Oakham Town Council will spend £42,000 to refurbish Private Fitness Centre

OAKHAM FITNESS CENTRE

Oakham Town Council will be undertaking a major refurbishment of the premises at 2, Princess Avenue, Oakham. Mitchell and Hudson Ltd of Stamford have been awarded the contract and will be starting work on July 9th 2012. It is estimated that the project will take 6-8 weeks to complete.

Under Financial Regulation 11(c) members of the public are advised that the value of this contract is in excess of £10000.

The Council has also decided to grant a new 5 year lease to Body Power Fitness Ltd who will move in in early September 2012 once work has been completed. They will be continuing to run the premises as a mixed sex Fitness Centre.

The above is posted on the Town Councils Website

What this fails to tell the public is the Council has entered into a contract for £42,000 

To refurbish the premises for the new commercial tenant.

The council will receive £9,000 rent it will take 6 years or more for the council to recoup all its cost related to the re-letting of the property.

I have two concerns, the company who has been awarded this contract was also responsible for the refurbishment of the Bandstand which cost £30,000 many local builders said they did not tender because they thought the contract would only be worth £10,000 at the most.

My other concern is the reaction of Town Councillors this evening.

Cllr Adam Lowe said "We were all surprised when we found out how much the contract would cost. What is going on at Oakham Town Council if the Chairman of Planning and the Deputy Mayor and others did not know the value of the contract when they agreed it in private session.

Another councillor told me, the clerk told them the contract was likely to be around £30,000

I question the legality of this contract, how can it be legal for a council to approve a contract based on an estimate that turns out to be far less than the actual cost.