The company that runs South Holland’s leisure centres is to be given monthly payments to stay afloat by the district council after appealing to the authority for financial support.
Parkwood Ltd took on the running of both the Castle Sports Complex in Spalding and the Peel Leisure Centre in Long Sutton last year on behalf of South Holland District Council, but the centres have been shut since the government urged all such centres to close on March 20.
To help the company amid the COVID-19 outbreak while it receives no income, the district council has agreed to provide monthly payments and to waive contractual payments due.
For April, the council says this will cost it £34,606.
The monthly payments and waived contractual payments are to be reviewed every month
Capital loan repayments made to the council have been deferred until the leisure centres can be re-opened, the notice of the decision posted on South Holland District Council’s website states.
The decision says it had to be made urgently after the request from Parkwood to “safeguard the contractor’s position, and future delivery of the contract” due to the lack of income currently coming in.
A spokesman for South Holland District Council, said: “To support the Company and ensure that equipment, machinery and facilities at the two centres can be maintained and ready to go once the restrictions are lifted, the Council has offered financial relief to help them through this difficult period.
“As a result, all payments owed to the council by Parkwood have been paused for the duration of the enforced closure, with additional financial support given to the provider to ensure that all ongoing running costs and loss of income are covered, to allow the facilities to get up and running quickly and continue to grow when they reopen.”
Councillor Gary Taylor, South Holland District Council deputy leader and portfolio holder for communities and facilities, welcomed the decision, saying: “During this difficult period it is of great importance that we support Parkwood to ensure that a leisure service enjoyed by thousands across the District is there waiting for them when lockdown is lifted.
“The growth and progress we have seen in our leisure centres since they took over the contract has been fantastic to see, and we want to guarantee that this upward trajectory is able to continue in both Spalding and Long Sutton for many years to come.
“I am delighted that as a council we are able to show our commitment to protecting this service and make sure that we all have somewhere to let off some steam when normal service resumes.”
