1.  That a lease be granted to the Beechwood Community Hall Trust Limited Management Committee for the New Beechwood Community Hall at Barming for one year, pending the outcome of the Community Halls audit.

2.  That the Head of Legal Services be given delegated authority to enter into the lease on terms agreed by the Assistant Director of Regeneration and Cultural Services.

Beechwood Community Hall (also known as Oakwood Community Hall) has been built by Persimmon Homes as part of a section 106 requirement arising from their development of the former Oakwood Hospital site. The Hall is designated for community use and has been transferred to the Council. Schedule 10 of the Section 106 agreement requires the Council “not to use the property other than as a community hall for the use and benefit of the community local to the property and not for any other purpose.”

It was agreed in the Report of 17 December 2009 to the Cabinet Member for Leisure and Culture that once the hall is transferred from the developers to the Council that the operation and management of Beechwood Hall would be undertaken by the Beechwood Community Hall Trust Limited Management Committee by way of a 25 year lease. The Management Committee was established using the national guidelines produced by Action with Communities in Rural England and the model 1b lease is the recognised national standard lease accepted by the Charity Commission for the operation of Community Buildings.

It was agreed that in return for a peppercorn rent and a long lease, the lessees would take on the responsibility for repair and maintenance of the building and for the utility bills. Within a one year lease, the Council would remain responsible for repairs to the building, which is a financial risk to the Council during the year.  Buildings insurance would be the responsibility of the Council, recharged to the lessees.

However, since that decision, the Council has adopted the Community Asset Transfer Strategy, the purpose of which is to provide fair access to community facilities across the Borough and to ensure that provision is consistent without any gaps or duplication.  The impact of this is that the Beechwood Hall should be assessed with all the others.  That Audit is in the process of being finalised and if it confirms that the Hall is still required and is suitable for transfer, then the Council would seek to transfer it through the Asset Transfer process.  This approach has been taken in relation to Fant Hall which has also been granted a one year lease.

If the Hall is needed and suitable for transfer, it would require a tenant to manage the hall but it was recommended that all Halls currently remaining in Council ownership should follow the nationally accepted Community Asset Transfer (CAT) process developed by the Asset Transfer Unit, with assistance from the Development Trust Association and Community Matters, as a standard requirement of transferring ownership. This process requires a business case to be prepared which will demonstrate that the proposal is viable and sustainable and that the transfer of ownership will deliver sufficient community benefits. The business case would be produced by the potential lessees with assistance from Council Officers who will draw up the terms of the lease/service level agreement.

Persimmon Homes transferred the freehold interest of Beechwood Hall to the Borough Council in January 2010.  However, because of the development of the Strategy and the work on the Audit it was recommended that the Council seek to offer a one year lease, to enable the work on the Audit to be completed and the need for the Halls in Council ownership to be agreed along with the mechanism to manage them into the future.  The Audit report will be available in the first quarter of the New Year.

The Cabinet could decide not to agree to the short term lease and decide that the full 25 year lease arrangement as originally agreed should be entered into with the Beechwood Community Hall Trust Limited. This is not thought appropriate as the Council has committed to review community hall provision and implement the Community Asset Transfer Strategy, where possible, and this needs to be done consistently across the borough.