TOP-SECRET contingency plans for the future of Colchester’ s multi-million pound art gallery are being drawn up by councillors, concerned it could run out of money by the end of the year .

Alternative uses could include hiring it out as a conference centre or opening it a as more traditional arts gallery.

Options for the controversial building, which is run by arts charity, Firstsite, were being looked at long before Arts Council England pulled the plug and put it into special measures last month.

Colchester Council fears the centre could close in November if it fails to meet daunting targets imposed by the Arts Council.

An investigation has revealed:

  • Despite the best efforts of trustees, Firstsite has lost hundreds of thousands of pounds of taxpayers’ money over the past two years
  • Last September the Arts Council bailed out Firstsite to the tune of £499,000, as it nose-dived towards insolvency
  • The Arts Council then gave another £85,000 in January, with still further emergency funding earmarked this year to covera“transition” period until a new management regime settles in
  • Firstsite has been given six months to agree and implement sustainable turnaround plans. It it fails to do so, the Arts Council could withdraw its funding alto - gether, leaving Colchester Council in solely responsible for it.

The Arts Council has told Firstsite by July 1, it must have a fully-costed recovery plan, including better financial monitoring and a new marketing strategy.

It must also submit monthly detailed reports to the Arts Council on its spending and income projections, and progress on hiring new staff to help its recovery.

In October it has been told it must show it has appointed a new board, including a new chairman, acceptable to the Arts Council.

It must also demonstrate tangible progress in formulating a plan to attract more visitors and income by 2018.

Gazette: Court action – costly legal battles look set to drag on long after the Firstsite

Colchester Council has put Anthony Roberts, the man who helped turn around the fortunes of Colchester Arts Centre 23 years ago, in charge of steering Firstsite through the improvement programme laid down by the Arts Council.

---

FIRSTSITE’S accounts show, in the financial year 2012/13, the organisation lost £415,554, eating into its contingency fund and leaving about £770,000 for emergencies.

Last year, it lost a further £350,331, leaving just £419,000.

These sums included about £120,000 over the two years in “payments to departing staff.”

Firstsite’s trading arm, Firstsite Enterprises, hires out of the building, organises events, conferences and meetings, and oversees the cafe/restaurant and gallery shop. It also organises film screenings, talks and debates.

In 2012/13, the company had a turnover of £405,00, but made an operating profit of just under £15,000.

Last year, its turnover reduced to £309,000 but profit was slightly up, at £17,041.