SUMMARY/PURPOSE

APPENDICES ATTACHED

Appendix 1 Summary of IWEP activities

Appendix 2 Minutes of the Regeneration Sub-Committee for 3 July 2003.

BACKGROUND PAPERS

1 Service Level Agreement between the Council and IWEP

2 Legal Agreements between the Council and IWEP undertaking to guarantee payment of the rent on the properties known as Enterprise House and the Innovation Centre, St Cross Business Park, Newport, should the IWEP be unable to do so.

Contact Point : , F John Bentley

Head of Corporate Policy and Communications

Ext 3346

JOHN BENTLEY

Head of Corporate Policy and Communications

APPENDIX 1

IWEP Activities – Quarterly Report

Summary

The regeneration programmes are currently delivering to projected profiles for the year 2003-04. Several grant programmes will cease in March 2004 and work is in progress to access monies from the single pot [SEEDA] and from other funders, for future regeneration activity through the Area Investment Framework process.

Project Cowes is almost at the conclusion of phase 1 [land acquisition] and will start to move into the next phase. The Innovation Centre is functioning successfully as part of the Enterprise Hub Initiative and the Virtual Hub project is gradually gaining momentum.

Other programmes are on schedule to achieve the targets for 2003-04 as described under the sections itemised below.

Regeneration Programmes

Quarterly returns containing key indicators, outputs and outcomes are due to be completed and sent to SEEDA at the end of July for the Quarter 1 period [April-June] 2003-04.

SRB Programmes V and VI

The SRBV programme is due to be completed in March 2004 and is now fully committed.

There was an underspend in SRBVI at the end of 2002-03 due to the development of the Public Realm Strategy. This meant that infrastructure projects could not be taken forward as had originally been planned. This was at the request of SEEDA and therefore the underspend did not result in loss of grant funding and the monies have been carried over into this year 2003-04.

The Public Realm Strategy is in the final draft stage and should be finalised in Quarter 2 [July-September]. The IWEP is looking to work with the IW Council to appoint a co-ordinator for the development of the sea front area including supporting the development of the Interchange project.

The Ryde Development Trust held their AGM in June and there are now 7 Trustees and there will be a Council Member nominated by the IW Council. They are looking to appoint 2 further trustees and have a second nomination from the IW Council.

Rural Development Programme

This programme will cease in March 2004 and this year’s money is already fully committed. Officers are looking to theme projects that are coming forward for funding under the Area Investment Framework proposals to access money from funders for 2004 onwards.

Leader+

There are more projects coming forward under this initiative and 7 were approved by the LAG group over the last three months.

These include:

Title	Grant	Match Funding	Timescale
Apple Day	£16,245	£18,185	3 years
Brading IT	£32,260	£55,011	5 years
Chale Nursery	£50,727	£30,959	3 years
Green Life	£19,951	£4,988	1 year
Sustainable Tourism	£59,873	£54,847	3 years
West Wight Sports Centre	£2,025	£2500	1 year
Wight Community Transport	£23,430	£101,478	2 years

Market Towns Initiative

The delivery plans for Sandown and Shanklin have been approved by SEEDA and a town co-ordinator is working with the two towns to support delivery of the programmes.

The Ventnor delivery plan is still waiting approval and there is a recruitment process in place for the appointment of a town co-ordinator. There is a need to ensure that the MTI is seen as part of a strategy for the whole of the area and is not delivered in isolation. Recruitment of a new MTI co-ordinator is also in place as the previous co-ordinator has relocated to the mainland.

Healthy Living Programme

The 19 projects are currently being reviewed with project leaders to look at forward strategies beyond December 2003. There are still some issues about how to make this programme sustainable and this is being addressed through the advisory group and the management group. The issues will be raised with NOF who are the current funders of the programme.

Enterprise & Investment

Project Cowes:

We have now completed our second round of public consultation with an overall approval rating in excess of 80%. This is a clear indication of the importance of this Project to the overall development of the IoW economy.

In conjunction with SEEDA, we will be hosting a number of guests during Cowes Week. This will include a mix of potential investors, developers, press and potential occupiers, all of whom have shown interest in investing in the Medina Valley.

The Project will soon move on from the current land acquisition phase to concentrate on 4 themes. These are; Business, Infrastructure, Communities and Environment.

We anticipate the Project will last from 5-10 years and will become a key driver in providing a step change in our economic fortunes.

Inward Investment:

We are continually working on a number of inward investment projects. These projects, by their very nature take many months to come to fruition and therefore, there will be little change from quarter to quarter.

Current active projects include; a 12 man call centre, 5 marine operators, a medical supplies company and 2 bio-diesel companies.

We are in contact with many other potential investors under the auspices of Project Cowes, in the main these tend to be in the leisure sector.

Innovation Centre:

We are part of the successful SEEDA Enterprise Hub initiative, whereby up to 30 business incubators are established across the south east. Aimed at high tech. high growth companies, the Centre now houses 8 direct tenants and 2 ‘virtual’ tenants, 2 companies having combined and graduated out of the Centre to their own premises in Newport, (this is exactly what the Centre is here for). The Centre aims to remove barriers to growth which can include access to finance, marketing etc as well as providing top quality business premises. In the 2 year history of the Centre we have had 3 graduations, (the highest in the SE network), 1 business failure and contact with approximately 50 companies.

The next 6 months will see the development of our ‘Hatchery’ where we will provide facilities on a ‘rent a desk’ basis, including access to Broadband.

Ambassadors Scheme:

As previously reported, this scheme now operates with a much lower profile than that previously run by IoW Tourism. However the scheme is far more effective in attracting new investment to the Island. 4 of our current inward investment opportunities have come from people acting as an Ambassador for the Island.

The scheme will now be formalised with names being put forward. We will then supply a simple piece of promotional material and an area on our web-site (currently under development) to all Ambassadors. We will have 3 main areas of operation, Individual Ambassadors, Corporate Ambassadors and Media Ambassadors. The media element is a development of the already successful PR Network we have established.

Ambassadors will simply be asked to promote the Isle of Wight and provide us with contact details for those interested in investing in our future.

We anticipate putting together a business plan during the next quarter, on how the scheme can operate in the future; this will include an Ambassadors Club to promote the Island at a higher level.

PSA Targets

Target 3 – Job Creation

Inward Investment activities have been summed up under the section Enterprise & Investment and the actual returns are in line with the projected targets to be delivered by March 2003.

Target 11 – Over 50’s Employment

It was anticipated that there would be a development phase to this target area prior to the achievement of any target figures. There is now an agreement between JobCentre Plus and the IWEP about the types of activities that will take place and there is a proposal being developed to work with B&Q to help develop confidence and skills with the 50+ unemployed group. There is also a proposal to access a special pot of funding that has been allocated to innovative projects that provide training and resource to enable older people to access work.

Financial Report

The financial forecasts made by the IWEP for the first quarter of the financial year are on target and the figures have been shared with the finance department of the IW Council.

Other Activities

Area Investment Framework (AIF)

The AIF is the key to future grant funding activities (A copy of the AIF has been sent to all members of the Select Committee and a copy is available in the Members room). The Isle of Wight as a sub-region is well ahead in the development of its AIF and an action plan to implement it. There is an expectation from major funders that we will have a proposal by the end of 2003 which sets out some major schemes and activities to achieve the priorities set out in the AIF document. Meetings have been held with the executive to the Local Strategic Partnership to ensure that the members of the Partnership are fully involved in the process. Workshops are being planned with the various theme groups to ensure that there is as much involvement as possible with all stakeholders in designing the schemes and activities that will be put forward.

AIF Main Report

AIF Overview of Investment Priorities and Forward Strategy

Investment Audit

APPENDIX 2

MINUTES FOR THE REGENERATION SUB-GROUP MEETING HELD ON THURSDAY 3 JULY 2003

IN THE BOARDROOM, INNOVATION CENTRE, ST CROSS BUSINESS PARK NEWPORT COMMENCING AT 1PM

Present: David Crawley : David Guy : Glen Garrod

Roger Staker : Michael White : Liz Wood

In Attendance: Robert Snow

1. Apologies: Cllr Harry Rees : Ruth Realey : Pam Stamps

In the absence of Cllr Rees, David Guy agreed to chair the meeting.

2. Minutes of the previous meeting agreed as a true record and duly signed.

Matters Arising – NONE

3. Declarations of Interest:

a. Agenda Item 4b – David Crawley declared an interest in that he is known personally to persons involved in the project.

4. Projects for Approval

a. Verbum dei Centre

Liz Wood explained the background to this application and also gave details of previous successful funding applications from this group. She further explained that at present we are not in a position to commit any new projects to the RDP.

A discussion followed from which the following points were highlighted:

- That the sub-group had concerns that this project had already had successful bids from the RDP and felt that as we are meant to be ‘grant of last resort’ it may be better if they explored other areas for funding.

- It was felt that this project would probably go ahead with or without RDP funding albeit to a slightly revised timescale.

It was therefore proposed that this application be refused.

Proposed : Roger Staker

Seconded : David Crawley

Carried Unanimously

APPLICATION REJECTED

b. Ventnor Eastern Esplanade

Liz Wood gave a brief overview of the reasons behind this application and explained that although funding may not be available through RDP there was a need to look at ways to help this project forward. It may be possible to do this through the MTI route.

After further discussion the following actions were agreed:

· A meeting will be arranged with an Economic Partnership Development Officer, Ventnor Town Council members and the MTI Development Officer to take a fresh look at the way Ventnor could benefit.

· That this application be deferred until further information is available.

APPLICATION DEFERRED

c. Island Enterprise

Liz Wood explained some of the background to this application and also commented that there were still a number of issues and unanswered questions associated with this project.

It was agreed after discussion that this project be refused.

Proposed: Michael White

Seconded: David Crawley

Carried unanimously.

APPLICATION REJECTED

David Guy then made the point that although the sub-group had been informed that there was no further funding available in RDP, it might be prudent to have one or two projects ready to be submitted at short notice should this situation change.

5. Update on Programmes

Liz Wood gave an update on the following programmes:

Healthy Living:

· There are 19 projects in total.

· The programme has experienced some difficulties but is now moving forward.

· Management and Advisory Groups are now operating.

· Funding ceases at the end of 2003. There is a need to start looking now for extra funding to sustain the projects in their final year.

· Efforts are being made to see if the programme can be incorporated into the ‘single pot’ bidding round.

· The next Management Group meeting will have a representative from NOF attending.

The following comments were then made:

· David Crawley was concerned that there was a lack of ‘team playing’. Liz explained that this had been the case but she felt that things had now improved.

· Roger Staker felt that the project leaders should be involved in sourcing further funding.

· Glen Garrod felt that the Advisory Group was not very ‘robust’ and that there appeared to be a lack of an evaluation strategy. He also felt that unless the programme becomes part of ‘mainstream’ funding that other funding will not be available.

It was agreed that the next 6 months should be used to implement a ‘rescue package’ to help retain the credibility of the Island. It was also agreed that a small group should be formed in order to take this forward. A date will be arranged to bring this group together and that this information should be forwarded to the Advisory Group.

ACTION

Liz Wood

Market Towns Initiative

· Delivery Plans for Sandown and Shanklin have been approved.

· Delivery Plan for Ventnor is in the process of being approved.

· Ventnor are looking to re-appoint a project manager. Liz explained the reason why this was necessary.

· Sandown and Shanklin project manager has had a few accommodation problems and there are other issues relating to this project that need to be resolved.

· MTI Co-ordinator has resigned due to relocation to the mainland. With 18 months of the programme still to run it is envisaged that a new appointment will be made but with a slightly amended remit.

Rural Development Programme

· This programme is due to end in March 2004.

· RDP is already oversubscribed and the Regeneration Director and team will be looking at ways of relocating some projects into other areas.

SRBV

· Funding ends march 2004.

· £1.5 million over 5 years has been fully committed.

At this point Liz Wood drew the attention of the sub-group to a project known as COMMENT, funded within this programme. She explained that there had been problems with a switch in emphasis of the outputs. Funding for the training element of this project was withdrawn last financial year [2002/03] as a result of a failure of the project to attain accreditation for the training. There were still difficulties with the delivery of the project. The project leader was informed that further funding would not be available. As a result the project leader wrote direct to SEEDA expressing her disagreement with this decision.

SEEDA asked that this matter be brought to the attention of the sub-group for their comments.

ACTION

Liz Wood

After discussion it was agreed that a written report should be produced for sub-group members detailing all the events and that a decision will be made after members have studied this report.

SRBVI

Liz Wood explained the background reasons for the underspend in this programme during the previous financial year. She also updated the sub-group members of the following:

· The Public Realm Strategy is now almost reaching the final draft stage.

· Most RDT Board issues have now been resolved.

· Brian Friend from the IWEP Board will be put forward as an independent chair for the RDT Board.

·

ACTION

Liz Wood

It was felt that there is a lack of co-ordination in what is happening on Ryde seafront. It was therefore proposed that a Project Director should be employed to oversee all areas of future activity and to bring together all the agencies involved in making things happened coherently in Ryde. This will be done in co-operation with the new Council Environmental Services Director and will be funded from SRBVI. SEEDA are in agreement with this proposal.

At this point Liz Wood drew members’ attention to the project known as Heart of Pan. She highlighted some of the problems associated with the project including:

· The funding should have come from the 2002-03 spend.

· The project leader had re-located to the mainland.

· A requested de-briefing meeting, prior to the project leader leaving, did not happen.

· A letter was sent to IWC and a meeting then followed with officers of the IWC. The RCC have also met with IWC officers.

· There is still no clarity and accurate figures for the proposed capital works.

As a result of these meetings the following information was forthcoming:

· There is still no overall project plan.

· A large percentage of the money committed to the project has been used to employ a consultant.

· No further commitment has been decided as to who will lead this project.

· An earlier request for a team to be formed to help the project leader has not been implemented.

· There is an issue as to where the funding for Pan will now be sourced.

· The proposed capacity building with the community has not taken place.

In conclusion it was agreed that all these issues should be brought to the attention of the new Environmental Services Director. Concern was expressed that there was no ‘holistic’ approach to the project as submitted originally to the sub-group. There was no commitment from the Housing Association and therefore there was no ‘partnership’ approach. The group felt that there needed to be work done with the community prior to any further consideration of the project.

6. IWEP Business Plan

Liz Wood reported that the IWEP Business Plan for 2002-2004 had been approved by the board of IWEP. Copies had been emailed to sub-group members prior to this meeting.

David Guy asked if there had been any alterations to the remit of the Regeneration sub-Group. The answer was no.

7. Local Strategic Partnership & delivery of Area Investment Framework

Liz Wood reported to members on the following points:

· That there had been a meeting of the LSP and it had been highlighted that there is a need to take this forward and build on the impetus already achieved.

· All future funding will be accessed through the AIF.

· At present the group has admin support through the IWC but no ‘driver’

At this point Roger Staker left the meeting:

· Liz then went onto explain that it was possible to commit SRBVI monies to take the AIF forward and suggested that Roger Staker could be the person to do this. He would be employed by the IWEP and tasked with achieving all the aims set out in the AIF. Liz then asked the sub-group members for their approval and support for this action.

After a short discussion it was agreed that this was an excellent way forward. Michael White proposed that the contracting be agreed by Mrs Wood and the appointment made. This was unanimously agreed.

Roger Staker then rejoined the meeting.

8. Membership and Remit of the Sub-Group

It was agreed that the new Environmental Services Director should be approached with a view to him joining the sub-group.

ACTION

Liz Wood

It was confirmed that the new Chief Executive of the RCC will also sit on the sub-group.

9. Any Other Business - NONE

10. Date of next meeting: Thursday 14 August 2003

There being no further business the meeting closed at 3.20pm

REASON FOR SELECT COMMITTEE CONSIDERATION

ACTION REQUIRED BY SELECT COMMITEE

CONSULTATION PROCESS

APPENDICES ATTACHED

BACKGROUND PAPERS

JOHN BENTLEY

Head of Corporate Policy and Communications