Honiton Town Council has confirmed that an agreement with Honiton Community Complex, which runs The Beehive, was signed today.
The paperwork means the council can release £20,000 to the charity and put an end to ‘past difficulties’.
Councillors have been assured the cash will secure the short-term future of the Dowell Street facility.
In a statement on Facebook, the council stated: “Discussions regarding future long-term funding of The Beehive will begin with the council next Monday 18th November 2019.
“Both parties are committed to coming to an arrangement which will ensure The Beehive is able to build on its success and thrive in the future.”