Issue - meetings

On 1 September 2020, the Executive Shareholder and Trustee Committee authorised an application for an exemption to put in place a new management structure for the Woodbridge Road Sports Ground Charity. The Committee also authorised the Director for Service Delivery, in consultation with the Leader of the Council, to take all steps necessary to implement the decision of the Charity Commission. The Committee confirmed a budget allocation of £100,000 to support the activities of the management company with a long-term aim of becoming self-sufficient. The Charity Commission had confirmed its approval in principle to the arrangements set out in that report. 

The Committee considered a report providing an update on the application to the Charity Commission. The accounts for the charity were not included with the report due to a delay affecting all the Council’s accounts permitted by Government due to the Pandemic. The accounts would be approved through delegated authority. 

Application had been made to the Charity Commission for an Order proposing: 

1.     Trustees to lease the property falling within the Woodbridge Road Sports Ground Charity for a term of 75 years.  

2.     The terms of the lease permit either party to the lease to end the arrangement in the 50th year.  

3.     An initial yearly rent of a peppercorn for the first 5 years of the term, then at the yearly rent of £16,400 for 5 years, and thereafter subject to review every 7 years on an open market rent basis, even though Guildford Sportsground Management Company Limited is a connected person (as defined in section 118 of the Charities Act 2011) 

4.     A provision for re-entry on non-payment of the rent or non-performance of the covenants. 

The Chairman of the Committee gave praise to those officers and councillors involved in the complex and challenging negotiations that have been involved in reaching an agreeable outcome. 

It was noted that there was a higher fence installed recently and a perception of exclusivity around the site. The fence was a request from those living locally for protection purposes. In addition, it was stressed that the Sportsground was very much for the use of the Guildford community and not only for cricket. For agreement from the Charity Commission charitable objectives must be met and would be included in the Order. The Committee requested an annual report demonstrating community use of the Sportsground and the Pavilion. 

The Executive Shareholder and Trustee Committee noted the report. 

RESOLVED:

1.     To approve the Trust property management strategy;

2.     To approve the submission of an application for exemption to the Charity Commission;

3.     To authorise the Director for Service Delivery, in consultation with the Leader of the Council, to take all steps necessary to implement the decision of the Charity Commission.

Reason:

To ensure that the Charity continues to operate in a manner which promotes charitable objectives whilst reducing the financial contribution of the Council.

Options considered and rejected by the Executive Shareholder and Trustee Committee:

If the proposal is not put to the Charity Commission for permissions and necessary exemptions, the management of the site would revert to Guildford Borough Council, requiring the Council to repay the financial contributions made by other stakeholders and further requiring that the Council develop its own management structure, without the benefit of external support.

Details of any conflict of interest declared and any dispensation granted:

None.

The Committee considered a report setting out a new management structure for the Trust with terms and conditions designed to create a financially self-sustaining venue for the community and operated in compliance with the requirements of the Charities Act 2011. 

All stakeholders involved in the new structure were in agreement with the proposals. It was now necessary for the Committee to scrutinise arrangements and to indicate its approval. It was also necessary for an application to be submitted to the Charity Commission to obtain an exemption which would permit the Charitable Trustee to award a lease to the Management Company of which it was a shareholder. Without this exemption, the proposals could not be brought into effect.

The Committee were in unanimous agreement of the recommendations in the report and also the ambitions envisaged for the future of the Sportsground as a successful commercial and community venue. Concerns about the impact of Covid-19 affecting those ambitions were acknowledged, as was the case for many other venues.

Having considered the proposals in the report, the Committee

RESOLVED:

1.     To approve the Trust property management strategy;

2.     To approve the submission of an application for exemption to the Charity Commission;

3.     To authorise the Director for Service Delivery, in consultation with the Leader of the Council, to take all steps necessary to implement the decision of the Charity Commission.

Reason:

To ensure that the Charity continues to operate in a manner which promotes charitable objectives whilst reducing the financial contribution of the Council.