Proposed Town Council Loan to the Bridgend Centre - Your views are welcome
Consultation with Bollington residents
Bollington Town Council’s intention to loan £56,000 to the Bridgend Centre
Bollington Town Council is minded to approve a loan request from The Bridgend Centre, 104 Palmerston Street, Bollington SK10 5PW (Charity Number 1123287) and is inviting comments from Bollington precept payers.
1. The Loan would be for £56,000 over 15 years secured by a second charge against 104 Palmerston Street.
2. There is a substantial amount of equity available in the property, equivalent to £234,000 and therefore the Town Council is confident that if in the worse case scenario, the Bridgend Centre were to become non-viable financially, the Council would recover the funds from the sale of the property
3. The Bridgend already performs a vital role in our town, tackling isolation, improving health and fostering a sense of community and has the opportunity currently to secure it’s future by purchasing 104 Palmerston Street from the current owners, by way of a mortgage and a grant from the Garfield Weston Trust
4. In order for the mortgage company to go ahead and provide the mortgage it needs reassurance that further funds are available to make repairs to the property, including a significant amount to fund repairs to the roof.
5. The Bridgend is carefully managed and has generated a substantial surplus over recent years. The Town Council are confident that it will continue to generate surplus and it’s overheads will stay broadly similar (after they stop paying rent and start repaying the mortgage and loan)
6. Bollington Town Council foresee no impact on the parish precept. The Council is in a position to borrow from the Public Works Loan Board and immediately pass the interest and capital repayments on to the Bridgend Centre, so in this sense we are a “facilitator” of a loan
7. The only risk to Town Council funds (and therefore the precept payer) is if the Bridgend Centre were to default on payments and the Town Council were unable to recover the capital outstanding from the sale of the building, which we believe to be extremely unlikely (see 2 above)
If you have any comments or observations, please email these to firstname.lastname@example.org. You can also write to:
The Town Clerk
Bollington Town Council
Cheshire SK10 5JR
All comments by Monday 5th November Please