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