Summerhall: AMA are preferred
Preferred bidder for Summerhall confirmed as local house builder
Edinburgh based AMA Homes has been confirmed as the preferred bidder for the Summerhall arts complex, indicating it will become “mixed use”, while still “allocating a substantial proportion of the space for art, conference, entertainment and public space.”
The site’s existing owners, Oesselmann Estate Limited, have confirmed that in the short term, current tenants can remain in place. Summerhall Management will relinquish the running of the complex to two charities: Scot-Art, formerly known as the Edinburgh Palette, is set to take over the day-to-day management of the facility (see story here); and Summerhall Arts will take over the delivery of the planned and future programme of events (see story here).
A statement issued today, Monday 28 October 2024, on behalf of AMA Homes pledges that the arts will remain a priority “in developing a sustainable future for the buildings”, but makes no mention of the current financial crisis at the venue which has seen all Summerhall Management’s funds frozen, including all money owed to employees and to performers from this year’s Edinburgh Fringe.
In the statement, Dr Ali Afshar, co-Founder and MD of AMA, said: “We are proud to have been chosen as custodians of this iconic Edinburgh landmark and one that we know is so important to the arts community.
“Summerhall is a complex city centre site, steeped in history and containing a number of listed buildings. Its use as a Fringe venue and home to small businesses has given it a special place in the hearts of local people. As we start to develop plans for its future, we intend to treat Summerhall with respect and consideration for its rich history, with an ongoing commitment to continue supporting the arts on the site.”
structured consultation
While the theatre and Fringe element of Summerhall makes the headlines, it is also home to 110 rent-paying artists, arts organisations and businesses. Together they occupy 60 percent of the 130,000 sq ft city centre site.
Afshar says that following a full legal process, AMA will be: “undertaking a structured consultation with stakeholders, planners and the local community to determine the way forward for Summerhall, as we want to develop the best possible plan to achieve a sustainable and commercially viable future.
“We anticipate that this will be a mixed-used plan, but we can confirm that any planning application we make will include allocating a substantial proportion of the space for art, conference, entertainment and public space.”
Complexities of EdFringe payments
The situation at Summerhall is complicated by the matter of HMRC chasing Summerhall Management, the charity which currently runs both the venue and the events there on behalf of Oesselmann Estate Limited, for over £500,000 in Corporation Tax which HMRC claims are unpaid from 2018.
HMRC applied to the Scottish courts for a winding-up order against Summerhall Management, earlier in October, freezing the charity’s bank account.
At a court hearing on Monday 21 October a Sheriff heard submissions from both Summerhall and HMRC’s lawyers. The Sheriff neither dismissed the petition against Summerhall Management, nor granted HMRC the winding-up they requested. The case has been continued to Friday 29 November, allowing HMRC to adjust their winding up petition in light of Summerhall Management’s answers.
While Summerhall Management deny that they owe the tax, the frozen bank account and the continued court action mean that they cannot trade. No wages can be paid and none of the money owed to EdFringe performers can be paid out.
This period, after the end on of the Fringe, is when companies performing at Summerhall should be paid their box office income. Even though the majority of this income is through ticket sales made by the Fringe Society, the Society say they unable to pay the money straight to the performing companies.
This appears to indicate that the Fringe was acting as an agent for Summerhall, not the companies, and so has to retain the money in case Summerhall Management is wound up. In which case HMRC would have first claim on all assets.
The other arts-community tenants are not directly effected by this, as they currently pay their rent directly to Oesselmann Estate.
40 years’ experience
Dr Ali Afshar adds: “AMA is a well-respected Edinburgh family business, with more than 40 years’ experience in delivering award-winning developments in the Capital, including complicated sites such as the former Scottish & Newcastle Brewery and St Vincent Place.
“The redevelopment of Summerhall is a challenge we are very much looking forward to, and we want to reassure Edinburgh residents that we will bring forward a proposal that respects the local surroundings and the existing exceptional architecture, and that it will be carried out to the highest build quality by our professional team.”
A representative of the owner, Oesselmann Estate Limited, said: “We are delighted by AMA’s proposals for Summerhall and their commitment to continue supporting the arts at the venue.
“In the meantime, existing tenants can remain in place, and discussions are ongoing with two charities, Edinburgh Palette to take over the day-to-day management of the facility and Summerhall Arts to take over the delivery of the currently planned and future programme of events.”
Links
Those who would like to keep updated with the future plans for Summerhall are invited to register at AMA@building-relations.co.uk. They will be able to receive regular updates and have the opportunity to feed into any future proposals.
For more information about AMA, visit www.amanewtown.co.uk.
ENDS