Agenda item

The Executive Director of Finance and Corporate Resources presented a report in respect of the lease arrangement for the REDI Centre.  During the presentation of this item the following points were highlighted for Members’ consideration:

·                Redditch Youth and Community Enterprise (RYCE) had occupied the REDI Centre since 2014.  During this time RYCE had provided a number of community activities.

·                The REDI centre as a building was increasingly not fit for purpose.

·                RYCE had already secured £67,000 to spend on improvement works.

·                In addition RYCE had submitted an application for £465,000 funding from the Big Lottery.  This would be used to fund further improvement works in the interior of the building. A number of conditions were attached by the Big Lottery to this funding.

·                The conditions included a requirement for the lease to last for at least 10 years, restrictions on what the building could be used for in that period if anything was to happen to RYCE and the rent payable for the premises could not increase during the time.

·                The Council was proposing that the rent payable during the period of the lease should be £7,000.

·                The Council needed to achieve best value and therefore alternative available options had been outlined for Members’ consideration.  

·                There were some risks that had been identified in relation to RYCE’s income projections which were considered to be ambitious.  However, RYCE had confirmed that the organisation’s income had doubled in recent years.

·                As part of the improvement works RYCE was intending to introduce a changing places facility in the building.  This would be the second such facility in Redditch as another was already available to use in the Abbey Stadium.

·                There was no guarantee that the Big Lottery would agree to the Council’s terms.

Following the presentation of the report Councillor Baker was invited to speak in his capacity as Chair of the Overview and Scrutiny Committee.  Members were advised that the Committee had pre-scrutinised the report at a meeting on 5^th July 2018.  There had been general consensus during this meeting that RYCE provided a range of valuable activities to the local community.  The Overview and Scrutiny Committee had therefore proposed that the Executive Committee take into account the first three proposals detailed in the report and this had received cross-party support.

During consideration of this item Mr Raymond Groves, from RYCE, was invited by the Chair to speak.  Members were advised that the Big Lottery had been consulted about the proposed rent for the REDI Centre and had agreed with the figure.  The improvement works that would be undertaken using the lottery funding would enhance facilities for people with physical disabilities and provide an important venue in which local community groups could meet.

The Committee discussed the report in detail.  Reference was made in particular to the social value of the work delivered by RYCE within the local community.  Members expressed some concerns about the meanwhile lease arrangement that had previously been in place with RYCE for the REDI Centre and noted that the proposals in the report would be more sustainable.

RESOLVED that

1)        a 12 year lease is granted to RYCE for the use of the REDI Centre subject to commence when the Lottery Funding for works on the building is approved;

2)        approval of a rent of £7k per annum is agreed for the period of the lease; and

3)        should the Lottery grant be unsuccessful that a further report be presented to members on the future opportunities for the centre.