Meeting documents

2.3 Authorise Trust advisers to seek approval of the Charity Commission and, if obtained, enter in to a new lease with Bath Rugby PLC upon the terms recommended.

4.3 It is appropriate to remind the Board of the relevant contents of the March report, which are set out below for ease of reference.

4.4 The Board is reminded that its only legal obligation is to preserve the recreation ground, as far as possible, for the exclusive use of the local inhabitants for the playing of (amateur) games and sports. It cannot remove the Rugby Club because it has legal rights of its own under its lease, but as Trustee it has no absolute obligation to seek to accommodate the Club's wishes.

4.5 Bearing in mind that the Club's use of the ground for its own purposes is not charitable, it is appropriate that the Board should assess and take fully into account the extent to which, nevertheless, the area leased to the Club and any extension can be, and in practice is, used by members of the public for outdoor recreational purposes when it is not being used by the Club. This is both a matter of absolute area and the times of the year and the times of the week during which is available to and used by the public. It would be appropriate to explore whether such use could be increased, and, if so, how - as part of the negotiations for the extension to the lease for the additional land. This will have the benefit to the Trust of better securing its charitable objects and in practice can only be achieved with the co-operation of the Club. This factor will also be of relevance to the Charity Commission in considering whether it should again authorise a lease to the Club, as a transaction which will not directly further the Trust's charitable purposes.

4.6 The Charity Commission have indicated that before they will consider an application to enter into any agreement with Bath Rugby PLC they need to see evidence that the Trustees are satisfied this proposal is expedient in the interests of the Trust.

4.7 The Trust Board is required to take all relevant matters in to consideration when coming to a decision as to whether a letting is expedient in the interests of the trust. It is the Charity Commission's view that the Recreation Ground is what they term "Specie" Land and as such cannot be used for any other purpose than those set out in the 1956 conveyance.

4.8 The Board will, therefore, have to balance the benefits of the arrangement against the fact that the intended use does not comply with the terms of the conveyance and will limit use of a small proportion of the Ground at certain times. In terms of this decision the principal relevant benefit to the trust is the income that this brings. Such income can be used by the Trust to further its charitable objectives and ensure the upkeep of the Trust's land and buildings to ensure their ongoing use.

4.9 The Board should also carefully consider whether they can provide evidence to the Charity Commission that the terms of the proposal are the best that can be reasonably obtained for the Trust.

4.10 As is outlined above, for the proposed lease to satisfy Charity Law the Trust Board have to satisfy themselves that the terms of the proposal, including commercial terms, are the best that can reasonably be obtained for the Trust. Section 36 of the Charities Act 1993 sets out this requirement.

4.11 To ensure that the Trust has demonstrably met the requirement to obtain best consideration and to comply with s36, the Trust Board agreed that a third party specialist consultant be employed: i.e. a chartered surveyor instructed to act exclusively for the Trust.

4.12 The surveyor was asked to prepare a report complying with s36 of the Charities Act 1993 and the Charities (Qualified Surveyors' Reports) Regulations 1992, advising on the proposed letting and, in particular, whether the terms of the proposed lease are the best reasonably obtainable for the Trust.

4.13 The Board now need to consider and decide, specifically, whether the terms provisionally negotiated with the Club are the best that the Trust can reasonably obtain, taking into account the report of the chartered surveyor and whether the proposed letting is in overall terms expedient in the interests of the Trust before the Trust's Advisers are authorised to approach the Charity Commission for consent.

5. RISK MANAGEMENT

5.1 There appear to be no risks associated with the grant of a "contracted out" lease since the Charity will have discretion at the end of the lease to take such decision as it sees fit about the future use of the land.

5.2 The loss of the substantial financial benefits that this lease brings would be a considerable risk to the ongoing financial state of the Trust and its ability to support other activities on the recreation ground, which the rent under the current lease for the stands currently supports.

5.3 The loss of the cooperation of the Club in respect of its provision of community benefits over and above the requirements imposed by the Council could be detrimental to the charitable purposes of the Trust.

6.1 The only benefits to the Trust that it should consider from the proposed arrangement is the substantial income it brings and the broader interests of the Trust both now and in the future.

6.2 The proposed lease provides an interim arrangement until such times as Option 2 of the Strategic Review is progressed. The surveyor's advice will be crucial in considering whether this option should now be confirmed and officers authorised to seek the approval of the Charity Commission and thereafter enter into the lease.

7. OTHER OPTIONS CONSIDERED

8. CONSULTATION