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Community Right to Bid webinar slides


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How can the Right to Bid benefit your community? Slides from the Locality webinar 'An Introduction to the Community Right to Bid' on 30 Oct 13.

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Community Right to Bid webinar slides

  1. 1. Community Right to Bid Stephen Rolph Development Manager
  2. 2. What’s coming up 1) Background – political and community context 2) Detail – what is it, why use it, how to use it 3) Learning – what we know so far, issues and trends 4) Help and support – inspiration, networks, resources, grants
  3. 3. Poll How much do you know about the Right to Bid? A lot Some of the basics Virtually nothing
  4. 4. The drivers
  5. 5. Localism and Decentralisation Localism Decentralisation Doing everything at the lowest possible level and only involving central government if absolutely necessary Giving away power to individuals, professionals, communities and local institutions
  6. 6. Driver 1. The political vision: putting more power and opportunity into peoples’ hands “When you give people and communities more power over their lives, more power to come together and work together to make life better – great things happen.” David Cameron, Prime Minister People feel rooted in their neighbourhood. They are proud of it. It’s where they have the most immediate ties, the closest loyalties. It’s where they are most ready to get involved.” Eric Pickles, Secretary of State for Communities and Local Government
  7. 7. Key government policy • 2010 Coalition Agreement: “Support the creation and expansion of mutuals, co-operatives, charities and social enterprises, and enable these groups to have much greater involvement in the running of public services.” • July 2011 Open Public Services White Paper: “A decisive end to the old-fashioned, top-down, takewhat-you-are-given model of public services.” • Localism Act (2011) • March 2012 & May 2013 Open Public Services updates.
  8. 8. From ‘powers’ to ‘rights’: The Localism Act (2011) • New freedoms and flexibilities for local government. • Reform to make the planning system more democratic and more effective. • Reform to ensure that decisions about housing are taken locally. • New rights and powers for communities and individuals. Plain English guide:
  9. 9. New rights and powers for communities and individuals • Community Right to Build - Gives communities the power to build new shops, housing or community facilities without going through the normal planning process. • Community Right to Challenge - Gives local groups the opportunity to express their interest in taking over a local service where they think they can do it differently and better.   • Neighbourhood Planning - Gives people the chance to decide how their local area should develop and what should be built.
  10. 10. Community Right to Bid (Assets of Community Value) • Came info force in September 2012. • Voluntary and community organisations (and parish councils) can nominate land and buildings to be included in a local ‘list of assets of community value’. • The local authority is required to maintain the list. • If the owner of a listed asset decides to sell, a moratorium period (a 6 month ‘pause’ in the sale process) will be triggered during which time the asset cannot be sold. • This window affords communities precious time to raise the necessary funds and bid for its purchase.
  11. 11. Driver 2. Community asset ownership grant funding assets enterprise • Communities generating wealth and circulating it locally. • Retaining key local buildings and services. • Increased financial & operational independence. ‘…there are no substantive impediments to the transfer of public assets to communities’, The Quirk Review
  12. 12. Pioneers of the movement: Coin Street Community Builders
  13. 13. The new practioneers 1: Hudswell Community Pub Ingredients Local residents Passion, resilience, belief, and patience…and investment Finance Community Shares (residents) Grants (RDA, Locality, others) Loan/Equity (Key Fund) Advice Co-ops UK (community shares) Locality & others (business planning)
  14. 14. The new practioneers 2. Hastings Pier and White Rock Trust Ingredients Engagement Rules Build membership, mobilise networks, listen actively and openly, take risks Local residents Passion, politics, campaigns, resilience, belief, patience……and investment Community Share issue
  15. 15. • …informing the public
  16. 16. ‘A history of community asset ownership’
  17. 17. Community asset acquisition – more than one tool in the box! Empowering Communities: Making the Most of Local Assets • Community Asset Transfer (demand side ‘pull’). • Multiple Asset Transfer (supply side ‘push’). • Community Shares. • Community Right to Reclaim Land. • Community Right to Build. • Community Right to Bid. • Compulsory Purchase for Communities.
  18. 18. Right to Bid vs Asset Transfer Right to Bid Asset Transfer Basis Statutory National policy Type of asset Any asset Any council owned asset Ownership Any owner Public sector Process Defined in Localism Act Mutual negotiation Value Market value Undervalue Terms Freehold or lease of 25+ years Mutual negotiation
  19. 19. Part 2. The Right to Bid – the detail
  20. 20. The process…step by step… STEP 1: Get informed, get organised, get mapping STEP 4: If asset sold, up to 6 months to raise funds to bid to buy STEP 3: Local Authority accepts/rejects nomination ... STEP 2: Get 21 people together and nominate the asset ... STEP 5: Finance, (Community Shares?) STEP 6: Asset is brought into community control ... ... ...
  21. 21. Yes we can! • Local strengths & opportunities. • What do we already have? • What are we capable of? • Where do we want to go from here? • What sort of value - intrinsic; a means to an end, future potential? • Engagement tools: htm • MAP WITH A PURPOSE!
  22. 22. The Place Station
  23. 23. Take (pre-emptive) action “We want to take over our town hall and turn it into a community centre and hub.” “They’ve closed our village pub how do we register it as a community asset and stop it from falling into the hands of developers?”
  24. 24. Managing the list • LAs manage the local list of ‘assets of community value’ (ACV). • Applies to public & private land. • Nominated by an eligible body. • LA has up to 8 weeks to decide. • LA must give notice to list to owner, occupier, nominee (and parish council). • Right of appeal for landowner. • If accepted, remains on list for 5 years. The Pub? The Post Office? The Village Hall? The Corner Shop? The School? The Allotments? Your House?
  25. 25. Poll Are all of the local assets of importance in your community listed? •Yes •No •I’ve no idea
  26. 26. What is an Asset of Community Value? Its main use currently, or recently, has been to “further the social well-being or social interests of the local community” and there is a likelihood that it could continue to do so.
  27. 27. Who can nominate? • Parish councils. • Neighbourhood Forums (as defined in Neighbourhood Planning regs). • Unconstituted community groups of at least 21 people on electoral roll. • Not-for-private-profit organisations (e.g. charities). • …with a local connection.
  28. 28. How do you nominate? • • • • • By application to relevant LA. Description of land and boundaries. Known owners and occupiers. Reasons why it is of community value. Evidence of nominator’s eligibility. Nomination stage is meant to be easy!
  29. 29. Some minor exclusions to listing But the main one is residential housing.
  30. 30. Open to interpretation? • ‘Social well-being’ - not defined, but in practice has been applied very widely. • ‘Social interests’ - is defined, as: cultural, recreational or sporting interests. • ‘Recent past’ – not defined, but propose at least 5 years.
  31. 31. Owner objections • Internal (LA) review. • First Tier tribunal. Chesham Arms Pub, Hackney, judge found that it is an asset of community value despite owner’s appeal.
  32. 32. The Moratorium (pause) • Triggered when owner wants to sell. • Freehold/25+ lease (vacant possession). • Owner must inform LA of their intention to sell. • LA informs updates the list and publishes moratorium dates. • Owner cannot conclude sale, other than to a ‘community interest group’.
  33. 33. Moratorium periods 6 months in total 18 month ‘protected period’ where owner can sell again without delay
  34. 34. Who can express an interest at the moratorium stage? • Can only be made by a ‘community interest group.’ • ie: a legally constituted organisation such as a charity, co. limited by guarantee (that does not distribute profits amongst its members), an Industrial and Provident Society, a Community Interest Company or a Parish Council.
  35. 35. Moratorium exclusions • Business sold as a going concern. • Part-listed disposals (where land forms part of larger site, the remainder of which is not listed). • Planning obligation, option or pre-emption right made before the asset was listed. • Gifts to family members. • Statutory compulsory purchase. • Purpose of enabling NHS services to continue to be provided on the land. • For purposes of a school, a 16-19 academy or an institution within the further education sector.
  36. 36. Part 3. Learning and insight
  37. 37. Progress – the big picture • Broadly welcomed - over 4,000 enquiries! • 774 nominations / 558 listed (72% success rate). • Huge breadth and variety of asset types. • At least 150 pubs listed (half nominated by Parish councils). 36% Parish Councils taking action on RtB (DCLG survey 2013). • Libraries, green space, sports facilities, football grounds, shops, churches, hospitals, town halls, barracks…and Greenham Common Control Tower!
  38. 38. Listings: A London & SE bias, so far No. of listings: •East: 250 •South East: 91 •South West: 86 •London: 35 •West Mids: 34 •Yorkshire & Humber: 27 •East Midlands: 15 •North West: 14 •North East: 6 London & SE account for over just over 80% of successful listings to date
  39. 39. Council Uttlesford District Council Region No. of listings % Listed 270 187 69% South West 50 21 42% South East 16 16 100% South East 14 14 100% West Midlands 14 14 100% East 10 10 100% South West Cornwall Council East No. of nominations 10 10 100% East 11 8 73% South East 10 8 80% Yorkshire and Humber 7 7 100% Yorkshire and Humber 8 7 88% Winchester City Council Test Valley Borough Council Herefordshire County Council Braintree District Council West Somerset District Council Suffolk Coastal District Council Arun District Council East Riding of Yorkshire Council Leeds City Council
  40. 40. Trends and issues • Recent past: Some assets of importance to communities are unfortunately outside of scope. • Owner appeals: Very few to date. Have been decided in the community’s favour. • Onerous processes: Some LAs have called for more info. than strictly required for nomination, eg: proof of ability to purchase. • 6 month window: Proves challenging when capital demands are high and lengthy negotiations with landowners/funders required. Typically, communities also seek (and need) support with related capacity issues.
  41. 41. Do ACV listings affect planning decisions? “It is open to the local planning authority to decide whether listing as an ACV is a material consideration if an application for change of use is submitted considering all the circumstances of the case.” Community Right to Bid: Non-statutory advice note for local authorities, DCLG Brent Council’s recent decision to refuse planning permission for the redevelopment of Kensal Rise Library.
  42. 42. The Ivy House Pub, Nunhead, London Borough of Southwark The Ivy House pub was possibly the first place in the country to be listed as an asset of community value using the Community Right to Bid. And the fight to save this historic pub has paid off, with the pub being brought into community ownership in March 2013!
  43. 43. The Bell Inn, Bath: Community Shares investment Step 1: Have an enterprising idea for running a local asset or community project Step 2: Make the case and galvanise community support ... Step 3: To issue shares: register community organisation as an Industrial Provident Society ... Step 4: Set your funding target based on your business case £700,000 Step 5: Develop a share offer document setting out why your community should invest Step 6: Launch and promote share offer to attract investors ...
  44. 44. Part 4. Help and support
  45. 45. The website
  46. 46. Stay in touch LinkedIn Pinterest
  47. 47. Grants • • • • Pre-feasibility grants - £5k to £10k. Feasibility grants - £10k to £100k. Eligible whether you use the right or not. Revenue only - consortia building, training, expertise, business planning, market research, etc. • Not intended for equipment, building costs or running costs. • Capital (next year).
  48. 48. Advice and support • Find out more about community asset projects: • Take advantage of our Community Asset Mapping Platform: • Obtain further information about the Community Rights: Tel: 0845 345 4564 • Follow our pilot work with private sector property professionals: • Use our Whole Life Costing tool for communities:
  49. 49. Poll How much do you know about the Right to Bid…now? A lot Some of the basics Virtually nothing
  50. 50. More webinars coming up