Acquiring and developing a community asset

Anton Schultz

Development Manager

Locality

Locality is the national network of ambitious and enterprising community-led organisations, working together to help neighbourhoods thrive

locality.org.uk @localitynews

locality.org.uk @localitynews

We represent over 500 (and counting) community-led organisations and 200 associate members across England

• We help people set up and run community owned and led organisations

• We support organisations to exchange ideas and best practice

• We work to influence government and others nationally and locally

What we do

@localitynewslocality.org.uk

We run major national programmes which support and empower local communities

locality.org.uk @localitynews

Session AimsDevelop a basic understanding of

• Routes to acquiring a building for your community.

• Key legal and practical considerations.• Determining feasibility, and developing viable

business plans.

Signpost to a range of resources and follow up support to help you progress with your project.

The drive towards public sector estate disposals is increasing.

NOT PROFITABLE ?

WHY DO YOU WANT TO MANAGE A COMMUNITY ASSET?

Generate Local Wealth

Pride in Place

The character of a place is found in the distinctive qualities of its landscape, cultures, and built environment.

Communities taking responsibility for local

services- empowerment

Financial IndependanceThe asset effect - % of unrestricted earned income for Locality members with and without a significant

asset

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63

More profitability & More Risk… Importance of Risk Management and

effective planning

The Cost of Doing Nothing?

Asset developmentManaged workspace, industrial buildings, visitor centres, marina, sports facilities, training facilities, shops, cafes, cinema, housing, green space, car parks, community centres, live/work space, health centres, nursery, transport (buses), wind farm, arts centre….

…and an abattoir!

ROUTES TO ACQUISITION

Routes to Asset Acquisition for Communities

• Traditional Purchase: Competing on cash terms• Community Asset Transfer: Quirk & General Disposal

Consent• Community Right to Bid: the Localism Act

• Community Right to Reclaim Land (PROD)• Compulsory Purchase for Communities: EDOs and

Blighted Neighbourhoods

Community Asset Acquisition

• Management arrangements• Meanwhile Space• Short term lease transfer• Long term lease transfer• Freehold transfer• Freehold purchase

Increasing:

Autonomy

Risk

Impact

Opportunity

Capacity required

“The greater the stake, the greater the financial and legal responsibility the organisation takes on, but also

the greater the freedom to exploit the asset’s potential”

Quirk review, (2007), DCLG

NATIONAL POLICY CONTEXT

Key Policies

• Local Government Act 1972 – Sets out powers of disposal

• General Disposal Consent 2003– Enables Asset Transfer

• Localism Act 2011– Right to Bid– Right to Build– Neighbourhood Planning

Community Asset TransferGeneral Disposal Consent 2003 (“the General Consent”). Permits transfer of land and buildings at less than market value provided that:

– transfer is likely to contribute to the “promotion or improvement” of the economic, social, or environmental well-being of the area

– the difference between value price paid < £2,000,000

http://mycommunity.org.uk/programme/community-assets/

Community Asset Transfer

Transfer of management / ownership from public body to communities

http://locality.org.uk/resources/asset-transfer-legal-toolkit-started/

Localism Act and Community Rights

Right to Bid (Assets of Community Value)

“aims to ensure that buildings and amenities can be kept in public use and remain an

integral part of community life”

BID

http://mycommunityrights.org.uk/community-right-to-bid/

The Pub?

The Post Office?

The Village Hall?

The Corner Shop?

The School?

The Allotments?

Your House?

List of assets of community value

• Local authorities required to maintain list of assets of ‘community value’

• Not just publically owned assets

• Nominated by Parish Council, community council, or a locally connected voluntary or community body

• 5 year listing

BID

Moratorium Period

Owner cannot conclude sale during period

• 6 weeks to express interest

• 6 months to raise capital and make offer to purchase

BID

The opportunity• A legal mechanism to encourage community ownership

of assets

• Owners viewing assets in a different way

• Onus on communities to be proactive

• Most likely to succeed if wheels in motion early

FEASIBILITY

Viability Whether your project can cover its

costs over a specified period

SustainabilityWhether your project can be

maintained and operated into the foreseeable future

Developments may meet their capital costs with cocktails of sales, grants and loans

Developments may meet their running costs from charges to users and ongoing fundraising

Feasibility

Legal and governance considerations

• Establishing an appropriate organisation

• What legal stake– Heads of Terms /Negotiating the details

• Staffing / TUPE• Procurement / State Aid

10 September, 12:00-14:00 Key governance and legal considerations

Be clear about your responsibilities

• Insurance• Repair and maintenance• Decoration• Alterations• Owner’s costs and rights • Reviews; break-clauses? • Sub leasing• Covenants and use restrictions

Making your case / securing support

• Organisational development– Skills and capacity

• Community engagement• Fundraising• Investment readiness

17 September, 12:00-14:00 Securing Support for Community Asset Projects

Understanding the building

• Physical and legal constraints• Whole life costing• Condition / backlog maintenance• Development / refurbishmenthttp://www.buildingcalculator.org.uk

24 September, 12:00-14:00 Developing and Managing Assets

The business case

• Financial Projections• Capital Finance Plan• Business Planning• Outcomes and Social Impact

1st October, 12:00-14:00 Business Planning for Community Assets

FURTHER SUPPORT

Useful resources

• http://mycommunity.org.uk/programme/community-assets• www.communitybuildingschecker.org.uk• www.buildingcalculator.org.uk• www.localitybrokers.org.uk• http

://locality.org.uk/resources/asset-transfer-legal-toolkit-started/

• To Have and to Holdhttp://locality.org.uk/resources/hold/

Course Content Date / Time

Module 1: Key considerations – governance and legal issues relating to community asset ownership

10 September 201512:00-14:00

Module 2: Securing support for community asset projects

17 September 2015

Module 3: Developing and managing community assets

24 September 2015

Module 4: Business planning for community asset projects

1 October 201512:00-14:00

Lunchtime learning masterclasses

Presentation and Q&AResource pack (templates and guides)

£40 for Locality members£50 for Community organisations (non-members)£90 for Local authorities, consultants, infrastructure organisations and private sector

http://locality.org.uk/our-work/locality-learning/assets-virtual-training/

Current Programmes

• Community Ownership and Management of Assets (Multiple Asset Transfer Programme)– Grants and Support– http://mycommunity.org.uk/programme/community-asse

ts/

– 50 Partnerships (joint strategies and action plans)

– Open to applications to end of June– 16 days of support– Pre-feasibility grants up to £10,000 per

organisation.

Current Programmes

• Community Building and Housing– http://

mycommunity.org.uk/programme/community-buildings-housing

– Support groups to undertake housing or community building developments

– Make use of “Community Right to Build Orders” or support planning applications for community led housing.

– Pre-feasibility grants up to £10,000– Project support grants £5,000-£40,000

Localty Consultancy

http://locality.org.uk/locality-consultancy/

www.locality.org.ukwww.mycommunity.org.uk

0300 020 1864 (9:30-12:30 weekdays)

As a member of Locality, you will be part of the national network of ambitious and enterprising community-led organisations, working together

to help neighbourhoods thrive