Former Youth Hostel – Statement

STATEMENT – FORMER YOUTH HOSTEL BUILDING, DROSKYN

Perranzabuloe Parish Council (PPC) is pleased to announce the successful selection of a new tenant for the Former Youth Hostel Association (YHA) building. Following notice from the YHA in 2024, PPC has conducted a rigorous process to identify the most suitable lessee. At the Full Council meeting held on 20 January 2025, it was resolved to grant the lease to Gramelan Limited, who will assume occupancy on 1 April 2025 on a 9-year tenancy valued at £35,000 per annum. As identified by the council’s financial planning process, this additional revenue will contribute significantly to the completion of flagship community projects around the parish, and serve to lower the annual tax burden on parishioners over the term of the lease. Gramelan’s business plan for the site includes a focus of 45% on establishing a community hub, 35% towards business dynamics, and 20% for preserving and developing the overnight hostel accommodation.

Addressing Public Interest

(PPC) acknowledges the recent misinformation, speculation, and criticism circulating regarding both the future of the Former Youth Hostel building and the decision-making process undertaken by the Council. It recognises that these concerns stem from the community’s strong interest in the site and its importance to the local area.

This statement is intended to provide clarity on the robust and transparent process PPC followed, ensuring that decisions were made in the best interests of the community and in alignment with our Objectives and Key Results.

Upon receiving notice from the YHA in September 2024, PPC’s Finance & Operations Committee initiated an Options Assessment for the property, led by the Clerk, in line with its Management of Property Portfolio and Disposal of Council Assets Policy (December 2023). This policy emphasises:

1. Optimising assets for community benefit.
2. Offsetting council costs and maintaining an acceptable precept level.
3. Ensuring property maintenance and compliance with regulations.
4. Safeguarding PPC’s financial interests.

The property was evaluated under the “Under Used” test, which considers whether income from the asset is below its potential value through alternative uses or disposal.

Options Considered

1. Disposal: A market appraisal by Vickery Holman revealed that selling the site would yield limited value due to market volatility and community opposition risks. Retaining the asset for rental income was deemed more advantageous.
2. Holiday Letting: The feasibility of managing the property as a furnished holiday let was explored but ultimately dismissed for practical reasons.
3. Marketing for Lease: It was resolved to market the property to identify innovative proposals that align with PPC’s objectives, including financial returns and community impact (Minute No 186/24/F&O).

Marketing and Selection Process 

• Advertising: Charterwood, PPC’s appointed property management consultant, listed the opportunity on Rightmove Commercial (6 November 2024) and it was also shared via PPC’s website and Facebook page, with a high level of engagement (including on local social media groups). 

• Proposal Deadline: Submissions were received by 6 December 2024. 

• Initial Evaluation: Nine proposals (in total) were reviewed on 10 December 2024. 

During the discussions on 10 December 2024, the proposals were evaluated and scored by members of the Finance & Operations Committee based on key criteria, including lease terms, break clauses, rental offers, financial viability, community benefits, youth hostel potential, and planning permission requirements. Scores ranged from 0 (no information provided) to 6 (excellent).  

Proposals that scored over 20 points were shortlisted for further consideration. Of the eight proposals discussed at the meeting, plus one additional submission via email, three proposals achieved scores exceeding 20 (26, 28, and 28) and were advanced to the next stage. 

These three applicants presented to a panel on 6 January 2025, comprising three Finance & Operations Committee members and the Property Manager (an independent expert consultant).

Evaluation Criteria

The evaluation was based on four weighted categories:

1. Rent and Lease Terms (35%)
   1. Rent offered, lease length, financial terms, and compliance with lease conditions.
2. Viability of the Business Model (35%)
   1. Financial robustness, planning requirements, and operational feasibility.
3. Community and Economic Benefits (15%)
   1. Contributions to tourism, local employment, and community engagement.
4. Sustainability and Environmental Impact (15%)
   1. Alignment with climate objectives, biodiversity, and ethical business practices.

Outcome

After thorough scoring and deliberation, the Finance & Operations Committee recommended Proposal 1 – Gramelan Ltd, which was discussed and approved by Full Council on 20 January 2025. Gramelan Ltd demonstrated a strong business model, clear community benefits, and adherence to PPC’s sustainability goals, securing the highest score of 86%.

• Proposal 1: 86% (8.6/10)
• Proposal 2: 65% (6.5/10)
• Proposal 3: 71.5% (7.15/10)

Tommy Job, on behalf of Gramelan Ltd said “Gramelan are excited to take on the youth hostel project, with plans to keep this fabulous building as a youth hostel adding benefits to the community with a community hub.  Cllr Gaisford, Chair of PPC said “The building used by the Youth Hostel Association is a much-loved Parish Council asset. It looks forward to the new tenant maintaining accommodation provision with wellness facilities and continuing to employ local people.”

PPC thanks all participants for their proposals and looks forward to working with Gramelan to maximise the property’s value for the community and the Council.

PPC is also looking forward to maximising the use of the Old Bank building as a Community Library and creating a Youth Hub at Ponsmere Valley to benefit local residents. Community groups interested in using either space is encouraged to contact the Clerk to express their interest at Clerk@perranzabuloe-pc.gov.uk.