Hoyland’s former Co-Op to be leased to charitable organisation – creating up to 10 jobs

Barnsley Council bought the lease for the building in February, saying at the time it was hoped the space would benefit the community.

The Co-Op, which was previously Hoyland’s Town Hall, closed in 2019.

It was due to be sold at auction in March 2021, but BMBC “negotiated an agreement to acquire it prior to the auction going ahead”.

A report to be agreed by BMBC’s cabinet on Wednesday (July 27), states that following negotiations, heads of terms have been provisionally agreed for a ten year sub-lease at a peppercorn rent to a charitable organisation.

“The proposed peppercorn rent is to ensure that we maximise the wider community and local economic well-being benefits,” adds the report.

“The estimated market rent of the property is £50,000 per annum.

“Our recommendation is to grant a sub-lease at less than market value. This is based on the difficulty experienced in letting the property currently and thefact that the Council is liable for empty property business rates at a cost of £37,632 plus running costs of circa £10,000.

“The landlord has confirmed that in principle, consent would be granted subject to the payment of a one-off payment of £5,000 together with payment of the landlord’s costs for dealing with the consent.

”The grant of a 10-year lease will allow the tenant to set up in the premises. It is estimated that the development proposals will cost the tenant between£275k to £400k and will create 8-10 permanent jobs as well as a number of volunteer and mentoring roles.”

“The property has been vacant for over a year and although the estimated market rent of the property is £50,000 per annum, in the collective context of the size, location and state of the retail market nationally, it’s highly unlikely there will be retailer demand for premises in the foreseeable future.

“While the property remains vacant, we’re responsible for the empty business rates liability of £37,632 per annum, annual running costs of circa £10,000 together with the usual liabilities associated an empty building.”