'Secret' briefing shows why Oasis deal so important to council

Members of the public, campaigners Save Oasis Swindon and opposition Conservative councillors have been calling for a pause to allow proper scrutiny of a deal between Swindon Borough Council and Seven Capital which would see the Grade II-listed leisure centre brought back to use.

Now, a leaked document shows that there is a deadline coming up in just four months’ time which SBC is not optimistic of meeting.

The undated document, which refers to the current deal between SBC and Seven Capital first revealed to the public earlier this month, says that the listing of the building has increased the refurbishment costs by millions of pounds.

An extract from the leaked document (Image: SBC)

It adds that Seven Capital, which has around 90 years remaining of a 99-year lease on the land, is “fully responsible” for the Oasis, but there is a £15 million shortfall in refurbishment cost.

The paper, seen by the Local Democracy Reporting Service, says: “If Seven Capital winds up the company that holds the Oasis lease, the site would return to the council.

“Seven Capital have to have a scheme approved for the leisure destination, with a contractor appointed and funding confirmed, by March 2024.

“They will not achieve this and either party can then if they wish take action to terminate the agreement.

“At the moment the council is working with Seven Capital and not seeking to terminate the development agreement.”

It also adds that if the Oasis was abandoned by Seven Capital, it would leave SBC with a “£30-40 million bill”.

On the other hand, it says Seven Capital needs to be able to build houses on the site and at North Star – which was meant to be turned into a snow centre until plans were finally abandoned earlier this month - to cover the costs of refurbishing the leisure centre.

The paper says the estimated costs of refurbishing the listed building are £20 million, but it will only be worth £5 million once that’s done.

But residents fearing that either side may walk away, leaving the Oasis to rot or with council taxpayers with a hefty bill should be reassured, as the recommended approach makes clear that both Swindon Borough Council and Seven Capital need a deal to be successful.

An extract from the leaked document (Image: SBC)

It reads: “SBC wants a refurbished Oasis open as soon as possible with a tenant, and Seven Capital also want the same outcome and have two leisure operators interested in taking a lease.”

If the deal is successful once the building is refurbished and ready to open, with the aim being at some point in 2026, the council can sell the land to Seven Capital for at least £6m.

It has emerged that there is a ‘first refusal’ buy-back clause in the deal and councillors were told earlier this week that there will also be a stay-open clause on the leisure centre that will run for the 25 years of the lease with the operator.

It is understood not to bind the council to keep the centre open if it returns to public ownership.

Swindon Borough Council has been contacted about the paper. It has not offered a comment and has previously not commented on papers which are classified as private and confidential.

The Conservative group of councillors also declined to comment.