Parish Council, Community Halls / CIC structure

[JH@WPC]

Hi,
A Parish Council (which can reclaim VAT on expenses) has to provide services on behalf of the local authority to its parishioners.
Some of these are chargeable, eg: Burials/Internments, Allotments but VAT is not charged.
The Parish Council can reclaim VAT on expenses and overheads.

The Parish Council is undertaking a major project, knocking down some inadequate changing facilities and building new changing facilities, an attached community hall which will be used by Scouts, Youth-Club and a full-time Pre-School.
All of the users will be charged a rent for use of the facility which is likely to be £25k+ p/a.

The Parish Council have plans to add additional facilities and services for the benefit of the parishioners, but these again will be chargeable and might be an additional £30k+.

If the Parish Council generates too much income, does it lose the 0% rate charged and therefore have to charge VAT on all revenue?
Are there implications with generating a profit (which is either held for reinvestment or in reserves for future projects)?
Is the "new-build" 0% rated VAT? (If not, the £1/2mill project becomes £100k more expensive and we would need to find additional grant funding?
Should we set up the new facilities as Charities/CIC's with the Parish Council as a Trustee or can it all be retained under direct control of the Council?

What other pitfalls/opportunities need to be considered (we are all Volunteer Councillors and not experts in Company structure and tax implications)?
Thanks
JH