Council and arts venue settle dispute over £850k loan and £1.6m s.106 monies

Tower Hamlets Council and a high-profile arts venue in the borough have settled a dispute over repayment of a £850,000 loan and outstanding amounts owed under a section 106 agreement.

The £850,000 was paid to Rich Mix in 2003 as a council contribution when the venue was created out of an abandoned factory.

The centre meanwhile claimed it was owed £1.6m by Tower Hamlets from a section 106 agreement for a development near the centre, which included a contribution to local arts work.

In a statement on the settlement the parties said: “Tower Hamlets Council and Rich Mix are pleased to announce that they have resolved the disputes between them and have brought an end to the legal proceedings currently in the High Court. The resolution of these disputes secures Rich Mix’s future and will benefit all of its stakeholders, users and the residents of Tower Hamlets.

“As part of the resolution, Rich Mix has received section 106 monies agreed by the council's Strategic Development Committee in August 2010 and has, in turn, agreed to repay the £850,000 loan given by the council to Rich Mix in 2003 and make a payment in respect of certain external costs.”