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 over a 20-year period
Consultation ends on Friday 25th January 2019
Bollington Town Council are minded to provide a loan to the Bridgend Centre, 104 Palmerston Street, Bollington SK10 5PW (Charity Number 1123287) to help to fund essential repairs and improvements. The Council is inviting comments from Bollington precept payers.
The Loan would be for £56,000 over 20 years, secured by a second charge against 104 Palmerston Street. The first charge would be to cover a mortgage secured by them to purchase the property which they have now done.
There is a substantial amount of equity available in the property, equivalent to £234,000 to cover both the first and second charges, 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.
The opportunity to purchase 104 Palmerston Street provides the Bridgend Centre with security for the future and the ability to carry out much needed repairs and improvements.
The Bridgend already performs a vital role in our Town, tackling isolation, improving health and fostering a sense of community. The Centre is carefully managed and has generated a substantial surplus over recent years. It has recently been provided with a generous grant from the Garfield Weston Foundation which has enabled the purchase of their premises to take place. However, they will be faced with a repairs and improvements of circa £120,000.
The Town Council is confident that the Centre 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). This position has been confirmed by an independent accountant.
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.
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.
The Business Case for Making the loan is Attached
If you have any comments or observations, please email these to email@example.com You can also write to The Clerk, Bollington Town Council, Town Hall, Wellington Road, Bollington Cheshire SK10 5JR
Closing date for comments is Friday 25th January 2019