Community use of the sports hall at Caistor Yarborough School has been secured by West Lindsey District Council.
As reported in the Rasen Mail, the school had planned to stop community use because the hall was losing £10,000 a year, and even if it wanted to subsidise it, this would be illegal.
Now West Lindsey has stepped in to work in partnership with the school and retain the service by running it as a satellite from the De Aston Sports Hall in Market Rasen, under the management of Nick Chilvers.
The new arrangements will take effect from April 1 and see a more co-ordinated approach to community sports development in Caistor, Market Rasen and Keelby.
Leader of West Lindsey District Council, Coun Bernard Theobald said: "Unfortunately, most of the losses incurred were the result of salaries of a sports development officer, a post which has now become redundant with the introduction of sports co-ordinators."
Caistor councillor Alan Caine said: "Well-structured sports development work is established with the Caistor Grammar Specialist Sports College, Caistor Yarborough, De Aston School, and their feeder schools, and this will be an improvement on what was available before."
Coun Theobald added: "West Lindsey is delighted to have been able to work with our partners to secure a facility for Caistor which may otherwise have been lost. The Council strongly supports the retention and improvement of local services, and this is another example of our commitment."
The hall is especially popular with local children at the school holiday fun days covering all sorts of sports.
Last spring more than 20 aspiring female footballers spent a most enjoyable day being coached by Sally Bly and Sue Howsham, players with Sporting Links (Caistor) LFC.
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