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Decision details

Mission Theatre - Community Asset Transfer

Decision Maker: Cabinet Member for Economic Development and Resources

Decision status: Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

Next Stage Theatre Company (NSTC) have applied for a Community Asset Transfer (CAT) for the Mission Theatre. The CAT transfer will enable the company to make some investment into the building as well as create new job opportunities and additional community activities. NSTC have completed Stage 3 of the CAT process which requires submission of a full business plan and supporting documentation. The proposal meets the objectives of the Council’s Community Asset Transfer Policy, the business plan has been assessed and approval given by the Council’s Property Board.

Decision:

The Cabinet Member agrees to delegate authority to the Head of Estates to;

·  Complete the disposal of Mission Theatre by way of a lease in line with the draft Heads of Terms.

·  Abate the rent to a peppercorn subject to Next Stage Theatre Company satisfying the Council that they will use the building for the purposes set out in their Business Plan.

 

NOTE: On 17th May 2021 this decision has been Called In by 9 Councillors.  The Call In request was verified by Chief Executive and Monitoring Officer.

 

Call In meeting of the Corporate Policy Development & Scrutiny Panel will take place on Monday 14th June at 4pm in the Council Chamber, Guildhall, Bath.

 

PANEL DECISION: The Corporate Policy Development & Scrutiny Panel DISMISSED the Call In on Monday 14th June 2021.

Reasons for the decision:

The CAT is offered on a lease term of 99 years. The transfer will take place on the basis of the current condition of the building and liabilities for maintenance will be the responsibility of NSTC.

NSTC’s annual rent as at November 2020 is £15,603 per year. This will be abated to nil subject to NSTC delivering the community benefits generated against their business plan.

This proposal is in line with the Council’s policy regarding Community Asset Transfers the aim of which is to help secure community benefits in line with the Council priorities and objectives.

Alternative options considered:

A number of tenancy options have been explored with NSTC, however the Community Asset Transfer has been considered the most appropriate option to support the long term objectives of the NSTC and the Council’s Corporate objectives.

This option enables the community to retain an important performing arts resource for the long term.

Publication date: 10/05/2021

Date of decision: 10/05/2021

Effective from: 18/05/2021

This decision has been called in by:

  • Councillor Colin Blackburn who writes The undersigned Councillors wish to call in decision E3275 to “Community Asset Transfer the Mission Theatre to the Next Stage Theatre Company taken on 6 May by the Cabinet Member for Resources for the following reasons: 1. There has been no opportunity for elected members to scrutinise the proposal. 2. The report is limited and does not demonstrate how the council arrived at this decision based on a request from a private company to be given our asset. 3. Why an Asset Transfer? In this case it seems to be a sledgehammer to crack a nut. There is an existing lease arrangement that the private company running Mission Theatre have been adhering to. That could have been amended to reflect any financial support being offered. For example: A ten-year peppercorn on the existing lease would provide £156,000 of value to NSTC. 4. Is the existing lease ‘full repairing’, if so, the onus is on the building occupiers to meet the repair and update costs. They are fund raising to meet that obligation. It is understandable that we as landlords want to be fair and supportive of our tenant and create a financial mechanism to reimburse these roof repair costs but committing to forgo circa £1.5m of rental revenue over the next 99 years seems totally disproportionate to support the situation. 5. We need reassurance that we will avoid a situation arising in the future. What clause in the transfer would prevent the potential situation arising in the future that the private company holding the lease decide to hand back the building to B&NES but demand a payment, as experienced in the Grosvenor Place situation? Whilst that might not come for many years, and all the persons involved in this decision will be long gone but our residents are having their assets eroded by short term decisions that do not fairly reflect the circumstances. 6. In the context of the redevelopment of Bath Quays is seems premature to be relinquishing this building for 99 years when its future may be part of the new development. 9 Signatures Councillor Colin Blackburn (Lead) Councillor Sarah Bevan Councillor Doug Deacon Councillor Karen Walker Councillor June Player Councillor Robin Moss Councillor Paul May Councillor Eleanor Jackson Councillor Grant Johnson "

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