Redlands Sports Hub rent costs just £5
But Weymouth College says maintaining the building is the real cost.
Last updated 25th Jan 2022
The price to lease Redlands Community Sports Hub has been revealed as just £5 per year.
'Peppercorn rent' is a unique type of deal that requires a nominal fee to be paid, simply for the purpose of creating a transactional legal contract.
Campaigners fighting to save the building say if they were offered a similar deal, it may improve chances of continuing the business when Weymouth College pulls out in August.
No decisions about Redlands future have been formalised yet by Dorset Council, Weymouth College or the campaigners. A proposal has been put in for outdoor-only services by Active Dorset, but Dorset Council says it remains open to further proposals.
A £5 bill may have you wondering if you could play a part in the future of Redlands, but Weymouth College says it's not quite so simple.
Vice Principal Rob Cole said:
"The peppercorn rent, is exactly that but it's all those other costs.
"The minute the team open the doors at Redlands, you're opening yourself up to the best part of £100,000 of overheads, namely your electric, your gas, telephones, insurance, licences, security, and then on top of that you've got all the maintenance and the day-to-day stuff that goes with it.
"The peppercorn rent is good but it's misleading in the financials. For the college, when you look at that annually it's costing us £150,000-200,000 per year College funding."
He added that Weymouth College had a tough choice to make when considering how long it could support Redlands.
"The college has got a choice to make between its core purpose of education of our learners and the engagement with local businesses with our apprenticeships.
"Really, we'd like to do all of it in terms of that and Redlands, but we just haven't got the funds and it obviously puts the college at risk if we do divert more funds up to Redlands."
Rob says the college would also be keen to ensure a smooth transition in August to a new provider, by continuing to secure autumn bookings.
A peppercorn rent now doesn't necessarily mean that the same deal would be struck up with any future organisations looking to run Redlands. But, it could make things easier for those hoping to save the building.
Peter Barrow is one of the campaigners. He said:
"If we can get favourable terms from the council, which will enable us to get things up and running and make it less of a financial risk to start up a Community Interest Company, then obviously that would be really helpful."
You can find out more about the campaign here.