Aire Street Workshops: Leeds council issues statement on future of building as tenants told to find new homes

Aire Street Workshops, home to more than 30 independent businesses and around 150 employees, is likely to be sold as the council takes sweeping measures to cut its budget deficit.

Businesses have been told to find a new home by January 31, 2025, and one freelance artist told the Yorkshire Evening Post he is “gutted” that the workshop’s future is at risk. 

In a lengthy statement released on Friday, the council said it was “determined” to support the site’s tenants and help them find new premises in Leeds, as it accused the building’s leaseholder of delaying communication with the tenants to inform them of the likely sale. 

The council also confirmed that it was open to a range of offers as part of the sale selection process, including options that would allow the building to operate in its current form. 

A council spokesperson said: “We estimate that, for its present use to continue, the building would require a seven-figure investment to ensure it meets regulatory and energy performance standards.

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“The unprecedented budget pressures facing the council mean we are unfortunately not able to fund that level of investment.

“Furthermore, even if the necessary funds were to be found and the work carried out, we anticipate that the improvements to the building would have to be reflected by rent rises that would place an unfair burden on the current tenants.”

The council said it held a meeting with the building’s leaseholder, LCVS Enterprises, in September last year to inform the social enterprise company that Aire Street Workshops had been identified as a likely asset for sale.

The spokesperson added: “At September’s meeting, we also agreed to a request from LCVS for their current lease to be extended through to January 2025 so that their tenants had more time to find alternative accommodation prior to any sale.

“However, it appears that the tenants were not informed of the plans for the site until last week.”

In a statement released to the YEP, the LCVS board of directors said: “LCVS were very sorry to have to inform its Aire Street Licensees that our lease from Leeds City Council would come to an end on January 31, 2025.

“Sadly this decision means an end to a 42 year Aire Street LCVS relationship with the Council and the fact that all current licensees will need to vacate their units by this date.

“LCVS are happy to speak with Licensees to discuss their concerns if that is what they would like.”

LCVS did not comment on when it had informed the Aire Street Workshops tenants that the building was likely to be sold.

A petition, launched by one of the building’s tenants, is calling on the council to halt the sale and has been signed by more than 4,000 people. 

The council said it was “keenly aware” of the contribution made by small businesses in Leeds, and that it was developing a targeted package of support for affected tenants. 

Council services face millions of pounds in cuts this year as the cash-strapped council seeks to balance its books. The council needs to make £63.9m in savings by March 2025 in order to balance its budget and avoid issuing a section 114 notice, effectively declaring bankruptcy.