Latest news on the future of the Museum

 Appearing below this is the sequence of events that have now led to the City Council requesting that we vacate the premises by the end of 2011.  We will remain open to October 30^th but will remove all items in the ensuing 2 months.  At this moment in time a number of plans have been produced but whatever the most satisfactory solution we feel is available, the vehicles and artefacts will be retained, though possibly on several sites.

 Since the decision was made known to us on August 22^nd, much media publicity has occurred.  Many feel as we do that the City have acted deplorably throughout, but Birmingham City Council have a long history of denigrating their industrial heritage, and we are just the latest victim.  The worst part is that the old tram shed’s future must be uncertain whoever is lined up to take it over, demolition seems to be the ultimate answer to a building that is not suitable for any other purpose than the one it has had for the last 20 years.  Perhaps someone thinks otherwise.

 The links which include the option to pledge funds towards the retention of the Museum remain open but will be removed if we do indeed move to pastures new.  Please read on to detail the final couple of years of intransigent talks with City officials.

 When we opened in 1992 this was under agreement with the City Council that the commercial rent of £43,750pa would be paid on our behalf by City Museums to the City as they own these premises.  In return we were required to open a minimum of 100 days each year, normally equating to every weekend.  This we have easily achieved but with City Museums' own budgets suffering cuts they were no longer in a position to afford to cover the rent, with effect from April 2009.  We, also, are not in a position to meet this figure.

 Various meetings have taken place during this period and, briefly, around December 2009 we thought that serious headway had been reached where there seemed a strong likelihood that the City would agree to sell the premises on the basis of a professional valuation we had obtained.  That was dashed in January 2010 when the City offered us the Freehold title, but at their valuation of £900,000, including a Restrictive Covenant enabling the building to be only used as a Museum.  This was a nonsensical offer which we had no option other than to reject.  The City's Property Services Department then refused to have further discussions and failed to respond to written requests for further meetings.

 However, they had already laid a marker as to their future intentions by threatening to claw back all rent due from April 2009.  This duly took place in August 2010, swiftly followed by a demand for the final quarter of last year.  That meant a total of close to £77k, but it was the final demand that resulted in further threats of action and we received notice of intended bailiff's action and also the exercising of the 6 month notice to quit clause in the original agreement signed with the City back in 1994.  While the bailiff's action was lifted, the quit clause has not been and this took effect from April 30th 2011.

 This, however, did finally bring us back to the discussions table following action taken by the City's Chief Executive, Stephen Hughes.  In late November 2010, 3 Museum Directors' met Council Cabinet members Randal Brew and Martin Mullaney, together with Property Services boss Peter Jones and Head of City Museums' Rita McLean.  The upshot of that meeting was a request for us to produce an updated and improved Business Plan for discussion by the end of January 2011 - a deadline we have duly met.  However, given the short space of time involved and no clear indication of what sum of money the City might require to enable us to obtain real security of tenure, it was not totally surprising that questions were raised as to how, and where, we would raise our suggested figure of £500,000.  This figure based on the valuation we had done + possible partial covering of back rent and some funds towards the redevelopment plans that could be started once we have purchased either the Freehold., or a long Leasehold - and not the 25 year lease that had so far been on offer.

 The meeting that took place on March 21st did not come up with any new solution that would be viable for either the City or the Museum. There was talk of a possible Community Asset Transfer but details are very vague at the moment and, indeed, this has not been pursued since. We still need to prove to the City we can raise a significant part of our figure of £500k, and at this stage we are still seeking pledges from potential donors.

 Two meetings have been held in July 2011, against the backdrop of an external professional valuation of the premises initiated by the City, but at our request also including figures for a 99 year lease or freehold.  These were on the basis that the building is used as a Museum only and as such a D1 Restrictive Covenant would apply.  While we were pleasantly surprised at the figures produced, we were slightly taken aback by being handed an offer letter at the first meeting in July.  At long last a 99 year lease was ‘on the table’ but at a much higher price that the valuation – more déjà vu of January 2010.  Added to that was a request for substantial rent arrears + ongoing commercial rent of £42k p.a. until funds were raised to purchase the lease.  This would mean that from August 1^st we would have to find £15.5k quarterly to satisfy the City’s demands – in our view totally unrealistic.

 We formally rejected this offer and sent a counter offer which, within their price for a 99 year lease, we considered any rent due was covered by that difference, and to be raised over a 2 year period, rather than the 3 they had offered.  This was also rejected and we were informed that they required us to vacate the premises by September 30^th.  The meeting held before the end of July resulted in deadlock and is clearly that way because of the back rent issue.  Legal advice will be sought in the lead up to a further meeting on August 22^nd, but if our view of the back rent is not correct then it seems likely that an orderly departure from the old tram depot will be required before year end.

 Any support you are able to give in the meantime will be extremely welcome.