Agenda item

Report attached.

The Portfolio Holder for Housing and Regeneration (Councillor Clare Cleary) submitted a report seeking approval to the lease of the Hippings Vale Community Centre (edged red on the plan attached to the report) and for the provision of a related grant of approximately £47,000 to Hyndburn Arts Limited in order to enable its continued use as a community centre.  A Customer First Analysis was appended to the report.  Approval of the report was not deemed a key decision.

Reasons for Decision

(1)        Hippings Vale Community Centre was currently managed through the terms of a management agreement between the Council and the Hippings Vale Community Centre Committee (“the Association”) with repairs and running costs being recharged to Hyndburn Leisure through a separate agreement.    The total net income received in respect of the Centre was divided between the Council and the Association. 

(2)        The Council had been approached by Hyndburn Arts Limited after members of the Association had voiced their intention to dissolve the current group.  Hyndburn Arts Limited had submitted a business case based on current usage of the Centre and their proposals to enable the continuation and hopefully, expansion and diversification of a range of activities that were provided from the premises.  Neither the Council nor Hyndburn Leisure, had the capacity to manage the building and it was likely the building would close and the activities would cease.  On that basis, it was considered that the continuation of the resource, facilitated by Hyndburn Arts Limited, would further the social well-being of the area and its residents.

(3)        The lease would generate savings to Hyndburn Leisure of £6,474 in 2016/17 and similar amounts thereafter.  The Council in turn paid Hyndburn Leisure an annual grant, part of which was used to manage the building.  That grant had been reduced in the financial year 2016/17 and had taken into account the savings to be made from the transfer.

Alternative Options Considered and Reasons for Rejection

(1)        If the Community Centre use was to cease, the building could potentially be used for office purposes and the estimated alternative rental value for that use was £13,580 per annum.  That use was not recommended as it would result in a loss of local services and activities that benefitted the health and well-being of the local community.  In addition, Hyndburn Arts Limited who currently leased Oswaldtwistle Civic Theatre was in close proximity and was eager to take over management of the Centre to ensure those services continued and expanded, further benefitting the local community.

(2)        The Council had received an enquiry from another party who had shown tentative interest in leasing the building for a variety of uses including a nursery, after school club, soft play area and health and fitness classes, but that initial interest had not been progressed in any way.

Resolved                           (1)   That the acceptance of a surrender of the existing management arrangements for Hippings Vale Community Centre be approved;

                                (2)   That the grant of a five year lease of the Hippings Vale Community Centre on a rent free basis, which was below market value, to Hyndburn Arts Limited from 6^th June 2016 be approved;

                                (3)   That a one-off grant of approximately £47,000 to Hyndburn Arts Limited for the purposes of improvements, repairs and maintenance costs associated with the Community Centre building be approved;  and,

                                (4)   That authority be delegated to the Head of Regeneration and Housing, following consultation with the Director of Legal and Democratic Services, to agree the detailed terms for the grant of the lease and associated grant funding.