#StDavidsHall, Indoor Arena and Parks - The Big Questions Cardiff Council Needs to Answer
Cardiff Civic Society to members of the Economy and Culture Scrutiny Committee ahead of their meeting on 28 February 2023
Comments on Cardiff Council Budget 2023/24 and Corporate Plan 2023-26
Cardiff Civic Society (CCS) welcomes the decision of Cardiff Council not to close the Cardiff Story this year. We trust that the coming months will see Council supporting efforts by staff and volunteers to realise the potential of this museum to tell the story of our city and its people. A development plan is needed that lasts longer than a year. We also welcome the decision to withdraw damaging proposals for the Library Service.
But we still have concerns about the proposed Budget and Corporate Plan. These include St David’s Hall, the Indoor Arena, and parks.
St David’s Hall
CCS does not consider Council’s case for privatising St. David’s Hall to be convincing.
Council initially claimed it faced a £53 million budget gap, but this turned out to be £24 million. The Service Change Proposals show that leasing the Hall will save only £0.5 million in the next financial year.
Repairs are required to the building, but reliable estimates have not been published. Council has power to borrow for major capital projects, as it intends to do for the Indoor Arena. It is not certain that AMG would undertake all required repairs and improvements. Earmarked Reserves for repairs liabilities on the New Theatre have been increased to £475k despite it being leased since 2019.
The Environmental Impact Assessment is shown as a Red risk in the Service Change Proposals. Live Nation and AMG have poor safety records. In December, two people died at a concert at O2 Brixton with ineffective security and inadequate medical cover. Lambeth Council have suspended AMG’s operating licence and the police are investigating. Does Council wish to take the risk of such an incident in Cardiff?
We have other concerns too.
How will The National Concert Hall of Wales retain that status in the hands of AMG?
Will the name ‘Neuadd Dewi Sant / St. David’s Hall’ be protected, or could the Hall be renamed after a commercial sponsor?
Will the Hall still accept the Hynt card ensuring access for visitors with an impairment or other requirement to attend theatres and arts centres in Wales?
The vital cultural role of St. David’s Hall for our city and nation must not be jeopardised.
Indoor Arena
CCS is not convinced of the business case for the Indoor Arena. The impressive list of acts coming to Cardiff this year raises doubts over what the Arena would add to the city’s offering. Local grassroots music venues are struggling and deserve more support.
Comparing the Capital Strategy 2023/24 Capital Investment Programme with those published last year increases our concern that Council cannot afford this in a period of austerity.
There are two lines (49, 91) for Arena enabling works and the multi-storey carpark. These total £69.05 million for these compared to £49.58 million in last year’s forecasts. This is an increase of 39%, reflecting pronounced inflation in construction costs. As these works are now not scheduled to complete until 2025/26, there may be further increases. This is not expenditure that Council anticipates recovering from lease income.
CouncildoeshopetocoverthedirectcostsofbuildingtheArena(line92). Theseareshown as £138.1 million, the same as last year, with completion now two years later in 2026/27. This is not credible given the rise in construction costs. Due diligence demands that Council does not publish financial numbers which it must know to be inaccurate.
Interest rates have also risen, increasing the cost of borrowing to fund the Arena. It is evident from paragraph 94 of the Capital Strategy that Council has not yet found affordable financing.
Rising and uncertain costs create doubt over whether Council would recover this investment through the lease. There is no guarantee that Council’s partner will wish to pay the higher price that rising costs demand. How much of the financial risk will Council carry?
The Indoor Arena is a major commitment for Cardiff Council, and the Scrutiny Committee must ask hard questions to ensure it does not become a burden for many years to come.
Parks
Cardiff is justifiably proud of its Green Flag parks, but large areas of the centre and east of the city lack green space. A study last year ranked Cardiff 61st out of 68 UK cities for green amenity in its urban core. Central Square is a concrete and glass desert.
In January last year, Council published its Cardiff City Centre Recovery Action Plan, which addressed this problem, at least for the Central and Bay Business Areas. It promised a five- year commitment to deliver a city centre that is safe, clean, green, prosperous, attractive, and well maintained. This included:
Better integrated green spaces through traffic calming and pedestrian connectivity.
Keeping the Castle grounds open as a public green space.
A green asset plan for the city centre through interventions like street greening, tree planting, green roofs/walls, and café planters.
New public green spaces, including parks at Callaghan Square, Lloyd George Avenue and Taff River Embankment.
More rain gardens and sustainable urban drainage systems.
New public waterfront corridors and water parks along Lloyd George Avenue and
Churchill Way.
Little or none of this has made its way into the Corporate Plan 2023-2, but we need green infrastructure to create the great Capital City Centre for visitors, businesses and residents that the Recovery Plan promised. The city centre will only succeed if it is attractive.
We hope that Committee members will consider these points. Thank you.