A major music venue operator could make tens of millions of pounds through the running of Cardiff's St David's Hall if a proposed deal goes through. A Voluntary Ex Ante (VEAT) notice of intent has been published showing the details of a draft contract which has been negotiated between Cardiff council and Academy Music Group (AMG) for the lease and operation of the music venue.
It shows that the value of the procurement is estimated to be between £45m and £67m over a 45-year lease period. The notice, which has been published on the Sell2Wales website, also shows that the lease would require AMG to set aside 80 days a year for the venue's classical music programme.
Cardiff Council's cabinet member for culture, parks and events, Cllr Jennifer Burke, said: "We are determined to secure a sustainable future for St David's Hall and the publication of this VEAT notice confirms the commitments made by AMG to repair and maintain the hall and provide a minimum of 80 days every year for the classical programme and provides a further opportunity for their offer to be challenged." The publication of the VEAT notice allows a 28-day opportunity for the offer made by AMG to be challenged.
Read more: 'Major theatre operator looked 'seriously' at St David's Hall opportunity'
It comes after a six-week soft marketing process which invited offers from theatre, arts, and venue services organisations interested in becoming a custodian of St David's Hall. Cardiff Council revealed last week that a major theatre operator did look seriously at the opportunity to operate the venue.
However no formal bids were made during the soft marketing process. Other details in the draft contract revealed in the VEAT include:
- An obligation to take on St David's Hall's repairs bill, which is about £38m, and maintain the building
- The Cardiff Singer of the World event (which normally takes 10 days) will also continue to be hosted every other year
- That the council may receive a share of venue profits over the lifetime of the lease
- The contracts of all current venue staff are expected to transfer to AMG via Transfer of Undertakings (Protection of Employment) regulations (TUPE)
You can view the VEAT notice here.
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