Traders fight to stop city selling off business estate
Small firms now trying to raise cash to buy it themselves
DEFIANT traders in the heart of Birmingham have launched a fund to try to thwart a council sell-off that could destroy their business.
The entrepreneurs at Montgomery Street Business Centre, Sparkbrook, hope they can persuade Birmingham City Council to abandon plans to sell the site to the highest bidder at auction next month – and instead let them buy it themselves.
A sale to a developer would be a devastating blow for their mostly fledgling businesses, which include an ice cream maker, cake baker, vegan food producer, metal polisher, printer, number plate maker, Vespa scooter refurbisher, organic veg delivery firm, laundry, youth training centre and chocolate maker.
They want the council to back their alternative vision of selling the site to them to run as a non-profit business hub, owned and run by tenants – but so far they have been told instead to take their chances at the auction.
Co-operative founder and vegan food producer Alex McDonagh said: “We believe this estate should stay out of the hands of profiteers and remain available for people with business dreams to start up their ventures, just like we have all done.”
The units are due to go for auction on December 11, with a guide price of more than £500,000.
Traders say they were furious to find out about the auction when one of them spotted the site in an auction catalogue from Bond Wolfe Auctions.
A mooted sale the year before had fallen through, so the entrepreneurs thought the plan was dead.
“Nobody from the council approached us to discuss the new sale plan, we have been kept in the dark,” said Mr McDonagh.
“It means we have only got a few weeks if we hope to raise the money to put in a bid ourselves.”
The group need at least £150,000 as a reasonable deposit to stand any hope of winning the auction.
“There are very few business units of this size and cost locally,” added Mr McDonagh. “What worries the traders on this busy estate is that a developer might be keen to redevelop the land.”
The tenants are on six-month rolling leases, which means they would have limited protection if a commercial owner wanted to maximise profits by hiking rents or redeveloping the site.
A comment
in
the
auction
brochure said: “There is an opportunity for a redevelopment of this site to take advantage of the prominent location, canal access and distinctive historic buildings.”
The tenants, who pay an annual rent of £61,000 between them, are also thinking of applying for it to be listed as an Asset of Community Value. If successful, it would mean they would have to be offered first option on any future sale.
In a letter to the council, the traders said: “The units at Montgomery Street Business Centre were built by the city council to help incubate small start-up enterprises.
“They are small, low rent units that are ideal for small businesses in the community.”
They added: “We are very committed to saving our units at Montgomery Street along with our jobs, and we are confident we can cooperate together to secure the site and improve it for generations to come.”
In a statement about the sale proposal, the council said: “The Montgomery Street Business Centre is due to be sold via auction on 11 December, when any interested parties will be able to make bids. The co-operative is, of course, welcome to bid on the day and our officers would be more than happy to meet with members beforehand to explain the process.”
It should stay out of the hands of profiteers and remain available for people with business dreams
Alex McDonagh