Museum secures funding needed to save it

The local council has loaned them the money

Exmouth Museum is a step closer to being saved after winning their race against time to find the cash needed to buy their current home.

The Victorian building in Sheppards Row is owned by South West Water and the site had been offered to the Museum before they put it up for sale on the open market.

South West Water want £150,000 and the Museum currently has funding available of at least £45,000.

East Devon District Council’s cabinet on Wednesday night agreed to issue a loan to Exmouth Museum of up to £105,000 to enable them to purchase the building.

The Council would borrow monies from the Public Works Loan Board and enter into a back to back agreement with the Museum at the fixed interest rate obtained. This would be around 1.71 per cent and result in a required annual payment from the Museum of £5,180, although this would reduce if the value of the loan required was less.

The deal would be subject to a property valuation to ensure adequate security over the loan and assurance obtained from the Museum of the ability to meet the annual loan payment.

Simon Davey, the Strategic Lead Finance, Cllr Ben Ingham, leader of the council, and Cllr Ian Thomas, finance portfolio holder, would have to unanimously agree to issue the loan to the museum.

Concerns were raised by members of the cabinet over the vagueness of the proposal, the lack of detail as to how much they would be lending, and how the museum could finance the repayments.

But Cllr Geoff Pook said that there are some experienced and skilled people who would be able to take a decision as to whether to go ahead or not.

Cllr Geoff Jung added: “The Museum is very important for Exmouth. If they fail to pay the repayments, it would be secured by the property, so what is the risk? It is worth preserving and there is not much monetary risk. If we lose the museum, it would be a great shame.”

The Chairman of Trustees, Cllr Steve Gazzard, said that they were grateful for the offer of the loan and that once they did own the building, it would enable them to make grant funding application for further improvements to the museum.

The cabinet voted by eight votes to one to approve the loan, subject to the security checks taking place.

Exmouth Museum was founded in 1985 and is split over two 19th century buildings, which in a previous life were a cottage used by a foreman of the local council and stables which were later used to store the local authority fire engine.