Agenda item

PHOENIX SQUARE FILM AND DIGITAL MEDIA CENTE

The Leader has agreed that this item will be considered as urgent business on the grounds that, due to negotiations, it will not be possible to release the report prior to this and an urgent decision is required to ensure continuity of service.

The report will be circulated as soon as it is available and will be considered in public. There will also be a private appendix that contains exempt information as specified within paragraph 3 of Schedule 12A of the Local Government Act 1972, as amended, as it contains information relating to the financial or business affairs of a particular person (including the authority holding that information.) This appendix will be circulated to Cabinet Members only, and if Cabinet wishes to discuss its contents, it is recommended that Cabinet resolves to move into private session, taking into account whether this would be in the public interest.

PHOENIX SQUARE FILM AND DIGITAL MEDIA CENTRE

The Leader agreed to accept this item as urgent business on the grounds that, due to negotiations, it was not possible to release the report in time for despatch with the agenda and an urgent decision was required to ensure continuity of service.

Councillor Wann submitted a report that informed Cabinet that Leicester Arts Centre Trust (LAC), the operator of the Phoenix Square Film and Digital Media Centre, had advised of a significant forecast end of (financial) year deficit. The report contained a private appendix, containing legal advice, which Cabinet had been recommended to consider in private session should they wish to discuss it. Councillor Wann informed Members that Option 3 in the report was recommended and that it had not been easy to find funding to allocate in the current financial climate.

Officers were thanked for the work they had put in over the last few weeks. Members recognised that the Phoenix was a vital part of the city’s cultural offer, but concerns were raised regarding the staffing arrangements to deliver the services at the centre. In order for the centre to be viable it was considered that there was a need for programming and education to be sound features going forward. It was felt that the removal of these specialist posts appeared to indicate that the proposed structure would not recognise the important role these played. Assurance was sought that, by agreeing to the proposals, Cabinet would be supporting a service that would still deliver these objectives.

It was suggested that work could be carried out to look at governance arrangements in cultural venues to ascertain whether they were appropriate in the current climate, and that the possibility of a trust to oversee the cultural offer across the city could be investigated, in order to protect the services. Alternatively, it was suggested that there could be more local authority control over the Phoenix or shared services between De Montfort Hall, Curve and the Phoenix, such as marketing and communications.

Opposition Group Leaders stated they supported the proposals as the only way of protecting investment made to date but that they were firmly of the view that a sound business plan was required. They also highlighted that  long-term issues regarding footfall and accessibility had contributed to the current situation and should have been addressed prior to opening. It was also recommended that the composition of the Board should be considered, to ensure that a level of business acumen was represented. It was pointed out that a significant level of officer input had been provided without charge on the matter.

Concern was expressed regarding the purchase of the digital equipment with regard to maintenance and depreciation but Members were informed that this provided an asset in return for funding and would help the Council if LAC ran into future difficulties. There was also concern that information had not been provided regarding how management issues were to be addressed. However it was also accepted that the timing of this issue which required urgent action had precluded some of this work happening to the level of detail required.

Acting upon advice from the council’s Director of corporate governance Members agreed to consider the appendix in private under the provisions of Schedule 12A of the Local Government Act 1972, as amended, as it contained information in respect of which a claim to legal professional privilege could be maintained and in all the circumstances of the case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

Members received and discussed legal advice in detail, after which, the meeting moved back into public session.

RESOLVED:

                        That Cabinet:

1. Restates its public commitment to the Phoenix Square Film and Digital media centre and the offer that it makes to culture and Arts in the city

1)     Approves expenditure of up to £250,000 in accordance with the delegations in Paragraph 2 of the report  to enable a negotiated agreement with LAC, that involves the purchase of the cinema equipment (leased back to LAC) to secure the continued operation of Phoenix Square Film & Digital Media Centre by the current operator LAC. This funding is on the basis of an initial payment of £100,000, with the payment of the remaining £150,000 in instalments delegated to the Director of Cultural Services, in consultation with the Chief Executive and Leader of the Council. These further  instalments will be payable on production of a full business plan, which should contain clear milestones demonstrating a move towards sustainability associated with the future release of funding, and shall be subject to member consideration;

2)     Delegates authority to the Director of Cultural Services in consultation with the Chief Finance Officer and the Director of Legal Services to finalise the heads of terms and legal agreements with LAC;

3)     Agrees that, under Cabinet Procedure Rule 12 (d) there be no call in of this decision for reason of urgency, namely the immediate consequences of the amount of the forecast deficit of the operator of Phoenix Square Film & Digital Media Centre;

4)     Confirms the action taken by the Deputy Chief Executive to make an advance payment of £41,500 to LAC (comprised of the final £18,600 of 2010/11 revenue grant and  £22,900, of the £250,000 additional support referred to in recommendation 1) above;

5)     Support the proposed actions to raise the profile, improve access and develop footfall into and through the  Cultural Quarter;

6)     Stresses that, although the decision was difficult, Cabinet values the Phoenix Film and Digital Media Centre for its provision of alternative films and its educational value, and continues to support these objectives. Cabinet thanks officers who have worked extremely hard on producing a solution and the Vice-Chancellor of De Montfort University who has supported Cabinet’s decisions. Cabinet looks forward to the centre being a thriving and profitable facility.