The chair of a Sherwood community centre that has been going for 25 years says it will have to close if the council puts its rent up as planned by tens of thousands of pounds. The Place Activity Centre on Melrose Street offers meeting rooms and activity spaces to local art groups, fitness classes and businesses.
In the past, it has been used for everything from local neighbourhood watch meetings to surgeries hosted by local MPs. Since it started in 1997, those who run the centre have paid a peppercorn rent of £10 a year to the building's owner, Nottingham City Council.
But staff at the centre were informed in 2020 that its rent would be increased to a commercial level of £12,000, eventually going up to £20,000 within four years. The first payment of this was due last year, but an administrative error meant than an invoice for the original peppercorn rent was sent and paid.
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Thulani Molife, 53, who has been the chairman of the centre for the last eight years, says that the city council still want last year's rent paying at the commercial level and, in September, the payment for this year will be due. As part of plans to increase the rent to £20,000 over four years, this year's rate will be £14,000.
But Mr Molife says that the centre simply wouldn't be able to afford that. He said: "We have been trying to show the council that we are trying to reduce our costs to make this work. We previously had two employees here who made sure that phone calls and emails were answered, but we let them go and all that work is now done by our voluntary committee.
"We have suggested that we could afford perhaps £4,000 and that we would even be willing to take the risk of £6,000, but we could not go as high as 12 and eventually 20. The maximum we have ever generated is probably in the region of £23,000 but most of that is spent on the upkeep of the building and staff.
"The council has never had any reason to come out to us and say that they've heard of problems, we've essentially been off their radar. I think that needs to be remembered and the council should recognise that we have kept their building in absolutely excellent condition."
Nottingham City Council has confirmed that it is aligning the rents charged to community groups using council buildings with "market rates". The council added that it remained open to discussions around discounted leases "where a group can demonstrate their value to the community".
Groups that use the centre include Pilates and yoga classes as well as several art clubs. But Mr Molife says that in the midst of the cost of living crisis, the centre could have several other uses.
He said: "I have had several people tell me that we could be used as one of the warm banks that have been talked about. We also have the opportunity to open a community kitchen which would be a great service.
"I do think that the centre is Sherwood's most hidden asset and it would be terrible for it to close. So many things that are now well established started here.
"Sherwood Art Week started here, and that is now a major event which is the first thing that many people put in their yearly calendars. When I walk around Sherwood I see so many eateries that started here, so we have had a big impact on the area."
Mr Molife says that discussions are still taking place between Nottingham City Council and local councillors on working out a rate that the centre could afford, as well as on the charge it owes for last year following the administrative error. A public meeting is also being held at the centre on Friday (September 30).
A Nottingham City Council spokesperson said: "We work closely with community groups and charities, and understand the positive impact they have across Nottingham. Some rent buildings from the council and provide valued services to local people.
“These have historically been made available on low rents, but this can place a burden on the taxpayer in terms of the council having retained responsibility for repairing the buildings. As part of our work under the Together For Nottingham Plan, we are starting to move towards occupancy agreements more aligned to market rates when they come up for renewal, and where repairs and insurance responsibility are passed to the occupier."
The Together for Nottingham Plan was set out earlier this year, with an aim to address the "seriousness of the financial, governance and operational challenges" faced by the council. The city council spokesperson added: "We remain open to discussions with groups interested in renting council buildings and discounted leases will still be available where a group can demonstrate their value to the community."
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