Agenda item

Coastal Revival Fund - New call for projects and accountable body arrangements

(Cabinet Member with Special Responsibility Councillor Hanson)

 

Report of Economic Development Manager (Report to follow)

 

Minutes:

(Cabinet Member with Special Responsibility Councillor Hanson)

 

Cabinet received a report from the Economic Development Manager, which provided information on the recent launch of a new round for the Government’s Coastal Revival Fund (CRF).  Approval was requested to bid to the CRF to support local community led business interest in redevelopment of the Co-Op Building for community use and approve an application for a council partnership capital project to match fund the bid. Cabinet was also requested to agree a protocol for considering any request from third party organisations for the council to act as the Accountable Body for their applications.

 

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

The following options can be considered for bid to CRF for the Co-Op partnership project proposal:

 

 

Option 1: Do Nothing - continue to manage/maintain the Co-op building.  

 

Option 2: Bid to CRF and use current capital resources to develop a community led refurbishment proposal for the Co-Op which could attract major funding in the future and to undertake property stabilisation works to prevent further deterioration, alongside further market testing.

 

Advantages

No immediate impact on the council’s budget.

Basic holding costs currently covered by income lease (due for renewal) with Late Shop.

Builds on community interest and energy in one of the district’s more deprived areas.

Positive community led business project has much greater chance of funding opportunity and success.

Could lead to positive economic use of the Co-Op and the opportunity to successfully exit from ownership of building secure in the knowledge it has a sustainable future.

A successful bid would help mitigate current adverse impact on street scene. This would aid the attractiveness of Chatsworth Gardens to prospective tenants and the overall viability of that project.

Disadvantages

Potential for future unplanned maintenance and capital spend given the age and structure of the building.

Misses out on potential to test community based solutions and interest to transfer development and building risk away from the city council.

Currently no prospect of securing grant aid from external sources for any major project.

Continuing adverse impact on West End street scene.

Officers have to project manage a basic refurbishment/feasibility project.

Budget provision of circa £36K capital to be sourced from existing Winning Back the West End grant funds.

Risks

The council would continue to hold a property which has the potential to become a serious liability without significant intervention in future.

Likelihood of incurring cost without deriving a benefit.

Negative impact on adjacent Chatsworth Gardens scheme

There is no guarantee that any funding bid will be successful.

In the long-term stabilizing works are unlikely to be sufficient to mitigate the risks of holding a property which has the potential to become a serious liability without significant intervention in future. 

The goal of the initial investment would be to secure a long-term future in association with community stakeholder interests.

 

With regard to the idea for the council to make a CRF application for the Co-Op building  Option 1: Do Nothing is a continuing risky proposition as the council will be faced with unplanned capital expenditure in the medium and long term to meet repair obligations and secure the building for the benefit of the current Late Shop lease.

 

The Preferred Option is Option 2:  Bid to CRF and use current capital resources to develop a community led refurbishment proposal for the Co-Op which could attract major funding in the future and to undertake property stabilisation works to prevent further deterioration.

 

It is intended to use the CRF proposal and initial funds as a first phase “jumping off” point for the development of a future major project, which could bring significant resources to refurbish the building.  If successful, the project could provide an end to the council’s ongoing building liabilities and risks.  A natural progression would be to follow up with a bid to a future round of the Coastal Communities Fund (CCF) main grants programme.  CCF guidance will only accept capital projects at an advanced stage of development and capital projects need to be worked up to the RIBA Plan of Work Stage 4 technical design stage with detailed cost information. 

 

There is no guarantee any bid will be successful as the MHCLG’s  will undertake an assessment/scoring procedure and other national bids may be seen as simply a better ‘fit’ under the scheme.  The market testing is to be undertaken alongside the main proposal may help identify other potential options for the building, but the outcome of this is very uncertain also.

 

Alongside the main proposal members should consider the positive benefits of additional external funding for the CCT area as ample justification for the council to agree to being the Accountable Body for third Party CRF applications subject to due diligence of the bidding organisations.

 

A CRF bid to develop the necessary plans and proposals for a community led refurbishment represents a good use of funds compared to other reasonable alternatives/ideas in the current market and the potential liabilities of ‘doing nothing’ given the building condition.  There is no current or future prospect of external grant assistance to help deliver a way forward for the Co-op building outside of a community based solution.  Working with the Exchange Creative CIC and other key local stakeholders offers the best chance of bringing an important and prominent West End building back into productive use.

 

The report has also appraised Members on the issues and duties required in consideration of any future request for the council undertake an Accountable role for any application for funding under the current CRF.

 

Councillor Hanson proposed, seconded by Councillor Clifford:-

 

“That the recommendations, as set out in the report, be approved.”

 

Councillors then voted:-

 

Resolved unanimously:

 

(1)          That a bid for £40K CRF funds is made to help develop a community business led refurbishment proposal for the Co-Op building which could attract major funding in the future and to undertake some property stabilisation works to prevent further deterioration.

 

(2)          That the CRF bid be matched with £36,565 current capital resources still held under the former Winning Back the West End scheme.

 

(3)          That the council agrees to consider being the Accountable Body for third Party Coastal Revival Fund (CRF) applications subject to the review protocol and proportionate due diligence on any applicant/sponsor organisation as outlined in the report.

 

(4)          That the Revenue Budget / Capital Programme be updated accordingly to reflect the outcome of the above.

 

 

Officers responsible for effecting the decision:

 

Chief Officer (Resources). 

Economic Development Manager. 

 

Reasons for making the decision:

 

In supporting this CRF proposal, the council will be making progress against a number of its corporate objectives/outcomes as defined in the Corporate Plan 2018 - 22.  Should the project be successful in generating a major refurbishment scheme and follow through to implementation it should actively support a Thriving and Prosperous Economy Sustainable Economic Growth outcomes, success, measures and actions. 

 

Supporting documents: