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Sports clubs face losing home after Network Rail increases hall rent from £4,500 a year to £32,000

00:01, 27 August 2016

Network Rail is leaving local sports clubs homeless by upping the rent on their premises a staggering eight-fold.

The rail operator, which owns the popular sports hall in The Circus, is raising its rates from £4,500 a year to £32,000 plus VAT.

Herne Bay Judo Cub bought a 21-year lease on the plot in Station Road in 1985 and built the hall using its own funds.

Lee Adams, centre and members of the Shogun Martial Arts Club. Picture: Chris Davey
Lee Adams, centre and members of the Shogun Martial Arts Club. Picture: Chris Davey

But Network Rail says it now has no choice but to treat the club as a new tenant and charge full market rate under its obligation to taxpayers.

Herne Bay Judo Club secretary Ryan Morrow says they only make enough money to break even. “It’s not a business – it’s all about the community. Network Rail has taken that away from us,” he said.

“It’s left us no option but to say we can’t pay that.

“We honestly don’t know when it’s closing. For all we know we could come back and find the locks changed.”

The Circus is also used by Shogun martial arts school, Mallard Fencing Club and Herne Bay Sports and Badminton Club.

Lee Adams outside the Shogun martial arts club at The Circus, Station Road, Herne Bay. Picture: Chris Davey
Lee Adams outside the Shogun martial arts club at The Circus, Station Road, Herne Bay. Picture: Chris Davey

Network Rail had initially granted the judo club a 21-year lease in the 1980s to use the railway’s spare land, with the club agreeing to fund the building itself.

The rail operator extended the lease for five years in 2010, but this expired in October last year.

The judo club says it was initially offered a new deal at £16,000 per year plus VAT, later reduced to a discount £6,000 – amounting to a modest rise on the original £4,500.

But two weeks ago the club says it was informed that Network Rail had upped its demands to £32,000 plus VAT.

Lee Adams, who runs Shogun and is a trustee of the judo club, said: “It’s a real blow. We’re having to look at other halls but they cost a lot more and there are other things we have to take into account.

“It has to be a safe environment – you can’t just walk into a hall and set up.”

Mr Adams is liaising with Network Rail. “I’m continuing to negotiate with Network Rail to try to get some common sense out of them,” he said. “The judo club has resigned itself to having to move but I’m carrying on for them.”

Mallard Fencing and Herne Bay Sports and Badminton Club also use the hall. Head fencing coach Jane Clayton said it had been the perfect venue for 10 years.

She said: “We are desperately looking for an alternative venue in or near the town to avoid having to move out of Herne Bay as that would undoubtedly mean the loss of some of our members.”

A report on the building's long-awaited opening in 1989
A report on the building's long-awaited opening in 1989

Network Rail says its hands are tied because it has a duty to the taxpayer to ensure best value.

Spokesman Chris Denham said: “The rent was kept low for decades as a result of the agreements signed when the club built its headquarters on railway land.

“Once those agreements came to an end, Network Rail carried out an independent rent review and wrote to its tenants to explain the situation.”

Mr Denham added that the operator is now governed by Treasury rules over how it spends public money.

“If we were to reduce the rent below market rates, we would need permission from the Treasury as we would be using national taxpayers’ money to effectively subsidise a local organisation – however worthy its cause,” he said.

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