Agenda item

Report attached.

Portfolio Holder for Regeneration (Councillor Gareth Molineux)

The Portfolio Holder for Housing and Regeneration submitted a report seeking approval for the disposal by long lease of Churchfield House, Great Harwood to Churchfield House Ltd.  The following documents were appended to the report:-

Appendix 1  -  Business Plan 2015 – 2018 prepared by Churchfield House Ltd

Appendix 2  -  Draft Lease

Appendix 3  -  Example Copy of the Council’s Consultation Questionnaire

Appendix 4  -  Example Copy of Churchfield House Ltd’s Consultation Questionnaire

Appendix 5  -  Valuation Report

Approval of the report was not deemed a key decision.

Reasons for Decision

The Council was a trustee of “the charity” which comprised Churchfield House and associated ground in Great Harwood and was subject to a legal duty to act in the best interest of the charity at all times.  To bring Churchfield House back into more productive use for the benefit of the community in Great Harwood, the Great Harwood Civic Society had formed an independent not-for-profit company called Churchfield House Ltd to sustainably manage the building.  In July 2014, Cabinet had authorised the grant of a short-term lease of Churchfield House to Churchfield House  Ltd to permit management of the building for a limited period of time and the preparation of a sustainable business plan for the building’s long term management and usage.

The Charities Act 2011 does not permit any part of the building to be leased for a period of greater than two years without a scheme or an order being obtained from the Charity Commission.  The current lease expired shortly and it was proposed that a further, longer lease be granted.  Before granting the proposed lease to Churchfield House Ltd, the Council, as charity trustee, would need to be satisfied that the proposed lease was in the best interest of the charity.

Alternative Options Considered and Reasons for Rejection

Churchfield House had been successfully managed by Churchfield House Ltd for a period of 18 months and the community involvement and engagement had been considerably greater than under the management of the Council.  The use and financial management of the building and the provision of officer support to Churchfield House Ltd, as needed, would be continued by the Council.

Management of the building could be resumed by the Council but that would very probably lead to a reduction in community usage of Churchfield House and would not further use of the property as a free public library given the state of the current book collection.

The building was not available for more commercial use given the terms of the charitable bequest and no other organisation or body had expressed an interest in operating the same as a community facility.

Resolved                           (1)   That the progress that Churchfield House Ltd had made running Churchfield House since Cabinet authorised the grant of a short-term lease on 30^th July 2014, be noted and welcomed;

                                (2)   That the Business Plan prepared by Churchfield House Ltd for the future management of Churchfield House (Appendix 1 to the report) be endorsed;

                                (3)   That the Executive Director (Legal and Democratic Services) be authorised to apply to the Charity Commission for a scheme or order to permit the grant of a further lease of Churchfield House to Churchfield House Ltd in the terms of the draft lease appended to the report, subject to such amendments as the Charity Commission might require;  and,

                                (4)   That authority be delegated to the Executive Director (Legal and Democratic Services), (subject to the grant of a scheme or order permitting the same), to grant a further lease of Churchfield House to Churchfield House Ltd in the terms of the draft lease appended to the report (Appendix 2), subject to such amendments as the Charity Commission might require.