Agenda item

            The Committee considered the undernoted report:

“1.0     Purpose of Report or Summary of main Issues

1.1            Upper Ardoyne Youth Centre has become vacant and the former occupier Upper Ardoyne Youth Centre Limited (UAYC) has dissolved.  The Council owns the land and had entered into an Agreement for Lease with the former UAYC although the Lease was never executed.  This report seeks approval to take possession of the Youth Centre and bring it into operational Council use.

2.0       Recommendations

2.1       Committee is asked to:

·     Agree to terminate the Agreement for Lease to take possession of the property, subject to approval from SP&R Committee and further subject to the funder providing formal confirmation that it does not wish to exercise step in rights.

·     Agree to bring the property into operational use by the Council subject to assessment of condition and need – consideration of the purpose/use to be considered by the North Area Working Group.

·     Alternatively seek to sell the property for a capital receipt if no viable alternative use exists

3.0       Main report

            Key Issues

3.1       Upper Ardoyne Youth Centre is situated off Alliance Drive on Council owned land at the south east of Ballysillan Playing Fields.  It was constructed circa 2007 and comprises a single storey brick built building laid out to provide partitioned meeting room, office, youth room and ancillary facilities, together with external yard space and grassed area.

3.2       The Council entered into an Agreement for Lease with UAYC on 25 October 2007 to facilitate construction of a Community Centre and Community Garden.  Issues arose with regard to rental and the Lease did not complete, however, the Company built and then occupied the premises for a number of years.  The Company was dissolved on 26 July 2013 and the property is currently unoccupied. 

3.3       We have obtained legal advice which confirms that under the terms of the Agreement for Lease the Council may terminate the arrangement and take back the property, (unlike some situations in seeking to recover a property from a dissolved company it is not necessary to liaise with the Crown Solicitor’s Office as the Agreement for Lease contains provision for termination in the event that the Lease is not granted).  Recovering the property would be subject to the funder not opting to exercise step in rights.

3.4       The former UAYC had obtained Urban II funding through the former North Belfast Partnership (NBP).  Under the terms of the Agreement for Lease the Council would require to offer the funder the opportunity to take an assignment of the Agreement for Lease and complete the lease with the Council. The Department for Communities (DFC) as successor to NBP has however already given an initial indication that they have no interest in the subject property.

3.5       In terms of future use it is proposed that it be brought into operational use by the Council subject to a condition survey and assessment of need in the area, with the purpose to be agreed through the North Area Working Group.    

3.6       A further report will be brought to Committee in terms of condition and future use.

            Financial and Resource Implications

3.7       Resource is required from Legal Services, Estates Management Unit and City and Neighbourhoods officers in connection with taking possession.

3.8       Revenue and resource costs in terms of staff resource and ongoing property costs will need to be reviewed in the context of condition and operational use.

            Equality or Good Relations Implications

3.9       No equality or good relations implications.”

            A Member stated that, whilst he had no difficulty ‘in principle’ with the recommendation, he felt that the request should be considered within the context of the ongoing Community Centre Facility Review.

            The Assistant Director clarified that bringing this building back into the ownership of the Council would in no way pre determine its future use.  She stated that, in the event that the Council decided not to use the building and if no alternative viable alternative existed, the Council could in the future seek to sell the property for a capital receipt.

            Several Members concurred with the Assistant Director and stated that they felt that the Council should take possession of the property as its future use would be agreed at a later stage.

            Detailed discussion ensued, following which it was:

            Moved by Councillor Beattie,

            Seconded by Councillor Austin,

      That the Committee agrees to defer consideration of the mater to enable it to be considered within the context of the Community Centre Facility Review.

            On a vote by show of hands, eight Members voted for the proposal and eight against.  There being an equality of votes, the Deputy Chairperson exercised his second and casting vote for the proposal and it was declared carried.