To 

Pauline Barclay

Managing Director - City Property (Glasgow) LLP

And

Susanne Millar - Chief Executive, Glasgow City Council 

Trongate 103

Dear Ms Millar and Ms Barclay

I refer to the above property, located in my constituency. It is my understanding that during negotiations for an executed lease, City Property (Glasgow) LLP / City Property Glasgow (Investments) LLP is demanding a market rent for the premises.

I attended the opening of Trongate 103, in September 2009. It was designed to provide a long-term home for various artistic organisations in Glasgow. Consistent with that, I understand that the building was funded via various grants and funding packages. The building was never intended to be a pure commercial market venture for Glasgow City Council or City Property. Quite the opposite.

This is confirmed, for example, by newspaper articles from the time, see for example “£8m arts centre all set to be city’s creative hub”, Glasgow Herald, 29 July 2009. That article describes the funding package as follows.

“It has been funded by Glasgow City Council with a total of £5.75m, the Scottish Arts Council’s National Lottery Fund with £1.5m, Scottish Enterprise Glasgow with £500,000, and the Merchant City Townscape Heritage Initiative gave £750,000.”

In the ordinary course, such grant funding comes with conditions, for example as to use and the rents to be charged by the landlord. It would be unusual against this background, to seek to charge a rent that does not account for this background, not least given rules around State aid and subsidy control. I would be grateful if City Property / City Property Investments could confirm to me the basis on which it believes that charging a market rent is consistent with the relevant legal obligations under those arrangements, and wider subsidy control, (formerly State aid) rules.

I also assume that if the premises were transferred to City Property / City Property Investments, this would have occurred after completion of the project in September 2009, (consistent with the Annual Report and Accounts of these entities). I would be grateful if you could confirm whether the proposed commercial market rent is consistent with the terms of those transfers, (which would have been documented at the time).

We, in Glasgow, are rightly proud of our vibrant and world-leading cultural sector. Trongate 103 is home to leading organisations, for example, the Glasgow Print Studio is critical to print making, for which Glasgow and Scotland are world renowned. The prints of Elizabeth Blackadder who has been a great supporter of the studio, are held in collections across the world.

It is also home to Project Ability, which helps people with disabilities create brilliant art. This reflects the fact that Glasgow has a well-deserved reputation for excellence in enabling people with disabilities to create first class art, from paintings to music to dance.

It would be a matter of great regret for Glasgow if Trongate 103 ceased to exist as a home for artistic organisations. I hope that City Property and Glasgow City Council agree.

Please could you therefore outline to me the steps that both City Property and the Council are taking to resolve this issue.

I would also be grateful if you could explain the alternative plans for this building should the current organisations cease to be tenants? Has City Property prepared a robust business plan which demonstrates that alternative uses are feasible in a reasonable timescale?

Glasgow has too many empty properties, and if Trongate 103 is empty it will be a further blight on our great city.

I look forward to receiving a response in early course. 

Yours sincerely

John Grady MP

Member of Parliament for Glasgow East

Please note: There are a few points in the letter that need clarification -

City Property & GCC aren't trying to charge Market or Commercial Rent, but still an untenable amount plus huge service charges and buildings insurance which equates to a 10 x increase.