A major local authority has been questioned by the Charity Commission for, in effect, “acting in breach” of charity law in relation to its management of a park.
Sheffield City Council is the sole trustee of Graves Park, open space of the same name in the city which has been designated as charitable land.
In September, an agreement was reached for a private company to run tennis courts at Graves Park through a 25-year lease.
But the regulator has raised concerns with the council that the deal might not have been in the best interest of the charity and queried how it complied with aspects of charitable law.
Questions were also asked about the council’s management of Norton Nurseries, a green space within the park, which was the subject of an agreement, or scheme, between the regulator and the council in 2009.
“We understand that the agreement with the private company involves a number of different sites which are being managed,” the letter reads.
“However, in the case of Graves Park, the land in question belongs to the charity.
“Therefore, the agreement should be between the company and the council as trustee of Graves Park and any proceeds generated from this lease arrangement should be received by the charity and used to further its charitable purpose.”
The letter asks the council to provide “full details of how the proceeds of the lease will be used for the same charitable purpose, including details of how the charity will continue to deliver tennis”.
The regulator said the council “has in effect, been acting in breach of the 2009 scheme and the Charities Act 2011.”
Sheffield Council published a draft response to the regulator explaining the situation with the disposal of park tennis courts and use of Norton Nurseries.
The response refers to the 2009 scheme agreed between the council and regulator which unified two existing charitable trusts of land, Graves Park and Norton Nurseries.
“The land to be disposed of is currently used as tennis courts which is consistent with the objects of the 2009 scheme and this use will continue,” the draft response reads.
“The lease agreement will be granted by the council as trustee and will be reflected in the wording of the lease agreement.
“No income is generated directly by the lease. The income is generated through the commercial agreement entered into with the operator.
“The operator remains responsible for the maintenance of the tennis courts under the terms of the lease agreement.”
Sheffield City Council said it had reassured the regulator that the Norton Nurseries area of the park amounted to about 2 per cent of the total land of Graves Park.
Richard Williams, chair of the council’s charity trustee sub-committee, said: “As the sole trustee of the Graves Park Charity, we are committed to working with the Charity Commission to answer any questions it may have and reassure it that all of the decisions made regarding all charitable land in the city, are for the benefit of the charity and the people of Sheffield.”