Agenda item

DECLARATIONS OF INTERESTS

Councillors Crockett and Milne declared interests in the following item of business as members of the Board of Aberdeen Exhibition and Conference Centre (AECC). Both Councillors left the meeting prior to the Committee’s deliberations.

With reference to article 25 of the minute of meeting of Enterprise, Planning and Infrastructure Committee of 9 November, 2010 and articles 29 and 30 of the minute of meeting of the Council of 15 December, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which provided an update on activities relating to the Aberdeen Exhibition and Conference Centre (AECC).

The report provided a detailed background regarding previous consideration by the Council concerning the future development and funding of the AECC.   The report advised that the last decision of Council on 2 December had agreed that officers were to negotiate the following with AECC:-

(a)       separating the operations of the AECC from the management of the land and property assets within and around the AECC site, in order to focus the AECC Limited’s attention on the need to manage, run and maintain an efficient and sustainable exhibition and conference venue;

(b)       transferring all property and land assets currently owned or leased by AECC Limited to the City Council, so the Council assumed full responsibility for the future development of these assets;  and

(c)        investigating the potential for developing the land and property assets, through the creation of a joint venture development company charged with developing the assets according to an agreed asset development plan, possibly using funding raised through the creation of a Local Asset Backed Vehicle (LABV).

With regard to progressing the above, it was advised that during the course of January, 2011, officers would launch a procurement process to locate suitable development/investment partners to initiate a hotel development as part of a larger development plan for Council owned land in and around the AECC.   In parallel with this activity, the Council’s Asset Management and Legal teams would commence negotiations with AECC Limited to acquire control of all land and buildings currently owned by, or leased to, AECC.   

The report advised that the Council at its meeting on 15 December had also considered the contents of an internal audit report that had reviewed the governance and operational procedures of the AECC.   The independent audit had challenged the adequacy of the governance arrangements and operating procedures in place within the AECC, and the effectiveness of the working agreement with the Council.   The report referred to the findings of the audit.   With regards the implementation of the findings, it was advised that senior Council officers were currently working with AECC’s executives and Board Members to ensure that whatever procedures were required, to address the points raised, were put in place as quickly as possible.

Finally, it was advised that following completion of the internal audit process, and subsequent confirmation that AECC would have no direct role in the future development of land in and around the AECC, the Council’s HR Department had started working with the AECC Board to define the roles and responsibilities for the three new Directors and agree upon a suitable recruitment process.   It was expected that these posts would be advertised before the end of January, 2011 and that appointments made in February, 2011.

The Head of Asset Management and Operation advised members of the progress on the Council’s agreed investment to improve the infrastructure for the Offshore Europe Exhibition and Conference. Planning applications were progressing and a phased implementation had been identified for the initial phase including earthworks, leveling the hard-standing areas, improving car parking, improving drainage, addressing fire safety and safe service access to potential external temporary buildings.

The Committee resolved:-

to note the contents of the report.