I read with interest the post from KCT dated 2nd March. As this matter has been proceeding along the judicial path it is only now I have been able to reply.
The position advanced by KCT is that “the tenants of the Ice Factor building have failed to pay full rent and as a result the KCT are considering remedies to recover the rent and the premises”.
1. Pay attention to the use of the word ‘full rent’ in the KCT statement. The matter at hand relates to a claim by KCT for rent payments during the Covid-19 lockdown.
2. We had agreement from the then board of KCT that our rent would be reduced (not stopped as they did with other tenants) for the period of lockdown.
3. Prior to lockdown we were in credit with KCT. The board also agree we could pay insurance payments in tranches (we had already made the payment in full).
4. Ice Factor was closed throughout this period of nearly 18 months.
5. Upon reopening to the public, we immediately recommenced full rent payments to KCT.
6. Despite this, we received a demand from the Chairman of KCT (Stephen Connolly) for all of the ‘back rent’ which he claimed was due during the Covid-19 closure period. Incredibly, Mr Connolly and the board of KCT apparently agreed at this time that the rent for Ice Factor should also increase! Mr Connolly you may recall titles himself the Chief Executive Officer of Leven Adventures – which proposed to create a zip line in Kinlochleven making use of Ice Factor and our car park.
7. As there was clearly a misunderstanding, we contacted the board of KCT repeatedly requesting a meeting. All attempts were refused. Even when the current Finance Minister contacted KCT to suggest a meeting might be in order this too was ignored. Finally, I offered to pay for professional mediation through a recognised company in Edinburgh. This was also ignored. We had previously had major issues with KCT’s production of statements, errors in posting, VAT mistreatment etc . To assist we provided our accountant and 2 finance assistants to help in the past. This offer was also refused.
8. The amount which KCT were pursing was less than it would cost in mediation. So why not simply pay?
9. Since 2003 we have paid KCT over £822,000. Those payments are for the rental of the former abandoned and derelict Carbon Bunker.
We secured all the funding to repair the building. A new roof, extension, floor and the entire North elevation. Not one penny came from KCT. To secure that funding I travelled across the country meeting representatives of Sport Scotland, National
Lottery, Highlands and Islands Enterprise, Lochaber Limited et al and literally boarded a bus full of EU commissioners to persuade them to back the project.
10. The funding raised was:
11. We expected the build would cost in the order of £2m. When the tenders were submitted, the costs came back at £3.4m!
12. For weeks I worked with the architects, surveyors and specialist build companies to reduce the costs. We stripped out absolutely everything that was not critical to the climbing operations.
13. Despite those swinging reductions, the final tender submissions were for £2.7m. We were still considerably short.
14. That gap was closed by my wife and I. We personally invested £638k into Ice Factor made up from selling our home, borrowing personally and in a business capacity with large personal guarantees.
15. In the last 20 years, that initial ‘investment’ has been further supported by a further £1.523m of investment into Kinlochleven. Adding in the elements that were cut when we first opened (new bouldering walls, café, bar, mezzanine, lecture areas, tech stores, upgrading the HVAC, ground works, building improvements, car park grading, 22,000 climbing holds etc etc. Not conjecture, simply a matter of record –see references below.
16. In November 2022 our company bank accounts were seized by the law firm representing INTU properties PLC, for a guarantee we provided for the ski facility in Braehead. This removed at a stroke the working capital of the company built up over 20 years. INTU went bust in June of 2021 and since then the insolvency practitioners have turned over every stone to recover any sums.
17. KCT heard this via the well publicised posts by 3 of the Ice Factor instructors (who despite their public protestations were in fact paid by my wife and I from our own funds). KCT’s response? They immediately dropped off a further demand for that month’s rent and wrote to various agencies to advise them Ice Factor was in trouble.
18. When this matter was first presented to the courts it was rejected. KCT engaged one of the most expensive (and notoriously confrontational) law firms in Edinburgh. Notwithstanding the costs, the amounts KCT were seeking to recover were a fraction
of the threshold required to go to court (The court of session has a minimum threshold of £100k).
19. We kept Ice Factor open throughout this period (November 2022 – Mar 2023), with all costs being met from our personal funds. With a skeleton crew and building maintenance issues, we made the decision to close for March with a longstop of Easter.
20. As the facility was closed, we conducted all the routine maintenance of the plant and closed up on a Monday evening. The next day we got a warning that a former member of staff had entered the building using an entry code he had gained by subterfuge.
21. I returned to Kinlochleven. When I entered the building I found 3 members of KCT in Ice Factor helping themselves to the stock in our freezers and cold store. They explained as far as they were concerned the lease was forfeit and they were allowed to enter.
22. At this point I had senior counsel from Edinburgh on the phone. He was aghast that any landlord (let alone a social enterprise) would behave so badly. The entire point of laying cases before the courts is to ensure that the legal process is followed, each party presents its arguments and then there is a ruling. KCT decided to circumvent this step. In fact all steps and go straight to the take over.
23. KCT were advised by the Police and Lawyers that they had no right to enter the building. Moreover, they absolutely had no right to help themselves to Ice Factor property. I was advised to secure the building.
24. After adding security chains and additional locks, I was contacted by the Police to advise us that KCT had again broken into the building, allegedly as they were concerned about the ice wall melting! I took video footage of the centre confirming all elements were in perfect working order. Now we have a myriad of issues. Stock from the retail unit has been removed and the PPE register is missing.
25. The upshot of this? Having read some of the withering comments on Facebook, the overt hostility from KCT and the illegal and irrational actions taking place I will no longer support KCT. That does not mean they can help themselves to our assets. The climbing walls, stock, retail, equipment, PPE are all owned by me. Should an offer be made that is fair and equitable then it can all be simply handed over. If not, then I will employ all means at my disposal to ensure the satisfaction of the company shareholders, stakeholder and creditors.
26. I would love to say thank you to KCT for their support over the years. Unfortunately, that organisation (which ironically I helped found) has been nothing but needlessly confrontational throughout.
27. The good thing about the truth is that it can be evidenced.
March 22 /22
Highlands Indoor Centre Ahead of Schedule. https://www.attractionsmanagement.com/index.cfm?subID=0&pagetype=news&codeID=410 2&dom=n&email=web&pub=AMe&date=\
Jamie Smith Ice Factor Start Up. https://www.heraldscotland.com/default_content/12371861.tune-chill/
JamieSmithinvests£638kintoIceClimbingCentre.https://www.insider.co.uk/specialreports/incubator-jamie-smith-9875781
£2.2mfundingforIceFactorKinlochleven.https://www.outdoorrecreation.org.uk/wpcontent/uploads/2017/02/2004-VOL-12-34-AutumnWinter_94.compressed.pdf
£2.2m creates seminal rural diversification project. https://www.gov.scot/binaries/content/documents/govscot/publications/advice-andguidance/2005/02/rural-diversification-planning-advice/documents/rural-diversification-pan73-part-1-pdf/rural-diversification-pan-73-part-1pdf/govscot%3Adocument/Rural%2BDiversification%2BPAN%2B73%2Bpart%2B1.pdf
£1minvestmentinIceFactor.https://www.unquote.com/uk/news/67315/higland-ventureleads-gbp1m-investment-in-ice-factor
£1mforHighlandIceClimbingCentre.https://www.scotsman.com/business/ps1m-highlandice-climbing-centre-1705367
ScottishLeisureSpecialistraises£523,000.
https://www.scottishfinancialnews.com/articles/scottish-leisure-specialist-completesmbo-with-hsbc-funding
