The Club Redevelopment – Members’ Briefing

BYC Redevelopment Project – Members’ Briefing

Table of Contents

Jump to a section by clicking on the blue text

1. Introduction
   • New | Message from The Commodore, Rob Milligan
   • A summary
2. What is the background to the BYC redevelopment?
   • How did the BYC redevelopment plan come about?
   • What were the details of the proposal put forward by ANDBC to the BRCD, and what was BYC’s anticipated involvement?
   • Where are we now with the plan?
   • What details does the contract between BYC and ANDBC cover?
   • What does the £10m funding cover?
   • What are the other projects in the redevelopment, and are they all interlinked?
3. What does the redevelopment mean for members?
   • What are the benefits of the redevelopment to members?
   • What happens if members decide against the development?
4. What obligations and undertakings will be required of BYC if we accept the funding?
   • Will BYC be accountable to ANDBC?
   • Will members have to contribute to the cost of the redevelopment?
   • Who will run the new facility?
   • Will the Club still be a members-only club?
   • Will the Club be open to the public?
   • Will the Club be expected to host more events?
   • Will the terms of the lease change?
5. The redesign and rebuild – what does that mean for members?
   • What is the expected timeframe for the redesign and rebuild?
   • What is the timeline for consideration of the proposal and EGM vote by members?
   • What are the stages of the design and build process?
   • Will members be able to have an input into the design of the new facility?
   • Will the Club close for a period of time while the work is being done?
6. The EGM
   • Who is entitled to vote at the EGM?
   • What is the process for the EGM?
   • What will members be voting on, specifically?
   • Will there be an arrangement for absentee proxy votes?
   • What majority is required
7. Appendix
   • Explanation of KPI numbers

1. Introduction

A message from The Commodore, Rob Milligan

Following the Information Evening on Wednesday, 22 May, I have reflected on a few of the comments and feel there is a need to clarify a few things.

Firstly, a no vote at the EGM is a red light – the redevelopment plan with ANDBC ends there and then. If the vote is yes, this is an ‘Amber light’, to continue subject to Full Business Case approval, meaning the council will commit funds (up to £625,000) and take on that inherent project risk.

Secondly, with a yes vote, the consultation over the design and plans between the council, Redevelopment Team, Executive Committee and club members starts. This will be an ongoing process over a few years, involving the BYC teams and members all the way.

And lastly, the Full Business Case needs to be developed and then approved. By the time we get there, all figures and plans from the Outline Business Case will have been revised and checked over by independent professionals on behalf of the club, to ensure there is a sound, sustainable plan going forward to meet the KPIs. This will also form part of the ongoing consultation process with members. Those KPIs are then at ‘best endeavour’.

In summary, the club will not blindly go into a final agreement that doesn’t make financial sense for our future, and only when the Full Business Case is approved (by Dept for Communities) does the project get the ‘green light’ and reach a ‘point of no return’.

I cannot emphasis enough that at no stage are we surrendering ownership or management of the club to the council. BYC is a club for members, run by members.

Overview of the EGM, the vote and a summary of the options

In advance of the EGM to vote on the redevelopment of Ballyholme Yacht Club (BYC), the Redevelopment Committee has compiled this ‘FAQ’ document to help members understand the history, context, benefits and commitments related to the proposed redevelopment.

At the EGM members will be asked to vote on whether or not the Executive Committee and Trustees of Ballyholme Yacht Club (BYC) can enter into agreement with Ards and North Down Borough Council (ANDBC) for the redevelopment of BYC as set out in the ‘Heads of Terms’ documents.

The ‘Heads of Terms’ documents comprise:

• Development Agreement – A legal agreement between ANDBC and BYC defining the project management structure, obligations of both parties, targets and outputs, etc.
• Deed of Variation of Lease – A legal agreement with proposed amendments with respect to the current Lease to accommodate the Development.
• BYC’s Business Plan – Defining the business model of the new BYC Watersport Centre, and how it will operate in a sustainable manner and achieve the outcomes promised in the Outline Business Case to deliver watersports, to provide employment and to support tourism through events.

These three documents are classed as Confidential but copies are available in the BYC Office for members to read in situ. If you are interested, please contact the office at admin@ballyholme.com  to arrange a time.

For convenience and for practical reasons, the Redevelopment Committee has also made best endeavours to cover the key points of the Heads of Terms in this FAQ/Members’ Briefing, as well as answer other questions that have been raised at previous Members’ Information events.

If you have any additional questions you can also email: buildingBYC@ballyholme.com or come along to the third Members’ Information Evening scheduled for Wednesday 22nd May.

2. What is the background to the BYC redevelopment?

How did the BYC redevelopment plan come about?

Over the last 15-20 years BYC committees have sought to find funding for major redevelopment work of the clubhouse and grounds, initially as part of the Olympic Legacy project but unfortunately funding was pulled. Over the last 10 years we have been lobbying Sport NI and the Council to explore other options.

A ‘once in a lifetime’ opportunity for the much-needed capital funding arose with the announcement of the Belfast Region City Deal (BRCD). BYC was invited to partner with Ards and North Down Borough Council (ANDBC) to put forward a proposal (an Outline Business Case or OBC) for The Bangor Waterfront Redevelopment, which would provide funding for the redevelopment of BYC as one of five waterfront projects.

It was anticipated that such funding would give BYC the opportunity to redevelop our site and facilities to take us well into our second century as a leading watersports centre for the community and for Northern Ireland.

Following an EGM in November 2019 BYC members voted overwhelmingly (81.5%) in favour of being part of ANDBC’s proposal to BRCD for this funding.

In general terms, what were the details of the proposal put forward by ANDBC to the BRCD, and what was BYC’s anticipated involvement?

ANDBC proposed a transformative regeneration project that aims to revitalise the Bangor Waterfront, reconnect the town to its marine heritage, and re-establish Bangor as a premier tourism and leisure destination.

In doing so, the council hopes to achieve other positive outcomes for the city and borough such as increased visitor numbers, the creation of jobs, increased Gross Value Added (GVA) and improved health and wellbeing by providing support and opportunities to enable more people to spend more leisure time outdoors.

It was envisaged that by funding the redevelopment of Ballyholme Yacht Club buildings and grounds as a state-of-the-art destination for watersports, leisure and outdoor activity, BYC would be able to support ANDBC’s BRCD objectives and outcomes by:

• providing additional capacity for leisure and sporting activity
• increasing opportunities for participation in sport and leisure activities including training opportunities
• increasing visitor numbers to the borough through its hosting of significant watersports events
• improve the image and perception of Bangor Waterfront

Where are we now with the plan?

In January 2022 it was announced that the ANDBC proposal had been successful and in January 2023 the £40m contract for funding for The Bangor Waterfront Redevelopment was announced. The redevelopment of Ballyholme Yacht Club was allocated £10m in funding.

From 2022 through to May 2024, the Redevelopment Committee, with the assistance of the Club’s solicitors and with the support of the Executive Committee, worked with ANDBC on the contractual terms for the Lease Agreement, the Business Plan and the Development Agreement (the Heads of Terms documents).

Now that the contractual terms have been agreed, an EGM has been scheduled for Tuesday 28th May 2024 to seek members’ approval to continue with the project.

In parallel with these discussions, the Council team began the tendering process to appoint the Integrated Design Team who will work on the project with the Council’s Redevelopment team and BYC. Seven companies were invited to tender. The final appointment of the Integrated Design Team is subject to the BYC members agreeing to proceed with the project at the EGM.

What details does the contract between BYC and ANDBC cover?

The contract covers items such as the terms of the lease, the design and construction process, how the funding will be applied, provisions for dispute resolution, and obligations and responsibilities of both ANDBC and BYC.

The specific documents, referred to as the Heads of Terms, are:

• Development Agreement – Legal agreement for ANDBC to manage the Design and Construction on behalf of BYC, defining the project management structure, obligations of both parties, targets and outputs, etc.
• Deed of Variation of Lease – Legal agreement with proposed amendments with respect to the current Lease to accommodate the Development.
• BYC’s Business Plan – Defining the business model of the new BYC Watersport Centre, and how it will operate in a sustainable manner and achieve the outcomes promised in the OBC to deliver watersports, to provide employment and to support tourism through events.

Although key points of the documents are covered in this FAQ document, the documents are classed as Confidential at this stage, but copies are available in the BYC Office for members to read in situ. If you are interested, please contact the office to arrange a time.

What does the £10m funding cover?

The £10m funding allocation includes all project costs including procurement, legal, investigations, design development, planning and final business case process in addition to the physical assets to be provided by the redevelopment.

In support of BYC’s mission under the BRCD agreement to provide resources for an increased membership and additional training, £310k has been earmarked to purchase training boats for various classes along with support RIBS.

The budget also included a significant contingency fund and optimism bias which we hope will ensure that we should have sufficient funding despite the recent increase in building costs.

What are the other projects in the redevelopment, and are they all interlinked?

The BYC redevelopment is a standalone project within The Bangor Waterfront Redevelopment, and it is expected that it will be the first to ‘break ground’. The other four projects are: Pickie Fun Park, The Court House (Phase II development), Bangor Marina and the development of public realm which includes the redevelopment of other areas from Skippingstone Beach to the Banks Lane, including Kingsland.

3. What does the redevelopment mean for members?

What are the benefits of the redevelopment to members?

Our existing buildings, parks and facilities are old with many reaching the end of their life and maintenance and repairs are costly and absorb a great deal of the executive’s time and energy.

The proposed redevelopment provides a new, larger (1,650m2 compared to the current 620m2), sustainable state-of-the-art facility with additional training and meeting rooms, space for the provision of food and beverages, and storage, with a remodelled rescue shed and with upgraded dinghy parks, breakwater and slipways. The budget also includes £310k to purchase training boats and support RIBS.

Without the worry of ongoing maintenance and repairs, the Club’s executive will be freed to focus energy and funds on building the membership experience for current and future generations, helping to attract and retain members as well as world-class events.

Specific benefits include:

• an increased and more diverse range of activities, including the potential for larger social events.
• an enlarged training set-up, managed by a watersports manager, capable of providing training and coaching in sailing and other watersports which will benefit members and continue to generate income from non-members. This will be developed organically with staff matched to the revenue generated from activities.
• state-of-the-art facilities which put BYC in a much better position to attract top national and international watersports events which bring in revenue.
• with new, fit-for-purpose facilities, professional staff and a more diverse offering, BYC will be in a better position to attract and retain members.

Increased membership, training and events will allow the Club to grow its income which can be used to keep membership fees low, allow for the hiring of more staff to reduce reliance on volunteers, and to maintain our new facility and equipment.

What happens if members decide against the BRCD redevelopment project?

To help members understand the implications of turning down the funding, we have outlined key factors for consideration:

1. The Club building is long past its replacement date, therefore, strategically to grow and attract new members and provide premises fit for purpose for existing members (highlighted in recent survey), a rebuild of some description will be required in the next 10+ years.
2. In addition, the facilities as they stand are falling behind in terms of the requirements laid out to qualify to host significant watersports events. Losing out on hosting such events would mean lost revenue and a loss of standing in the sailing community.
3. A self-funded low budget rebuild would be an estimated £2.5M – £3M, based on a build cost of £200/sq ft together with the additional costs for demolishing the current buildings, temporary accommodation, ground works, consultancy and legal fees.
4. A 2023 Chartered Building Survey estimated the cost of minimal works, repairs and replacements to the buildings for the next ten years to be close to £350,000 (+VAT).  This estimate was based on a visual assessment and is thought to be conservative and these costs will have now increased in the last 12 months. The survey did not cover the anticipated costs to repair the slipways or rock armour. The document provided by the Chartered Building Surveyor is also available to view in the Office.
5. Based on our financial statements and lack of assets to pledge as security, conventional borrowing will not be an option for a self-funded rebuild or for refurbishments.
6. Large capital grants are becoming a rarity for sports clubs, especially for private-member clubs, such as BYC. Applying for these grants takes up a huge amount of Applying for these grants takes up a huge amount of Executive time.
7. We generally make a small surplus each year due to grants from the council. Withdrawing from the project at this stage would probably result in a significant loss of goodwill from the council, especially in terms of future grants and land use (for example, the tennis courts as a backup boat park for events).
8. Therefore, if members decide against the redevelopment membership fees will increase and there will be a need for  levies (such as the 2019 roof-repair levy), member debentures or other fund-raising devices to cover the costs of maintenance and rebuilding.

4. What obligations and undertakings will be required of BYC if we accept the funding?

Will BYC be accountable to ANDBC?

Key Performance Indicators (KPIs) have been written into the Development Agreement which BYC is required to make ‘best endeavours’ to achieve. As these KPIs align with the Club’s stated mission (see below), the Redevelopment and Executive Committees have found the terms acceptable.

The numbers will be updated in the Business Plan as the design progresses and will be finalised in the Full Business Case (FBC) before building work commences.

The Club’s Trustees will change to a more active role and become an ‘Oversight Committee’ to ensure that successive Executive Committees continue to achieve the agreed KPIs on a ‘best endeavours’ basis. The Executive will report progress of the year to date and any plans for the subsequent years to the Trustees. The Trustees will review and challenge the Executives progress, if necessary, and will report on the agreed KPIs to the Council every six months.

The KPIs are:

Strategic Objectives:

• Create 16.5 additional jobs by five years post completion.
• 64,000 additional visitor-days per year, from events, training and other water sport activities

BYC Objectives

• Host one international and one national sailing event each year
• Increase membership to 1,359 after 5 years
• Increase training opportunities to 6,000 person days per year
• Support youth training and access to leisure activities – 720 school pupils per year
• Support ANDBC’s Roadmap to sustainability and Net Zero ambition

The basis for some of these numbers is explained in Appendix 1. Fuller details are in the OBC and BYC Business Plan.

BYC Vision and Mission:

Our vision is to be the home of champions and the premier coastal water sports club in Northern Ireland.

Our mission is to be an active, family-orientated water sports club that supports participation, enjoyment, and excellence in water sports for all abilities, as a fulfilling, healthy and sustainable way to enjoy North Down’s spectacular coastal environment.

Our mission principles and values can be found on our website.

Will members have to contribute to the cost of the redevelopment?

The funds for the redevelopment of Ballyholme Yacht Club Watersports Centre will come from the BRCD grant and from Ards and North Down Borough Council. BYC will contribute £200,000 which is nominally for a members’ bar lounge in the development. Following an initial discussion with our brewery, Tennants, they have said they would be happy to consider a loan for the full £200,000 on favourable terms. Alternative funding options are also being reviewed.

Who will run the new facility?

The new clubhouse and facilities will continue to be managed and operated by Ballyholme Yacht Club.
The Business Plan proposes that as the Club grows new staff will be hired including a Club Manager, a Watersports Manager, Business Development Manager and a Chief Instructor as well as support staff. These staff will report to the appropriate committees as they do now. Hiring will remain the responsibility of current and future executive committees. As mentioned previously, the Club Trustees will continue their role of oversight of the Executive Committee.

Will the Club still be a members-only club?

Yes, the plan would be to grow membership and provide more access to the water for our members through sailing and other watersports. BYC will continue to offer its facilities to the wider watersports community for events and training.

In addition, to attract more members and lower barriers for entry to sailing and watersports, the Business Plan proposes a new category of membership, Select Membership, where use of all equipment (dinghies and other watersports equipment) is included in the fee. This concept will be developed further, if the project progresses.

Will the Club be open to the public?

The Club will continue to be open to the public for open events, training and for groups that hire our facilities. This is similar to the current situation although a bigger and more professionally run training section will increase access for both members and the public with more opportunities to enjoy the water.

A cafe/restaurant is an option being considered as this would provide a benefit to members as well as an important revenue stream. However, for this to be financially viable for an external caterer, we believe it would need to be open to the public year-round. This may be achievable if, for instance, the building was adjacent to the road or the Sunken Gardens allowing a partitioned facility with a public area as well as a separate member’s only area. The options will be reviewed with the design consultant and it is one of many aspects to be considered in terms of the location of the new buildings.

Will the Club be expected to host more events?

We already host several large events a year. In 2022 and 2023 we held four sailing events, a swimming event and a windsurfing event. In the proposal submitted to the BRCD panel, we estimated that by year five post construction BYC will, with support from the increased water sport staff, be able to support on average one international sailing event, one national and two to three provincial events every year. In addition, we expect to host other watersports events,such as swimming and windsurfing.

We welcome the opportunity to host events at BYC. It brings prestige to the Club, it generates extra funds, and major events are a big encouragement to our young (and some not so young!) members, when internationally famous athletes appear to compete.

Will the terms of the lease change?

The Club’s current lease is for 99 years, due for renewal in 2104, and is in effect a ground lease as it does not include a charge for the current BYC-funded buildings on site.

As the BRCD funding for the redevelopment is being granted to ANDBC and not BYC, the new buildings will be owned by the Council. For this reason, the lease will be adjusted in line with LPS’s new rent evaluation but with a significant rental discount adjustment applied until ±2053, in recognition of the economic benefit we bring to the Borough through the KPIs. For the reminder of the Lease period post ±2053, it will be up to the Executive Committee nearer to that time to put forward a proposal to the Council for a rent reduction, if needed, with a financial justification for doing so, and which offered suitable benefits to the Council. Legally, the Council cannot offer rent reductions without an economic case being presented to them, which would then also need Department for Communities ratification.

5. What does the redesign and rebuild process mean for members?

What is the timeframe for the redesign and rebuild?

Subject to an agreement to proceed from BYC members, it is hoped that the design phase will commence in earnest in mid 2024 with the appointment of the Integrated Design Team, and with anticipated construction from 2026 with completion planned for 2028.

What is the timeline for consideration of the proposal and EGM vote by members?

Timeline:
June 2023 – 1st members’ information meeting
November 2023 – 2nd members’ information meeting
May 2024 – 3rd members’ information evening
28th May 2024 – EGM – Vote by Members on the Proposal to proceed with the Belfast Region City Deal redevelopment in conjunction with ANDBC

What are the stages of the design and build process?

ANDBC are currently working through the bidding process to select an Integrated Design Team to work on the BYC Redevelopment Project. Subject to an agreement to proceed from BYC members at the EGM on 28th May, the council will appoint the chosen Integrated Design Team and they will start work. While we do not yet know who the company will be, they will follow the RIBA (Royal Institute of British Architects) ‘plan of work’ process for the design and build, picking up at Stage 1. Please download the RIBA schematic for more detail.

• Stage 0 – Strategic Definition: Evaluate whether the building project is the right strategic decision for the client to achieve a particular desired outcome. This evaluation is captured in a Business Case
• Stage 1 – Preparation and Briefing: Develop the detail of the brief, making sure that everything needed for the design process is in place before Stage 2. This includes ensuring that the brief can be accommodated on the site.
• Stage 2 – Concept Design: The Integrated Design Team works closely with the client to get the design concept right and make sure that the look and feel of the building is proceeding in line with the client’s vision, brief and budget. This stage finishes with an approved Architectural Concept.
• Stage 3 – Spatial Coordination: Test and validate the architectural concept, to make
  sure that the architectural and engineering information prepared at Stage 2 is ‘Spatially
  Coordinated’. At this stage the planning application will be prepared and submitted.
• Stage 4 – Technical Design Project Strategies: Develop the architectural and engineering technical design and all other design information required to complete the project. The build contractor is appointed.
• Stage 5 – Manufacturing and Construction (expected to start in 2026): Site logistics are finalised, building systems are manufactured and the buildings are constructed. The Integrated Design Team oversees the construction process.
• Stage 6 – Handover (expected in 2028): After the building has been handed over, there is a phase of ‘aftercare’ where any residual defects are rectified and the Final Certificate is usually issued a year after practical completion.
• Stage 7 – Use: A Post Occupancy Evaluation of building performance in use is undertaken.

At each stage there is a formal client review where the standard documents associated with that stage are signed off. Such documents include project programmes, cost plans and stage reports. The documents progress in depth of detail as the project progresses.

The Redevelopment Committee will inform the membership when key steps/decisions are being reviewed and solicit feedback.

Will members be able to have an input into the design of the new facility?

Yes. While an outline specification was required for the original proposal, the Integrated Design Team, once appointed, will work with the Executive, the Redevelopment Committee and members throughout the design process

Will the Club close for a period while the work is being done?

Depending on the location of the new facility there will be a period of disruption but the Club will continue to operate through the redevelopment. The Design Consultancy Team will develop a construction plan which may include phased construction and/or temporary facilities to maintain club operations and activities on the water. The potential use of adjoining council space will be explored for contractors’ facilities, boat storage, etc.

6. The EGM

Who is entitled to vote at the EGM?

• Retired members
• Life members
• Senior members
• Intermediate members (aged between 23 and 26)
• Junior members (aged between 18 and 23)
• Honorary members
• Outport members

The following members will not be entitled to vote at the EGM: Cadets, House (social) members, RNLI members and temporary associates.

If members are not sure of their membership status, they should contact the Office.

What is the process for the EGM?

• As required by the Club rules (Club Rules 17 & 19), a notice of the EGM must be sent out two weeks ahead of the event.
• A third and final Information Evening has been arranged for members on Wednesday 22nd May.
• Key elements of the contracts and agreements are covered in the FAQ document, but for interested members, the full contract documents/Heads of Terms documents are available to read in situ in the office.
• On the day, the presiding officer will introduce the vote and make a presentation on the vote options. Members will be invited to ask any remaining questions.
• After the allocated period, members will move to the Cadet Room to place their vote. You will need to show your membership card or photo identification such as passport or driving license.
• Members will be invited to wait for the result in either the Members’ Lounge or the Jubilee Room.
• The votes will be counted on the evening of the vote and the Presiding Officer will announce the vote to members present.
  A special announcement will be emailed to all members on the following day.

What will members be voting on, specifically?

Voting members must vote either ‘Yes’ or ‘No’ on the following question:

“Do you authorise the Executive Committee and Trustees of Ballyholme Yacht Club (BYC) to enter into agreement with Ards and North Down Borough Council (ANDBC) for the redevelopment of BYC as set out in the Heads of Terms documents, and to enter into such contractual agreements comprised in the Heads of Terms document as are necessary to bring about the redevelopment?”

Will there be an arrangement for absentee proxy votes?

Voting members may vote by proxy if they are unable to attend the EGM in person due to work or other unavoidable commitments that prevent attendance. If you do wish to vote by proxy, you must obtain your individual ballot paper from the BYC Office, complete it, and return it to the Office at least 24 hours, no later than 1900 on 27 May.

Ballot papers may be returned to the Office by post, in person or by scanning the completed ballot paper in as an electronic document and returning by email to admin@ballyholme.com.

What majority is required?

The BYC Rules are silent on what type of majority is required to carry a motion, and the Executive Committee have therefore decided to continue the current practice in General Meetings, which is that a motion is carried if 50% of the eligible votes plus one vote are in favour.

Do you have a question that is not answered in this FAQ document? If so, please email buildingBYC@ballyholme.com

7. Appendix 1 – Explanation of  Key Performance Indicator (KPI) numbers

In the Outline Business Case (OBC), Option 1 was a ‘do nothing’ scenario leading to the Club going into slow decline, and Option 3 is the current BYC Redevelopment proposal. The KPIs are based on the difference between Option 1 and Option 3. For the KPIs, the numbers are based on the OBC figures for consistency. These  KPIs will be reviewed and tested when the Full Business Case (FBC) is prepared.

Jobs

This table reflects our estimated staffing levels after 5 years of operation of the new facility and the increase in numbers will be by organic growth.Some of the jobs are part-time, so the totals reflect the Full Time Equivalent (FTE) job numbers.

The numbers will be updated In the Business Plan as the design progresses, especially with regard to the required number of catering staff, depending on the final arrangement of the cafe/restaurant provision.

FTE = Full Time Equivalent jobs.

Visitors

Visitors are one of the main drivers for the Council’s Waterfront Redevelopment Project. For estimating economic benefit these are subdivided into Local, Domestic and Out of State. Again, the numbers below are from the OBC for consistency, and will be reviewed and updated in the Business Plan, as we proceed to the Full Business Case (FBC), upon design completion.

The numbers are visitor-days, and include participants, family support members, coaches, event organisers and volunteers, and spectators.