A THREE-YEAR dispute over a lease at Saltburn's community centre and theatre is rumbling on with the Community and Arts Association seeking advice from the Charity Commission.

Association chairman Philip Thomson said the annual meeting had decided in principle to form itself into a limited company.

"Contact will be made with the Charity Commission because we are a registered charity and everything has to be cleared with them and Companies' House.

"This will take time. Until the company is in place, the committee is not prepared to have the disputed clause deleted because this is the only protection we have if there is a difficulty paying for structural repairs."

The annual accounts for the year to March 31 showed that last year £32,000 was spent on repairs to the 100-year-old building, a former Methodist church and hall, which is owned by Redcar and Cleveland Borough Council.

"The figure was slightly down on the previous year," said Mr Thomson.

He said the council was unwilling to rent the premises to the association, give it a 99-year lease or provide any funding for maintaining the property.

"We signed a 30-year least four years ago, but in that lease there is a clause which could be interpreted by a lay person and legal viewpoint to say the council retains a responsibility for the structure.

"The council disputes this interpretation. This clause has prevented us from getting funding for the building because at least one potential funder made an award and then withdrew it after seeing the lease.

"So we are stymied about getting outside funding. To address this dilemma, the council has offered to withdraw the clause from the lease."

Would the association accept this offer? Mr Thomson said the new committee would not move until a limited company had been formed.

The association, which took over the premise in 1970, lets rooms to 15 groups. It attracts 500 regular users ranging from theatre companies and a children's playgroup to a film club and didgeridoo classes.

It made a record loss of nearly £20,000 last year.

The council charges only a nominal £1 a year rent for the premises at the corner of Albion Terrace and Windsor Road, Saltburn.

Theatre performances have been supported financially by the council