Decision details

1.

Title of Item/Report

Activ8 Billingham Forum Gym Expansion

2.

Record of the Decision

Consideration was given to a report that sought approval for the redevelopment and expansion of the Activ8 gym at Billingham Forum. The proposal included increasing gym capacity, upgrading facilities, and improving service quality to meet growing demand. The expansion was critical to sustaining Activ8’s financial performance and supporting public health objectives.

The Council had leisure facilities across the Borough; Billingham Forum, Billingham Forum Theatre, Thornaby Pavilion, Thornaby Pool, Splash and Ingleby Barwick Leisure Facility, Tees Barrage International White Water Course Centre. These were managed and operated on behalf of the Council by the Leisure Trust; Tees Active Limited. Activ8 Health and Fitness is the membership name operated by Tees Active Limited.

These assets offer a varied range of activities and experiences to local residents and visitors including swimming, ice skating and gym provision.

The UK fitness sector had shown strong post-COVID recovery, with Activ8 outperforming national trends. Billingham Forum was a very well used and highly valued asset by local residents, however the gym was constrained by gym capacity. Billingham Forum gym was operating at full capacity. The current Members Per Station (MPS) ratio would limit further and impact upon service quality.

The gyms across all of the Council’s leisure facilities were well used and highly regarded by residents and visitors. The Council had a proven track record of investing in leisure assets to maintain and improve high quality assets for the local community. The Council was investing in Stockton Splash and Thornaby Pavillion. Options had been considered to address the capacity and improve the gym provision at Billingham Forum.

Three options were detailed within the report.

The preferred option was a full expansion of the gym into underutilised areas (Studio 3 and dry-side changing rooms) to increase gym floor space and equipment provision. The new layout included:

•         Additional exercise stations

•         Two free weight/plate-loaded zones

•         Upgraded cardio and resistance equipment

•         Dedicated small group training and personal training areas

The estimated total project cost was £900,000, comprised of £650,000 relating to the internal building works and £250,000 relating to new equipment. The Council would fund the works to the internal fit out at an estimated project cost of £650,000 and TAL would fund the new equipment.

It was proposed that the Council’s investment would be funded by up to £650,000 of prudential borrowing, drawn down from the £20m Council Wide Investment Fund approved by Council as part of the Medium Term and Financial Plan Update and Strategy Report in February 2025, with allocations from that fund delegated to Cabinet.

The prudential borrowing repayments (£48,000 p.a.) would be covered by Tees Active Limited through the additional income generated.

Billingham Forum had a proven history of successful expansions, with income growing by 41% and 35% in 2017 and 2020 after previous expansions. Since opening Ingleby Barwick leisure Facility the gym had also been hugely popular here too.

This proposed expansion would increase the number of exercise stations as well as introducing new training zones aligned with current fitness trends.

The proposal was in line with the Stockton on Tees Plan, in particular aligning with the Healthy and Resilient Communities priority. It also supports Tees Active’s long-term growth strategy to meet community needs, and mitigates financial risk from rising operational costs and competition from other privately operated facilities.

The redevelopment would create additional capacity with minimal disruption, leading to a very brief gym closure period, planned for when the facility is traditionally at it’s quietest period of the year.

The project was expected to grow membership by around 20% over a 5 year period, with additional income generated used to fund the prudential borrowing. The investment would greatly enhance a prominent and well loved asset, contributing to the wider regeneration of Billingham town centre.

The full expansion option would offer the an improved and larger gym facility within Billingham Forum, allowing more local residents to enjoy access to the gym, as well as improved experience for existing gym members. 

The proposed timeline for the Billingham Forum gym expansion was strategically designed to ensure completion by mid-December, enabling a pre-Christmas reopening and promotional launch. This timing was critical to capitalise on the annual January surge in gym memberships, which was consistently the busiest period for new member sign-ups across the fitness industry.

RESOLVED that:-

1. The proposed redevelopment of the Billingham Forum gym be approved.

2. The use of prudential borrowing of up to £650,000, from the £20m Council Wide Investment Fund approved at Council in February 2025 be approved.

3. Authority be delegated to the Director of Community Services, Environment and Culture to make the specific contract award decision and any subsequent contract variations as necessary to support effective delivery of the project.

3.

Reasons for the Decision

Cabinet is being asked to approve the recommendations in this report for the following reasons:

•         Billingham Forum is a very well used and highly valued asset for the local community and this investment will improve facilities and enable more residents to access the gym facilities.

•         Financial modelling demonstrates a strong return on investment and long-term sustainability.

•         The project aligns with council priorities for providing the best services possible and supporting the health and wellbeing of residents.

4.

Alternative Options Considered and Rejected

None

5.

Declared (Cabinet Member) Conflicts of Interest

Councillor Nigel Cooke declared an Other Registerable Interest with regard to agenda item 10 - Activ8 Billingham Forum Gym Expansion as he was a member of Tees Active Management Board. Councillor Nigel Cooke withdrew from the meeting and left the room during consideration of the item.

6.

Details of any Dispensations

None

7.

Date and Time by which Call In must be executed

Midnight, Friday, 25 July 2025