Awarding £325,000 to Viva Arts for a business hub – with the promise of 50 jobs – has caused a backlash in Soham where a sports centre is crowd funding for £100,000 to repair its roof.

Cambridgeshire and Peterborough Combined Authority (CAPCA) ‘signed off’ on the conditional loan from their £13m market towns initiative after East Cambridgeshire District Council successfully applied for the grant.

Viva narrowly won through the application process when its bid secured 75.8 per cent on an appraisal matrix (the ‘pass’ rate is 75 per cent).

But it was comments made by Cllr Joshua Schumann, deputy leader at East Cambs Council, at the CAPCA board meeting that has enraged some residents.

Cllr Schumann said the location of the proposed new hub at Spencer Mill and next to the rail station was ideal.

"Very close to Spencer Mill is a small cluster of industrial units, which have become in state of disrepair and become unviable,” he said.

Viva would develop that area, he said, and it would be helped enormously by the improved connectivity the station offered.

Mayor Dr Nik Johnson told him: “You sound very passionate about it.”

But one businessman wants to know “Did you engage with any of the existing businesses prior to putting in the grant application with regard to how they could benefit or assist in your proposal?

“Could you also address the issue raised around the parking and access to the mill?

“Like most I would agree that money invested in Soham is beneficial.

“But also like most I can't understand why existing facilities such as Ross Peers are having to crowd fund to repair their roof whilst money's invested elsewhere.

“Would it not make sense for local council to invest in improving already existing community facilities?”

Another resident felt that if the units had been empty for years “how about repairing them and giving them to new businesses or businesses that are looking for new big units to rent?”

And one other resident questioned why more help could not be found for the Ross Peers.

“Our only multi sports facility and possible established community hub, Ross Peers is crowd funding for a new roof,” said the resident.

“Isn't that where our district councillors should be directing their passion for grants?”

Ross Sports has launched its crowdfunding bid for £100,000 and says it is looking at different ways of finding this sum.

So far, the fund has raised £145.

You can donate here

Cllr Schumann told one post on a Soham Facebook page that “ I’m sure you have seen and appreciate that we have sadly lost a number of employment and industrial units around Mereside and many of these have been empty for some time.

“I did not aim my comments directly at yours or any business and I’m delighted that you and your business are doing well - long may that continue,

“The more local employment the better, that is something which I will always welcome and support.”

He added: “Grant funding to support employment is available to a wide range of businesses and business people and I’m sure you’ll join me in being pleased to see money being spent in Soham and the surrounding areas.”

CAPCA says its £13m market towns fund is to ensure “our towns remain vibrant and thriving places”.

Hewdon Consulting Ltd of London drew up the appraisal report that recommended the Viva award.

“If successful they are proposing to build a 3-floor extension to create flexible office space and enhance the functionality and facilities of all three floors,” said their report.

“This office space will be let to various groups from theatre goers, training providers, to business organisations and will help to secure a daytime income stream as opposed to solely an evening one, for the charity.”

However, the £325,000 is conditional and Viva has been told to submit a “suitable business case” showing the rational for the project.

Viva will also be tasked with demonstrating how the 50 jobs are expected to be delivered by the project and where demand for the space is expected to come from.

They will also have to submit evidence of subsidy control (state aid) compliance and a detailed cost break down with details of a tender process and at least three quotations sought.

CAPCA says it also wants “confirmation that all project revenue costs and any capital cost overrun will be met by Viva Arts and Community Group”.

Viva told CAPCA it hopes to have been the project completed by December this year although Hewdon pointed out that “planning has not yet been secured and contractors are still to be appointed”.

The project is expected to be completed by December 2022.

“The application was not submitted with a business plan showing how it will operate; source tenants from; and what its operating costs / charges are,” says Hewdon.

And referencing risks, it adds that without the benefit of a business plan “it is not clear how a community arts charity proposes to run a commercial operation providing business space with all the VAT and landlord and tenant obligations that accompany this”.

Hewdon says the building extension is modest and should be relatively straight forward to deliver but it is still in the early stages of development.

The project is said to align strongly with CAPCA’S ‘opening up our town through better connectivity' theme following the opening of the new rail station.

“The Town Plan aspires to use this an opportunity to attract businesses to base themselves here and develop the area around the station which this project will support,” says Hewdon.

It says Viva Arts and Community Group have provided a list of grants received from March 2019 totalling £1.9m.

“The new subsidy control bill has not yet received Royal ascent but has had its 1st reading in the Lords,” says Hewdon.

“The current bill permits 'services of public economic interest' at varying levels up to £15m.

“If supported, an appropriate state aid (subsidy control) report is needed from the Arts group showing its compliance.”

Viva says they do not propose match funding for this phase of the Mill redevelopment.

East Cambs Council leader Anna Bailey tweeted over the weekend that her party has a proposal coming to full council this month.

It will, if agreed, make capital funds available to support leisure centres in the district.