Honiton Community Complex, the charity that runs The Beehive, has responded to a town council statement about an ongoing dispute – and refutes some of the claims made.
It has denied it is planning to go into administration.
However, the charity (HCC) says this could be the outcome if the town council ‘refuse to meet its liabilities’.
David Perkins, a director, said: “The council are in breach of a lease that they entered into with the Honiton CC pursuant to which they owe HCC significant sums of money which they currently refuse to acknowledge and/ or pay.
“HCC are not currently planning to go into administration, but if the council continues to refuse to meet its liabilities this could be the outcome.”
In a news release on The Beehive’s website at the end of last month, the dispute was explained in greater detail.
A statement read: “The freehold of the Beehive building is owned by Honiton Town Council who granted a 10 year Lease to Honiton Community Complex in 2015.
“At the Beehive, Honiton Town Council occupies 3 offices upstairs and pay no rent. Instead, the Lease provides in effect an annual subsidy to Honiton Community Complex towards the costs of running the building – by paying 10% of the Service Costs as defined in the Lease. (You can read the Lease here.)
“For the first 2 years, Honiton Town Council paid this 10% and then the payments stopped. Since April 2017, Honiton Town Council has not paid any Service Charge.
“A dispute has arisen over the amount the Town Council should pay and the matter is now being referred to external arbitrators.”
At that time, the charity said it looked forward to the matter being resolved shortly.
EastDevonNews.co.uk has only just received the most recent statement.
‘We’re not an open chequebook’ town council says as Beehive charity ‘considers entering into administration’