Gwynedd Council’s Estates Department accepted a recommendation to transfer the freehold of Neuadd Ogwen, an arts and music centre, to the responsibility of Tabernacl (Bethesda) Cyf, a social enterprise.
Background
In September 2012, Gwynedd Council’s Estates Department accepted a recommendation to transfer the freehold of Neuadd Ogwen, an arts and music centre, to the responsibility of Tabernacl (Bethesda) Cyf, a social enterprise.
The purpose of the transfer was to secure finance to redevelop the centre and included a parcel of land adjacent to the building.
Business
Tabernacl social enterprise was established 20 years ago to celebrate the local arts scene of Bethesda, home to a number of successful Welsh artists including internationally renowned musician Gruff Rhys, the lead singer of Super Furry Animals.
Tabernacl had access to funding not available to the Local Authority and had secured a £600k grant from the Big Lottery Fund (BLF) Community Asset Transfer programme to redevelop Neuadd Ogwen. It had also secured £312k from the local Môn Menai Regeneration fund for the building project.
Details
The transfer of the asset took place for a nominal sum of £1. This was due to the restriction on its use in the lease, the council’s intention to include a ‘claw back clause’ in the transfer terms, and because the building was already let to Tabernacl.
Benefits
On paper, the transfer of Neuadd Ogwen to a social enterprise business was a straight forward process. There were a number of factors that aided the transfer process for Gwynedd Council and for Tabernacl:
- Transferring a public liability into a community asset
- A Local Authority champion
- Social enterprise peer-to-peer mentoring
Tabernacl had not been successful in its first bid to the BLF for a Community Asset Transfer grant, and in preparation for its bid to the final application round, the social enterprise was supported by a peer mentor, Promo Cymru facilitated by DTA Wales. The mentor had previously been successful in its bid for grant money and was able to provide guidance and knowledge to Tabernacl.
Lessons learned
Local Authorities and social enterprises considering an asset transfer should consider the following issues:
- The responsibilities of both parties involved in an asset
- Encourage measured risk-taking and innovation
- Appropriate and successful joint working between the stakeholders
- Legal fees to be eligible in grant applications
Further information
Anwen Davies
Social Enterprise Liaison Manager
Gwynedd Council
Telephone: 01286 679810
Email: Anwendavies@gwynedd.gov.uk