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Community Stations Initiative
Project Officer Susan Miles MBE; Tel 01952 811880; Mob 07866 295 377
susan@acorp.uk.com

Concept
The Community Stations Initiative is based on community and not-for-profit use of empty station premises which are no longer needed by the rail industry and deemed to have no commercial value. Piloted in the East and West Midlands from 2005, this initiative has since been accepted as national policy -

  • Linking the railway into the community
  • Assisting and supporting rural communities and market towns
  • Revitalising stations with additional non-railway related activities
  • Enabling community groups to offer a wide range of social benefits to their communities.
  • Adding value to the rail services and station facilities
  • Providing a feeling of safety and well-being to passengers

To let signThe key to leasing the empty station premises for Community use is the Tri-partitelease which extends beyond the term of the station lease.

Time was taken to adapt a lease that can be used on a national basis and meet the needs of the voluntary sector while dealing with the issues of railway safety and control.

The premises are let at a peppercorn rent.  Community tenants would be expected to renovate the premises to meet their needs and at their cost.  Many have received major grants from a variety of sources including the Railway Heritage Trust.

The Community Stations Initiative is managed by ACoRP, who can provide help to TOC’s with empty underutilised premises and to communities that want to see their local stations regenerated.  

 

 
 

Overview
Network Rail owns the infrastructure of the national railway system including, buildings, land and track.  In the main, the use of these facilities is leased to regional Train Operating Companies (TOC’s) who operate a range of stations on a franchise basis for varying periods of time to provide the requisite rail service and station facilities.

Whilst seeking to maximise the commercial return on their property portfolio for the wider benefit of the railway, Network Rail and the TOC’s have some properties on their books that are simply unattractive to commercial tenants.

The new use of empty stations premises is bringing a wide range of social benefit to:-           

Communities
The Environment
Transport
The Arts
Education and Training
Market Town Regeneration

 

National Policy
Community and Not-for-Profit use of station buildings.
An extract from the Network Rail Utilisation Strategy - Investment in stations - a guide for promoters and developers  June 2008.

Community and Not-for-Profit use of station buildings
Occasionally, there are buildings on stations which are no longer needed by the rail industry but could be of use to other organisations. If the alternative use is for commercial purposes (e.g. offices for an estate agent or local authority, or a commercial restaurant) normal lease arrangements may be possible and promoters should initially contact the relevant TOC. Where the proposed use is for a community/not for profit purpose, then special arrangements may be possible depending on whether there is an alternative commercial use and other local factors.
A standard tri-partite lease arrangement has been developed to cover the relations between the not for profit organisation, the train operator and Network Rail (as freehold owner of the station).
This is intended to allow organisations which provide benefits to the community to take on property which would otherwise lie idle. Uses to date include a youth/community development charity and an arts project using station property with little commercial value.
In order to reduce costs to all parties, the scheme relies on using the templated contract and there is little room for bespoke arrangements which would drive up the costs to all parties. It is also likely that the community/not for profit organisation will need to raise some funds to cover legal costs and allow for the refurbishment of the property as the railway will not be able to provide this funding - in return, the rent is potentially on a peppercorn basis.

Network Rail logo
 


Innovative Tri Partite Lease
The key to leasing the empty railway premises for community use is the Tri-partite lease which extends beyond the term of the TOC’s franchise (the station lease).

Made between Network Rail (the superior/reversionary landlord), the TOC (the landlord) and the Prospective Tenant, the lease deals with the tri-partite lease structure and with the issues of railway safety and control which cannot be changed.  It has been tailored to meet the needs of the voluntary sector and is essentially non-negotiable.

It is likely that the community/not for profit organisation will need to raise some funds to cover legal costs, including the Landlords’ legal fees and for the refurbishment of the property as the railway will not be able to provide this funding.

Where the TOC agrees to use the same solicitor as Network Rail considerable savings have been made on legal fees.

ACoRP is grateful to Wragge & Co, Solicitors, who have acted on their behalf for community tenants on a pro-bono basis.

 
 
Wragge & Co

With the agreement of the Landlord,  the Tri-partite lease can be for a term of 25+ years if required.   This security of tenure could attract major capital grants from a range of funders.

Tenants cannot sublet the property; however consideration is given to those who wish to offer a shared use of the premises to another organisation to provide additional services and extend the opening hours of the premises.

At the appropriate time, a copy of the Tri-partite lease can be obtained through ACoRP together with detailed explanatory notes which have been prepared by Wragge & Co, Solicitors, to support this complex document. 

             
         

The premises and improvements

The premises have been identified as surplus by the TOC, the size and condition vary and they are, in the main, let as viewed. Any improvements to the premises will be carried out by the community tenant at their expense, to meet the needs of their use.

  • WHY ARE THE STATION PREMISES EMPTY?
  • Not required for rail service provision
  • Unused in recent memory
  • Deterioration of the premises
  • Previous lettings not succeeded
  • Not viable for commercial use

    Footfall
    Insufficient Parking
    Renovation Costs
    Fees

Tenants have attracted support and funding from other sources including local development agencies and strategic funding, local authorities, local charity funding, the National Lottery and the Arts Council. 
Where station buildings are listed or within a conservation area, several have been supported with a grant from the Railway Heritage Trust.

Railway Hritage Trust logo

The initiative has also attracted a considerable amount of “in-kind” support.

 
             
         

ACoRP Advice and Support

ACoRP provides help and support to TOC’s who have empty, underutilised, station premises available; communities that want to see their stations regenerated; and to show funders what enormous benefit their funding and support could make.

Help and support available -

  • Negotiating legal and property matters
  • Establishing a support team
  • Finding ‘in kind’ support
  • Inspection of premises
  • Marketing the premises
  • Arranging tenants’ viewing days
  • Tenant assessment & recommendations
  • Project planning & consents procedure
  • Preparation and dissemination of information
  • Arranging launches and celebrations
  • Ongoing guidance and support
  • Chasing up!

Contact:-
Susan Miles MBE
Community Stations Initiative

Tel: 01952 811880
Mob: 07866 295 377
e-mail susan@acorp.uk.com


 
           

Overview button National {Policy 3 way lease New uses button support Community Station examples