Heritage enterprise scotland june 2013
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Transcript of Heritage enterprise scotland june 2013
Heritage Enterprise
Rope Walks, Liverpool
Aims of the session
• Introduce the new Heritage Enterprise grants programme
• Explain the rationale for Heritage Enterprise and why HLF have introduced it
• Give an overview of the programme outcomes.
• Explain the application and assessment process and the requirements for each stage
• Make you aware of the support that is available for applicants
“From 2013 we will make a new
strategic intervention to stimulate
local economic growth with an
enterprise-focused programme
offering grants of £100,000 to
£5million. This will support the
conservation and adaptation of
an individual historic building or
coherent group of historic buildings
for an end-use which actively
contributes to sustainable
development in areas
experiencing economic
disadvantage ”
Strategic Framework 2013-18
A lasting difference…
Background research
HLF Board agreed to introduce a
new “heritage and enterprise”
programme following a long period
of research, involving:
– review of consultation
feedback
– nef think piece
– consultation workshop
– other published studies
– 1:1 interviews
2011 Consultation
32%
34%
13%
6%
2%5% 8%
Strongly Agree
Tend to Agree
Neither Agree nor Disagree
Tend to Disagree
Strongly Disagree
No opinion
Don't know
Views on heritage-led regeneration
Q26. To what extent do you agree that heritage-led regeneration should continue to be a focus for HLF? (base=932)
Research – “New ideas need old buildings”
Heritage Enterprise
Butcher Works, Sheffield
• For projects that seek to achieve economic growth
• Aimed at enterprising community organisations
• Bridging the funding gap / addressing market failure
• Commercial / social enterprise partnerships
• Grants from £100,000 -£5million
State Aid Rules and the Conservation Deficit
• State Aid rules apply where HLF funds projects that generate a commercial income
• HLF can only fund the additional heritage related costs of development
• Funding restricted to the “conservation deficit”
• Conservation deficit is where the existing value of a heritage asset plus the cost of bringing it back into use is greater than the value of the asset after development has been completed
Heritage Enterprise – who we fund
• Not-for-profit organisations
• Partnerships led by not-for-profit organisations
• Key aim is the integration of commercial and
community interests – not mandatory
• Private sector for-profit encouraged to be involved
but as minority partners
• Special purpose vehicles and joint ventures
• Building Preservation Trusts, social enterprises,
Community Interest Companies etc
• Local authorities, other public sector organisations
also eligible
Involvement of private for-profit sector
• Development partner
• Occupier
• Freehold owner
Sowerby Bridge Wharf
What we fund - priorities
• End-use that generates a
commercial income
• Heritage assets “at risk”
• Designated heritage assets
• Economically disadvantaged
areas
• Skills opportunities
• Increased learning about heritage
NB Public access not a requirement
Adams Building, Nottingham
Less of a priority
Projects with a focus on:
• residential rather than commercial development
• an active place of worship
• an urban park
Saltaire Park
What we fund
• Purchase of a heritage asset
• Conservation work
• New work to bring vacant
buildings/sites back into
commercial use
• Training
• Activities during project
delivery
• Professional fees
• Specialist research
• Project staff
Capital work during development phase
• Urgent repairs during
development phase
• Temporary structures to
facilitate “meanwhile
uses”
• Costs should amount to
no more than 10% of
total delivery requestPop-up shops, Shoreditch
Heritage Enterprise - outcomes
Outcomes for heritage:
• better managed
• in better condition (Weighted)
Outcomes for people:
• developed skills (Weighted)
• learnt about heritage
Outcomes for communities:
• environmental impacts will be reduced
• your local area/community will be a better place to live, work or visit
• your local economy will be boosted (Weighted)
Outcomes for heritage
• better managed
• in better condition (w)Beith THI
Outcomes for people
• developed skills (w)
• learnt about heritage
Glasshouse, Stourbridge
Outcomes for Communities
• environmental impacts will be reduced
• your local area/community will be a better place to live, work or visit
• your local economy will be boosted (w)
Middleport Pottery
Heritage Enterprise application process
• Two round application process – competition at the second round
• Each application assessed in approximately 3 months (depends on meeting schedule)
• Grant development period can last up to 2 years
• Project delivery period can last up to 5 years including activities
• Applications requesting up to £2m decided by Committee for Scotland
• Applications requesting between £2m - £5m decided by UK Board
Project enquiry
First round application
Grant Development phase
Second round application
Delivery phase
Application process
Conservation deficit
• Heritage Enterprise designed to help bridge the funding
gap
• The case for funding depends on there being a
conservation deficit
• No conservation deficit = no grant
• Outline information about conservation deficit at first-
round indicated in Viability Appraisal
• Detailed information about conservation deficit at
second-round indicated in Development Appraisal
• Grant restricted to 90/95% of conservation deficit
Viability Appraisal
• Required with first-round application
• Short statement, including:
– Brief assessment of heritage building or site
– Condition
– Options for new uses
– Outline costs of repair and adaptation
– Reasonable estimate of market value of asset after
completion
• Make the case for a conservation deficit
• Detailed costs and values not required
• Can apply for a start-up grant to assist with this work
• Other grants available e.g. Architectural Heritage
Fund
Development Appraisal
• Development appraisal is the key document for the
programme
• Financial cash flow calculation that considers all
expenditure and income in the development process
• Establishes conservation deficit
• Draft development appraisals to be submitted for Stage C
Review
• All appraisals will be assessed by RICS registered valuers
• There will be a period of negotiation
• Guidance on development appraisals will be published soon
Development Appraisal calculation
Market value of the completed development (A)
MINUS
All costs of undertaking the development (B)
EQUALS
Residual value of heritage asset (C)
A – B = C
If C is positive, no conservation deficit and no grant
If C is negative, then grant justified
(Applicant contribution of 5/10%)
Developers’ Return
• Developers’ profit allowed to encourage investment
• Added as a development cost within the development
appraisal
• Amount of profit depends on:
– Degree of risk
– Nature of development
– Stability of market
• Profit capped at 15% of capital construction costs
• Allowance of profit for all project partners, whether
private or not-for-profit
First round requirements
• Viability Appraisal
• Partnership agreement (if applicable)
Development phase information
• Detailed information about work (including briefs) and timetable in development phase
• Detailed costs for development phase
• Detailed plans for capital works in development phase (RIBA Stage D) (if applicable)
First round requirements
Delivery phase information
• Outline plans for capital works in delivery phase (RIBA Stage B)
• Outline proposals for activities
• Outline information about outcomes
• Outline information about timetable and work in delivery phase
• Outline costs for delivery phase
Second round requirements
• Development Appraisal
• Updated partnership agreement (if applicable)
• Activity Statement
• Detailed plans for capital work (RIBA Stage D)
• Detailed information about outcomes
• Detailed information about timetable and work for delivery phase
• A project business plan (if grant request is over £2m)
• A conservation plan (if grant request is over £2m)
• A management and maintenance plan
• Detailed costs for delivery phase
• Confirmation of partnership funding secured
Activity statement
• Activity Statement required with second-round application
• Mandatory requirement for skills training, e.g.– Traditional building skills
– Retrofitting
– Building maintenance
– Planning and guiding tours, IT skills etc
• Activities are required during capital works not following project completion and can include:– Tours
– Exhibitions, oral history project etc
– Temporary interpretation, viewing platforms etc
• Digital interpretation, e.g.– Website
– Smartphone app
Terms of grant
• Standard terms of grant last for 10 years from project completion, even where property acquisition is involved
• If asset is sold within contract life, repayment may be required
• Repayment based on higher figure of value of the sale or the value of grant
• Fixed sliding scale for repayments that declines over time, starting at 100% in year 0-6 of the contract, down to 20% in year 9-10 of the contract
Start-up grants
• Grants from £3,000 - £10,000
- To create a new organisation to look after or engage
people with heritage
- For existing groups taking on new responsibilities for
heritage
•Examples of what we can support:
• viability appraisal, exploring options, early scoping
work, research to inform your project, developing skills,
condition survey, valuations, advice on business
planning
Get advice
• Get in touch and let us know about your project
• Submit a project enquiry to get detailed feedback – we will meet with you if we think it is necessary
• Guidance on our website
• Programme Manager in our policy team will be taking overview across the UK
• FAQs will be published soon
Any questions?