THE future of one of Ulverston's most popular buildings will be formally transferred to the community in which it stands following a landmark decision yesterday.

District council bosses have given an official green light for the Coronation Hall to be taken over by Ulverston Community Enterprises on July 1.

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The move will allow members of the newly established group to attempt to turn around the fortunes of the building, along with its indoor market hall, in New Market Street, and street market, over the next five years.

But council chiefs have been warned the future of the Coro is "bleak" should the deal fail at any stage before 2021.

South Lakeland District Councillor Jonathan Brook said: "It has been a huge amount of work to get to this stage and has really shown a way forward for localism and a prosperous future for communities.

"But there are risks.

"Ulverston Community Enterprises is a fledgling organisation and as such the outcome is by no means certain.

"If this project were to fail the outlook for the Coronation Hall would be exceptionally bleak."

Daily discussions to iron out the finer details of the lease are taking place ahead of the July 1 deadline.

The deal is now to include an agreed £50,000 sum towards the running of Ulverston's community assets from SLDC instead of a percentage of car parking income from the town – a move agreed by both parties to carry the lowest risk to UCE business plan.

There will be no rent payable on the building itself with any profits generated during the day to day running of the Coro ploughed back into the operation to help guarantee its future.

Judith Pickthall, a director of Ulverston Community Enterprises, said she was "confident" the scheme would prove successful.

"We are very pleased this has now been agreed.

"It's going to be tough, but I am confident we can do this and thankful for the support we have received from SLDC on this project."

South Lakeland District Council announced it was considering a sell off of the Coro two years ago after it revealed the property was costing the authority £365,000 a year to run.

But the proposal prompted a public outcry and set into motion a two year scheme to launch a community group take over in a bid to keep the building open.

The transfer of the running of the property will save SLDC £117,000 over five years.

Ulverston Town Hall is set to be transformed into 14 affordable homes as part of SLDC's long term plan to rationalise its assets in the town.

SLDC leader Cllr Peter Thornton said: "There is a clear saving with this option but not as much as if we had just shut it.

"That's the decision we took as a council because the Coro is important to the people of Ulverston and Ulverston is important to us."