Council sees long term value in asset transfer

West Dunbartonshire Council has recently transferred ownership of a former community education centre to the Renton Community Development Trust.

The centre will be named Ma Centre. It will house childcare, elderly day care, a Foyer style restaurant, conferencing facilities, and a small theatre. The land is adjacent to the River Leven, a well-used navigable waterway that links the Clyde Estuary with Loch Lomond. This provides opportunities to create berthing facilities and RCDT anticipate this would provide a ready market for the restaurant and theatre. Land behind the building is also included in the transfer and RCDT plan to build a new sports centre there.

The property was valued at £115,000 and transferred to RCDT for £1. The Council proposed that a number of restrictions or burdens be placed in the title, but RCDT refused to accept these. The Council eventually decided to proceed with the transfer without any restrictions or burdens, but has taken out a discount standard security against it. This means that in the event of the Trust disposing of the Centre, going into administration or being wound up within the next 20 years, a proportion of the discount (the difference between the current market value and the sale price) would be repayable to the Council. There is however a ranking agreement which means the Council’s security ranks second after any charge taken by a commercial lender. This allows RCDT to pursue private funding to develop the Centre and associated land.

For more information on RCDT go to http://www.localpeopleleading.co.uk/showdirectory.php?anchorid=10