THE Orchard Club for elderly people at Haslewey Community Centre has given notice to the centre that it will quit its current base.

In a statement made to The Herald this week, the club, which has been in existence at the community centre since the building was opened in 2003, says it is looking for new premises in the town.

Negotiations with Haslewey’s board of trustees have broken down over a licence agreement which allowed The Orchard Club to occupy the building opposite Lion Green for just £1 per year.

The licence includes the use of the cafe, kitchen, kitchen manager’s office and main Orchard Club office.

But the club also pays Haslewey around £18,000 for the use of its rooms.

The Orchard Club says the board has, since a meeting in March last year, declined to meet them for face-to-face discussions and to agree a way forward. It has given notice it will leave as of March 31, 2017.

Orchard Club manager Hilary Owen told The Herald: “The people who use the club are our friends.

“It is important from our prospective that we get our message to all our users, staff and volunteers that we will continue if we cannot use this building. As things stand at the moment, Haslewey has accepted our notice of termination.”

A copy of a letter from the board of Haslewey trustees to users, issued last week and leaked to The Herald, says the centre runs at a loss of around £20,000 per year and the £1 arrangement “is no longer sustainable” – despite room lettings at an all-time high.

The letter said: “We are a community centre, Haslewey is not grant-funded and relies entirely on room hire for income. Room rates are competitive. If we were to increase our room rental rates to other users, this would be uncompetitive with other local venues thereby putting Haslewey at risk.”

Haslewey, which advertises itself as a “community centre for all ages” underwent a major refit and redecoration last year.

Haslewey says it will continue to run a cafe at the centre, and activities for the elderly, while the Orchard Club says it will also run a cafe along with its activities for the elderly wherever it is located.

The Haslewey letter also said: “We hope some grant monies will become available to us, but if that is not to be, then we will seek other ways to ensure the long-term viability of the dining area.

“In accordance with Haslewey’s charitable objectives, the board will ensure that many activities available for the elderly currently will continue to be offered and that there will be a welcoming and harmonious atmosphere for all.”

Ms Owen told The Herald the £1 peppercorn rent paid to Haslewey was agreed as a result of the club taking over the running of the cafe, which had been running at a loss in 2006. The cafe now runs at a profit, helping the club pay its way.

The club, which receives a grant of around £52,000 from Waverley Borough Council, runs as a day centre for elderly people, who can join for free and enjoy services such as bingo, fitness, yoga, art and computer sessions and subsidised classes along with outings and reduced prices at the Wey Terrace and Cafe.

The Orchard Club says the council is “fully aware of the current situation” and will continue to work in close partnership with the organisers to maintain services throughout this period.

Ms Owen added: “Our funding will continue and Waverley Borough Council are supporting us in our search for new premises locally. In the meantime it’s business as usual.”

The club issued a letter to its users explaining the situation on Wednesday this week, in response to the letter from Haslewey board of trustees, which was posted last week.

In addition, the club statement to The Herald, from Ms Owen and Orchard Club chairman Philip Currie, said: “It is with great regret that The Orchard Club confirms it has had to serve notice it will be leaving Haslewey Community Centre in a year’s time.

“The Haslewey Community Centre was built as an all-age community centre and as the home of The Orchard Club (formerly Age Concern) since its opening in 2003.

“The Haslewey premises are owned and operated by an independent charity, the Haslemere and District Community Centre (HDCC) – the Orchard Club paying annual fees for its occupancy.

“For the past 12 months, The Orchard Club has been in deliberations with HDCC to renew its licence. However, this has not proved possible due to the terms and conditions offered by HDCC to The Orchard Club.

“The licence HDCC is requiring the Orchard Club to sign is unacceptable for any organisation.

“It contains clauses whereby the licence can be terminated by HDCC with immediate effect, at its absolute discretion, without any reason, without any appeal process and where occupation fees can be increased by any amount.

“In addition, HDCC is requiring a doubling in occupation fees with an increase of around £20,000 pa.

“This increase in such charges would immediately result in The Orchard Club trading at a loss and it would eventually be bankrupt.”

The club’s statement added: “This unfortunate and unsatisfactory state of affairs is despite HDCC stating at the outset of discussions that renegotiation of the licence renewal would be on ‘mutually agreeable terms’ with the licence fee increase being inline with inflation.

“Sadly, the only plausible option has been for us to terminate our association with Haslewey and seek alternative accommodation in the town. When we do move please be assured we aim to continue to offer the full range of activities and cafe facilities to our members and customers, continuing with our existing staff, our excellent team of volunteers and in partnership with Waverley Borough Council.”

The news comes a week after The Herald reported Meals on Wheels services in the borough are under threat.