Councillors back university lease on guildhall
Plans to continue to allow Shrewsbury's university to have free use of a council-owned building have been backed by councillors.
University Centre Shrewsbury is based at the Guildhall in Frankwell, under a lease agreement with Shropshire Council set to end in June 2022, which includes deferral of all rent while the centre is not making a surplus.
A new eight-year lease is now being proposed, securing the university’s presence in the town until at least 2030.
Councils are legally required to achieve the best value for any property sales or leases longer than seven years, unless permission is granted from the secretary of state for local government.
At a meeting of the full council, members agreed that approval should be sought to enter into a new lease.
Council leader Peter Nutting said: “The government always wants confirmation that we don’t allow property we own to subsidise private enterprise.
“We haven’t been receiving rental income from the university. We are actually partners with the University of Chester to provide the university in Shrewsbury.
“This recommendation is to seek the approval of the secretary of state to continue with that arrangement for the next few years.
“We want to continue with the present arrangement and the reason is simple – we want to give the university an opportunity to thrive.
“It has been a slow burner but it’s starting to really take off now. I am pleased with the way it’s going but it does need a little bit more time.”
Councillor Nutting said the university was projected to start making a surplus by the 2023/24 academic year, at which point it will begin to pay rent on the building.
New courses in nursing and social care are expected to see student numbers “substantially increase”, Councillor Nutting added.
Councillor Ed Bird, who works in higher education, said the sector had performed “extremely well in recent years”.
He said: “I agree with the government’s stance which is that these institutions should not be subsidised in this sort of way, they should stand on their own two feet.
“They are more than capable of doing that, those that are run properly.
“But we are where we are with this so I agree with what Peter is saying, with the intention to obtain rental to support a very tight budget in the council. I would encourage the council as soon as possible to start to derive income from this.”
A report to councillors said around £2.52 million in rent had been deferred since the university was set up, but the original lease did not require government approval as it was for just under seven years.
The council has also invested £12.12 million in providing student accommodation at Mardol House and the Tannery.
Councillor Steve Charmley, portfolio holder for assets, said: “I think it’s important that we invest in this university centre and keep supporting it until it’s in such a place to pay its way going forward.”
