A “much needed cash injection” for an historic Knowsley park which the council said it couldn’t afford to look after, included a £500k loan from the local authority to a company appointed to run it.
Bowring Park and Golf Course in Huyton was one of the first municipal parks in the country when it was opened in 1906 and later become home to the first municipal golf club in the country.
The park, which is owned by Knowsley Council, was forced to shut suddenly in 2018 when operator Mack Golfing fell into “unavoidable financial difficulties” and stopped trading.
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Knowsley Council swiftly stepped in to reopen the park just a week after its closure, vowing its commitment to the “historically important” and “much valued” attraction.
However, with the council subsidising the park and golf course to the tune of over £100,000 per year, by December 2019 the council said it could no longer afford to continue running it.
A report by the assistant director of communities proposed the appointment of a managing agent with a concessions contract to run the park and bring in additional attractions.
The report added that the appointment of a management agent would bring in “capital investment” via private money.
By early 2020, around £3.7 million had already been invested in renovating the once-neglected park, with money coming from Heritage and Big Lottery Funding, bringing about key improvements to the facilities.
Organisations were invited to tender for the contract, with three bids submitted, although two dropped out during the process.
The remaining bidder, One Day Limited, was announced as the managing agent for Bowring Park in October 2021.
Cabinet member Shelley Powell said the “experienced” company would bring a “much needed injection of cash” to the park.
However, the company – which had been formed in January 2019 and in the two sets of accounts filed to date has turned over around £50k a year – also received its own cash injection from Knowsley Council.
Documents submitted in October 2021 referenced a loan from Knowsley Council to One Day Limited of around £300k.
In a report submitted to the cabinet last month, this loan had appeared to have increased to over £470k.
A treasury report stated that it was a “higher risk” loan for the council because it involved a private company.
After Knowsley Council was approached about the loan by the LDRS, it said that the total loan amount was actually around £535k.
The council said the loan was connected to the pandemic and the company being “keen to be certain that the financial elements of their offer were deliverable for the benefit of Knowsley residents” over the 125 year terms of the lease given to them.
The council also stated that One Day Limited would be providing £3.5m of further investment into the park.
A spokesperson for Knowsley Council said: “Bowring Park is a well-loved and important local attraction of historical significance for the Borough.
“It has recently benefited from £3.7m of investment and restoration works and the Council is committed to the park’s future sustainability and success.
“While One Day is a relatively new organisation, the people involved in the business have proven experience in commercial retail and leisure management, hospitality services, golf course development and maintenance, community cohesion, and cultural/heritage celebration.
“One Day share Knowsley Council’s vision for the future of Bowring Park and the company has the commercial acumen, investment potential, and social and environmental credentials to be able to run the park as a successful commercial venture and sustainable community asset.
“Bowring Park has a bright future ahead and One Day’s plan lies at the heart of that future.
“Following a decade of Government cuts to local authority budgets, Knowsley Council alone does not have the financial ability to invest in Bowring Park to the extent which the facility needs and local people deserve – that is why we are partnering with One Day to bring forward plans for the park.
“The alternative would be to witness the deterioration of Bowring Park, and nobody wants to see that.
“In view of the ongoing economic impact of the COVID-19 pandemic, One Day were keen to be certain that the financial elements of their offer were deliverable for the benefit of Knowsley residents over the 125-year period over which the concession is intended to run.
“To provide them with increased certainty, the Council has agreed a commercial deal, including a loan of £535,000 which will enable One Day to deliver the outstanding heritage restoration works and will be paid back to the Council.
“One Day will also invest a further £3,461,000 into Bowring Park to provide a new food and beverage offer, a new children’s play area, a social enterprise incubator space, educational/training facilities for Myerscough College, a community event programme, and significant improvements to the golf offer (including a new club house).
“While any loan comes with an element of risk, the Council is satisfied that this is a reasonable and balanced investment in a well-used and much-loved local facility.
“The loan will be repaid, and will be followed by substantial further private investment – just as envisaged when this project was first developed.”
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