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Asset development - presentation by Caroline Webb
- 2. Dudley CVS Who & Contact Details Asset Development - Caroline Webb Social Enterprise/ - Caroline Webb (Large Groups) Charity/Company Becky Pickin (Small Groups) Development General funding & - Martin Jones (over £15k) Social Investment Becky Pickin (under 15k) Caroline Webb 7 Albion St, Brierley Hill DY5 3EE Telephone: 01384 573381 www.dudleycvs.org.uk
- 3. Dudley CVS Asset Development Asset Development – pro’s and cons Pro’s Diversify income streams & greater sustainability Achieve strategic objectives Improve services and increase social impact Ensure an asset is retained / developed for community benefit Services run from one site Partnership opportunities Con’s Financial & time costs of delivering a capital project Management capacity (governance & operational) Day-to-day running costs once opened Lease Agreement incl. tenant negotiations / issues Maintenance issues incl. insurances
- 4. Dudley CVS Asset Development Asset Development Toolkit a. Understanding asset development b. Building Support – what and who can support various elements of asset transfer / development c. Visioning – aims, objectives etc. through the asset. d. Identifying a suitable asset etc. e. Undertaking feasibility studies f. Business Planning g. Asset Transfer process h. Costing the Scheme i. Finance & funding j. Design & construction k. Legislation l. Long-term Management and Maintenance
- 5. What is Community Asset Transfer (CAT) & Why? • Transfer of ownership & management of public sector land and buildings into the stewardship or ownership of third sector organisations. • Widely seen as a mean’s to: – Promote civil renewal – Promote active citizenship – Improve local public services
- 6. What is Community Asset Transfer (CAT) • Transfer conditions – - Less than market value – either substantially reduced or free of charge. Transfer & level of subsidy likely to be determined by: - social, economic or environmental benefits
- 7. Dudley CVS Asset Development - Example Lye & Wollescote Chapel receives a £42,300k funding boost from Heritage Lottery January 2013 A further £850k awarded to the Project in October 2013
- 8. Dudley CVS Asset Development - Examples Wall Well End, former Sons of Rest Building. Business Plan submitted & Asset Transferred April 2014.
- 9. Dudley CVS Asset Development – Funding & additional support • Grants • Debt Finance • Equity Finance • Quasi-equity Finance • Access to DMBC Resources
Editor's Notes
- QUICK INTRO AS TO WHO WE ARE.
- TAKING ON AN ASSET IS A VERY DIFFICULT DECISION AND HERE ARE SOME OF THE PRO’S AND CON’S FOR DOING THAT: Provide a new/additional income stream to your organisation to assist sustainability e.g. rent space to others Helps you to achieve your key strategic objectives Helps grow the organisation, scale up services and increase social impact Provide local services – due to cuts many services will be lost. Development of an asset can mean that the service is maintained and developed. An asset can help you to relocate/re-house some of your services. May provide opportunity to work in partnership with others. Cons – Capital costs – Is the building fit for purpose – often groups consider taking on iconic but older buildings that require a significant amount of renovation – is this always the best option. Depending on the age and plans for a building, an architect and surveyor will be required – this comes with a cost element. Also, undertaking this work requires time and commitment from those involved. Governance issues - if a number of organisations are coming together to take on an asset then governance and/or the wishes of the membership need to be considered. Also, current governing documents need to be checked to ensure that organisations have the power to take on an asset. May be a need to set up a trading company at some stage however, this can also minimise risk to the charity. Also, need to think how the building is going to be managed operationally. Is there a need to take on a building manager or can the existing workforce including volunteers manage this side of the operation. Budgets, Cashflow projections, forecasts will need to be developed to ensure incoming outweighs outgoing expenditures. Need to determine who will use the building i.e. your tenants and have they funds to pay ? Lease – stipulations by local authority it may also be a listed building - careful negotiations (Pulse ???) 5. Maintenance – building, especially older buildings require regular maintenance therefore, we need to ensure that you know the current position regarding the Mechanical and Electrical state of the building. Need to think carefully as for example, the heating system may be very old or often older buildings have asbestos and need to ensure this is not disturbed. Capital and revenue money may be required. The Asset Development Toolkit with the support of myself can help you think through all the stages both before you commit to the transfer, during and after.
- TO ENABLE ORGANISATIONS TO DEVELOP THEIR KNOWLEDGE AND SKILLS AND WORK THROUGH ASSET TRANSFER, DCVS HAS PUT TOGETHER A TOOLKIT (SHOW TOOLKIT) WHICH COVERS THE FOLLOWING AREAS: READ LIST.
- FOR THOSE OF YOU WHO DO NOT ALREALDY OWN OR LEASE A BUILDING AND ARE THINKING OF PROGRESSING TOWARDS THIS AREA YOU MAY WISH TO CONSIDER COMMUNITY ASSET TRANSFER THIS IS -- READ FROM SLIDE. MARTIN SHAW FROM DMBC WILL GIVE YOU MORE INFORMATION REGARDING CAT.
- READ FROM SLIDE. LESS THAN MARKET VALUE CAN MEAN IT CAN BE TRANSFERRED AT WHAT WAS HISTORICALLY KNOWN AS PEPPERCORN RENT WHEREAS MARKET RENT WOULD MEAN COMMERCIAL RENT LEVELS WHICH ARE SIGNIFICANTLY HIGHER. THE AMOUNT OF SUBSIDY RECEIVED OFTEN RELATES TO HOW MUCH A SERVICE SUPPORTS THE OUTCOMES OF THE BOROUGH PLAN – AGAIN MARTIN WILL GIVE YOU MORE INFORMATION ON THIS.
- LYE & WOLLESCOTE CHAPELS IS THE FIRST PILOT ASSET TRANSFER PROJECT TO HAVE GONE THROUGH. PROPERTY IS NOW MANAGED BY WEST MIDLANDS HISTORIC BUILDINGS TRUST.
- FORMER SONS OF REST BUILDING WHICH IS CURRENTLY UP TO SALE HOWEVER, COMMUNITY RIGHTS AND THE ASSET TRANSFER POLICY, HASBURY COMMUNITY ASSOCIATION HAS SUBMITTED ARE DUE TO SUBMIT THEIR BUSINESS PLAN THIS COMING FRIDAY. THE AIM OF THEIR PLAN IS TO ENSURE THAT THE BUILDING IS RETAINED BY THE COMMUNITY.
- Capital funding via grants Kick-start funding may be negotiated with DMBC Heritage Lottery Big Lottery. DCVS has access to a range of potential grant funders. Debt Finance: Normally a loan, secured and/or unsecured. If the freehold is transferred over, loan could be secured against the asset. Equity Finance / Crowd funding – may involve getting the support through a social investor i.e. shares within a company that has growth potential in exchange for capital funds – similar to dragons dens Dividends paid out to the investor, rewards high but risk can be high. Quasi – equity finance – effectively a loan however, repayments usually linked to success e.g. percentrage of income or royalties not linked to profits. Risk to investor is high and legal structure of organisation needs to be considered as it may not be appropriate to receive funds through these means. DMBC OFFICERS HAVE A RANGE OF SKILLS I.E. THEIR OWN SURVEYORS ETC. WE ARE TALKING WITH THE AUTHORITY TO ENCOURAGE THAT THESE SKILLS ARE PUT TO GOOD USE WHEN AN ORGANISATION IS GOING THROUGH ASSET TRANSFER – NO POINT IN PAYING FOR THESE SKILLS IF THEY ALREADY HAVE THAT SUPPORT AVAILABLE.
- CONCLUDES THE PRESENTATION – QUESTIONS?