a feasibility study for a new shared cultural … · · 2013-11-08café & restaurant 3.5....

A FEASIBILITY STUDY FOR A NEW SHARED CULTURAL AND LEARNING HUB FOR TUNBRIDGE WELLS Kent County Council and Tunbridge Wells Borough Council November 2013

A New Shared Cultural and Learning Hub For Tunbridge Wells

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CONTENTS 1. Executive Summary 4

1.1. Engagement Synopsis 1.2. Needs Analysis 1.3. Financial and Business Case

1.3.1 Qualitative Analysis 1.4. Conclusions

2. Introduction and Project Objectives 10 2.1. Introduction 2.2. Aims of the Project 2.3. The Project Brief 2.4. Strategic Fit 2.5. Project Objectives

3. Key Stakeholders, Potential Partners and Needs Analysis 13 3.1. Overview 3.2. The Library 3.3. The Museum & Art Gallery 3.4. Potential Partners

3.4.1. Adult Education 3.4.2. Gateway 3.4.3. Tourist Information 3.4.4. Box Office 3.4.5. Creative Industries Development 3.4.6. Youth Service 3.4.7. Café & Restaurant

3.5. Shared Spaces & Synergies 3.6. The Tunbridge Wells Centre 3.7. Conclusions

4. Operation and Governance 28 4.1 Overview 4.2 Governance and Organisation Options 4.3 Conclusions

5. Site Analysis and Zoning Options 39 5.1. Qualitative Appraisal 5.2. Site Options 5.2.1 Evaluation Criteria 5.2.2 Sites Under Consideration 5.2.3 Conclusion 5.3 Site Analysis 5.4 Zoning and Space Options

5.4.1 Service Diagram 5.4.2 The Heart 5.4.3 How it Might Work 5.4.4 Zoning Plans 5.4.5 Shared Spaces 5.4.6 New-build and Refurbishment 5.4.7 Basement 5.4.8 Sustainability Approach 5.4.9 Flexibility in the Hub


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6. Financial Information 54 6.1. Quantitative Appraisal 6.2. Project Costs and Assumptions

6.2.1 Basis 6.2.2 Assumptions

6.3. Results 6.3.1 Overall Cost of the Project 6.3.2 Development Phase Funding 6.3.3 Ongoing Affordability in the Operational Phase 6.3.4 Risk / Opportunities

6.4. Conclusions 7. Taking the Project Forward 61

7.1. HLF Process 7.1.1 Scale of support and project assembly 7.1.2 HLF Activities

7.2. Programme 7.2.1 Budgets

7.3. Consultation 7.4. Economic Impact Assessment 7.5. Recommendations

Appendices 70 Appendix A - Museum and Art Gallery - further detail Appendix B - Café and Restaurant - further detail Appendix C - Financial Model Information Appendix D - Schedule of Accommodation

Appendix E – Analysis of an Updated Gateway Service in the Hub


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Executive Summary 1.1 Engagement Synopsis

Kent County Council and Tunbridge Wells Borough Council (“KCC//TWBC”, “the Councils”) wish to explore the feasibility of a joint Cultural and Learning Hub (“the project”, “the Hub”) which will incorporate a range of related services providing the potential for joint working.

The project has a number of wide ranging objectives which can be summarised as follows: Providing a central focus for culture and learning in Tunbridge Wells, increasing the

attractiveness of the existing offer and reaching a wider user base stretching beyond Tunbridge Wells and the Weald;

Improving service delivery whilst providing a more cost effective service through providing more for less, and increasing the potential to attract greater levels of income, and

Driving greater economic prosperity in the town.

To take this project forward, on the 14th June 2013, the Councils engaged Gleeds (in collaboration with Bissett Adams and DCA Consultants) to provide an outline business case and report to demonstrate the feasibility of the project. This report sets out the findings and conclusions of the feasibility study and provides the next steps to be undertaken in order to move the project towards delivery.

1.2 Needs Analysis

A key function of this report is to determine what need exists for the provision of a Cultural and Learning Hub in Tunbridge Wells. We have undertaken extensive consultation with key stakeholders which has identified a number of underlying issues with the delivery of existing services currently provided: There is a general consensus that the existing facilities and locations are broadly

good for the Library, Museum, Adult Education and Gateway, however going forward there is the need for modernisation and updating to maintain competitiveness and effectiveness;

There is a general need for better suited / flexible space - the Museum and Art Gallery also require additional space;

Key stakeholders have identified the need for additional services that would complement / enhance the services already provided – these include highly visible display / potential retail space (which is a requirement for most services). There is also a shared need for a café / coffee shop, and

There are clear synergies between a number of the services and a clear willingness among certain services to capitalise on the benefits this allows - taking all parties on this journey will be the challenge.


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Market research and consultation with key stakeholders has identified that the Library, Museum & Art Gallery would be the principle services in the Hub, however a number of additional services and organisations could also be included within the Hub proposal: Visitor / Tourist Information Centre (“TIC”);

Theatre Box Office;

Performing arts facilities;

Registration, ceremonies (fully integrated with the Library);

Café, social spaces;

Third party arts, heritage and cultural organisations, and

Creative industries. As well as examining which traditional and arts services should comprise the Hub, there is the need to establish whether any other potential services provided by the Councils could fit into the Hub concept: Gateway could potentially be in the Hub but in the main body of this report it is

assumed that Gateway is not to be included the Hub. However, an option for providing an updated Gateway sized at 40% of existing is shown in the schedule of accommodation in Appendix E. However, we have not fully integrated this into the cost model due to the uncertainty of the operational model and therefore the impact on cost. A high level of the building related impacts is set out in Appendix E;

Adult Education (AE) is looking to change and operate as a separate business unit. The impact of this change and the ability of AE to afford a competitive rent at the current site needs further review as AE’s plans become clearer, and

Discussions have been held with the Youth Service; the type of space being sought

and the timescales, did not align with the Hub. Integrating the new services as noted above and allowing for a number of existing services to potentially vacate will give rise to a number of interesting configurations and collaborations to develop.

1.3 Financial and Business Case

In terms of the qualitative appraisal, the work we have undertaken has concluded: In site terms, the existing site is by far the most appropriate as well as the

preferable site in accommodating the new Cultural and Learning Hub, and

Given the needs analysis (and accepting that a new build option has been ruled out - due to there being no other suitable sites), a “do nothing“ approach on the existing site will clearly not deliver against the increased / changing demand on the existing services and achieve the Hub vision.

As a result, a refurbishment / extension option on the existing site is the preferred option.


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1.3.1 Quantitative Analysis

We have completed a financial model for the scheme in order to perform a quantitative analysis of the preferred option. The analysis is based on the following assumptions recreated from the financial model and included in full as Appendix C of the report:

Input Assumptions Current assumed “occupation” of space and associated costs, income, risks

Museum & Art Gallery, TIC, Box Office TWBC Library KCC Tunbridge Wells Story / Centre Split KCC & TWBC Café / Restaurant TWBC / KCC (70:30) Creative Industries Space KCC Creative Learning Spaces KCC

Capital Costs and Programme

Capital costs of £12.00m (exc. VAT) (including risk) have been included based on Gleeds’ estimate and assumed to be incurred over a 2 year build period.

Lifecycle Costs and Programme

Lifecycle costs have been included based on an assumed recurring annual sinking fund amount of £125,000 (in practice costs would not be incurred at this rate in early/late years but this will smooth the impact) and assumed to be paid over the 25-year operational phase.

Operating Costs and Programme:

Operating costs as follows are assumed to be paid over the 25-year operational phase.

Staffing With the exception of the Museum (see below), these have been taken from the existing budget and uplifted for inflation to the price date for the financial model of 2014/15 at an annual rate of 2.50%. No allowance has been made for the impact of new ways of working/sharing space etc. however, DCA have estimated that staffing costs (excluding the impact for any new operating model for Gateway) could reduce by a net amount of up to £100,000 dependent on the benefits from service integration that could be developed.

Cleaning, Building Maintenance and Utilities

These are charged based on occupied space at a rate per m2 of £8, £10 and £15 respectively.

Business Rates These have been taken from the existing budget and uplifted for inflation to the price date for the financial model of 2014/15 at an annual rate of 2.50%. No allowance has been made for any betterment that could be achieved through utilising some form of Trust structure.

Museum Costs These are based on a business/financial planning exercise undertaken by DCA.

Other Operating Costs These have been taken from the existing budget and uplifted for inflation to the price date for the financial model of 2014/15 at an annual rate of 2.50%. No allowance has been made for the impact of new ways of working/sharing space etc.

Operating Income and Programme:

Operating income as follows is assumed to be paid over the 25-year operational phase.


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Input Assumptions External - Rent External rent for the creative industries units and Adult

Education learning spaces have been based on a high level rent of £10/ ft2/annum (£108/m2/annum).

External – Service Charge

Service charges have been set to recover the lifecycle, cleaning, building maintenance, and utilities costs the “owner” of that area would be charged for the space occupied by the external parties (creative units social enterprise, learning spaces, café and restaurant).

Other Operating Income These have been taken from the existing budget and uplifted for inflation to the price date for the financial model of 2014/15 at an annual rate of 2.50%.

Mansion House Moving the services from Mansion House should reduce premises costs for KCC and elements of these existing costs are not included within this model. Capex and opex costs associated with the space occupied in the Hub have been allocated to the space “owner”.

Transition costs Currently these have not been included pending further discussions between TWBC and KCC.

The following table sets out the overall financial implications of the preferred option over an assumed 2-year build programme and the subsequent 25-year operational phase in aggregate and NPV terms:

Heading Aggregate Costs (£000)

NPV @ 3.5% (£000)

One Off Costs Capital Cost

12,000

11,797

Total “One-Off Costs” 12,000 11,797 Recurring Costs Lifecycle

3,125

1,991

Operating Costs 43,338 27,679 Total Recurring Costs 46,463 29,670 Total Costs 58,463 41,467 Less: Operating Income -16,668 -10,573 Net Operating Surplus / -Deficit -41,795 -30,894 Less: Council capital contributions: Council capital

-8,470

-8,327

HLF capital HLF revenue

-3,530 -370

-3,470 -331

Council existing revenue budgets: KCC TWBC

-14,324 -12,600

-9,124 -8,026

Total Other (Non-Operating) Income -39,294 -29,278 Net Operating Surplus / -Deficit -2,501 -1,616


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In the development phase, we perceive that funding for the estimated expenditure of £12.00m (£11.80 NPV) will come from two sources - HLF Funding (assumed £3.53m) and the residual (£8.50m) from Council funding – either via existing reserves or prudential borrowing. In addition to the forecast £3.53m of HLF contribution to capital, HLF will also support, as part of the same application, revenue costs of activities, learning and project preparation. The project we anticipate will be eligible for this support. We have estimated this at £370,000 over five years - two years prior to building completion and three years following completion.

As the model assumes that the development phase is fully funded, the estimated shortfall occurs in the operational phase. We have assessed the annual cost (steady state financial year) of the project and on which sponsor these costs are likely to currently fall:

Heading KCC pa (£000)

TWBC pa (£000)

Total pa (£000)

Net Cost 446 728 1,174 Council Budgets -573 -504 -1,077 Net Operating Surplus / -Deficit 127 -224 -97

Based upon existing Council contributions rather than predicted possible future budgets, this shows that in a representative year that TWBC could be required to contribute £224k to the scheme in comparison to KCC who are projected to benefit from the scheme by £127k per year (total deficit per annum £97k). However there are a number of income streams allocated to KCC within the model that might change to TWBC dependent upon the outcome of future discussions between the Councils. Additionally further savings might be possible including:

Up to a further £100k per annum might be able to be saved through an integrated operating model for the Hub

Appendix E highlights potential savings from integrating the Gateway into the Hub

A flat lined life cycle cost profile or sinking fund has been taken although early years expenditure will be considerably less whilst later years higher.

However in the figures above the benefit of operating the AEC as a social enterprise has been overstated in the figures provided to date, we await revised figures for this in order to show the more accurate current position which we believe will reduce the savings noted for KCC.

1.4 Conclusions

The qualitative appraisal in isolation has shown that there is only likely to be one viable option – a refurbishment of the facilities on the existing site.

In quantitative terms we estimate that the build inclusive of a risk allowance will cost in the region of £12.00m. Assuming the Councils are successful in an HLF bid for the suggested total of £3.53m (in respect of capital), this would leave a balance to be sourced from the Councils by applying reserves or through prudential borrowing of £8.47m.

In operational terms, the increase in space, better mechanical and electrical installations etc. all serve to increase the net revenue cost to a level which cannot be


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supported by the existing budgets or the proposed HLF revenue funding in the early years. Examining a representative year, an additional revenue cost of £97k has been calculated in overall terms, however, looking at the contribution that would be required from each sponsor to this total KCC might, dependent on the structure of the arrangements between KCC and TWBC, actually receive an income stream from the project of £127k leaving TWBC to meet the balance of £224k (however as previously stated, the KCC position is overstated).

Going forward, the Councils (especially TWBC) will need to assess:

Whether the required contribution is affordable, and if not, whether the scheme can

be amended to improve or eradicate the deficit position (for example, at present we have not made any assessment of any cost savings through sharing of resources/back/front office functions for example), and/or

Whether the wider benefits of the scheme outweigh the additional revenue costs.

From our analysis of the scheme we perceive there are two material areas of risk that could have an impact on the financial position:

The ability of the museum service to generate the additional income included in the

business plan (TWBC risk), and

Whether the net income projections for the café and restaurant can be achieved by an in-house service or whether a concession would pay a fixed amount to the value projected (shared risk).

Risk will need to be carefully assessed going forward as the scheme and the operating model develops over time.


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2. Introduction and Project Objectives 2.1 Introduction

Kent County Council (KCC) and Tunbridge Wells Borough Council (TWBC) commissioned Gleeds (in collaboration with Bissett Adams and DCA Consultants) to explore the options for a new ‘Cultural and Learning Hub’ in Tunbridge Wells. Gleeds were asked to look at the potential for a new partnership between Library, Museum and Education Services, appraising the potential for a range of other partners such as customer services, tourist information, arts organisations and creative businesses to join the Cultural and Learning Hub. The Cultural and Learning Hub was identified as having the potential to fulfil both KCC and TWBC cultural strategies, which aim to use the cultural and arts sectors to engage with a wider range of people, provide culture and arts-based learning opportunities, and boost the local and regional economies.

Both councils have cultural strategies which are closely aligned around the development of a creative and cultural economy:

Kent CC: Celebrating the value of culture in its widest form; acting as a caretaker

for Kent’s unique cultural assets; boosting and fostering the creative and cultural economy, and

TWBC: Cultural Strategy focuses on Economy, Place and People i.e. again boosting creative businesses, acting as stewards for the borough’s cultural heritage, and engaging a wider audience through a new Cultural and Learning Hub in the town

During the course of the project, extensive consultation has taken place with existing stakeholders and potential partners, and a model for the new ‘Hub’ has been developed, which could represent a centre of national importance, benefiting Tunbridge Wells, the Weald and Kent as a whole.

2.2 Aims of the project

The aims of the project are as follows:

1. To deliver a superb new focus for the cultural life of the town, telling the Tunbridge

Wells story, offering information and inspiration, learning, artistic activity and hosting celebrations and festivals.

2. To provide a fully integrated new cultural resource, bringing together a transformed town museum and art gallery hosting both local and national work of excellence. Updating Kent’s most popular library and an array of new facilities for participation and learning.

3. For visitors to the town it will be the focal point. For local residents the Hub will work in partnership with the town’s many other arts and community organisations to offer something for everyone.

4. To provide a focus and a boost to the local and regional creative economy, offering ‘incubator’ space for start-up businesses, resource and information services provided by Library, Museum and Adult Education, the potential for retail space, display and events space, and the benefits of being part of a nationally significant new project.


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2.3 The Project Brief

The original brief for the Cultural and Learning Hub project was to ultimately provide a report on the feasibility of the project which will include the following elements: Needs Analysis - To understand the needs and requirements of the services that

would fit within a Cultural and Learning Hub located in Tunbridge Wells, and

Business Case - To understand the options for delivery, likely costs (both capital and revenue) and the key risks.

The brief required an exploration of options which balanced: The requirements of individual services, the ambition and future cultural vision of

both Councils, a sustainable financial model of both revenue and capital funding, and a feasible project within the constraints of available sites.

The brief required extensive consultation with service heads and strategic and management leaders from KCC and TWBC, as well as local research to arrive at a conclusion which provides a project which meets the strategic vision and an achievable, real outcome.

2.4 Strategic Fit

The project is “on strategy” for both KCC and TBC – aligning to their respective corporate strategies and delivering on three key strategic aims of economy, place, and people to: Support the development of appropriate work space and provide small business

support for existing and new creative businesses (economy)

Protect and develop the Borough’s existing cultural strengths by being passionate and responsible stewards of our built and natural environment (place)

Create a visible cultural focus by redeveloping Tunbridge Wells Museum & Art Gallery and enhancing the Assembly Hall Theatre to enable more people to have an opportunity to participate in culture (people)

The Cultural and Creative Hub could be a nationally significant centre, promoting culture and the arts in Kent, and contributing to the creative economy, as well as providing an engaging and excellent learning experience for local people from all walks of life.

The Hub could offer transformative change in the cultural and civic life of the town that will bring attention to Tunbridge Wells from far-afield.

2.5 Project Objectives

The objective of the Cultural and Learning Hub has developed throughout the consultation process. Initially we identified a number of benefits, including financial efficiencies, to be achieved by a greater partnership approach between the Library, Museum and Adult Education service, for instance, with crossover services to promote learning and local history. This objective has now been further developed, with an understanding of the level of ambition and creative vision within stakeholders from both Councils. The Cultural and Learning Hub could be a nationally significant centre, promoting culture and the arts in Kent, and contributing to the creative economy, as well


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as providing an engaging and excellent learning experience for local people from all walks of life.

The Hub could offer transformative change in the cultural and civic life of the town that will bring attention to Tunbridge Wells from far-afield. The original objectives of the project can be summarised as follows: Transform profile of culture in the town;

Capture wider attention for Tunbridge Wells;

Drive better service delivery;

Foster product innovation and reach new markets;

Meet changing service goals/strategies;

Reduce overall costs to allow investment in activity;

Enable new incomes from trading and fundraising, and

Support better economic performance of the town. Through mutual consultation the model is now of a nationally significant cultural centre and museum & art gallery housing an important collection of works including Thomas Gainsborough, with a range of shared spaces offering café, display, events and learning spaces.


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3. Key Stakeholders, Potential Partners and Needs Analysis

3.1 Overview

Key to the development of the Hub is to gain a clear understanding of the needs of stakeholders; establishing how they operate, how they wish to operate in the future and to assess how they could potentially fit into the Cultural and Learning Hub experience.

As such, we met with senior members of both KCC & TWBC, the Library, the Museum & Art Gallery, the Gateway, Tourist Information Centre (TIC) and Adult Education. In order to obtain their views a pro-forma was created to help establish and record the existing operational requirements and future or desired operational needs of each stakeholder. It was clearly stated throughout, that in capturing these initial requirements, it would not necessarily mean they would be delivered and a process of review and consolidation / integration would be required.

3.2 The Library

We understand that the Library have strong visitor numbers being one of the most successful libraries in Kent. However they recognise that they operate out of a dated library space and would welcome modernisation. The key points that came out of discussions with the Library are captured below: They have strong visitor numbers but are keen to attract a greater number of users

from all cultural / social ages and groups.

They consider that the existing library is in a good location in Tunbridge Wells, however the building frontage is unwelcoming and the internal spaces are tired and in need of modernisation;

Heating and cooling systems in the building are substandard and temperature is difficult to regulate;

From their extensive experience, they consider the ideal library model is to have an open plan and flexible space. The Kent History and Library Centre in Maidstone, was given as a prime example - this allows for flexibility and future adaptation;

They would ideally have a shop window and display space to attract visitors into the Library, encouraging passers-by to come in and browse the stock; currently the building frontage offers little visibility of life behind the entrance;

(Maidstone History & Library Centre)


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They could see linkages with TIC, Museum & Art Gallery with an overall “Tunbridge Wells Story”;

Births and deaths registration is currently moving onto site and there is the potential to move marriages and records storage onto site (or indeed off site) which could release the Mansion House site, and

They would like access to a café on the site as it would encourage additional users.

An existing space analysis has been carried out to assess the floor area that the Library currently occupies. The areas are summarized below with the existing floor areas subdivided into front of house, back of house and circulation:

Figure 1: Library Spatial Analysis

From the above analysis and following detailed discussions with the Councils. It is considered that the total amount of floor space could be reduced due to the following factors: Modern libraries typically have a reduced stock;

The front of house displays will carry stock that is in demand by the public therefore removing unused or under used items from the library floor. Shelves and displays are more flexible enabling more efficient use of space;

Back of house stock storage will again be reduced for the same reasons as above;

By creating a more flexible and open plan floor space the floor area can be used with greater efficiency thus reducing the demand for space, and

Back of house areas dedicated to staff (offices, kitchens, etc.) and public services such as toilets could be provided as shared spaces with other stakeholders within the Hub.

Existing Space

Front of House Back of House Circulation

Total current space: approx. 950 m2

(Maidstone History & Library Centre)


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We have assessed the space requirements of the Library in the new Hub, and based on the above, we have refined and ultimately reduced the Libraries floor area requirement. This is illustrated in the schedule of accommodation at end of section 4.

3.3 The Museum & Art Gallery The Museum & Art Gallery is an established visitor attraction in Tunbridge Wells but it is out-dated and is in need of modernisation. There has been little change in the Museum and Art Gallery in its almost sixty years and both its facilities for visitors and its displays, are now extremely dated. The outreach and engagement work of the Museum has flourished however, the physical environment and visitor experience for those who are drawn to attend the Museum has declined. Poor storage facilities has meant that the valuable collections are having to be stored in the existing basement, which if left, is likely to cause irreparable damage. Key points from the meeting with the Museum & Art Gallery management are discussed below: Although the Museum & Art Gallery is a popular attraction it is dated and desperately

requires modernisation;

The Museum & Art Gallery would like to increase their visitor numbers and the current premises significantly constrains their educational, outreach opportunities and visitor numbers;

They are keen to be more involved in learning programs including involvement with local schools and educational groups;

They would like to host more diverse and ambitious exhibitions but are held back by inadequate environmental conditions. Heating is currently provided by a centralised heating system with limited control and cooling is dealt with by natural ventilation. There are currently no humidity controls;

The current exhibition space or “Art Gallery” is difficult to access, not adequately environmentally controlled and lacks the scale or sub-division to enable the range of exhibitions that could be promoted.

Valuable collections, including examples of rare and historic local clothing, are being poorly stored in the basement. The basement suffers from damp and there are no environmental controls. To preserve these valuable objects there is an urgent need to improve storage space. This would include accessible storage and thus make more of the collections available to the public which is not currently feasible;

The Museum & Art Gallery would welcome integration with other services and sees itself as a key partner in a future Cultural and Learning Hub experience, and

There are opportunities for much more activity, partnership working and access for the public but these are severely curtailed by lack of space.

As with the Library a preliminary assessment was carried on existing floor areas that the Museum & Art Gallery occupies as illustrated below:


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Figure 2: Museum & Art Gallery Spatial Analysis

The declining quality and attractiveness of the museum facilities present a significant challenge. The project for the renewal of the Museum and Art Gallery could transform the current facilities in a way that celebrates the local collections throughout and beyond the region and do so in ways that fully engages the widest range of local people and communities. There are real treasures in specialist areas of the collection, such as costume, which are difficult to display in the current environment but which respond to people’s interests in both historical material and contemporary issues of fashion and style. New display facilities would enable more sophisticated management of content. Nationally, there is a strong move toward accessible stores - both from audiences and from developing best practice. Visitors very much enjoy seeing ‘behind the scenes’ and exploring among the many objects that cannot be exhibited Work with both formal and informal learners and learning groups is a priority of the Museum and Art Gallery. However, this area of work is extremely constrained by lack of space and suitable facilities in the building as it stands. Group work is only possible on the floor of the exhibition gallery when shows permit, and in spaces such as the children’s library, which are under pressure from other uses. By creating a suite of gallery spaces of differing sizes and characters, there is the potential to dedicate space from time to time to local artists and creativity, alongside higher-profile shows. One of the principal benefits of the integration of library and museum in a Cultural Hub could be to bring together the materials, information, resources and collections that enable people to access and explore their heritage and that of the town. Local people researching histories of family and place, students and others learning and developing research skills and academic researchers investigating particular topics all currently find material divided, without a great deal of logic, between the Library and the Museum. In the new Hub, the Museum & Art Gallery would be looking to increase its overall floor space requirements. This will enable it to increase and improve both its front of house and back of house provisions allowing for more and varied displays and ultimately leading to a significant rise in visitor numbers.

Existing Space

Front of House Back of House Circulation

Total current space: approx. 700 m2


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For a more detailed analysis of the Museum & Art gallery please refer to Appendix A at the end of the report.

3.4 Potential Partners

3.4.1 Adult Education

KCC is considering a significant change for Kent Adult Education across the county in that an option under consideration is a potential social enterprise or similar delivery model which could involve a separation from council control leading to a more independent organisation. The AE Centre in Tunbridge Wells is successful and popular with courses usually oversubscribed. The creative courses (pottery, jewellery, art etc) significantly contribute to their income and allows them to provide more subsidised or less profitable courses in Tunbridge Wells and elsewhere. In Tunbridge Wells AE currently operates out of a Grade II listed building sharing the site with the Library and Museum & Art Gallery. Feedback from AE is noted below:

They provide a popular

service in Tunbridge Wells and AE stated the current site was viewed as one of their core buildings in Kent;

They would like to be able to utilise additional teaching space and see synergies with the Museum & Art Gallery;

(The existing Grade II listed facade of the Adult Education building)

Tunbridge Wells is the second highest performing centre in the country for informal adult learning (art etc), and is central to business plans to increase the financial return in the west of Kent;

Display space to show their students’ works and also retail these at certain times would be beneficial, and

Current specialist facilities are available for renting outside course time as students and those who have completed courses seek to continue and develop their interest. This could link in with the development of creative industry businesses in the area and through the Hub.

Adult Education provides an important service in Tunbridge Wells and elements fit with the Hub model. It provides a number of courses that promote both learning and culture. AE believe that the opportunity to access high quality specialist learning experiences and expert tuition to create and produce (pottery, jewellery, etc) will be a selling point for the Hub and will draw visitors in from a wide area. However, as AE is moving towards a social enterprise, elements that are to be included in the Hub would need to lease the space at a market rate along with any other organisation.


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The potential change to AE’s county wide organisation may bring about a change in its operational model. With this state of flux we have taken a pragmatic stance on how AE fits into the Hub, this includes: Non creative industry courses and basic skills training will be delivered from other

sites, and

Certain creative and cultural courses that fit well with the Hub model will be able to occupy spaces paying a market rent. An area of around 460m2 has been initially allocated for this although there would be opportunities for utilising additional shared spaces within the Hub.

3.4.2 Gateway

The Gateway, unlike the Library, the Museum & Art Gallery and Adult Education, is located on a site to the North on Grosvenor Road. The building is on two floors, has been refurbished and extended in the last 6 years and serves the Gateway well under its existing operational model. However the key point that came out of the meeting with the Gateway was that the Gateway model was changing, with less reliance on customer facing services as the move to other delivery channels such as telephone and particularly online transactions is accelerating. Key points are captured below: Reliance on customer facing services is reducing as more transactions move to

other delivery channels such as telephone and online;

Universal credit will see further significant changes including additional demand on computing capacity as well as potentially the Citizen’s Advice Bureau;

Due to this change in the service provided they ideally need flexible spaces that will be able to adapt to their changing circumstances;

They are happy to operate towards back of house as long as sign-posting works well, and

The Gateway will potentially continue to develop a network of partner organisations as they have done over the past 5 years and the wider opportunities offered through a wider integrated Hub could be beneficial

There are clear arguments, both for and against, Gateway being in the Hub. From a commercial stand-point, as Gateway makes the transition to more online services their floor space requirement will decrease. Assuming Gateway remains in its current location, cost will remain the same even though Gateway will utilise less area. If the Gateway were to move into the Hub, specialist flexible space could be designed that would allow the space occupied by Gateway to reduce over time with other services taking up the area as it became available. If Gateway were in the Hub there is the added benefit that its users would be exposed to the cultural and learning aspects actively promoted by the Hub.

Conversely, the Gateway is not a seamless fit with the cultural and learning model. It provides a public service that does not promote either learning or culture. Neither would it contribute to achieving outside funding for the Hub.

For the main body of this report, Gateway is assumed not to be included in the Hub, however a brief analysis for a Gateway sized at 40% of the existing Gateway has been included in Appendix E.


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3.4.3 Tourist Information Centre

The Tourist Information Centre (TIC) currently operates out of a small premises in the Pantiles providing an important service to the town of Tunbridge Wells. Clearly the TIC is a good fit into the Hub as it promotes Tunbridge Wells and its culture. Its physical space requirements could be easily accommodated and it would link well to other stakeholders, the Museum & Art Gallery in particular. For the TIC to successfully operate out of the Hub, the Hub would need to be in a good location for visitors to the town. The TIC would also require clear and obvious signage to draw visitors in. The TIC is considered to be an appropriate partner for the Hub.

3.4.4 The Box Office

Currently located in the Assembly Hall Theatre on Civic Way, the box office is again a good fit into the Hub. It exists solely to support the theatre which provides and important cultural contribution in Tunbridge Wells. As it requires very little space out of which to operate it could be easily accommodated in the Hub. The Box Office is considered to be an appropriate partner for the Hub.

3.4.5 Creative Industries Development

Recent work by Tom Fleming Creative Consultancy and by Elwick Bouette Partnership have shown the strength of the Creative Industries in Tunbridge Wells and their potential to contribute to future prosperity. The Creative Industries (CI) is an important part of the knowledge economy and is a highly successful part of the UK economy. In fact drilling down to its potential significance for Kent, 40% of the Creative Sector in the UK is located in London and the South East. TWBC, with the support of KCC, has committed to support the development of the town as a focus for the Creative Industries. The key reasons that make Tunbridge Wells a good strategic option for this activity include: Tunbridge Wells already has the highest concentration of creative companies in

Kent at 7% of total employment. Adjusting this figure to include portfolio working could bring the total to 10%

The Borough has a population of over 108,000 so it has a substantial infrastructure and critical mass

There are good road and rail routes to London, the rest of Kent and the South East and beyond

The near conurbations include a further 117,000 people

Tunbridge Wells is geographically in the centre of the South East Region, making it a good candidate for the role of ‘Creative Hub’

The demographic of the town is suited to creative development and employment having a higher than average ABC population and proportion of people educated to degree level


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The absence of a university in or near Tunbridge Wells offers further potential for a long term plan for higher and further education there. This in turn offers the potential to increase graduate retention

Tunbridge Wells has a strong cultural tradition which will help attract creative and cultural businesses

From the evidence of demand found by Fleming, Tunbridge Wells has the potential to develop quickly as a creative Hub as has happened recently in Brighton & Hove, Folkestone, Hastings, Faversham and other towns in the region. Fleming identified 509 creative businesses in Tunbridge Wells to survey for his 2012 report, across the 16 sub-sectors defined by Dept. of Culture Media and Sport. Respondents showed typical creative industries (CI) characteristics in that they tended to be small and micro businesses with a healthy proportion of recent start-ups, but also exceeded the Kent average for VAT registrations – showing a more commercial profile than might have been expected. The sub-sector breakdown of the respondents to Fleming’s survey were as follows:

Figure 3: Chart courtesy of Tom Fleming Creative Consultancy, 2012.

Following the work of Fleming and Elwick Bouette, the Councils have initiated a physical Hub at Southborough, but plans for a discrete CI Hub in Tunbridge Wells have not advanced. Fleming identified three key priorities for action in support of the sector. In the following table we show how the vision for the Cultural Hub could significantly advance this agenda, support the CI sector broadly and act not only as a CI Hub for the town but also as a high profile public showcase and emblem of the creativity of the town. The images are those Fleming uses to illustrate the kind of facility and activity he envisages and are included here as a reference to the specification for the Cultural Hub throughout this report.

Advertising15% Video, Film &

Photography13%

Visual & Performing

10%

Digital & Entertainment Media

9%Art & Antiques

6%

Software & Electronic Publishing

6%

Crafts5%

Music5%

Publishing5%

Radio & TV

Architecture3%

Designer Fashion3%

Other 16%


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Sector support required – following Fleming “A Cultural and Creative Industries Framework (2012)”

Cultural Hub contribution

Collaboration and Exchange

Fleming shows the primary importance of a space in which new network activity among CI practitioners and their market makers can take place. He highlights the importance of distinctiveness and the Cultural Hub has the potential to make a dramatic difference here. At a practical level, as Fleming’s illustrative image shows, the galleries, activity spaces and café of the new Hub will be superb and visible facilities for the hosting of such networking, both for local creatives but also for the effort to bring buyers, commissioners and market makers to the Town.

Market Making

Fleming identifies the importance of developing the visibility of the town’s creative activity. Although much of the Branding work Fleming recommends will be undertaken at a strategic level, the Cultural Hub can contribute by exemplify the town as a creative place. The shop and exhibition programmes will be an opportunity to showcase the creativity of local designers and makers, and the expanded range of projects initiated already by the Museum and Art Gallery team with local CI practitioners will be highly distinctive. Elsewhere in the report we have talked about the way in which the Hub has the potential to be a focus for creative and cultural festivals for the town – hosting activity, promoting festivals but also selling tickets and signposting activity elsewhere.

A Creative Hub

Fleming identifies a need for a Hub which: Provides a nexus for Creative individuals, opportunities

for peer-to-peer networking, some affordable workspace, A centre of cultural production including rehearsal and

project spaces and An aspirational public space for the notion of Tunbridge

Wells as a town which values the importance of culture and creativity.

The Cultural Hub proposal in this report will provide a set of working spaces to act as both workspace, project space, rehearsal, activity spaces, social and other facilities for networking, facilitated by the Hub team.


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3.4.6 Youth Service

Discussions were held with the Youth Service team at KCC to understand whether there were synergies and opportunities for youth facilities being linked in with the Cultural and Learning Hub. The Youth Service are in need of space in the centre of Tunbridge Wells and are currently seeking opportunities to progress their business plans. Having considered timescales and the type of spaces and environment required it was felt that there was not a significantly strong correlation with the Cultural and Learning Hub environment. However, the opportunities for integrating youth work and activities within the Cultural and Learning Hub is a benefit parties definitely wish to see moving forward. This could include work with libraries, museum and art gallery, creative courses amongst various other activities. At this point in the process the inclusion of Youth Services within the Cultural and Learning Hub has not been progressed.

3.4.7 Café & Restaurant

We summarise the customers of the Café and restaurant independent study below with the more detailed analysis contained in Appendix B. If the Cultural Hub is to attract both local and non-local visitors in large numbers and to become a Hub for heritage and cultural activity in the town it must be a social space as well as a functional cultural venue. In order to bring the building to life, we recommend that new catering provision is central to the offer.

A successful approach in other operations of this type is to involve an existing local caterer or café operator, for example the café at Royal Albert Memorial Museum & Art Gallery in Exeter. In this case we believe contracting out to a small/medium sized local or regional operator is likely to deliver the best balance of quality and return. We would also recommend the project fund the core fit-out and main equipment required. This will maximise operational and management flexibility moving forward and facilitate the best possible commercial ‘deal’ with any third party operator. In terms of space required for the café operation, we would envisage circa 150 m sq. being required, most of this for seating (minimum 70 seats). A relatively limited ‘kitchen/store’ would be required (minimum 40 m sq.) and a service counter of 20 m sq. These spaces could deliver a good quality but simple café type operation. A staff WC and an office space would be required. In addition, a second floor destination restaurant has been suggested. Upper level catering is usually higher risk in any building development although there are examples of success like the Portrait Gallery Restaurant, Ashmolean and Tate. However, there are a number of conspicuous examples in cultural buildings where upper level restaurants have failed or have struggled to generate income, Walsall New Art Gallery is an example. A destination restaurant will not typically appeal to users of the Library, Museum & Art Gallery as destination restaurants tend to serve the evening driven special occasion and lunchtime corporate markets. A destination restaurant could well prove a success in Tunbridge Wells however the proposal would require careful consideration moving forwards.


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3.5 Shared Spaces and Synergies

The Cultural and Learning Hub is based on a model of shared space allowing different services to work together and complement each other in an exciting and flexible way.

Key synergies within the Hub are identified in the diagrams below:

Figure 4: Adjacencies diagram of the Hub. A key unifying area could be a new café, informal events, display and meeting space which could be potentially achieved in the courtyard by glazing over the rear garden. This space could be arranged to link all the current spaces through new apertures in the curved rear wall of the Library and Museum, new access into the rear of the adult education building, as well as a dramatic entrance to the art gallery which could be housed in a new extension to the rear of the museum wing. We have identified this as the ‘heart’ of the space, linking and providing communications and display space. The Library, Museum and Art Gallery and Tourist Information services could work together to provide the ‘Tunbridge Wells Centre’ or ‘Tunbridge Wells Experience’, a centre promoting Tunbridge Wells, its history, its attractions, its businesses and its future vision. It could provide a flexible programme of events and services, from local history research to exhibitions about history or current local activities or businesses.


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The Adult Education service is undergoing changes in its governance and operational model, and it is proposed that only its creative courses are retained in the Grade II listed building, freeing up space for shared activities. A solution could be for the room adjoining the potential new café/courtyard to be opened up and made accessible from the café, and provide a flexible space for creative businesses to use as a display, events and resource area. Other learning spaces within the Adult Education building are similarly identified as potential shared learning spaces, flexible for seminars, events and informal performance. The ‘Creative Hub’ would be a new addition to the existing model, comprising a partnership between learning services and creative business development: this might involve start up space, shared information and facilities resource, marketing and display space, and the benefits of adjacency to the rest of the Cultural Hub.

With a new operational model, office space could be rationalized and shared between the services. The gallery would include learning and events space, again which could invite partnership working with the Museum, Library, creative business and educational partners.

3.6 The Tunbridge Wells Centre

The above stakeholders all contribute to the cultural and learning aspects of the Hub although the Library, Museum & Art Gallery are considered to be the core providers. While each of these core stakeholders provides a valuable service they are also isolated and separated from each other and therefore directly contradict the philosophy of the Hub. Additionally there is a lack of a first point of call in the Hub concept. It became apparent that there was a requirement to further link these core providers while at the same time provide a focus on Tunbridge Wells itself. As such the concept of the Tunbridge Wells Centre was developed. The TW Centre would be an entry point into the Hub and link together its various offerings and services. It would be an information rich environment with a changing and flexible schedule of display. It will seek to provide information and learning opportunities on the town of Tunbridge Wells; its history and its future, educating local visitors and tourists alike.


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Figure 5: The Tunbridge Wells Centre Possible Service Linkages (Please note that the above diagram is to illustrate the possible linkages within the Hub but should not be considered a floor layout)

3.7 Conclusions

The Hub model of the Cultural and Learning Hub centres on the Library, Museum & Arts and learning activities, exploring the potential for partnership working and a customer-focused learning and leisure experience. The Library, Museum & Arts services have identified the potential for a ‘Tunbridge Wells Centre’, combining information and display about every aspect of the town, its history, its culture, arts, and future plans. During the course of the project, the Hub model has expanded to include a new element, the ‘Creative Hub’, supporting the local creative business sector and providing resource, backup and marketing opportunities in partnership with the Library, Museum & educational services. This is one of two proposed locations for a new initiative offering creative business start-up space and learning/resource facilities, the other being in Southborough. The team has further explored the development of the Museum and Art Gallery as a nationally important facility, part of which could house a newly available collection


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including a painting by Thomas Gainsborough. In addition, a new rooftop restaurant and flexible events space could also be considered. There is a confidence that the model for the Cultural and Learning Hub would therefore represent a ‘critical mass’ as a centre with regional and, over time, nationwide appeal, as well as offering local residents engaging information and learning opportunities.

The current Adult Education service is undergoing an organisational transformation and is considering a social enterprise model. It is proposed that courses which relate to the Cultural and Learning Hub could be retained in its studio spaces, whilst more academic and basic skills courses could relocate to more appropriate settings. The arts-based courses could work in a continuum with resources for creative businesses (which will take advantage of start-up space, resource, marketing and display space, and the positive message of being part of the high profile facility). In parallel with the consultation and research programme, the architectural team has been exploring the potential of the preferred site, currently housing the Art Deco library and museum and art gallery and the Grade II listed Edwardian Adult Education centre, with courtyard and low-grade ancillary buildings to the rear. New organisational models involving shared space and resources allow a crossover between the elements of the Hub, and we propose refurbishment to open up spaces; allow access between buildings; introducing a shared space in the rear courtyard as the ‘heart’ of the Hub, as well as a major new extension to the rear of the museum housing additional museum and art gallery space. The team believes the model which is proposed has the flexibility and scope to provide the outcomes envisaged by both Councils, providing a range of benefits including local engagement in learning, benefits to the regional creative economy, and the economic benefits of a museum and arts attraction of regional and national significance. Following the assessment of the needs of each key stakeholder and inclusion of potential partners in to the Hub, a schedule of accommodation (SoA) has been developed. This captures the specific space requirements for each stakeholder and assesses whether the spaces are dedicated specialist space or can be shared between other stakeholders to achieve efficiencies within the Hub. It should be noted that the SoA in an initial estimation of the areas required by the stakeholders for the purpose of establishing the space requirement of the Hub and assessing if this requirement can be physically met. The areas presented in the SoA are by no means finalised and will require further development and stakeholder input in the forth-coming stages of the project. The SoA is presented overleaf:


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Figure 6: Schedule of Accommodation Following Stakeholder Meeting

Schedule of Accommodation Developed Following Stakeholder MeetingsRevision 8

Stakeholder Description of SpaceSpecialist Space

(m2)

Potentially Specialist / Possibly Shared Space (m2)

Shared Space (m2)

10 (TIC)5 (Box Office)

25 (Retail)45 (Reception)

55 (Library)60 (M&A)

Total 0 0 200Grand Total Tunbridge Wells Area 200

Library Fully accessible open plan spaces able to provide flexible library accommodation including spaces for children’s library, adult lending, self service, studying. Buggy park close to children's library etc. 500

Transit Store / Library 10Storage space / Library 40Registration Space - 2 No. confidential meeting rooms/pods where the registration of births & deaths can take place. Primary use for Library, Registration & Archives with potential for others - Meeting room and discreet waiting area

30

Ceremonial space to be dual use of library / art gallery or within the existing adult education facility

30

Small marriage room - location to be found within a quiet part of the office and meeting room area or adult education facility

25

Option - Registration storage - Stored in basement (though potential to store off site) 40Total 645 0 30

Grand Total Library 675

Museum and Art Gallery Museum display - A mix of larger and smaller spaces to be specified later, some with fixed 'permanent' display, some changing display and some with interpretation installations

400

Art / Museum exhibition and exploration spaces including display of important local collections, loans from national partners, grade A touring shows, smaller secondary exhibition space etc. 500

Local studies, research and archives room 75Closed stores 160Accessible stores 120Despatch/receipt/ treatment/workshop/ quarantine space 60Collection management room - adjacent to the stores, with museum store conditions for cataloguing

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Learning and activity room dry - 3 of varying sizes 195Learning and activity room wet 65Learning and activity support - prep store area 20

Total 1360 0 280Grand Total Museum 1640

Cultural Centre Staff Facilities

Staff Shared Office Space175

Meeting rooms 30Kitchenette 15

Total 0 0 220Shared Office Accommodation Space Total 220

2 No. 30 m2 classrooms 60




1 No. 100 m2 classroom 100Specialist spaces 20Storage 20Office Spaces 40

Total 0 460 0Grand Total Learning / Adult Ed / Expansion Space for Business Use 460

Drama / Rehearsal Space / Talk / Lecture / Seminar room 120Meeting room suite 75Practice spaces/studios - could be let as incubator units, used as residence spaces for creative projects or house further engagement activities

300

Kitchenette 15

Total 0 510 0Cultural Activity and Creative Business Space 510

Other Public Facilities Café 150Restaurant 150Public / staff toilets including disabled 110Baby change 5Cleaners stores 9

Total 0 0 424Grand Total Shared Spaces 424

Overall Total 2005 970 1154

Overall Grand Total 4129

Circulation and plant at 20%* 826

Total GIA 4955

Integrated museum and library space near entrance giving an identity and historical context to Tunbridge Wells and its surrounding areas including the Weald. TIC, Retail, Box Office and Reception to be linked with this.

Adult Education - Creative Learning Spaces - potentially learning / education courses that may over time enable the cultural activity and creative spaces to enlarge as these reduce

Outline schedule of accommodation developed through the feasibil ity study stage. A number of areas are undergoing reviews and we foresee changes emerging over the coming months

The above has an estimate for circulation and plant areas of 20% which requires further development. With open plan spaces an efficient solution should emerge

Resources for cultural activity and the creative industries in the town

The Tunbridge Wells Story


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4 Operation and Governance 4.1 Overview

As part of the study, we have reviewed the current operation and management structure and identified the principal options for future governance. The current organisation of the three services in the suite of buildings under three different services in the two councils with independent management structures militates against the coherent expression of one vision and one service to customers. Although there has been some joint working, particularly between the Library and Museum & Art Gallery, this has been sporadic at best and both partners recognise that this has not been maximised and that organisational arrangements and the current constraints of the building may have hampered this. We suggest that significant operational change will be needed if the Cultural Hub is to: Transform profile of culture and the Hub in the town;

Capture wider attention for Tunbridge Wells;

Drive better service delivery;

Foster product innovation and reach new markets;

Meet changing service goals/strategies;

Reduce overall costs;

Enable new incomes from trading and fundraising;

Support better economic performance of the town, and

Secure funding support for the necessary renewal. Which of these objectives are met and to what degree will depend on the extent and direction of change in the management of the services in the building. In the remainder of this section we set out the broad options for the future and present summary strengths and weaknesses of each option and identify potential ways forward which will best enable the capital project to be realised and then for the Hub to best achieve the above objectives in use. The need for organisation change will also, to some extent, follow the development of the model the partners seek to deliver – as discussed in the earlier sections of the report, the list of services to be included or left aside from the cultural Hub will have a bearing on the management model that best meets the partners’ objectives. The final arrangements for operation and governance will therefore be likely to be finally decided only as the project moves through the development stages and the precise make up of its offer is fixed. From discussions in the previous section about the extent to which each service will be likely to be incorporated in the Hub, we suggest that the broad operational structure will be as follows:


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The Museum and Art Gallery and Library will become a more integrated service offering a set of cultural opportunities for all ages and backgrounds of local resident and an entertaining and educational attraction for visitors to the town.

Within this service, there will remain specialist elements where staff provide identifiable information, museum, arts development or other services much as they are now in the separate services.

Some aspects of the service will be fully integrated – for instance the operation of a visitor desk which welcomes all visitors, signposts visitors around the building, offers first line services in library/information transactions, museum orientation, ticketing and booking for activities, theatre box office and visitor information for visitors to the town.

Some activities and services will be more integrated than at present and operated across the library/museum functions as a coherent single cultural service – for instance all learning and engagement activities (which are likely to span heritage, creative, reading/literacy, research and information, activity provision for target groups such as parent and toddler groups, etc.) can be planned, organised and delivered as a single programme in a set of multipurpose spaces.

Other activities are likely to be managed as specialist areas but will benefit from and happen across the new spaces and facilities, so for instance the registration service may find that there are occasions when celebratory registrants find the heritage display or exhibition galleries add to their plans and experience of the use of the building.

Creative practice studios will best be managed directly by the Hub management team, as they will thrive when connected to the arts and heritage projects, exhibition opportunities and cultural vision of the whole project. These studios may be let to creative enterprises as discussed in the previous section, but they also have the potential to host residencies and other cultural activity planned and promoted by the Hub.

Other areas of the complex may be used by separate provision offered by partner organisations such as the Adult Education service, Gateway, etc.

Although the retail operation will be operated by the Hub team, so as to maximise the efficiency of welcome desk staff providing the retail staffing at minimal extra cost to their welcome and information work, the Hub may contract a private sector partner to operate the café and, if provided, restaurant.

4.2 Governance and Organisation Options

We set out below seven options for future delivery models which would to one degree or another offer management solutions to the above operation: 1. Continue as now – co-location of differently managed services but with systems for

managing shared space/staff functions;

2. KCC/TWBC continue to operate specialist services, but form a shared service operation/company to deliver a set of shared tasks – back office, front desk, facilities management;

3. KCC commission TWBC or vice versa to deliver a joint service (staff remain in current employs, operational structure remodelled);

4. KCC commission TWBC or vice versa to deliver a single service (staff are transferred into one employ and operational structure);


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5. Where appropriate, some services are passed to a trust. Other services may remain with KCC/TWBC ;

6. A new culture Hub not-for-profit trust is formed, establishes a new organisation plan under contracts and transfers from both partners, and

7. A service specification is developed and offered to the market for private or other third sector delivery.

In the case of options 2 and 3, each could be organized with TWBC or KCC as the lead partner. In option 3, either TWBC or KCC could operate the back-office company or it could be established as a separate entity, in which case it could in theory take on back office functions for other cultural activities in the town. In the tables that follow, we have commented on the way in which each of these options might deliver the objectives set out at the head of the section. These are a broad approach to operational structures and will need to be explored at greater length if the project is to be taken past the feasibility stages, for example, assessing and refining the roles and responsibilities that each of each stakeholder (statutory roles included).


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Continue as now – co-location of differently managed services but with systems for managing shared space / staff functions

Objective Comment

Transform profile of culture and the Hub in the town

It seems unlikely that a continuation of the current structure will drive a transformation matching the ambition of the project

Capture wider attention for Tunbridge Wells

It seems unlikely that a continuation of the current structure will provide an innovative and high profile service, attracting regional / national attention

Drive better service delivery Better service delivery may result from building improvement, but without change to operation may not be far-reaching

Foster product innovation and reach new markets

It is likely that innovation will flow best from a reorganised and integrated service

Meet changing service goals and strategies

Continued current operation will enable both partners to direct their own service to their goals and strategies

Reduce overall costs Continued current operation will not be likely to offer efficiency savings of significance

Enable new incomes from trading and fundraising

Significant new incomes are less likely to flow under a continued in-house service with separate operations for the constituent elements

Support better economic performance of the town

The renewed building will drive improved performance but this may not be maximised by a continued separation of operations

Secure funding support for the necessary renewal

It should be possible to secure core funding support provided a single vision is clearly articulated, but charitable funding is less likely

Be achievable within partners’ processes and constraints

The project could be realised as a partnership project with continued separate services regulated by service level agreements

Be affordable in terms of transition cost

Transition cost would be minimised by continued operation as currently

Be sustainable and stable model for long term

For the long term, continued separation of operations may well prejudice the ability of the project to deliver significant change and sustainability


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KWCC / TWBC continue to operate specialist services, but form a shared service operation / company to deliver a set of shared tasks – back office, front desk, facilities management

Objective Comment


Back office changes will not drive the transformation of profile


Back office changes are not likely to have any effect on wider profile of the Hub

Drive better service delivery Service delivery gains are likely to be marginal


Back office change is unlikely to drive innovation and new markets


Both partners could influence / direct the service but back office changes are unlikely to improve

Reduce oval costs Efficiencies in the back office could be made but will not be reflected in the majority of the service which is not back office (back office services are mainly carried out centrally by the authorities)


Back office changes are unlikely to drive new incomes


Back office changes are unlikely to make an appreciable difference to economic impact


Back office changes will be neutral in the case for funding


Back office changes should be achievable through reorganisation


Transition cost should be limited as relatively few staff are involved


There are potential instabilities arising from a fractured service with separate specialist staffs and a further back office function


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KCC commission TWBC or vice versa to deliver a joint service (staff remain in current employs, operational structure remodelled)

Objective Comment


It seems unlikely that without integration, the project will drive a transformation matching the ambition of the project


It seems unlikely that without integration, the project will provide an innovative and high profile service, attracting regional / national attention

Drive better service delivery Better service delivery may result from building improvement, but without integration may not be far-reaching


It is likely that innovation will flow best from a reorganised and integrated service


To some degree this would enable both partners to direct their own service to their goals and strategies

Reduce overall costs Without integration, the project will not be likely to offer efficiency savings of significance


Without integration, significant new incomes are less likely to flow


The renewed building will drive improved performance but this may not be maximised without integration


It should be possible to secure core funding support provided a single vision is clearly articulated, but charitable funding may be less likely


The project could be realised as a partnership project regulated by service level agreements


Transition cost would be minimised by retention of staff in current employs


We would be concerned that separated staffs under on authority may undermine full integration and have potential for inefficiency


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KCC commission TWBC or vice versa to deliver a single service (staff are transferred into one employ and operational structure)

Objective Comment


With full integration under on authority and management structure, we expect that the benefits of the project would be full realised


With full integration under on authority and management structure, we expect that the benefits of the project would be fully realised

Drive better service delivery Better service delivery should be fully delivered by a unified service backed by a partnership of the two partners


Provided the management structure is well designed and has delegated authority to be innovative and invest, this should be possible in this model


Both partners could influence / direct the service through the partnership between them to support it

Reduce overall costs Efficiencies should be realised, though savings attributable to charitable status (NNDR savings) will not


Provided the management is entrepreneurial and incentivised, trading income should be generated. Fundraising success will reflect the unified vision and programmes of the new Hub


With full integration under on authority and management structure, we expect that the benefits of the project would be full realised


It should be possible to secure core funding support for the clear single vision of the integrated Hub, but charitable funding may be less likely in continued local authority operation


We would expect this to be a manageable transition controlled by the partners


Transition cost may be somewhat larger than less integrated models as staff change is more likely


We would be confident that this integrated service, with the support and guidance of one of the authorities and partnership of both behind it, would be stable and potentially very efficient


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Where appropriate, some services are passed to a trust. Other services may remain with KCC/TWBC

Objective Comment


Partial change of this nature is unlikely to deliver significant transformation


Partial change of this nature is unlikely to deliver significant transformation of awareness of / attention for the Hub

Drive better service delivery We would be concerned that there was significant potential for increased inefficiency and confusion – and poorer or fractured service delivery


This may occur in limited areas but would be unlikely to reach across the service


Partial transfer of governance in this way has potential to cause confusion about the objectives of the different parties and elements of the service

Reduce overall costs This model has the potential to proliferate management structures and costs


The transformed areas may have potential to drive new incomes, but this may not extend across or be coherent across the service


Partial changes are unlikely to make an appreciable difference to economic impact


This may in fact confuse and cause uncertainty in the case for funding


This would be complex and difficult to achieve given complexities in the solution


We would expect transition costs to be high


There are potential instabilities arising from a fractured service with separate specialist staffs and services of different status


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A new culture Hub trust is formed, establishes a new organisation plan under contracts and transfers from both partners

Objective Comment


This significant and coherent reorganisation had the potential to deliver significant transformation


This significant and coherent reorganisation has the potential to deliver significant transformation of awareness of / attention for the Hub

Drive better service delivery Provided the Trust is well established and managed, it may well be able to drive better service delivery as has been the case in other examples


This significant and coherent reorganisation has the potential to deliver significant innovation and to be closely market-focused


Providing the contracting between Council’s and Trust is clear and detailed, it should be possible to influence delivery to goals and strategies

Reduce overall costs This model has the potential to reduce costs through efficient single operation and charitable savings


Trusts do provide an effective vehicle for new income from efficient trading, donations and charitable contributions and the commitment of volunteer time


This significant and coherent reorganisation has the potential to deliver significant economic impact


Trust status will be an asset in some areas, but immediate transition may also be seen as a risk by potential funders at the same time as a major capital project is to be delivered


This is a major change and would need significant investment and work to effect




For the long term there are undoubted potential benefits to this model, but the Councils may want to take care to establish the new model and then hand it over if it is to be lower risk in the early period and then sustainable in delivery


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A service specification is developed and offered to the market for private or other third sector delivery

Objective Comment


This significant and coherent reorganisation has the potential to deliver significant transformation


This significant and coherent reorganisation has the potential to deliver significant transformation of awareness of / attention for the Hub

Driver better service deliver Provided the Trust / operator is well established and managed, it may well be able to drive better service delivery as has been the case in other examples


A significant and coherent reorganisation has the potential to deliver significant innovation and to be closely market-focussed


Providing the contracting between Council’s and Trust / Operator is clear and detailed, it should be possible to influence delivery to goals and strategies

Reduce overall costs This model has the potential to reduce costs through efficient single operation and charitable savings and through efficiencies with the current operation of the third party


Trusts and operators can provide an effective vehicle for new income from efficient trading, donations and charitable contributions and the commitment of volunteer time


This significant and coherent reorganisation has the potential to deliver significant economic impact


Trust status will be an asset in some areas, but immediate transition may also be seen as a risk by potential funders at the same time as a major capital project is to be delivered

Be achievable within partner’s processes and constraints

This is a major change and would need significant investment and work to effect




For the long term there are undoubted potential benefits to this model, but it is questionable whether there are obvious candidates to step in, either in the third sector or the private market given the specialism of the service. Some private operator arrangements have led to unimaginative ‘tick over’ management which should be avoided here


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4.3 Conclusions In summary, we do recommend that the Councils consider the more far-reaching solutions set out here. It seems likely that the significant benefits of the project, and the efficiency and sustainability of it into the future will be effected by far-reaching integration and potentially by transfer in time to an alternative delivery mechanism, for example a Trust. However, we would suggest that caution should be exercised in any immediate proposal to transfer the project out of the hands of the Councils. At this stage much has to be done to establish the new service and to transform current business and practice, as well as to deliver the major capital project set out in this report. To embark now on passing the services out of Council hands would seem to us a risk too far – and we believe that HLF and others would also see it as an uncertain and risky situation in which to invest. In the shorter term, therefore, we suggest that the partners consider the attractive and beneficial option 4, in which both remain fully engaged but the services and operation of the Hub come within one management – by consolidation within one Authority of the Library/Registration and Museum/Art Gallery operations. This will enable integration and the establishment of a new integrated leadership and management structure, without the immediate challenges and risks of ownership transition.

In the future, with the new service broadly established and the capital project at an advanced stage of either detailed planning or delivery, or possibly once reopened and established in use, it may be advantageous to return to the potential to transfer management and operational responsibility, under lease and contract within which the partners continue to provide funds, to a third party – most likely a bespoke not for profit vehicle (a company limited by guarantee and charity – and usually referred to as a Trust) or, just possibly, to a commercial operator. This seems to us a well balanced approach that prioritises the transformation of the service while mitigating risks of trying to achieve all changes at once as the major capital transformation is delivered. Due to the uncertainty in this area, our financial model takes no account of any benefits that may arise from a change of operational or governance model however we have noted a saving up to £100k might be able to be achieved from integration.


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5 Site Analysis and Zoning Options

5.1 Qualitative Appraisal

As part of our brief we have been asked to perform an assessment on a number of options, these include: Whether, in addition to the current site which accommodates the bulk of the

prospective Cultural and Learning Hub services, there are any other sites which are likely to deliver an additional contribution to the project’s objectives or provide a financial benefit (Site Options), or

Which physical build option provides the best blend of cost or quality between, do nothing, extension or new build.

The results of these appraisals are set out in the remainder of this section.

5.2 Site Options In addition to the existing Museum and Library site a number of potential other site options were identified early in the process. We agreed to undertake a high level qualitative assessment of the sites and rule out any clear “non-runners” and therefore focus efforts on sensible realistic options. Utilising local knowledge of the area and the sites in question a qualitative assessment was undertaken, this is detailed below.

5.2.1 Evaluation Criteria

Based on our understanding of what the Councils wish to achieve by undertaking the potential project, together with our view of what is likely to make it a success, we determined the following criteria by which to evaluate the potential sites (in no particular order of priority): Threshold test - site must be of a size which supports the centralised “Hub” concept

– this is a pass / fail criteria;

Proximity - site should be adjacent to other similar facilities (e.g. Assembly Hall Theatre (AHT) and Trinity Arts Centre);

Transport – site must be served by good transport links and parking and have easy access to public transport;

Footfall – site must provide good footfall / frontage or the potential relatively easily to achieve this, and

Ownership – site should preferably be owned by or under TWBC / KCC control for the longer term.

5.2.2 Sites Under Consideration

After discussions with both Councils, we identified the following shortlist of sites for consideration:


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Registry Office, Grove Hill Road;

Great Hall Car Park;

Gateway;

Town Hall;

Vacant Units within Victoria Place;

Camden Centre;

Mount Pleasant Avenue;

Old Cinema Site;

Police Station;

Pantiles;

Theatre, and

Existing Site. Each site was then evaluated against the criteria set out above. The following table shows the results of our high-level evaluation. The scoring and ranking approach was as follows: Does the site pass or fail the size “threshold test” – is the site capable of housing a

significant cultural and learning Hub?

Sites that fail this criteria have continued to be scored against the other criteria for completeness though they have been ruled out.

The other criteria have been assessed against the following scoring mechanism: 10 - Site fully meets the requirements

7 - Site nearly meets the requirements

5 - Site partially meets the criteria

3 - Site meets very limited elements of the criteria

0 - Site does not meet criteria at all Informed by the above, the rank of each site has been established (1 being the best and 12 being the worst).


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Site\Criteria Size

Pass / Fail

Proximity to AHT &

Trinity Arts Centre

Transport + Parking

Footfall / Frontage

Ownership /

Availability

Marks

P / F

Score (out

of 40)

Rank

Registry Office

F 0 3 0 10 Fail 13 12

Great Hall Car Park

P 5 10 7 0 Pass 22 9

Gateway F 3 10 10 10 Fail 33 4

Town Hall P 10 10 10 7 Pass 37 2=

Royal Victoria Place

F 3 10 10 0 Fail 23 8

Camden Centre

F 3 10 5 0 Fail 18 10

Mount Pleasant Ave

P 7 10 3 10 Pass 30 5=

Cinema Site P 10 10 10 0 Pass 30 5=

Police Station

F 10 10 7 0 Fail 27 7

Pantiles F 0 10 10 0 Fail 17 11

Theatre F 10 10 7 10 Fail 37 2=

Existing Site P 10 10 10 10 Pass 40 1

5.2.3 Conclusion

Based on the evaluation of the sites, although this is at a high level, it is clear that the existing site presents a number of advantages that would be hard to replicate at most of the other sites. The current site has secured full marks against the criteria. The next highest scoring site was the Town Hall at 37 points though deliverability of this solution with its current use was considered not worth pursuing.


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We tabled the results as part of our presentation to the Cultural Hub Board on the 22nd July 2013 and it was decided that: The clear site preference was the Existing Site, and

Based on the high-level evaluation, that there was no merit in investigating the other options further.

5.3 Site Analysis (The Existing Site)

The existing site consists of two main buildings of different ages (refer Figure 7), an Art Deco styled library and museum building completed just after the Second World War and which wraps around from Civic Way to Monson Way, and which forms part of a quarter including the Town Hall and Assembly rooms of the same style. The Grade II listed Edwardian Adult Education building is located adjacent to the Library on Monson Road. Access within both buildings is currently being improved separately, with the addition of two new lifts; the library lift is currently being constructed in the rear garden space external to the building, the Adult Education lift is being constructed within the building. Both buildings have basement levels, the library basement being used largely for the storage of the museum’s numerous significant collections. The first floor of the Library holds a local history room to the rear, the two main wings being used as museum and gallery display space: these rooms have poor environmental control, and roof lanterns have been covered. The buildings are not currently linked, and our proposals to create synergies of space and services would involve creating a linking courtyard space to the rear: this may involve finding strategies to bridge differences in levels whilst retaining a sense of openness and accessibility. The courtyard and garden space to the rear is not currently accessible, and houses two life-expired huts housing pottery kilns and a jewellery workshop; these are specialist facilities which would need to be rehoused. The proposal for a Cultural and Learning Hub requires accessibility, flexibility, and a clear correlation between circulation routes and public and display spaces, enhancing the architectural potential of the space. The operational model overlays the physical spaces, indicating the need for new apertures and routes through both the Library building and the Adult Education building to the space at the rear, new extensions and links between the two wings of the block (formed by the Adult Education building and the museum respectively).


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Figure 7: Existing Site Layout


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5.4 Zoning and Space Options

Operational and architectural diagrams showing the flow and integration of services and spaces should be overlaid on each other, exploring the potential to remodel and link the buildings to provide the basis for a new organisational structure and to create a landmark within Tunbridge Wells to deliver a powerful message of culture and learning. The key to the architectural diagram is visibility, accessibility and linkages; mirroring the concept for the Cultural and Learning Hub with an architectural solution which respects the historic fabric of the buildings whilst creating new vistas and dramatic open spaces, juxtaposing old with new.

5.4.1 Service diagram There are three core services on the current site, Library (KCC), Museum (TWBC) and Adult Education (KCC), all of which have their own aspirations and service development plans; these are to be viewed within the context of wider strategic aspirations of the county and the district. The Cultural and Learning Hub can be more than a co-location with a few shared services, it has the potential to be a truly integrated centre, with an innovative learning offer and a wide appeal to visitors, businesses and local residents: putting Tunbridge Wells and the Weald on the cultural map. Figure 4 shows an initial model for crossover between services, with potential for shared services and spaces: the Adult Education centre and the Library could share classroom space for instance. The Library and Museum could share exhibition and display space for shared exhibitions: the Library providing reading materials and information to support the museum’s exhibition, interpretation and engagement materials. The Adult Education service becomes part of the Creative Hub, supporting learning and creative businesses with a rich programme of classes, events, business support and marketing. However, it is proposed that only elements of the creative and arts classes delivered by the Adult Education service are retained in the Hub. Involvement of Kent’s creative business sector would also cross over with all three core services, involving display space, information services, training and classes, and access to the Museum’s collections. The ‘heart’ of the Hub on Conception Layout diagram (Figure 8), with café, display and exhibition space, acts as the heart and crossover for all services, as well as the spatial and architectural heart of the complex.


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Figure 8: Conception Layout

This is a key diagram, showing how the core elements of the Cultural and Learning Hub could interact within the context of the existing buildings and their proposed extensions. It makes clear the importance of access and linkages, as well as the key shared and flexible spaces (areas marked in yellow). The diagram shows the Tunbridge Wells Centre as a potential threshold space, an entry point into the Hub and its various offerings, an information-rich environment with a changing, flexible schedule of display, retail and merchandising offer, tourist information, informal events and artworks. This reflects the rich variety of culture and learning on offer and links it back directly to Tunbridge Wells, its history and identity. It can offer an immediately interesting and inviting space for visitors: you will not need to have ‘business’ in the Hub to feel comfortable coming into the Tunbridge Wells Centre, and visitors will be treated to a changing menu of exhibition and information. Tourist Information and Box Office could operate from this space as well as use it for merchandising and display.

5.4.2 ‘Heart’

The other linking element, both organizationally and physically, would be the ‘heart’, possibly provide spatially by a dramatic new covered courtyard space, identified for café, for exhibition and gallery, for events and activities, a vibrant shared space which is visible and immediately accessible from the front entrance.


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The Heart could link the main entrance and Tunbridge Wells Centre, the Creative and Learning Hub located in the Adult Education building, the Museum and Art spaces including a new possible extension with its own flexible entrance/lobby/display space. A possible idea would be a graceful arching glazed structure situated over the existing courtyard to provide a high, airy space which communicates the message of linkage and shared services.

5.4.3 How it Might Work

We believe that the key to a future design would be visibility, accessibility and linkages; mirroring the concept for the Cultural Hub with an architectural solution which respects the historic fabric of the buildings whilst creating new vistas and dramatic open spaces, juxtaposing old with new.

Taking the Strategy Diagram as an operational model, a suggested zoned plan for the buildings has been developed (please note that this is only an initial suggested layout for the purposes of feasibility and not a final designed layout). A key element would be to make the entrance more welcoming and accessible, with views through to the Library and the rear extension. The curved wall of the Library could be opened up with new apertures to an exciting atrium café and exhibition space. A possible solution is for the Library to take up ground and first floor to the left of the entrance, including children’s library on ground floor, again spilling into a new possible covered courtyard space and providing access to shared space (‘Threshold’, courtyard, ancillary and offices). Following on from above, the Museum could therefore be situated to the right of the entrance on ground and first floor, with a shared ‘Hub’ entrance space referring to the existing curved wall. The museum has identified a need for more space, to allow for larger public displays of its collections, better storage and flexible space for exhibition, events and learning. It is suggested that the creative courses run by Adult Education as well as the creative business provision could be situated in the existing Adult Education building. The potential operational model involves a reorganization of ancillary and back office space to create a more efficient footprint; much of the shared office space could also be located in the existing Adult Education building. As such the Adult Education building would need to be fully integrated into the Hub. A new three-storey extension could be provided to the museum wing of the building, to house an extended Museum and Art offering. New gallery space would be offered here, with a possible first floor architectural element extending over the road for greater visibility. A multi-use lobby on the ground floor to link to the café/‘heart’ space would spatially make sense.

A rooftop extension could house a dramatic new restaurant with adjacent events and function space. This would allow linkage with the potential second storey of the new Museum / Art extension. Out of normal hours, usage and separate access arrangements may be required.

(Example of rooftop restaurant)


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5.4.4 Zoning plans

Suggested zoning plans have been developed for each floor of the existing and proposed buildings which reflect the potential operational diagrams described above. A proposed schedule of accommodation has been developed to take account of the requirements of funding bodies such as Heritage Lottery Fund and both KCC and TWBC. The zones have been drawn as a broad indication, but reflect more detailed calculations concerning areas and shared space. It is important to note that the zoning plans are a suggested layout designed only to demonstrate a possible solution exists that meets the requirement of the Hub. These should not be interpreted as a final design. Zonal plans are shown in the following figure:


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50


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Figure 9: Floor plans showing possible zoning options

5.4.5 Shared spaces

Our spatial calculations have allowed for a number of potential shared spaces, providing multi-use space which can be more efficiently and economically used. For instance, a large learning / seminar / rehearsal / events space is identified in the Adult Education building which could be booked by different services, with shared café, study or display space as part of the arrangement as required. Office and ancillary space has been rationalized between all three existing spaces, saving space and providing a more efficient use of the building. Again, classrooms and small events rooms are identified which could be shared for teaching, study or events such as marriage and registration.

5.4.6 New build and refurbishment

The proposal involves suggested refurbishment of the existing buildings, to incorporate new linkages, routes and apertures as required to create a single Cultural and Learning Hub. These suggested alterations relate also to proposed extensions to potentially maximize the use of the site and to provide threshold and shared spaces between the existing buildings (the ‘Heart’ and the new museum extension in particular).


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The new build elements could be designed as modern insertions to complement the highly stylized existing buildings; a glazed atrium would provide a transparent, airy space which could show off the existing buildings. The museum extension could be linked to the existing building at ground and second floor level, with an architectural element at first floor level (extending to second floor) extending over the road to maximize visibility.

5.4.7 Basement

This report has investigated the extent to which the basement of both Library and Adult Education building could be used for closed and accessible stores, including registration service store, library store, collections management room, and despatch / treatment / quarantine space for the museum.

We have concluded on the brief to date, that sufficient space could be provided on the site by retaining the existing basement and providing a new extension to the rear of the existing museum building and enclosing the courtyard to the centre of the site. Whilst it is not suggested that the basement be extended, we would advise that measures be taken to improve the existing space, making it suitable for the storage of important collections and for access by the staff and the general public. This would be achieved by providing a mechanically ventilated solution providing treated fresh air which is heated / cooled and humidity controlled. It may also be necessary to provide internal tanking to parts of the basement to limit water ingress and associated humidity.

5.4.8 Sustainability Approach

Sustainability will be a key element in developing plans for the Cultural and Learning Hub and a value embedded in both TWBC and KCC core policies. Our approach to sustainability is a broad one, considering economic and social sustainability as well as environmental. For instance a flexible building or service which is used by large numbers of people is a better use of all resources than an inaccessible or little used space. Our proposal is that the Cultural and Learning Hub could be designed as a refurbishment and extension, opening up and linking existing historic buildings with flexible, modern ‘threshold’ and linking spaces, and a new plan for circulation. Refurbishments can be scored and certified on a ‘BREEAM in Use’ rating system. This explores sustainability in a whole range of areas including:

(Building examples illustrating how the Hub might look)


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Accessibility to public transport,

Travel distances for products,

Use of recycled products and measures taken to improve the performance of historic buildings by improving insulation, maximizing natural light, and use of low energy alternatives to mechanical and electrical systems

Involving local people in construction is another area for a sustainable approach and we would suggest that the contractor’s tender included a requirement for local apprenticeships or using students from local colleges as well as a significant percentage of spend within a close radius of Tunbridge Wells.

5.4.9 Flexibility in the Hub

The Cultural and Learning Hub involves a long-term vision offering economic and social benefits which we see developing over time. Future-proofing will be an essential part of the design, and our outline plans identify an improved circulation model, and a range of flexible, multi-use spaces. Technology will be a key part of this, offering the ability to run different courses, learning activities, displays and events in key spaces such as the ‘heart’ in the courtyard or flexible seminar/learning rooms, events rooms and the lobby/display areas linking the new museum/art gallery extension with both existing spaces and the ‘heart’. Providing flexibility in all parts of the design should be a key part of the brief for the Cultural and Learning Hub moving forward.

Figure 10: Sustainability diagram


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6 Financial Information 6.1 Qualitative Appraisal

In order to facilitate the quantitative appraisal, a financial model has been constructed in order to assess the following: The overall cost of the project in both capital and revenue terms;

The sources of funding for the project’s development;

The overall operational cost of the project going forward;

When compared with the existing revenue budgets, the order of surplus or deficit funds, and

Based on a likely split of ongoing costs based on service “occupation” and other cost apportionment methodologies, the potential surplus/deficit for each Council.

The results of the quantitative appraisal are set out in the remainder of this section.

6.2 Project Costs and Assumptions 6.2.1 Basis

Base cost and income assumptions are clearly stated in the financial model set out in this report and the Appendices. The main assumptions are set out below: Capital cost of the proposed refurbishment/extension – Gleeds;

Lifecycle costs – Gleeds;

Operating costs (new facility):

o Building maintenance, cleaning, and utilities costs – Gleeds;

o Museum operating costs (built from existing costs and developed by DCA), and

o Other operating costs – based on existing KCC/TWBC budgets

Operating Income (new facility):

o Museum operating income – DCA;

o Other operating income - based on existing KCC/TWBC budgets, and

o Rental income, service charges, café and restaurant - Gleeds1

Existing budgets – KCC/TWBC

HLF Assumptions - DCA All costs have been expressed in 2014/15 terms and discounted back to 01/04/2015. They have been profiled over an assumed build period of 2-years with a further 25-years operational period.

1 These have been provided at a very high level.


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6.2.2 Assumptions The detail and accuracy of these assumptions are in line with the early stages of this project and feasibility study. However, should it be the case the Project Team and sponsoring Council’s decide to take the scheme forward, we would recommend that further time be invested in specifying costs, operating models, income and any other assumptions in greater detail prior to any irrevocable financial commitments.

6.3 Results

6.3.1 Overall Cost of the Project The cost of the project over an assumed 2-year build programme and the subsequent 25-year operation (inclusive of risk) is set out in the financial model ‘Financial Information’ and summarised in the table below over the main cost / income headings in aggregate and NPV terms:


NPV @ 3.5% (£000)

One Off Costs Capital Cost

12,000

11,797

Total “One-Off Costs” – Development phase

12,000 11,797

Recurring Costs Lifecycle

3,125

1,991

Operating Costs 43,338 27,679 Total Recurring Costs 46,463 29,670 Total Costs 58,463 41,467 Less: Operating Income -16,668 -10,573 Net Operating Surplus / -Deficit -41,795 -30,894

6.3.2 Development Phase Funding

In the development phase, we perceive that funding for the estimated expenditure of £12.00m (£11.80 NPV) will come from two sources: HLF Funding – based on internal discussions at Gleeds and with DCA, we perceive

that HLF capital funding in the order of £3.53m could be achievable, and

Council Funding –the residual cost of £8.47m would need to be sourced from either and/or KCC and TWBC either from existing reserves or from prudential borrowing.

As part of our work we have not sought to assess the extent to which this will be possible. Similarly, our ongoing costs and viability calculations do not include any allowance either for the opportunity cost of using reserves or the cost of servicing any prudential borrowing. The exact capital funding envelope should be examined as part of any future phases of work and updated as the project develops.


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6.3.3 Ongoing Affordability in the Operational Phase Often of more concern to project sponsors and particularly in this age of austerity is whether the project is sustainable financially over time. The recurring costs over the appraisal period of 25-years has been estimated at £46.46m (£29.67m NPV). This will be financed from a number of sources: Operating income;

HLF revenue funding, and

Council budgets (set out in Appendix C). The following table shows the aggregate position in relation to the ongoing costs:


NPV @ 3.5% (£000)

Total Recurring Costs 46,463 29,670 Less - Income Streams: Operating income

-16,668

-10,573

HLF revenue funding -370 -331 Council Budgets: KCC TWBC

-14,324 -12,600

-9,124 -8,026

Total Income -39,294 -29,278 Net Operational Phase Surplus / -Deficit -2,501 -1,616

This shows that the project requires support from both Councils and the HLF. It may be possible to accommodate the additional Council support through efficiencies released through joint/new working but further work and financial modelling will be required to assess this. To better understand the ongoing affordability, it is often beneficial to examine a full year’s costs and income. A representative annual position is reflected in the following table along with the likely surplus/deficit position of each of the “sponsors” based on a likely split of ongoing costs based on service “occupation” and other cost apportionment methodologies:

Heading KCC PA (£000)

TWBC PA (£000)

Total PA (£000)

Net Cost 446 728 1,174 Council Budgets -573 -504 -1,077 Net Annual “Steady State” Operational Phase Surplus / -Deficit

110 -224 -97

As can be seen, there is a material difference between the contributions of the two Councils in the scheme going forward. In reality it will not provide such a reduction for KCC as the benefit of operating the AEC as a social enterprise has been overstated and we await revised figures for this in order to show the true position.


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The main reasons for this increase in revenue costs are as follows: The biggest change in floor area relates to the Museum (which is a TWBC service),

as a result, there is a material increase in operating costs (despite assuming that the new museum service will derive additional income) over and above the current provision. A reconciliation of the current and proposed operating costs in a full “steady state” year is set out in the table below, and

Based on our discussions with KCC, it is likely that the Adult Education Centre (“AEC”) may in future stand-alone as a “social enterprise”. We have modelled the AEC going forward on the basis that:

o It will not receive any Council support going forward, and

o It will generate sufficient operating income so as to be able to pay a commercial rent for the space it occupies and a related service charge

o This assumed rental income as well as service charges has in the above summary been allocated to KCC the current owner of the site

o Similarly assumed rental income and service charges associated with other occupiers of the AEC building have been allocated to KCC, the current owner of the site.


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Clearly, this table and the analysis above reflect the base position and assumptions. To the extent that outturn assumptions are not consistent with estimates, the position will be different – this is discussed in the following section.

Museum and Art Gallery

Expenditure /Income Head Notes

Existing Operating Budget 2013/14

Existing Operating Budget 2014/15

Revised Operating Budget 2014/15

Variance (surplus/ deficit) 2014/15

Notes

Lifecycle

Based on a proportion of £125k per annum on space

6,700 6,868 51,186 -44,486

Based on a sinking fund allowance – could correspond with a year of relatively low expenditure planned

Staffing DCA Staffing Estimate

243,330 249,413 408,051 -158,638

Increased structure with a view to maximising income and user experience (note that this includes costs for overall Hub leadership and for shared visitor welcome staffing. This may be offset by savings of up to £100,000 across current services if the services are fully integrated)

Cleaning Gleeds £/m2 250 256 16,231 -15,975

Based on benchmark costs and significantly increased area – existing costs not realistic

Building Maintenance Gleeds £/m2 2,000 2,050 20,289 -18,239


Utilities Gleeds £/m2 5,500 5,638 30,434 -24,796


Business Rates

Existing Costs 11,420 11,706 11,420 286

Other Operating Costs

DCA Estimate 106,340 194,645 -88,305

Increased costs/costs of sales with a view to maximising income and user experience

Sub-Total Expenditure 375,540 384,931 732,256 -347,325

Operating Income

DCA Estimate -7,900 -8,099 -107,832 99,733

Increased income projections based on improved service/ accommodation and structure etc.

Net Surplus /Deficit 367,640 376,832 624,424 247,592


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6.3.4 Risks / Opportunities The cost model includes a 10% allowance for risk in the base capex numbers, however, there are a number of other risks that the project sponsors will be exposed to which have not been priced: The museum business plan includes for a significant increase in operating income

from the current £8k included in the current accounts to circa £90k in a full year of the new Cultural and Learning Hub. To the extent this is not achieved, this will result in an additional cost to TWBC;

As discussed above, the occupiers which replace elements of the AEC and the remaining AEC spaces have been factored in as if private market tenants paying a rental and service charge. A take up rate of 50% year one, 75% year two and 90% thereafter has been assumed. To the extent this position is not achieved, this will result in an additional cost to KCC / and or TWBC;

There are net income figures included for the commercial operation elements (café and restaurant) of £25k each per annum in a full year in addition to their service charges. Should these facilities be retained by the Council’s and this position not achieved, this will result in an additional cost for the Councils, and

There may also be opportunities for efficiency savings from integrated staffing arrangements, which we estimate at this stage as being potentially up to £100,000 per annum depending on the design of a shared service. This will need to be reviewed and developed in detail in the next HLF stage one work.

The financial outputs are likely to be relatively sensitive to downside scenarios in relation to the above, going forward we would recommend that the Councils consider their position on risk and put in place revised numbers or management/mitigation strategies if required.

6.4 Conclusions The qualitative appraisal in isolation has shown that practically there is only likely to be one viable option – a refurbishment of the facilities on the existing site. In quantitative terms we estimate that the build inclusive of risk will cost in the region of £12.00m. Assuming the Councils are successful in an HLF bid for the suggested total of £3.53m (in respect of capital), this would leave a balance to be sourced from the Council by applying existing reserves or through prudential borrowing of £8.47m. In operational terms, the increase in space, better Mechanical and Electrical installations etc. all serve to increase the net revenue cost to a level which cannot be supported by the existing budgets or any HLF revenue funding. Looking at a representative year, an addition revenue cost of £97k has been calculated in overall terms, however, looking at the contribution that would be required from each sponsor to this total KCC (dependent upon allocation of rental income streams) would actually receive an income stream from the project of £127k leaving TWBC to meet the balance of £224k. Going forward, the Council’s (especially TWBC) will need to assess: Whether the required contribution is affordable and if not, whether the scheme can

be amended such that it is (at present we have not made any assessment of any


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cost savings through sharing of resources/back/front office functions for example which with an integrated service delivery model should be targeted), and/or

Whether the wider economic benefits of the scheme outweigh the additional revenue costs. To this end we would recommend an economic impact assessment is commissioned to gauge the wider benefits the Hub could bring. For instance the Turner Gallery in Margate is reported to have had in excess of £20million of benefits since opening in 2011.

From our analysis of the scheme we perceive there are two material areas of risk that could have an impact on the financial position:

The ability of the museum service to generate the additional income included in the business plan, and

Whether the net income projections for the café and restaurant can be achieved by an in-house service or whether a concession would pay a fixed amount to the value projected.

Risk will need to be carefully assessed going forward as the scheme and the operating model develops over time.


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7. Taking the Project Forward 7.1 HLF Process

As this report has shown, the project offers significant benefits to the heritage of the town, and to its appreciation and enjoyment by both local people and visitors. The existing excellent work of the Museum and Art Gallery, and in particular the team’s approach to innovative engagement activity reaching local people who might not otherwise be regular heritage visitors, is an excellent basis for a strong case for investment by Heritage Lottery Fund (HLF) in the renewed Hub. A thorough-going and imaginative integration of museum, art gallery and library services could strengthen the appeal to HLF so long as it can be shown that, overall, this remains a heritage project and that those elements of the Library and other areas not specifically museum related do add heritage value (for instance in uniting and extending access to archive and local history collections) and do bring many more people to the heritage (for instance in extending the degree to which library users also enjoy and engage with the heritage). Adult Education classes in culture and heritage subjects will complement the project where they remain on site, but it is less likely that HLF funds will extend to investment in dedicated adult education space and facilities. HLF’s priorities are well summarized in their new Strategic Framework, which came into force in April 2013: “Our goal is to make a lasting difference for heritage and people. In assessing projects we will take account of the broad range of benefits that projects may deliver, and will give extra weight to the outcomes that we value most, such as learning. The project outcomes we will be assessing can be summarised as:

Heritage outcomes - with our investment, heritage will be:

Better managed;

In better condition;

Better interpreted and explained;

Identified/recorded Outcomes for individuals - with our investment, people will have:

Learnt about heritage;

Developed skills;

Changed their attitudes and/or behavior;

Had an enjoyable experience;

Volunteered time


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Outcomes for communities/society - with our investment:

Environmental impacts will be reduced;

More people and a wider range of people will have engaged with heritage;

Organisations will be more resilient;

Local economies will be boosted;

Local areas/communities will be a better place to live, work or visit

In considering an application, the partners will need to take into account that HLF:

Do not typically fund library improvements or education provision. The Cultural Hub will need to be organized, discussed and presented as led by the Museum & Art gallery and the opportunities for people to engage with the “Tunbridge Wells Story”.

Will contribute to museum collection storage improvement and to access for the public to these stores where appropriate to the collection.

Will contribute to the costs of reception, trading and other facilities which are fully integrated into the visitor experience and enjoyment of the heritage, so café and cultural retail space can be part of the package for HLF funding, but it is unlikely that they would wish to see included a separate higher end restaurant or Gateway to public services.

Would be likely to be positive about the inclusion of TIC services in the integrated reception and welcome service for the building, as long as this is expressed as a welcome to Tunbridge Wells and its story, as evidenced by adjacent and integrated interpretation of the town’s history.

Would not fund the development of galleries showing only or primarily changing exhibitions of contemporary art. The project is most likely to succeed if there is a completely integrated approach to Museum & Art Gallery and its exhibitions and displays. This does not rule out engaging contemporary artists or showing their work in future, especially if this work casts light on the identity, past and future, of Tunbridge Wells.

Is unlikely to regard any of the buildings themselves as being of sufficient heritage merit to justify HLF investment in their conservation. The motivations to invest will be the care and conservation of the collections, the exploration of the Tunbridge Wells story and the potential to reach more and more diverse audiences through innovative and engaged heritage activities of the sort being developed by the Museum & Art Gallery now.

Is a people-focused organisation. Activity and engagement are of primary importance to them and they look for projects where their investment will transform the way in which people are attracted to and engaged in their heritage.

Will place a primary importance on local people and communities, even in large national projects. While they are interested in tourism and its benefits, all projects must start with an approach that is fundamentally about the engagement of local people. They have regularly invested in significant projects for the improvement of local museum and art gallery operations.

Understand that the audience in the UK for heritage can be dominated by white, relatively wealthy and older visitors. Whilst welcoming these visitors, HLF are charged by Government with ensuring that projects reach out beyond this core


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market and engage young people, those from disadvantaged communities and the black and minority ethnic who are all underrepresented in the heritage audience.

Enjoy the innovative and quirky – projects such as those Jo Wilcher and her team have developed with local creative producers, digital artists, music venues and others will be a very strong USP in a bid to HLF.

Are enthusiastic about volunteering as a way of enabling people to engage with the heritage. Most HLF projects have a strong element of the development of more volunteering opportunities in all aspects of the work of the project. This can relieve costs of operations but provision must also be made for the resources needed to properly recruit, support and develop the volunteers.

Can fund, and will expect to see a significant part of their funding dedicated to, a five year programme of activity and engagement and the new activity staff required to enable it. As a rule of thumb, we would expect to see 15% of HLF grant dedicated to activities in this way.

7.1.1 Scale of support and project assembly

HLF funds are currently quite heavily over-bid and many projects cannot be supported when they go to committee for decision. About 40-45% of all projects submitted appear to be gaining Round 1 support at the moment. The new framework includes a couple of new funding initiatives (under the heading ‘targeted programmes’), for example Heritage Enterprise, but the well-established ‘open programmes’ continue and because the Tunbridge Wells project is multi-stranded, we think that it is likely to fit best into the Heritage Grants programme. This programme operates at three levels. Below £2,000,000 of HLF investment, decisions are made at regional committee

level, meeting quarterly. Application can be made at any time.

Between £2,000,000 and £5,000,000 projects are described as nationally significant, decided by National Trustees bi-monthly. Application can be made at any time.

Over £5,000,000, projects go into an annual single round of “Major Projects”. This is intensely competitive and many of its awards go to major national institutions.

On the basis of the partners’ ambitions and vision and the project as described in this report, we believe that HLF will respond very positively to an approach and application. Although a previous proposal was declined, we believe it to have been a good application and there should be no resistance at HLF based on this previous failure to secure funds.

The partners will need to decide what scale of application to make. HLF will be unlikely to want to fund more than 50% of the cost of the project given that it is sponsored by a local authority and that it has a range of elements some less obviously ‘heritage’ items. Realistically though, given the estimated cost of the project overall, the partners have an opportunity to seek a significant grant which is still a lower percentage of the overall cost. Although regional committees have decision making powers up to £2m of grant, to ask for a grant of just under £2m may carry a greater risk of failure than to ask for a grant of


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over £2m from national trustees, as an application just under £2m requires a very significant proportion of the funds available to any one regional committee meeting. The final decision will need to be taken following discussion with the regional HLF office. We suggest that the project will be of sufficient significance and distinctiveness to justify an application for more than £2m. All HLF funds are very competitive at the moment and we would advise that an application over £4m for this project would stand an increased risk of rejection – once the money available to any one committee meeting has all been allocated, all other projects presented to that meeting must be rejected. Please note, as above, that within the grant applied for, a significant sum should be dedicated to activity costs and the associated staffing, and will not be available to contribute to capital costs of works.

7.1.2 HLF Activities Application to the Heritage Grants fund is effectively a three stage process. The first action is to submit a Project Enquiry Form (PEF) to the regional office, setting out in brief the nature, scale and plan for the project. This could be achieved on the basis of the information in this report and the partners’ decisions on it. This is usually submitted not less than three to four months ahead of the anticipated Round 1 application date. On receipt of the PEF, HLF will make contact and arrange to visit for a discussion. These discussions are extremely useful and allow an open discussion of grant to be sought, items to be included in the project and timings. Provided HLF are positive, which we would expect them to be, a Round 1 application can be prepared. As the partners know from their previous experience, this is quite an onerous task. Increasingly as funds are under more severe competition, HLF seek more information at this stage – which is really their principal decision point. A good deal of the material needed for application will be in this report and supporting documents, but the preparation of the application itself, supporting documents and project plans will be likely to require support from a project manager/coordinator and a museum/funding consultant to support and guide the process. A Conservation Statement is required, but we would expect this to be satisfied by the existing statement and equivalent descriptions of the collections. Further design work is not formally required and in any case we would expect HLF to be happy with the level of information in this report. The partners will need to be engaged fully in the process of preparing the application and it may be necessary to free time in the diary of the Museum Manager in particular to work on the application as it is becoming increasingly important to identify at this stage the kinds and extent of activities and engagement that will be delivered through the project. Depending on how far the partners’ own staff drive the application process, we would suggest that a fee budget of circa £100,000 will be required to fully develop and support submission/assessment of the application.


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Match funding does not technically have to be confirmed at this stage – though a fundraising plan for any that is unsecured is required. HLF are likely, however, to want to know that any commitments indicated by the partners will be followed through if they in turn approve their funding. In reality, projects submitted at Round 1 with match funding complete and confirmed, much improve their competitive chances of success and so speculative lists of potential contributors should be avoided if at all possible. Whilst applications can be submitted at any time, it is likely that the application will in fact be submitted at one of the deadlines for forthcoming committees. Providing this happens, the partners will know that HLF will resolve the application at the scheduled committee and not more than four months from submission. In the meantime, HLF will ask questions and seek further information to make sure it can present the project fully to committee. If the project is over £2m it will go to national trustees, but it will first go to regional committee to express their view and as such close liaison with regional office and committee members is very beneficial. Activities Required for Rounds 1 & 2 of HLF Bid

AREA 1ST ROUND 2ND ROUND Activities Outline proposals:

Who is your project likely to involve

The nature and range of activities that will engage people with heritage

Detailed proposals: A detailed action plan, showing

all the activities in your project. This will be included in your activity plan

Capital work Outline proposals: An initial breakdown of the

capital work you plan to deliver Plans for architectural elements

at RIBA Stage B (Design Brief) Plans for non-architectural

elements, such as interpretation or digital outputs, at the equivalent of RIBA Work Stage B

Detailed proposals: Detailed plans and proposals for

capital work you plan to deliver Plans for architectural elements

up to and including RIBA D Plans for non-architectural

elements, such as interpretation or digital outputs at the equivalent of RIBA D

Project outcomes

Outline information about the outcomes your project might achieve

Detailed information about the outcomes your project will achieve.

Project management

Detailed information about the work you will do during your development phase

Detailed information about how you will manage your development phase, including briefs for work to be undertaken by consultants and new job descriptions

Detailed information about how you will manage your delivery phase, including briefs for work to be undertaken by consultants and new job descriptions

Detailed timetable for your delivery phase

A project business plan, if required


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AREA 1ST ROUND 2ND ROUND Detailed timetable for your

development phase Outline information about how

you will manage your delivery phase

Outline timetable for delivery phase

After the project ends

Outline information about how you will sustain the outcomes of your project after funding has ended, including funding additional running costs

A conservation plan, if required (submitted early in your development phase)

Detailed information about how you will sustain the outcomes of your project after funding has ended, including funding additional running costs

Detailed information about how you will evaluate your project

A management and maintenance plan, if required

Project costs Detailed costs for your development phase

Outline costs for your delivery phase

Possible sources of partnership funding for your delivery phase and/or a fundraising strategy for your development phase

VAT status

Detailed costs for your delivery phase

An indication that you will have secured partnership funding in place before you start your delivery phase

7.2 Programme

The application for Round 1 support includes not only an indication of the probable overall cost and HLF support, but also a specific request for early release of a portion of this support to contribute to the development costs incurred in preparing the project up to Round 2 submission. On approval of the Round 1 application, there is usually a contract/start-up period of a month or two before development work starts in earnest. Although HLF allow up to two years between permission to proceed at this stage and submission of the Round 2, most clients wish to move more quickly and a period of twelve months or so generally seems to work well. This may be longer if there is a protracted procurement exercise to appoint the design and consultant team and if this is not begun prior to grant approval. During this period a great deal of detailed work has to be done: Designs must be commissioned and developed/agreed. The basic requirement is

that RIBA Stage 3 (previously D) should be reached and planning and listed building consent secured by Round 2 application – or at latest permissions granted by the time the application goes to HLF committee.


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Costs understood to an approximate quantities level, tested and robust. A full Activity plan and activity action plan specifying the full five years of activities and engagement planned.

A full project business plan, detailed staffing operational plans and strong evidence of the financial sustainability of the project across time.

A ten year management and maintenance plan which evidences how the heritage will be maintained and what finances will be available for this, and a Conservation Management Plan to set the policies by which this long term care will be governed.

Clarity and at minimum agreed draft documents setting out any change in the governance structure for the project.

All match funding is secured and confirmed.

This involves significant effort from the Partners’ project team, but also a broad professional team including the project manager, design team, quantity surveyor, business planner, activity planner, museum conservation/storage specialist and potentially a fundraising consultant if the partners set a significant target for fundraising.

7.2.1 Budgets The total costs of the stage depend on the construction cost (as design team fees have a relationship with overall costs) but might commonly on these projects total £400,000 - £500,000. These costs can include activities, consultation costs, costs of a project manager or officer and of other necessary staff so long as they are new posts and not current ones re-designated. It is not necessarily the case that HLF support need be at the same percentage in this stage as in the project overall and it might be appropriate to seek a grant of, say 50% at around £250,000 for this period. Therefore, in very outline terms, the partners might be expected to find around £250,000 for the development stage costs. Round 2 application process follows a quite similar pattern to Round 1, with the full application made, assessed quite rigorously and then submitted to the same committee as approved the Round 1 within four months of submission. At this time some 80% of projects that receive offers at Round 1 are having them confirmed and often slightly increased at Round 2, so the element of risk around the expenditure required in the development stage is relatively limited. The most frequent cause of failure at Round 2 is that match funding does not materialise. The trust, foundation and donations sector is very heavily over-stretched at the moment and we would urge the partners not to speculate large amounts of potential income from these sources as this can easily derail the project. Following Round 2 approval, a short period elapses while contracts are prepared and permission to start issued by HLF. Thereafter, design and tenders from RIBA stage 4 onwards, mobilization and construction are normally driven as quickly as possible, so as to preserve as much of the five year activity period funded by HLF for the period after reopening as possible. So, in summary, one might anticipate a milestone programme timetable as follows:


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Indicative Milestone Programme Month Submit Project Enquiry Form 1 Formal liaison with HLF 3 Submission of Round 1 application 4 Outcome of Round 1 application 8 Submission of Round 2 application 20 Outcome of Round 2 application 24 Permission to proceed 25 Detailed design, tenders complete 32 Construction complete 54 Reopening 56 HLF activity period ends 85

7.3 Consultation

With the early stages of this vision for a Cultural and Learning Hub communications with public and stakeholders has been limited and expectations are being carefully managed. As the project potentially moves into the next stage more inclusive and detailed consultation will be undertaken.

7.4 Economic Impact Assessment

Although the financial impact identified in this feasibility study shows an increase in overall expenditure and ongoing revenue costs it does not identify the potential benefits the Hub could engender in Tunbridge Wells and the surrounding areas. We would recommend an economic impact assessment is carried out to gauge the level of benefit the Cultural and Learning Hub might bring.

7.5 Recommendations

To further progress the project we have the following recommendations:

KCC / TWBC continue to develop and agree the structure of the solution, including land, risk, income streams and ownership, building upon the progress made so far;

Undertake an economic impact assessment to gauge the wider benefits the Hub would bring;

Carefully prepare for the introductory HLF meeting to position the Hub correctly to give the best opportunity for securing HLF;

Progress with preparation of HLF stage 1 submission;

Further validation of existing budgets and financial assumptions as the project

structure evolves;

Critical path issues should be considered (surveys and the like should be procured early);


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Consider consultation and engagement process with various stakeholders and the public;

Development of a joint communications plan for KCC and TWBC;

At an agreed point, further discussions with town planner, English Heritage and the conservation officer should be arranged;

Further work to refine the income assumptions within the current financial model

e.g. AE, creative industry, café & restaurant potential proprietors, and

Further development of operational structure to assess benefits and savings this could bring.

KCC and TWBC to crystallise the proposition ahead of a Heritage Lottery Fund round one submission (including the integration of the Gateway)


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Appendix A – Museum & Art Gallery – further detail Tunbridge Wells Museum and Art Gallery is a local authority museum of long standing and with a significant role in the care for and telling of the stories of the town. Originally a rural area of West Kent, the town itself grew up only four hundred years ago. In that four hundred years it became, successively, a centre of resort, of leisure, of residence and of commerce, still set in its rural hinterland. Tunbridge Wells today therefore has both a special story to tell, and a varied and unusual mix of communities with which to share that story. The principle aim of the Museum and its art gallery programmes is to reflect this local story – mainly of the town but also of the High Weald – and to enable the exploration of these fundamentally local stories by both local people and visitors to the town. This contemporary role builds on almost 130 years of continuous heritage and museum provision. The Tunbridge Wells Natural History and Antiquarian Society was established in 1885 and declared one of its main objectives to be the establishment of a town museum. The Society collected material and many temporary displays were held, but the museum was not adopted by the Borough Council and provided with premises until 1918. It then occupied three temporary town centre sites until the Civic Centre scheme was adopted by the Council in 1936. Building began in 1937, but, with work interrupted by the war, the Museum did not move in until 1954. Throughout the latter part of the century, the museum was maintained in much the same physical condition and layout. The collection continued to grow to represent a regionally important resource with nationally important highlights. Unlike some local/regional museum collections, Tunbridge Wells remained relatively coherent and focused on the stories of the town and High Weald, with unique sub-collections of real importance, such as the Tunbridge Ware collection. Over the last ten years, it has become increasingly apparent that the Museum and Art Gallery represents something of a paradox. The museum team under the leadership of the current Museum Manager have become increasingly successful in delivering an imaginative and exciting range of projects that can stand alongside best practice in small and medium sized museum practice nationally. However, there has been little change in the Museum and Art Gallery in its fifty years in the building and both its facilities for visitors and its displays, interpretation and exhibition facilities are now extremely dated. As the outreach and engagement work of the Museum has flourished, the physical environment and visitor experience for those who are drawn to attend the Museum has declined. Behind the scenes, the collection, despite the efforts of the Museum team, is closed off to visitors in inadequate spaces and in poor conditions in the basement of the building. The declining quality and attractiveness of the museum facilities present a significant challenge, but the exemplary work of the museum team in outreach, engagement and project work can turn this to a significant opportunity. The project for the renewal of the Museum and Art Gallery can build on this exemplary work to transform the current facilities in a way that celebrates the local collection projects of Tunbridge Wells culturally throughout and beyond


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the region and do so in ways that fully engage the widest range of local people and communities. Innovative Practice The education, outreach, activity and event programmes of the Museum and Library are pioneering, far reaching, and have a very high community impact for the resources available. Often these have exemplified what a Cultural Hub might represent. So, for instance, fascinating projects which take the complex repetitive patterning of the Tunbridge Ware and engages with younger local digital music makers to generate sound patterns from marketry patterns in the objects themselves. This is an exemplary small heritage project – rooted in the collection and local heritage, capable of attracting participants from age groups and communities not always connected with museums and engaging creative producers in a way that encourages creativity and the creative economy of the town. At a larger scale, the Hoodwink project, led by the Museum Manager, shows the Museum and Art Gallery working in partnership with others to work across the Borough. Hoodwink extends opportunities to engage with the heritage and culture of the town beyond gallery spaces and public art and places it “slap bang in the middle of the hustle and bustle of daily life, such as in supermarkets, pubs and shopping centres”, harnessing the potential for large-scale engagement with users of these locations. As an example, Hoodwink have commissioned Jonathan Wright to create a site specific response to The Forum in Tunbridge Wells, one of the best and most distinctive new music venues in the South. Work with both formal and informal learners and learning groups is a major part of the mission of the Museum and Art Gallery and local schools and college students visit regularly. However, this area of work in particular is extremely constrained by lack of space and suitable facilities in the building as it stands. Group work is only possible on the floor of the exhibition gallery when shows permit, and in spaces such as the children’s library, which are under pressure from other uses. There is an imperative to provide for the activities of both Museum and Library in learning a set of fit for purpose spaces that enable occasional and regular groups sessions for all ages and in potentially quite large groups. At the same time, providing high quality space for this activity offers a way in which the wider creative community of the town, which we discuss in this report, can help animate the Hub and gain value from it. Out of programmed hours, activity spaces, including potentially a larger space for active work and rehearsal, will be popular as hired spaces for diverse activity – again broadening the range of people for whom the Hub presents opportunity and drawing more visitors to the Museum and Library elements. Given with a renewed Museum and Art Gallery, outreach work, with partners and innovative projects, reaching out to diverse audiences, will remain of really significant value. The renewed Museum and Art Gallery will add dramatically to the potential of this work through opportunities for showcasing outcomes and commissions, hosting activity and attracting participants who do not normally visit museums to come back to see exhibitions, displays and the collection. Display, Interpretation and Exhibition This innovative practice extends to the potential future strategy for collection display, exhibition and enabling people to explore their heritage.


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We have discussed with the Museum team the way in which the collection can be represented in new ways to meet the expectations and interests of new generations. This can also be developed so as to offer a rich experience to both local people exploring their own heritage and visitors to the town, through the development of a set of orientation and exploration displays that trace the history and stories of the town and present them accessibly and entertainingly at the point of visitor welcome to the building. Deeper into the Cultural Hub, renewed display space will enable a new interpretation strategy that takes the current strengths of the collection in art, natural history, toys and social history and the specialist collections of Tunbridge Ware and similar, and uses them to expand on the stories of the town and High Weald and the people who have lived in it over the last 400 years. There are real treasures in specialist areas of the collection, such as costume, which are difficult to display in the current environment but which respond to people’s interests in both historical material and contemporary issues of fashion and style. New display facilities will enable more sophisticated management of content so that, for instance, some areas of the displays can be changed gradually over time or can effectively present shorter temporary ‘shows’ – such as the potential to draw on the collection and contemporary design to explore wedding dresses and connect through them to those planning weddings now. This rich retelling of the stories of the town, run through with contemporary concerns and interests and the creativity happening in the town now will attract many visitors, make a compelling and distinctive offer to visitors to the town and engage the most diverse audience of local people for the Museum. Changing and thematic displays, often developed in partnerships of the sort we have highlighted in the Museum’s current practice, will build relationships with these audiences and ensure return visits and real engagement. The current exhibition space or “Art Gallery” is an example of civic gallery provision from another time. Although it remains attractive, it is difficult to access, not adequately environmentally controlled and lacks the scale or sub-division to enable the range of exhibitions that the team could promote. As noted later in this report, there is very significant demand evident in the existing patterns of cultural attendance of the people of the town for exhibitions and associated events. Also, as exhibitions such as the show (including the newly loaned Camden Collection) which will reopen the space after its recent lift works shows there is very significant potential to attract both long and short loans of precious and high profile historic art which will attract and engage visitors to the town. Given the expense and intensity of staff input to changing museum collection displays, good quality but flexible exhibition space has become key to successful practice in regional museums and art galleries. The nineteenth and twentieth century idea of the civic Art Gallery that shows the town’s collections has been redefined as a cultural space that celebrates the history of the town in this way but also enables high profile touring exhibitions that command very significant attendances either for art history shows, including national collection items aimed at families and younger people or shows that showcase and engage the creative industries in the town. By creating a suite of gallery spaces of differing sizes and characters, there is the potential to dedicate space from time to time to local artists and creativity, alongside the larger and higher-


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profile shows that drive large visitor numbers and to use the spaces as project spaces for activity and commissions of the sort that Hoodwink exemplifies. Care for and Access to the Heritage As discussed above, the collection held by the Museum and Art Gallery is of regional significance, has nationally important highlights such as the ground breaking photographs of, among others, Henry Peach Robinson and the Tunbridge Ware and Textile/costume collections. The collection does have early elements such as a significant archaeology collection, but part of its strength is its focus on the history of the town over the last 400 years since its foundation. The collection is refreshingly eclectic - with fun opportunities for diverse and entertaining stories to be told, but also with a coherence and logic not always found in local collections. The collection is relatively ‘live’ – in that limited but consistent and intelligent acquisition has continued over recent years when many museums gave up. This means that more recent stories such as the town’s heritage as home of Subbuteo (see the online collection “Flick to Kick”) bring the heritage up to date for recent and new generations. A main imperative for the renewal project is the basic challenge of caring for this collection. This will involve modest increases in the amount of space available for the storage of the collection to relieve current overcrowding and enable continued limited acquisition to build on the strengths of the current collection, or to accept relevant elements of other regional collections if offered and which contribute to the Tunbridge Wells story. The recent agreement to take on loan the impressive Camden portrait collection emphasises how well placed the Museum is to secure nationally important items – both art and objects – and to make them available as a centrepiece of its display and exhibition programmes. Without adequate store provision this exciting opportunity will not be maintained or expanded. All collection storage will be to excellent environmental standards – mitigating current risks of loss or damage to collection items through damp or other inappropriate conditions. Alongside this, the care of the collection, and the receipt and care for borrowed items for new exhibition programmes, requires a set of secondary spaces alongside the stores themselves. These facilities will need to include despatch, receipt, treatment, workshop and quarantine space with freezer and specialist equipment for care of delicate items such as costumes and textiles. One of the principal benefits of the integration of library and museum in a Cultural Hub is to bring together the materials, information, resources and collections that enable people to access and explore their heritage and that of the town. Local people researching histories of family and place, students and others learning and developing research skills and academic researchers investigating particular topics all currently find material divided, without a great deal of logic, between the Library and the Museum. This overall collection consists of books, minute-books, postcards, photographs, records, drawings and other works on paper. Bringing these together and linking them to the artefacts and objects in the collection which continue their story will rationalise currently inefficient storage and care but also make the whole collection much more accessible.


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Throughout the collection there are opportunities not only for more and more exciting display in the wholly public galleries of the Museum, but also to place a proportion of materials in ‘open store’ to which the public can have access. Nationally, there is a strong move toward accessible stores - both from audiences and from developing best practice. Visitors very much enjoy seeing ‘behind the scenes’ and exploring among the many objects that cannot be exhibited. Whilst this will not be appropriate for all items in the Tunbridge Wells collection and can be difficult to achieve for large delicate items such as costume, there is potential here to mark out the uniqueness of the project by really advancing access to both museum collections and library resources and information in new and exciting ways. Physical Redevelopment In order to achieve these three strands of improvement and transformation; redoubled facilities for activity, engagement and creativity; great display, interpretation and exhibitions and high quality storage and access to collections and information across Museum and Library, we have developed a picture of the way the building can be renewed and transformed. The specification of areas and accommodation within the site are set out in other sections of the report, but the following table summarises the main areas for action and their function in transforming the public experience of the Hub: Area of Activity Facility Description and Purpose Collection Closed stores Dry secure stores, stable humidity/temp, mainly to

roller racking and other new fitted storage systems. Wheelchair accessible between racks. Table space in store for unboxing, checking, etc. Includes secure racked art store to Government Indemnity Scheme standard for national loans.

Collection Accessible stores Dry secure stores, stable humidity/temp, mainly to roller racking and other new fitted storage systems but with some glass case display and other specific display/store equipment. Wheelchair accessible between racks. Table space in store for unboxing, checking, small group exploration of items etc. Must be attractive space accessible by members of the public and with open storage systems giving some display of items.

Collection Despatch / receipt / treatment / workshop / quarantine space

Dry, secure, stable humidity/temp, adjacent entrance or lift, some storage space for crates, desk space for checking and prep, requirement for exhibition/collection workshop, separate smaller quarantine space including large chest freezers

Collection Collection management room

Office adjacent the stores, with museum store conditions (stable humidity/temp) and working tables, IT terminals for cataloguing. Will be used by volunteers as well as staff for cataloguing, loans in/out, documentation and minor collection care tasks.


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Area of Activity Facility Description and Purpose Display Tunbridge Wells

Story - orientation exhibition

A high quality series of spaces at the entrance to the building as a first point of engagement through museum collection objects, interpretation and information resources - adjacent to the visitor welcome point.

Display Museum display A mix of larger and smaller spaces, some with fixed 'permanent' display, some changing display and some with interpretation installations (e.g. sound and light projection), stable humidity/temp, secure and of impressive quality.

Reading and research

Local studies, research and archives

Both the Museum and Library have document archives of local studies/interest/record to be re-combined to make a single accessible, catalogued and cared-for resource - complemented by material from the reference library. These will need housing and to be accessed by researchers, and this space could also provide working. research space for staff and volunteers, and a reading room for quiet study.

Exhibition Art/museum exhibitions changing regularly, including national grade A touring shows

A series of spaces of differing sizes and characters, including larger space with impressive high ceiling, stable humidity/temp and security environment overall to be to GIS grade A standard - ideally with environment being passively achieved rather than aircon. No fenestration to walls, top lit but capable of full blackout. Ideally regular square or rectangular spaces. Exhibition lighting system. Floor and wall finishes to be to gallery standards. These are shop window spaces so should be highly visible/accessible.

Exhibition Smaller secondary exhibitions spaces (including for local artists, museum projects, community shows)

Alongside the main exhibition spaces, there should be smaller opportunities for less formal showing of work, responding to local and community need and to the priority in the Fleming report on showcasing the creative work going on in the creative industries in the town.

Staff/admin Staff offices, staff room, ancillary staff accommodation

Offices for appropriate number of staff in accommodation shared with library or other services, but should include at least one secure museum-only office for say three staff, for those working with precious/delicate collection items/archives.


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Area of Activity Facility Description and Purpose Activity Learning and

activity rooms (wet and dry activity)

These activity rooms for learning and engagement programmes, classes, workshops and for hiring to the wider creative and cultural community will be at the heart of the renewed building and its appeal. There should be between 4 and 6 spaces of different characters and sizes, but with at least three large enough to accommodate a school class. One space may be of dance/rehearsal studio scale in order to meet evident demand for these larger group activities and reinforce the potential for the Hub to be a 'festival centre' for the town.

Activity Learning and activity support

Prep store areas, including furniture storage adjacent to the activity spaces.

Creativity and economy

Creative studios and working space

A series of smaller spaces fitted to provide either practice studios for artists/makers or offices for creative industries companies, designers, digital businesses etc. and to enable from time to time residencies and projects developed by the Hub team.

Visitor Services/trading

Visitor welcome desk

A central point of visitor reception, welcome, orientation and information. Staff on this desk would need to have familiarity with museum attraction and activities. Note that museum staff on desk currently provide supervision of the displays, so if this new desk is remote from display areas, staffing requirements may increase. Could in part be staffed by volunteers. Could be shared with library, learning and visitor information centre. If latter, would make sense to be adjacent to some museum display telling the Tunbridge Wells story.


Retail The central point of visitor reception should have some retail facility, and this can be brought to life by museum/gallery team, drive by collections, exhibitions. There is a creative industries outcome in terms of showcasing for sale selected local applied arts/crafts produce. There is a visitor welcome outcome in terms of selling of maps, guides, orientation and interpretation material and merchandise


Café A significant operation of circa 70 covers and 150 sqm serving all building visitors and users and attracting its own clientele who in turn become new audiences for the work of the Hub. The café could be complemented by a restaurant as discussed later in this section of the report.


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Sustainability and Future Operation The long-term financial and operational implications of renewal and creation of the Hub, and of the integration of current services into one integrated operation, are covered in this report. In respect of the Museum and Art Gallery, however, we have carried out an initial mapping out of the long term implications for the service. This sees a very significant growth in activity and programmes with a concomitant increase in visitors flowing to the Hub – both in terms of absolute numbers and diversity of background and origin. These new programmes and activities, impressive new collection display and programmes of changing exhibitions and events will generate significant economic benefit for the town as set out in the report. At the same time, greater visitor flow, and facilities such as catering and retail provision, will generate new income. The programmes of activity, learning and outreach of the Museum and the free admission of visitors to all but occasional special shows will enable the generation of grants/trusts and foundation income and of visitor donations respectively. The staffing model and role requirements will need to change to animate and manage the extended Hub and activities. Volunteering will play a major part in staffing and is hugely popular in the heritage sector – both as a leisure activity but also among young people seeking to qualify themselves and prepare themselves for work and career progression. By developing new volunteer programmes and the resources and staffing to support and coordinate them, the Hub will contribute not just benefits to individuals but skills and confidence that will strengthen employability and prosperity in the labour market of the town.


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Appendix B – Café and Restaurant – further detail If the cultural Hub is to attract both local and non-local visitors in large numbers and to become a Hub for heritage and cultural activity in the town, it must be a social space as well as a functional cultural venue. In order to bring the building to life, we recommend that new catering provision is central to the offer. In order to assess the appropriate type and extent of this catering offer, its requirements in spatial and position terms on the site and its potential to generate income for the overall operation of the Hub, our core team have worked with specialist catering consultant Mark Hobbs of Kendrick Hobbs, who advises many Museum & Art Gallery and cultural sites on catering provision and has established many successful similar operations. In this section we discuss the local market for catering, potential future catering operations of the cultural Hub, the potential for financial return and the options for management of such a catering offer. Local Market The supply of catering in Tunbridge Wells is focused in two main areas: at the top of Mount Pleasant in the Town Centre around the Royal Victoria Place shopping centre and secondly in the Pantiles area. The civic centre buildings are located in the Town Centre area.

In commercial terms, this is a great location being right at the heart of the Town and close to the Station as well as multi-storey car parks and other amenities. Levels of footfall in the vicinity are high. During our research dominant groups seemed to be:

young people and student groups

mature couples

young families with children Tunbridge Wells is a predominantly affluent Town, albeit there is a range of socio-economic groups within the resident catchment. As discussed elsewhere in the report. This is reflected in the very healthy level of food and beverage retail provision in the town, and the mix of high street type mass market retailers mainly in and around Victoria Place and a more independent ‘boutique’ type of operator in the Pantiles. There are also three department stores: Fenwicks, Marks & Spencer and Hoopers. The Town draws retail customers from well beyond its immediate catchment. There are many competitive catering operations; these are especially evident in the area close to the Library, Museum & Art Gallery and Adult Education buildings. Some of the principal operations noted include: Carluccio’s Italian café/ brasserie/ shop (chain) Wagamama Japanese casual dining (chain) Strada Italian casual dining Trinity Art’s Centre Café bar Bar with separate café counter in Art Centre Pitcher & Piano Bar (chain) Cote Brasserie Brasserie (chain)


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Prezzo Italian (chain) Ismail Café restaurant The Grill Restaurant/ bar The Opera House J D Wetherspoon’s public house (chain) Pret a Manger Sandwich bar (chain) Dame Tartine Patisseries/ restaurant Basil Café / deli Costa Coffee bar (chain) Caffe Nero Coffee bar (chain) ASK Italian (chain) Proper Kitchen Co Sandwich bar/ café Colonnade Café Café Lo-Gi Sandwich bar Naked Coffee Coffee bar The Nutmeg Tree Coffee shop KFC/McDonald’s/Spudulike/Papa John’s Branded fast food (chains) West Cornwall Pasty Co’ Pasty takeaway (chain) Bhs Coffee Lounge Department store café (chain) Starbucks Coffee bar (chain) Subway Sandwich bar (chain) Hotel Du Vin Bar & Restaurant Hotel, bar & restaurant (chain) M&S Café Revive Department store café (chain) Fenwicks Restaurant Department store café (chain) Of these there are several that have a strong presence on the street especially some of the branded operations like Cote Brasserie and Costa. Café culture is thriving and there has clearly been some significant investment in the foodservice market by both chain and independent operators. Whilst there is therefore a considerable quantity of competition it does, at least, prove there is strength in the local market. Furthermore, observation revealed that most operations were busy. The ‘other end’ of the Town Centre, the Pantiles, contains a more tourist and occasional mix of retail with gift shops, boutiques, cafés and restaurants dominating an attractive street scene.

In the piazza at the southerly end, the Tunbridge Wells Hotel’s Brasserie des Sources, Woods and La Casa Vecchia spill out into the pedestrianised square. All along the High Street are various cafes and restaurants: Gastronomia G Italian restaurant & gelateria Green’s Coffee shop & sandwich bar Zizzi Italian casual dining (chain) Pizza Express Pizza casual dining (chain) The Tunbridge Wells Bar & Grill Bar/restaurant Soprano Spanish tapas & wine bar Juliet’s Café deli Manna Coffee shop within Church Caffe Nero Coffee bar (chain) Thackeray’s Fine dining restaurant


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Overall there is a significant supply of catering; a strong mix for a Town the size of Tunbridge Wells. There is strong competition in most sectors with brands dominating the area close to the Library, Museum & Art Gallery. Furthermore the catering in this area has a strong presence on the street with wide frontages and pavement seating. It will not be easy to compete ‘head on’ with these operators and we believe an operation within the Library, Museum & Art Gallery should focus on its own audience: users of the Library, Museum & Art Gallery etc., though the more presence and visibility the provision has from the street, the more possible it will become to generate significant returns from food and beverage service to those coming for the café/restaurant alone. Certainly the current frontage of the building is elegant but does not give clues to what lies behind it. Opening up the front would be beneficial for retail purposes. Future offer, spaces available & location options During the study, we discussed three possible options for a catering facility: Ground floor café at front of building

New rear ground floor courtyard café

A second floor destination restaurant

The more obvious option would be one of the grounds floor locations. As we show elsewhere in the report, we envisage a café in a ‘Hub location’ supporting a wide range of users, sharing a ‘welcome space’ with the café merging with other facilities in a multi-purpose area.

We are aware of cafés at libraries including the Newcastle City Library and the library at the Pump Rooms in Leamington Spa. Both offer a fairly simple daytime orientated café operation and both are popular. Catering at the British Library is on a larger scale and trades extremely well with multiple operations. The new Birmingham Library development features various catering options which seem to be doing well in the first days of trading. There is also a useful and an appropriate cross-reference with cafés in bookshops; Waterstones for example has a successful relationship with Costa. In all of these cases catering tends to be at a moderately basic level: hot and cold beverages; cakes; sandwiches; soup etc. in terms of range. This does not preclude quality. A successful approach in other operations of this type is to involve an existing local caterer or café operator, for example the café at Royal Albert Memorial Museum & Art Gallery in Exeter. In terms of space required for the café operation, we would envisage circa 150 m sq. being required, most of this for seating (minimum 70 seats). A relatively limited ‘kitchen/store’ would be required (minimum 40 m sq.) and a service counter of 20 m sq. These spaces could deliver a good quality but simple café type operation. A staff WC and an office space would be required. In addition, a second floor destination restaurant has been suggested. Upper level catering is usually higher risk in any building development although there are examples of success like the Portrait Gallery Restaurant, Ashmolean and Tate. However, there are a number of conspicuous examples in cultural buildings where upper level restaurants have failed or have struggled to generate income, Walsall New Art Gallery is an example. A destination restaurant is will not typically appeal to users of the Library, Museum & Art Gallery as destination


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restaurants tend to serve the evening driven special occasion and lunchtime corporate markets. A destination restaurant could well prove a success in Tunbridge Wells however the proposal would require careful consideration moving forwards. At this stage, we would recommend that the ground floor café is not compromised to provide resources to commission an upper floor restaurant, but that the latter is seen as a potential additional element if there is strong interest and commitment from a particular operator as the scheme progresses. Even then, caution will be required – if the selected operator withdraws in the future it may be difficult to organise re-letting of this specialist facility. Business Potential There are a variety of potential customer groups; we have set these out below against existing footfall and included a new dedicated ‘café group’ based on a small but steady flow of new users to the café. On this basis we have applied a level of uptake/conversation from each group to arrive at an estimate of customer numbers: Visitor Sources Annual Visitor

Numbers Estimated Catering

Uptake % Total Catering

Customers

Library 370,000 10% - 15% 37,000 - 55,500

Museum & Art Gallery 50,000 10% - 15% 5,000 - 7,500

Adult education centre 30,000 5% - 15% 1,500 - 4,500

Gateway 30,000 5% - 10% 1,500 - 3,000

TIC 15,000 (est’d) 5% - 10% 750 - 1,500

Dedicated café users 5,000 100% 5,000

Total 500,000 50,750 - 77,000 The table below defines an expected mix of likely types of business and typical levels of spend we might expect to be achieved:

Types of use & spending Customers/

Spend (net) Mix of customers/

Sales (net) Proportion of Customers in Main Groups: Hot or cold beverage only 15,225 - 23,100 30% Hot or cold beverage & cake/biscuit 20,300 - 30,800 40% Hot or cold beverage & soup/sandwich 15,225 - 23,100 30% Average Spend in each Main Group: Hot or cold beverage only £1.90 £28,928 - £43,890 Hot or cold beverage & cake/biscuit £3.75 £76,125 - £115,500 Light meal or snack with hot or cold beverage £4.25 £64,706 - £98,175 Total Sales: £169,759 - £257,565


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On this basis we could expect a café sales potential of up to circa £170 - 250k p/a assuming the visitor and usage numbers given. The sales given exclude any special events or functions. With a management concession contract we would expect to see a return of 7.5 – 12.5% of sales returned to the client equating to a potential income of £20 – 30k potentially. Depending on how strong the opportunity is perceived and the final location, size and mix of facilities one might achieve a slightly higher %. We would expect a third party under such an arrangement to pay their share of utilities, waste removal and catering area cleaning. Management Options The principal management options are as follows: In-House

Contract out The basic rationale for and key advantages and disadvantages associated with each of these options are set out below:

Advantages Disadvantages In-House Direct management control over extent & quality of services, menus, pricing, opening hours etc. No potential conflict of interest Higher profit potential as no 3rd party involved Ability to manage event bookings by the same team Flexibility Ability to include/involve volunteers

Requirement to recruit & support an café team, albeit small The risks/responsibility falls onto the team & is not delegated Lack of experience of tearooms and event catering Increased management required Increased administration Legislative responsibility Investment responsibility

Contract out Operational issues are delegated to 3rd party Ability to capture an enthusiastic niche partner who might/can share venue’s ethos if the right people can be found Reduced level of administration & management involvement required by venue Potential access to some capital investment by the caterer, albeit a small company is likely to have limited resources

Lack of direct control over operational standards & quality of the services Risk of partner not performing or ‘going bust’ Ability to use various specialist event caterers to suit the occasion Requirement for operator profit Potential exposure to risk reputation through poor performance of an autonomous 3rd party Need for monitoring of caterer’s performance 3rd party will focus on their individual commercial opportunity & not especially the venue’s goals


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In this case we believe contracting out to a small/medium sized local or regional operator is likely to deliver the best balance of quality and return.

We would also recommend the project fund the core fit-out and main equipment required. This will maximise operational and management flexibility moving forward and facilitate the best possible commercial ‘deal’ with any third party operator.


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APPENDIX C - Financial Model Information Build


85

Lifecycle and Operating Costs

Workings AmountPeriod (Year) From

Period (Year) To Notes

Figures on this page are used in the cashflow model in order to estimate likely future costs and the budgets available to meet them

Capital Cost (including Risk) 12,000,000 See schedule - SOA v8 Capex SummaryLess: Risk 10% -1,090,909 See schedule - SOA v8 Capex SummaryCapital Cost (Net of Risk) 10,909,091 1 2 See schedule - SOA v8 Capex Summary

Of which:m2

Refurbishment 3,310 7,287,405 1 2 See schedule - SOA v8 Capex SummaryNew Build 1,645 3,621,686 1 2 See schedule - SOA v8 Capex SummaryTotal 4,955 10,909,091

Lifecycle: 2 3 27Case in Use

1 = % of Capex Per Annum @ 1.25% 136,364 See schedule - SOA v8 Capex Summary2 = Absolute per annum 125,000 125,000 See schedule - SOA v8 Capex Summary3 = [Spare] 0 0 See schedule - SOA v8 Capex Summary

Case In Use (Annual Value) 125,000

Operating Costs: m2 3 27Assumption is that unless space related or in the Museum - no increase in Opex/Income

2013/14 2014/15Staffing 2.50%Museum and Art Gallery 444,199 455,304 Year 1 - See DCA Specific FiguresLibrary and Registration 622,687 638,254 Used existing budget/outturn costs adjusted for inflationRegistrar (inc in Above) 0 0 Used existing budget/outturn costs adjusted for inflationTIC 41,040 42,066 Used existing budget/outturn costs adjusted for inflationBox Office 67,239 68,920 Used existing budget/outturn costs adjusted for inflationGateway 0 0 Used existing budget/outturn costs adjusted for inflation

1,175,164 1,204,544

Main Headings:Cleaning 8 4,955 39,638 Benchmarks - see SOA v8 Model AssumptionsBuilding Maint 10 4,955 49,548 Benchmarks - see SOA v8 Model AssumptionsUtilities 15 4,955 74,322 Benchmarks - see SOA v8 Model AssumptionsOther Costs 4,955 0 See Existing Revenue Costs

2013/14 2014/15Business Rates: 2.50%Museum and Art Gallery 11,420 11,706 Year 1 - See DCA Specific FiguresLibrary and Registration 46,710 47,878 Used existing budget/outturn costs adjusted for inflationRegistrar (inc in Above) 0 0 Used existing budget/outturn costs adjusted for inflationTIC 1,046 1,072 Used existing budget/outturn costs adjusted for inflationBox Office 0 0 Used existing budget/outturn costs adjusted for inflationGateway 0 0 Used existing budget/outturn costs adjusted for inflation

59,176 60,656

Other Operating Costs: 2.50%Museum and Art Gallery 210,089 215,341 Year 1 - See DCA Specific FiguresLibrary 127,719 130,912 Used existing budget/outturn costs adjusted for inflationRegistrar 0 0 Used existing budget/outturn costs adjusted for inflationTIC 14,950 15,324 Used existing budget/outturn costs adjusted for inflationBox Office 0 0 Used existing budget/outturn costs adjusted for inflationGateway 0 0 Used existing budget/outturn costs adjusted for inflation

352,758 361,577


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Lifecycle and Operating Costs (Continued)

Workings Amount From To Notes

Operating Income: 3 27

Operating Income: 2.50%Museum and Art Gallery -120,310 -123,318 Year 1 - See DCA Specific FiguresLibrary -309,715 -317,458 Used existing budget/outturn costs adjusted for inflationRegistrar 0 0 Used existing budget/outturn costs adjusted for inflationTIC -1,620 -1,661 Used existing budget/outturn costs adjusted for inflationBox Office 0 0 Used existing budget/outturn costs adjusted for inflationGateway 0 Used existing budget/outturn costs adjusted for inflation

-431,645 -442,436

External Rent:ft2 m2 Area m2 Total

Creative Units Lease 10 108 460 49,514 High-level assumption - Build up 50%, 75%, 90%Learning Spaces 10 108 510 54,896 High-level assumption - Build up 50%, 75%, 90%

Café Revenue Net Income 25,000 High-level assumptionRestaurant Revenue Net Income 25,000 High-level assumption

External Service Charge:

Creative Units Service Charges At cost - LCC and Opex Build up 50%, 75%, 90%Learing Spaces Service Charges At cost - LCC and Opex Build up 50%, 75%, 90%

Assumed that service charge will recover, lifecycle and other opertaing costs (building maintenance, cleaning and utilities etc)

Funding:

Capital: 1 2

HLF 3,530,000 29%Assumed £3.9m will be received from HLF over Capital £3.53m and Revenue £0.37m

Council 8,470,000 71% To be verified12,000,000 100%

Revenue (Like for Like to Opex - above): 3 27

2014/15 PricesTWBC 503,987 Taken from Existing Budgets - To be ConfirmedKCC 572,967 Taken from Existing Budgets - To be Confirmed

1,076,955


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Explanatory Notes

Explanatory Notes

No Assumption

General

1Costs have been uplifted to 2014/15 prices and discounted back to the 1/4/14. No inflation other than between the current rice date of the figures and 2014/15 has been included and costs have been discounted by a real treasury discount rate of 3.50%.

2

Costs of shared spaces are allocated in proportion to the expected use percentage. External costs (and income) assumed to be recovered through service charges or in the case of income, that will produce a benefit by way of a reduced share of ongoing costs (depending on how the building is managed and costs recovered) are allocated to an "owner" - as a result, they would take the risk of these costs not being recovered or rent not received as expected through void periods or default etc.

Capital

3Capital costs are as per the Gleeds high-level cost plan. These have been assumed to be incurred over 2-years on a straight line basis. Costs have had the 10% risk taken out of the headline costs (this is allowed for later). Overall costs are shared between the users based on floor area with no distinction being made for areas which are refurbished rather than being brand new extended space.

Lifecycle

4

Lifecycle costs are as per the "Assumptions and Workings" values. These are assumed at this stage to be incurred on a sinking fund basis as a £/per annum recoverable from the first year of operation and throughout. It is recognised that in reality costs would be relatively small in the years immediately after the completion of the works and that these costs would ramp up towards the end of the components lives but for ease, comparability between years and in order to be more consistent with the Authority's incremental budgetting approach the sinking fund approach has been employed - this can be amended when further analysis is undertaken if required. Lifecycle costs are recovered on floor area occupied with no distinction made for areas which are refurbished rather than new build extensions.

Operating Costs

General

5Revenue costs are assumed to be incurred from the year immediately following the build at a rate 100% of the expected 2014/15 value apart from certain "commercial" elements around Adult education which step up to 100% in years 1, 2 and 3 of 50%, 75% and 100% respectively.

Staffing

6

All staffing costs have been taken from the existing budgets except for those of the Museum which have been provided by DCA. These have not been adjusted for any greater/lesser space or for any efficiencies that may accrue in stafing structures due to greater integration and sharing of space. Although not inclued in the figures, DCA have estimated that staffing costs (excluding the impact of any new operating model for Gateway) could reduce by an amount of up to £100,000.

Cleaning/Building Maintenance and Utilities:

7Costs are calculated on the basis of a £/m2 figure in line with the assumptions made in "Assumptions and Workings" and charged over the floor area occupied.

Business Rates:

8 Business rates are based on actuals and no account has been taken at this stage for any reduction which may accrue should the Councils go down some form of Trust route - this would need to be assessed at a later stage when the governance structure has been agreed.

Other Operating Costs:

9These are based on existing costs (in the case of the Museum, these have been revised in line with the greater space and the impact that this would have but this adjustment has not been made for the other elements (library, TIC etc) and so these elements may need to be reviewed to assess if they continue to be accurate.

Operating Income

Operating Income:10 Really only applies to the Museum - these figures are as per the DCA business plan (included).

External Rent:11 Assumptions are as per those set out in "Assumptions and Workings".

External Service Chaerge:

12These are set at a level so as to recover the lifecycle, building maintenance, cleaning and utilities costs deemed to be incurred in respect of the external elements.


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Museum – Summary Operating Costs (DCA)

At 2013/14 Prices

Tunbridge Wells Museum and Art Gallery DRAFT financial model Version 1.10 September 10th 2013

Revenue Plan

Financial Year 1 2 3 4 5 6 7 8 9

IncomeIncome from TWBC 0

Fees and other contracts 125,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

HLF Project funding for activities and projects 0

HLF Project funding for other costs 0

Grants and funding for activities and projects 250,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

Lettings 275,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000

Admissions and tours 165,000 0 0 0 7,500 7,500 7,500 7,500 7,500 7,500

Activities 530,000 27,500 27,500 27,500 27,500 20,000 20,000 20,000 20,000 20,000

Fundraising, donations and other support 864,390 17,310 17,310 17,310 36,930 36,930 36,930 36,930 36,930 36,930

Trading income contributed net 1,386,831 49,500 49,500 49,500 49,500 50,985 52,515 54,090 55,713 57,384

Total Income 3,596,221 120,310 120,310 120,310 147,430 141,415 142,945 144,520 146,143 147,814

Expenditure

Employees 10,110,936 444,199 444,199 444,199 418,273 398,098 398,098 398,098 398,098 398,098

Premises related expenditure 1,248,500 49,940 49,940 49,940 49,940 49,940 49,940 49,940 49,940 49,940

Transport 166,725 6,669 6,669 6,669 6,669 6,669 6,669 6,669 6,669 6,669

Supplies and services 1,271,000 50,840 50,840 50,840 50,840 50,840 50,840 50,840 50,840 50,840

Audience, Development, Marketing, Evaluation 746,919 37,500 37,500 34,953 28,953 28,953 28,953 28,953 28,953 28,953

Activity 1,802,563 96,500 96,500 96,500 83,750 68,063 68,063 68,063 68,063 68,063

Contingency 750,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

Irrecoverable VAT 0 0 0 0 0 0 0 0 0 0

Total expenditure 16,096,643 715,648 715,648 713,101 668,425 632,563 632,563 632,563 632,563 632,563

Balance -12,500,422 -595,338 -595,338 -592,791 -520,995 -491,148 -489,618 -488,043 -486,420 -484,749

Operation once completed (transition years to be calculated when detailed project plan complete)


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Existing Budgets

Category Subjective Code Subjective Description Gleeds Category Include?Museum and Art Gallery

Library & Registration



AEC AEC AEC Registrar TIC Box Office GatewayGrand Total

Grand Total

Grand Total

TWBC TWBC TWBC KCC KCC KCC

2.50% (Indexation Factor - Per Annum) 2.50% 2.50% 2.50% 2.50% 2.50%

2013/14 Budget

2012/13 Outturn Cost

IndexationAssumed 2013/14 Budget

2012/13 Outturn

CostIndexation

Assumed 2013/14 Budget




2013/14 Budget

2013/14 Indexation 2014/15 2013/14 Indexation 2014/15 2013/14 Indexation 2014/15

Owner TWBC KCC KCC KCC KCC KCC KCC KCC TWBC TWBC KCCInclude? 1 0 0 1 0 0 1 1 1 1 0

Gleeds Category Summation

Lifecycle 6,700 0 0 0 0 0 0 0 0 0 0 6,700 168 6,868 6,700 168 6,868 0 0 0Staffing 243,330 0 0 622,687 0 0 0 0 41,040 67,239 0 974,296 24,357 998,653 351,609 8,790 360,399 622,687 15,567 638,254Cleaning 250 0 0 13,138 0 0 21,815 0 700 0 0 35,903 898 36,801 950 24 974 34,953 874 35,827Building Maintenance 2,000 0 0 14,684 0 0 50,261 0 0 0 0 66,945 1,674 68,619 2,000 50 2,050 64,945 1,624 66,569Utilities 5,500 0 0 15,237 0 0 11,132 0 700 0 0 32,569 814 33,383 6,200 155 6,355 26,369 659 27,028Business Rates 11,420 0 0 46,710 0 0 15,844 0 1,046 0 0 75,020 1,876 76,896 12,466 312 12,778 62,554 1,564 64,118Other Operating Costs 106,340 0 0 127,719 0 0 5,228 0 14,950 0 0 254,237 6,356 260,593 121,290 3,032 124,322 132,947 3,324 136,271

Total Expenditure 375,540 0 0 840,175 0 0 104,280 0 58,436 67,239 0 1,445,670 36,142 1,481,812 501,215 12,530 513,745 944,455 23,611 968,066

Income -7,900 0 0 -309,715 0 0 -75,748 0 -1,620 0 0 -394,983 -9,875 -404,857 -9,520 -238 -9,758 -385,463 -9,637 -395,099

Total Income -7,900 0 0 -309,715 0 0 -75,748 0 -1,620 0 0 -394,983 -9,875 -404,857 -9,520 -238 -9,758 -385,463 -9,637 -395,099

Net Expenditure/Income 367,640 0 0 530,460 0 0 28,533 0 56,816 67,239 0 1,050,687 26,267 1,076,955 491,695 12,292 503,987 558,992 13,975 572,967


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Appendix D – Schedule of Accommodation

Schedule of Accommodation Developed Following Stakeholder Meetings (with Gateway Included in the Hub) Draft Synopsis of Use / Allocation of SpacesRevision 8


(m2)


Shared Space (m2) KCC TWBC

Private Sector Income

(Underwritten by TWBC? Or

KCC?)

Notes

10 (TIC) 105 (Box Office) 5

25 (Retail) 10 15

45 (Reception) 15 3055 (Library) 5560 (M&A) 60

Total 0 0 200 80 120 0Grand Total Tunbridge Wells Area 200 200

Library Fully accessible open plan spaces able to provide flexible library accommodation including spaces for children’s library, adult lending, self service, studying. Buggy park close to children's library etc. 500 500

Transit Store / Library 10 10Storage space / Library 40 40Registration Space - 2 No. confidential meeting rooms/pods where the registration of births & deaths can take place. Primary use for Library, Registration & Archives with potential for others - Meeting room and discreet waiting area

30 30


30 30Say KCC 50% of area as a contribution to overall Dual use of space.


25Dual use of shared

space25

say KCC 100% use of space

Option - Registration storage - Stored off site0 0

Total 605 0 30 635 0 0Grand Total Library 635 635


400 400

Art / Museum exhibition and exploration spaces including display of important local collections, loans from national partners, grade A touring shows, smaller secondary exhibition space etc. 500 500

Local studies, research and archives room 75 75Closed stores 160 160Accessible stores 120 120Despatch/receipt/ treatment/workshop/ quarantine space 60 60Collection management room - adjacent to the stores, with museum store conditions for cataloguing

45 45

Learning and activity room dry - 3 of varying sizes 195 195Learning and activity room wet 65 65Learning and activity support - prep store area 20 20

Total 1360 0 280 0 1640 0Grand Total Museum

1640 1640

Gateway Inclusion of a remodelled Gateway service utilising more on-line and telephone provided services. As a result, the current space utilised by Gateway can be reduced by 40% (approximately 500 m2 165 165

Total 0 0 165 0 0 165Shared Office Accommodation Space Total

165 165



70 105Say KCC/TWBC 50/50% staff and space

Meeting rooms25 10 15 Say KCC/TWBC 50/50% staff and space

Kitchenette 15 6 9 Say KCC/TWBC 50/50% staff and spaceTotal 0 0 215 86 129 0

Shared Office Accommodation Space Total 215 215




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2 No. 30 m2 classrooms 60 60




1 No. 100 m2 classroom 100 100Specialist spaces 20 20Storage 20 20Office Spaces 35 35

Total 0 455 0 0 0 455Grand Total Learning / Adult Ed / Expansion Space for Business Use 455 455

Drama / Rehearsal Space / Talk / Lecture / Seminar room 100 100Meeting room suite

50 50Practice spaces/studios - could be let as incubator units, used as residence spaces for creative projects or house further engagement activities

250 250

Kitchenette 15 15

Total 0 415 0 0 0 415Cultural Activity and Creative Business Space 415 415

Other Public Facilities Café 140 140Restaurant 140 150Public / staff toilets including disabled

11050 50

Split on visitor numbers or on staff numbers or on area? Assumed 50:50

Baby change5 2.5 2.5


Cleaners stores9 Overall Total 4.5 4.5


Total 0 0 404 57 57 290Grand Total Shared Spaces

404Circulation and plant at

20%*404

Split Total GIA

Overall Total 1965 870 1294 858 1946 1325

Overall Grand Total 4129 Total GIA (m2)

Circulation and plant at 20%* 826 172 389 265

Total GIA 4955 1030 2335 1590Approximate Split in Use/ Allocation of

Spaces

4955

Creative Learning Spaces - potentially learning / education courses that may over time enable the cultural activity and creative spaces to enlarge as these reduce


Outline schedule of accommodation developed through the feasibility study stage. A number of areas are undergoing reviews and we foresee changes emerging over the coming months



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Appendix E – Analysis of an Updated Gateway Service in the Hub

Following an initial submission of the feasibility report the Councils requested that the option of a reduced area Gateway service be included in the report. As Gateway is changing with less reliance on customer facing services as the move to other delivery channels such as telephone and particularly online transactions is accelerating, the existing space that the Gateway occupies could be reduced in the future potentially reducing property expenditure.

The Councils have requested the option of Gateway being incorporated into the Hub with a space requirement 40% of the area it currently occupies as “channel shift” advances with new and more technology enabled service delivery models. This would therefore involve:

Investigating a technology enabled service delivery model

“Rightsizing” operational and management staffing structures around the revised service delivery model (with the expectation that this would yield savings)

Moving Gateway from its current location with a corresponding saving in premises costs

As a consequence, amending other elements of the Schedule of Accommodation in order that Gateway can be housed on-site

The following schedule of accommodation sets out the main changes we would propose in order that the Gateway at 200m2 (40% of approximately 500m2) can be accommodated on the current site as an increase in overall area might not be possible. The main changes of this are that the areas for Creative Industries and Adult and Creative Learning Areas have been reduced. As can be seen above, in order to implement such a radical change there will need to be significant time spent in redesigning the service and assessing the outcome. This has yet to be completed and as a result it is not possible to assess the impact on staffing and any other revenue savings, however, we have set out a number of the relevant costs of the amended Schedule of Accommodation:

Annual saving in existing premises costs of £84,337 (2014/15 prices)

KCC rental income foregone – costs to be split

No change in overall floor area and so no overall impact on capital, lifecycle and operating costs based on the Hub model and building

Consequential loss in external rental income of -£10,764 (100m2 at £108/m2) as less space rented externally

Consequential cost in recoverable service charge of -£5,800 (100m2 at £25, £8, £10 and £15/m2 for lifecycle, cleaning, building maintenance and utilities respectively)

Net improvement of £67,773 (excluding staffing and non-premises related operating costs savings as well as KCC rental income allowance). This excludes the income that may be received (capital or revenue) for the redeployment of the current building.


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This sum has been shown as an overall change in annual revenue costs – how this will be distributed between the Councils will need to be discussed as part of the overall settlement


94

Schedule of Accommodation Developed Following Stakeholder Meetings (with Gateway Included in the Hub)Revision 8a


(m2)


Shared Space (m2)

10 (TIC)5 (Box Office)

25 (Retail)45 (Reception)

55 (Library)60 (M&A)

Total 0 0 200Grand Total Tunbridge Wells Area 200

Library Fully accessible open plan spaces able to provide flexible library accommodation including spaces for children’s library, adult lending, self service, studying. Buggy park close to children's library etc. 500

Transit Store / Library 10Storage space / Library 40Registration Space - 2 No. confidential meeting rooms/pods where the registration of births & deaths can take place. Primary use for Library, Registration & Archives with potential for others - Meeting room and discreet waiting area

30


30


25

Option - Registration storage - Stored off site 0Total 605 0 30

Grand Total Library 635


400

Art / Museum exhibition and exploration spaces including display of important local collections, loans from national partners, grade A touring shows, smaller secondary exhibition space etc. 500

Local studies, research and archives room 75Despatch/receipt/ treatment/workshop/ quarantine space 160Accessible stores 120Despatch/receipt/ treatment/workshop/ quarantine space 60Collection management room - adjacent to the stores, with museum store conditions for cataloguing

45

Learning and activity room dry - 3 of varying sizes 195Learning and activity room wet 65Learning and activity support - prep store area 20

Total 1360 0 280Grand Total Museum 1640

Gateway Inclusion of a remodelled Gateway service utilising more on-line and telephone provided services. As a result, the current space utilised by Gateway can be reduced by 40% (approximately 500 m2

reducing to 166m2)

165




Meeting rooms 25Kitchenette 15






1 No. 100 m2 classroom 100Specialist spaces 20Storage 20Office Spaces 35

Total 0 455 0Grand Total Learning / Adult Ed / Expansion Space for Business Use 455

Drama / Rehearsal Space / Talk / Lecture / Seminar room 100Meeting room suite 50Practice spaces/studios - could be let as incubator units, used as residence spaces for creative projects or house further engagement activities

250

Kitchenette 15

Total 0 415 0

Cultural Activity and Creative Business Space 415

Other Public Facilities Café 140Restaurant 150Public / staff toilets including disabled 100Baby change 5Cleaners stores 9

Total 0 0 404Grand Total Shared Spaces 404

Overall Total 1965 870 1294

Overall Grand Total 4129

Circulation and plant at 20%* 826

Total GIA 4955


Adult Education - Creative Learning Spaces - potentially learning / education courses that may over time enable the cultural activity and creative spaces to enlarge as these reduce


Outline schedule of accommodation developed through the feasibil ity study stage. A number of areas are undergoing reviews and we foresee changes emerging over the coming months



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