feasible to delay the redevelopment of the Forum.
“It has been proofed, assured and the Council is financial stable and we’re able to take this on and it is not a reckless decision,” explained Ms McCullagh.
“We have every indication from work we’re doing on the Mid South West Growth Deal that if there is any suggestion of delay or deferral, the money will be gone.
“While we have not asked the relevant department in Westminster what would happen if we delay, I think it’s highly likely that the [Levelling Up] funding would be lost.”
Graham Contracts, which employees around 2,200 employees nationwide, will lead the redevelopment of the Forum, with its final contract sum for the project sitting at £57.4 million.
Managing Director of Building South at Graham, Jonathan Hall, welcomed the agreement.
“We’re pleased to have been selected through Pagabo’s major works framework to finalise the design for the redevelopment of the Fermanagh Lakeland Forum,” explained Mr Hall.
“This project, which will feature Ireland’s only Passivhaus-certified leisure centre, is pushing the boundaries of environmental sustainability.
“It’s an exciting opportunity to create a state-of-the-art facility that will enhance local health, wellness, and recreation, and set a new standard in sustainable development.”
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