A REVIEW of a council’s decision to give financial aid to a popular music venue and studio has backed the decision.

But councillors will continue to monitor the business plan and lease agreement drawn up by The Forum music centre, which is being given a £6,000 temporary funding package by Darlington Borough Council, as well as a possible £80,000 loan.

The centre, in Borough Road, Darlington, announced it may have to close next month because it had failed to negotiate an £80,000 unsecured loan from the council.

A community interest company, Humantics, has been set up to take over the running of The Forum. The council reviewed its position following protests from users of the centre, which also provides rehearsing and performance facilities.

Yesterday, the council’s resources scrutiny committee examined the cabinet’s decision to provide financial support after the Conservative group “called in” the decision.

The group wanted to examine in detail the commercial position of The Forum, as it had not been privy to information provided to the cabinet.

Council officer Richard Alty said a review of the business plan had been commissioned, but was yet to be completed while a proposed 25-year lease was being negotiated.

Under the package, five years’ free rent would be given to the organisation in exchange for about £50,000 of work being carried out on the council-owned venue.

He said the £80,000 loan was needed because expected grants and loans from other sources were no longer available.

Humantics is also receiving £130,000 from regional development organisation One North East to buy the Forum’s assets, including equipment.

He said a full decision on the possibility of the £80,000 loan would be taken when the business plan review is complete.

He said the decision to help the organisation had taken into account the social and economic benefits to the borough of the venture, which would be run under Humantics as a social enterprise.

The decision must be made by September 1 – the proposed date of closure of the venue if funding is not secured.

The committee excluded the public and press to discuss the financial details of the project.

Committee chairman Councillor Ian Haszeldine said the committee was fully supportive of The Forum, but had called in the decision to ensure taxpayers’ money was being properly used.