For the first 15-20 years of Sideshore’s existence, income generated by rent from our tenants, car parking, events and energy generation will go to repay Grenadier Exmouth the cost of the development. There is no interest to pay bar inflationary increases and the Directors of the CIC are unpaid.
As soon as the development costs are covered, 100% of this income will be reinvested into the community. At this point the CIC may decide to change its structure and include other local people on the board. We are likely to create a grant-making committee to decide how we spend the income.
We may find that it doesn’t take as long as we think to repay the original building loan. Even so, the CIC is already looking at ways to benefit the community in the meantime, such as sponsoring educational programmes and local events.
The not-for-profit ethos of the development has been secured no matter what happens in the future. The full asset lock ensures that should the CIC ever face liquidation, assets will never be available to shareholders. We have specified that Devon Wildlife Trust and the RNLI should receive cash and assets in this situation, making these charities our ultimate beneficiary.
Why did Grenadier invest in a development which would make them no profit?
Find out how their eco credentials have led the company to balance profits with environmental legacies.