Issue - items at meetings - Purchase of The Mill Arts Centre

Report of Interim Executive Director: Finance and Governance

Purpose of report

To establish a budget in order to complete the transfer of The Mill Arts Centre from Oxfordshire County Council to Cherwell District Council following the Executive’s decision in July 2018 to negotiate the purchase of The Mill Arts centre building in Banbury. It was also agreed that there would be an increase in revenue support to the Mill Arts Centre Trust in the short term to enable The Trust to meet its commitment following the cessation of the financial relationship with Oxfordshire County Council.

Following on from the purchase, there will be a need to carry out a full investment options appraisal on the site to report back to members on the scale and scope of potential investment in the Towns cultural facilities to create a sustainable venue for the Town.

This will be subject to further reports once we are able to work with the Trust on those options. An internal officer working group will be established to take this work forward.

Recommendations

The meeting is recommended:

1.1 To approve the expenditure of £1 to secure the transfer of The Mill Arts Centre from Oxfordshire County Council to Cherwell District Council in line with the Executive decision of July 2018.

1.2 To agree to the establishment of a revenue budget of £50,000 to cover costs of transition funding and arrangements in 2018/19 to be funded from general reserves. Future funding will be considered when setting the budget and medium term financial plan in February 2019.

1.3 To note that immediate remedial works (expected early in 2019/20) in the region of £250,000 may be required, with further phases of works due later in 2019/20 or the 2020/21 to ensure that the building is fit for purpose and will be subject to detailed capital proposals as part of the budget setting process and medium term financial plan for 2019/20 to 2023/24

1.4 To note that an officer working group will be established to establish the options and Business case for any further investment into the site to ensure that the Trust is financially more sustainable in the medium to long term

1.5 To note that the offer to acquire the asset is subject to a restrictive covenant from Oxfordshire County Council to ensure that at least 80% of the site is used for cultural purposes otherwise state aid applies.

1.6 To delegate the final agreement for the legal agreement to transfer the asset to the Monitoring officer for Cherwell District Council in consultation with the Interim Executive Director of Finance and Governance.

Resolved

(1) That the expenditure of £1 to secure the transfer of The Mill Arts Centre from Oxfordshire County Council to Cherwell District Council in line with the Executive decision of July 2018 be approved.

(2) That the establishment of a revenue budget of £50,000 to cover costs of transition funding and arrangements in 2018/19 to be funded from general reserves be agreed and it be noted future funding would be considered when setting the budget and medium term financial plan in February 2019.

(3) That it be noted that immediate remedial works (expected early in 2019/20) in the region of £250,000 may be required, with further phases of works due later in 2019/20 or the 2020/21 to ensure that the building is fit for purpose and will be subject to detailed capital proposals as part of the budget setting process and medium term financial plan for 2019/20 to 2023/24.

(4) That it be noted that an officer working group would be established to establish the options and Business case for any further investment into the site to ensure that the Trust is financially more sustainable in the medium to long term.

(5) That it be noted that the offer to acquire the asset is subject to a restrictive covenant from Oxfordshire County Council to ensure that at least 80% of the site is used for cultural purposes otherwise state aid applies.

(6) That the final agreement for the legal agreement to transfer the asset be delegated to the Monitoring officer for Cherwell District Council in consultation with the Interim Executive Director of Finance and Governance.

The Interim Executive Director: Finance and Governance submitted a report to establish a budget in order to complete the transfer of The Mill Arts Centre from Oxfordshire County Council to Cherwell District Council following the Executive’s decision in July 2018 to negotiate the purchase of The Mill Arts Centre building in Banbury. It was also agreed that there would be an increase in revenue support to the Mill Arts Centre Trust in the short term to enable The Trust to meet its commitment following the cessation of the financial relationship with Oxfordshire County Council.

Following on from the purchase, there would be a need to carry out a full investment options appraisal on the site to report back to Members on the scale and scope of potential investment in the Towns cultural facilities to create a sustainable venue for the Town. This would be subject to further reports once we are able to work with the Trust on those options. An internal officer working group would be established to take this work forward.