Meeting documents
Board of Trustees of the Recreation Ground, Bath
Thursday, 17th July, 2008
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Bath & North East Somerset Council |
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MEETING: |
The Board of Trustees of the Recreation Ground, Bath |
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MEETING DATE: |
17 July 2008 |
AGENDA ITEM NUMBER |
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TITLE: |
The Recreation Ground, Bath - Progress Update - Strategic Review Outcomes. |
EXECUTIVE FORWARD PLAN REFERENCE: |
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WARD: |
All |
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AN OPEN PUBLIC ITEM |
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The appendices constitute exempt information, according to the categories set out in the Local Government Act 1972 (amended Schedule 12A).
The public interest test has been applied, and it is concluded that the public interest in maintaining the exemption outweighs the public interest in disclosure at this time. It is therefore recommended that should the committee wish to discuss the appendices to the report, the public should be excluded from the meeting. |
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1 THE ISSUE
1.1 This report sets out the latest position regarding the future of the Recreation Ground following the submission of the Strategic Review Report to the Charity Commission in June 2007. In particular it deals with the Commission's requirement that the Charity must provide proposals for the future occupation and use of the Recreation ground by 1 August 2008.
2 RECOMMENDATION
2.1 The Trust Board to note the contents of this report and approve the submission of the proposals for the future occupation and use of the Recreation ground to the Commission by 1 August 2008.
3 FINANCIAL IMPLICATIONS
3.1 Higher levels of rental income will be received from Bath Rugby.
4 THE REPORT
4.1 In a letter to the Chairman of the Board dated 25 June 2008 the Charity Commission has confirmed that it is willing to authorise the Trustees to enter into the proposed temporary lease with the Rugby Club for 2008/09 on the terms of the draft tenancy agreement submitted to the Commission by the Board as agreed at the Board meeting held on 9 April 2008. This decision has been made by the Commission on the basis that this lease is expedient in the interests of the Charity. The detailed reasons for the decision have been set out in a separate report to this meeting.
4.2 The authority to extend the lease has been provided by way of and subject to an order under s.26 of the Charities Act 1993 as amended by the Charities Act 2006. The Commission has however made it clear that the making of this Order for the extension of the lease for the temporary stand should not be taken as a confirmation or, indeed, an indication that the Commission is satisfied that `option two' of the Strategic Review is expedient in the interests of the charity. The Trustees have however previously identified `option two' in the Strategic Review as their preferred way forward for the Charity. Amongst other things this would involve the granting of a lease of further additional land to Bath Rugby Club to facilitate redevelopment of the stadium as the proposed final solution to the Rugby Club's continuing occupation of the Rec.
4.3 The Commission has confirmed that it is not yet satisfied that the Charity had put forward any specific proposal that passes the legal test which would allow the Commission to make a legal Scheme to allow the lease of additional land to the Rugby Club. Consequently as was the case with the terms of the order dated 20 July 2007, this latest order sets out a number of directions that the Commission will require the Trustees to comply with, in order to ensure that a long term solution is reached. This will include the Trustees' agreement to a timetable of any action the Commission considers is necessary from time to time to attain the final outcome, whenever this is decided.
4.4 The detailed directions attached to the order have been set out in a separate report to this meeting. More specifically this report addresses the requirement set out in direction 9, i.e.
`The Trustees (BANES) will provide to the Commission the proposal for the future occupation and use of the Rec by 1 August 2008.'
4.5 In the letter dated 25 June the Commission has spelled out its requirements in this context as follows:-
`The Trustees (BANES) need to provide the Commission with a specific proposal that includes a detailed list and analysis of both the benefits and detriments arising to the Rec from the proposed lease of the additional land to the Club and the basis upon which it believes that the former outweigh the latter.'
4.6 The Commission is also aware that the Charity is seeking to secure an arrangement from the Rugby Club which will be of greater benefit to the Charity. It is this information and in particular the off setting benefits secured by the Trustees' proposals in this context that they are obliged to submit to the Commission by 1 August 2008.
4.7 Following consultations with and advice from the Trust's property advisers (Drivers Jonas), the Trust's legal adviser (Senior Counsel, Francesca Quint) and the Trust's independent adviser (Keith Bray), indicative heads of terms for new lease contracts have been sent to the Rugby Club (Appendix 1) and to Bath & North East Somerset Council (Appendix 2). It is anticipated that the both parties will respond giving their reactions to these proposals by the date of this meeting.
4.8 The benefits and detriments which would flow from the new leases and the bases on which the former outweigh the latter are summarised in (Appendix 3). The Trustees will need to be satisfied that the benefits significantly out-weigh the detriments and seek the agreement of the Commission that this is the case, thereby potentially passing the legal test which would allow the Commission to make a legal Scheme to allow the lease of additional land to the Rugby Club.
5 RISK MANAGEMENT
5.1 It will be necessary to identify the risks associated with the redevelopment of the stadium and its future use by the Trust.
6 RATIONALE
6.1 Proposals which set out in detail the benefits and detriments of the proposed lease of additional land to the Rugby Club and the continued occupation of the Rec by the Club must be approved for submission to the Charity Commission by 1 August 2008 together with the basis upon which the Trust believes that the former outweigh the latter.
7 OTHER OPTIONS CONSIDERED
7.1 None
8 ADVICE SOUGHT
8.1 The Trust's Independent Adviser, Senior Counsel (legal adviser) and Drivers Jonas (property advisers)
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Contact person |
Keith Bray Independent Trust Adviser Tel 07811 800612 |
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Background papers |
Strategic Review Report Letter to Trust Chairman from Charity Commission dated 25/6/08 |
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Please contact the report author if you need to access this report in an alternative format |
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