Arts charity seeks to postpone court hearing in battle with council over £850k repayment

An east London arts centre is going to court next week to seek a postponement of proceedings brought against it by the London Borough of Tower Hamlets.

The Rich Mix centre will argue that the proceedings, due in court for three days on 20 July, should be delayed pending the election of a new mayor for the borough.

Elected mayor Lutfur Rahman was ousted after an election court hearing into allegations of impropriety around last year’s election campaign. A ballot for a new mayor is due on 11 June.

Rich Mix chief executive Jane Earl said the dispute concerned a claim by Tower Hamlets for repayment of £850,000 paid by it to the centre in 2003, and the centre’s claim for £1.6m from the council due as part of a planning gain deal.

Earl said: “The £1.6m was from as section 106 agreement for a development near to the centre, which included a contribution to local arts work.

“It was not paid, and the previous mayor appeared to believe that the council could keep it.”

The disputed £850,000 was paid as a council contribution when Rich Mix was created in an abandoned factory in 2003, and Earl, who joined several years later, said it was unclear if this sum had been due to be repaid and, if so, when.

The council did not respond to a request for comment.

Mark Smulian