Falls of Shin visitor centre put up for sale as proposal for community ownership is deemed 'not financially viable or sustainable'
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A decision to put the Falls of Shin visitor centre site up for sale was not taken lightly, according to the group behind its development.
It emerged this week that the centre is to be sold to a private sector bidder, after a proposal for a transfer of community ownership was deemed "not financially viable or sustainable".
The Kyle of Sutherland Development Trust (KoSDT) confirmed its intention to sell the award-winning £1.4 million attraction in a statement this week, stating that the submitted plan did not meet the most important criteria of viability, and it would not be in the best interests of the trust or the wider community to move forwards with the proposal.
The restaurant and gift shop has been closed for over two years as the trust has been unable to find an operator to run the facility.
After its AGM and a public meeting held in August last year, the trust board agreed with its main funding stakeholders – the National Lottery Community Fund (TNLCF) and Highlands and Islands Enterprise (HIE) – to carry out a process that could enable continued community ownership on the site. A deadline of November 30 was set by the lottery fund for a viable plan to be presented.
A joint proposal for a transfer of ownership was submitted within this timescale by members of Lairg and District Learning Centre and Kyle of Sutherland Hub – however, the statement made by the trust this week confirmed that the proposition has been rejected.
The trust went on to state that the financial plan for the community transfer forecasted "significant trading losses" that would need "considerable, ongoing, and as yet unsecured, support from public and community funds" to subsidise losses.
Manager of the KoSDT, David Watson, said: "We have not taken this decision lightly. This is an incredibly important decision to get right for our community in the best and most professional way we can.
"We had one community proposal put to us, but the business plan and forecast that was presented showed significant losses in its first three years. In addition, it was proposed that these losses could be covered by as yet unsecured public and community funding. It was very clear that a viable proposition had to be submitted by November 30 and the finances put to us were in no way, shape or form viable."
The trust, supported by the lottery fund and HIE, will now begin to look at the parameters of a sale of the site and how this can proceed.
Mr Watson added: "Going forward, we cannot see any alternative for community ownership and we have been very firm right through this process that the best way for this site to create long-term employment, proper economic wealth and community benefit is for a private sector operator to run it, as it was before.
"We now head into another period of uncertainty. There a lot of legalities to be unpicked yet. The lottery fund still has security over the building and as per the terms of the funding, in the event of a sale they would be able to reclaim the amount invested. What we would like to do is negotiate the reinvestment of that money for projects within the Kyle of Sutherland community, to ensure that the funding can leave a legacy in the area.
"That is what we would like to make a case for, but that might not be possible. We are keen to work with the people at the lottery fund to see what can be done."
