Council agrees to buy The Legacy Hub in Dalmarnock

Glasgow city council today (07 February 2019) agreed to exercise its right of pre-emption over The Legacy Hub, in Dalmarnock, meaning that it can buy back the former council-owned land and Hub building from Administrators.

In 2014, the council and a number of other funders supporting a new community initiative, sold the land for the construction of the Hub to the People's Development Trust (PDT) for a nominal sum of £1.

As the council was not selling the land for commercial value it created a right of pre-emption, effectively a right of first refusal in its favour to buy back the land, in the event of a future sale by PDT.  

Following the PDT being placed into administration at the end of January, the Administrators, KPMG, acting on PDT's behalf, have now offered the land and buildings back to the council for the same sum.

The council's Contracts and Property Committee agreed that it should take the necessary steps to accept this offer and acquire the ownership of the Hub.

Looking to the future of the Hub, the committee also agreed that officers could enter into negotiations with KPMG to buy any equipment within the Hub including IT and catering equipment, and furniture items that would be needed by the council for the future running of the building.

Following completion of the sale, which may take a number of weeks due to the legal and due diligence process, the council will also take over landlord responsibilities for the tenants still operating from the Hub.

Work will now take place by council officers to investigate a range of options for the running and management of the building. They will also consider, with input from key stakeholders, including the community, how best it can serve the local area while ensuring the Hub has a sustainable economic model for the future.  

Convenor for Neighbourhoods, Housing and Public Realm City Policy Committee and member of the Contracts and Property Committee, Councillor Greg Hepburn, said: "The news of the PDT's administration and subsequent impact on The Legacy Hub and the services it provided, including the nursery, was a blow to the local community.

"However, after repeated attempts to stabilise the governance and financial side of things it became clear that it simply could not continue operating the way it had been.

"Now that the council are planning to buy back the Hub we have a chance to start afresh for a well-run, ambitious and thriving community facility, giving the community what they need but also something that is sustainable for the future.

"I look forward to working with the local community to influence the future of The Legacy Hub and realise their aspirations."