Issue - meetings

STOCKTON-ON-TEES BOROUGH COUNCIL

CABINET DECISION

PROFORMA

Cabinet Meeting ........................................................................ 17 July 2025

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.  ...  view the full minutes text for item 30