A preferred bidder for developing the Plymouth Pavilions site is due to be selected by the Council's Cabinet next week.

The Cabinet will be asked to approve Akkeron Leisure Limited as the preferred bidder to provide a remodelled arena on the Plymouth Pavilions site through its wholly owned subsidiary, Five Directions Limited (FDL).

If approved, FDL will refurbish the existing arena at the Pavilions site, re-cladding the building, creating a new entrance foyer, additional backstage and support spaces, upgrade the lighting and acoustics and increase its capacity. The transaction will enable FDL to regenerate the existing Pavilions site, providing quality residential and retail development and creating a crucial link between Millbay and the city centre and triggering wider regeneration in the West End of the City Centre.

As well as the arena development a new international scale ice rink will be delivered on the car park adjacent to the Plymouth Argyle Football Club stadium. This will provide the city with state-of-the-art sporting and leisure facilities to complement the £46.5 million Plymouth Life Centre and the proposed new grandstand at Plymouth Argyle's Home Park.

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The total capital investment into the Pavilions site is estimated at around £83 million.

The future operation of the Pavilions Arena and, possibly, other new leisure facilities in the city will be managed in partnership with the Theatre Royal (Plymouth) Limited (TRP) which currently manages the Pavilions on behalf of the City Council.

Upon completion of the transfer of the existing Ice Rink and Arena facilities to FDL (anticipated for 1st October 2012), all existing employees will either continue to be employed by TRP or transfer to FDL under the Transfer of Undertakings (Protection of Employment) Regulations.

Commenting on the publication of the recommendation to Cabinet, James Brent, Chairman of Akkeron Group, said: "We are delighted by today's announcement and we look forward to working with our new Theatre Royal and Pavilions colleagues from October. We will publish further details of our proposals in due course. The new facilities will generate significant jobs at the Pavilions site (an estimated 800 construction employees during the build phase and 550 employees once built). Additionally, they (together with the Plymouth Life Centre) will provide sporting and leisure facilities which are the envy of other cities in Europe and put Plymouth on the map as a destination for sport and leisure in the South-west. The investment in the Pavilions site will play a major part in linking Millbay to the City Centre and will assist in regenerating the surrounding area."

If approved by Cabinet, the award of this contract will be the culmination of a procurement process that has been running for the last year. Over the last year the Council has been through a tender exercise seeking a private sector partner to take over the Plymouth Pavilions site and continue to deliver arena and ice skating services.

Currently the operation of the Pavilions costs the Council over £1.5m a year and this cannot be sustained in the current financial climate.

All development will have to be in accordance with Planning Policy including the Area Action Plan for the areas involved.

During the development of these new or remodelled facilities the operator will continue to run the arena and ice rink at the Pavilions site.

(CD)