Securing the Future of Community Anchors Asset Based Development

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Securing the Future of Community AnchorsAsset
Based Development
Jeff Scales Regional Development Manager North
West

• Chris ODonnell
• Regional Development Officer North West

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The aim of this workshop

• Exploring the opportunities and challenges of
  asset based development, including asset transfer
  (from Local Authorities)
• Exploring how community organisations can build a
  business case, to help them decide whether taking
  on a building is appropriate for them and whether
  they can make it work if they do

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Developing Assets Key Issues

• Overarching issues
• Time Resources
• Clarity
• Building and maintaining support

• Building support
• Meaningful
• Participative
• Use the opportunities in the development process
• A true hub

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Developing Assets - Feasibility

• Desirable is it wanted/needed? Do the community
  understand it and have you got community support
  (and wider support)?
• Viable the money - can it cover its costs over
  a specified period (e.g. 1-5 years, includes
  capital and revenue considerations)
• Sustainable the building, the people and the
  organisation - can it be maintained and operated
  for the foreseeable future? (e.g. 5 years)

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Operating as a social enterprise

• A business with primarily social objectives
  whose surpluses are principally reinvested for
  that purpose in the business or the community,
  rather than being driven by the needs to maximise
  profit for shareholders and owners

Enterprise (financial benefits)
Social (community benefits)
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Developing Assets Business Planning

• Know your market
• Partnerships are key
• Connection between development and management
• Spend time looking at and planning for risks
• Be very conservative about income generation and
  occupancy rates
• Dont assume grant for revenue
• Build in contingencies for capital and revenue
• Think about cash flow - As soon as it opens it
  costs you money!!!

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What is Community Asset Transfer?

• The transfer of the interest/ownership in
  buildings or land (most often from the public
  sector)
• To locally accountable community organisations
  (i.e. independent, committee led, majority are
  community reps living in the area, often wider
  community membership)
• Transfer can be a lease (but a substantial one)
  or a freehold (key is security of tenure)
• Can be a nil consideration, less than best
  consideration and sometimes just below market
  value
• The trend is huge variety

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Opportunities

• Communities with ownership and pride
• Communities generating wealth and circulating
  it locally
• A catalyst for community participation
• A stronger and more sustainable VCS
• Bringing LAs and communities closer together
• Strong TSO/LA partnerships (minimising risk
  for both)
• And additionally for Community Asset Transfer
• Leverage for funding
• More economical for LAs (e.g. revenue savings)
• Realising regeneration of communities, which
  contributes to meeting LAA targets and LA
  Corporate Objectives
• Supporting wider asset management strategies

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North Allerdale Development Trust

• Partnership of over 30 VCS working with LAs
• Leading on development of two significant
  buildings in Wigton (Market Hall and Community
  Centre)
• Both to be transferred on a 99yr lease
  (peppercorn)
• Capital funding from NWDA, Allerdale Council,
  Community Assets Fund and MTI

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North Allerdale Development Trust

• Market Hall will house the market, council
  information services, a café, offices, retail
  units, and services previously provided by the
  Community Centre
• The Market Hall will wash its own face
• The Community Centre has a bank as its anchor
  tenant, providing a secure income stream
• The rest of the building will be used as the
  Trust chooses, to provide further secure income

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Group Exercise

• Taking on an asset a means to an end (20
  mins)
• Feedback (10 minutes)

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Developing Assets

• DTA Publication
• To Have and to Hold
• Nearly all you need to know (in a nutshell)

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Contact
Jeff Scales Regional Development Manager
(Northwest) t 01254 889925m 07912
269668 e  j.scales_at_dta.org.uk Website
www.dta.org.uk