Government paid out $150,000 as a “trade off” to the Bermuda National Trust, in order to break its 99-year lease for the West End’s historic Springfield House.

Although an estimated $750,000 had been paid by Government into refurbishing the rundown site, further repairs demanded by the Trust would have proved too expensive to justify, Friday’s House of Assembly heard.

The figures were revealed by Community and Cultural Development Minister Wayne Scott, along with Minister of Works and Engineering Patricia Gordon-Pamplin.

Government first took over Springfield, an 18th century Somerset home, under a proposal launched 16 years ago under the then United Bermuda Party administration.

Asked by Independent MP Terry Lister why Government had chosen to withdraw Sandys Community Centre from the site, Mr Scott told MPs: “The Department of Youth, Sport and Recreation’s West End Community Centre occupied Springfield based on a 99-year lease with the Bermuda National Trust in December, 1998, commencing at $1 per annum.

“Government was responsible for all repairs in respect of the property. However, any repairs needed to be undertaken with consideration to the historic architectural nature of the premises, which is a Grade One Listed Property.

“The Bermuda National Trust required that all repairs be carried out using like for like materials. Given the age and historical nature of the premises, this proved to be considerably expensive.

“After having spent $750,000 on bringing the property into good repair in January, 2012, the landlord served an official notice on Government detailing works to be carried out at the property.

“Government was given the option to carry out the works at a cost of $489,936, or to surrender the lease.

“Government was not prepared to bear further costs on the property, and chose to surrender the lease at a cost of $150,000, and relocated the Community Centre to other premises, thereby saving some $339,936.”

Community programmes are now offered at a Government-owned facility in Boaz Island, he said.

Asked to give an accounting of Government spending at Springfield, Ms Gordon-Pamplin told the House: “The buildings at Springfield were in a very poor state of repair, and had been unused since 1993.

“Repair works at Springfield included strengthening the floors, a partial new roof, new public washrooms, new kitchen cabinets, new electrical fire detection and security systems, and air conditioning — and were estimated to cost the total of $750,000.

“The work was planned to be done in two phases. Phase one involved renovations to the main building, estimated at $350,000. Phase two was estimated at $400,000.

“The works were completed, but as this was some 14 years ago in total, it has not been possible to ascertain the exact breakdown of costs.”

She said Ministry staff were seeking archival information to provide MPs with a fuller response.

Mr Lister asked how the National Trust had been able to “force Government’s hand” in paying out $150,000 to walk away from the lease.

“I believe that was a trade-off, with not spending the $489,000 and allowing the National Trust to fix up the property with their own money,” Ms Gordon-Pamplin said.

Sandys North Central MP Dennis Lister chastised the exchange, saying that when the Springfield facility had been “basically an abandoned site” when it was first taken over.

“Government put money into that facility to bring it up to speed and make it a usable facility,” the Progressive Labour Party MP said. “Hence the $1 rental fee.

“The money that brought the building back up to speed was Government money, to bring up someone else’s facility. And the request for the lease to be broken was by the Government.

“So the request for that amount, I don’t see as being justifiable, and I’d ask for you to further investigate — because the answers just weren’t acceptable to me.”

However, Ms Gordon-Pamplin explained: “The information was that we could walk away — or we could acquiesce to what the Trust were demanding, according to the initial terms on the lease.” The Minister added that she would be happy to table the details of those terms before the House.