Issue - meetings

Purpose

(1)  To seek authorisation to change the terms of the capital grant of £285,000 currently allocated to The Guildhall Trust.

(2)  To present the business case to release £207,400 against this capital amount for the alternative capital expenditure listed in this report.

RECOMMENDED

(1)  That the current obligation for The Guildhall Trust to secure match funding against the capital grant of £285,000 be removed.

(2)  That a capital allocation of £207,400 be released from this capital grant already approved for The Guildhall Trust to invest in the capital items listed in this report.

The report was introduced by Josie Dalling, Business Support Manager.  Councillor Pitt added the reason for making the amendments was that the Guildhall Trust have made significant investments to the building and in discussion with the chief financial officer it was decided it was appropriate to release this money for them to expand their business. 

Councillor Symes said she had no issue with releasing the money but raised concerns that in the budget papers released today there is a £1.7 million loan and there are no significant reserves in place for the Guildhall Trust and she was concerned how this would be paid back.  The lack interest from the Heritage Lottery Fund and Arts Council in giving any significant money to this venue also made her concerned about the level of borrowing. 

Councillor Pitt said that there is £400,000 a year invested into the building for repairs and renewals and there is significant work that needs to take place for the electrical rewiring of the building and there is money reserved for that.  The money leftover will pay for replacing air conditioning in the main auditorium.  Officers had identified going forward they may not need such a large sum of money.  The £1.7 million identified in the budget papers is a capitalisation of some of the revenue so it would not be for the Trust to repay this.   The council will not be loaning money to an organisation that does not have significant reserves. 

DECISIONS:

The Cabinet Member for Culture & City Development agreed:

(1)  That the current obligation for the Guildhall Trust to secure match funding against the capital grant of £285,000 be removed.

(2)  That a capital allocation of £207,400 be released from this capital grant already approved for the Guildhall Trust to invest in the capital items listed in this report.