PAPER D2

                                                                                                                                                                                                        

                                                                                                              Purpose : For Decision

REPORT TO THE CABINET

 

Date :              17 JANUARY 2006

 

Title :               RYDE INNER CORE TOWNSCAPE HERITAGE INITIATIVE

                       

REPORT OF THE CABINET HOLDER FOR ENVIRONMENT, TRANSPORT AND PLANNING

 

IMPLEMENTATION DATE : 27 January 2006

 

 

SUMMARY/PURPOSE

 

1.                  To support the Ryde Inner Core Townscape Heritage Initiative and to agree financial measures to allow the implementation of this initiative.

 

CONFIDENTIAL/EXEMPT ITEMS

 

2.                  None.

 

BACKGROUND

 

3.                  Townscape Heritage Initiatives (THIs) are administered by the Heritage Lottery Fund (HLF).

 

4.                  The THI is the Heritage Lottery Fund’s grant giving programme to support communities in their efforts to regenerate the historic parts of their towns and cities.

 

5.                  The programme is designed to address problems in areas of particular social and economic need throughout the UK.  This encourages partnerships to carry out repairs and other works to a number of different historic properties within those areas, and to improve the quality of life for all those who live, work or visit there.

 

6.                  Applications are submitted in two stages.  A stage 1 application for THI funding in Ryde was submitted in June 2003 by the Council in conjunction with the Ryde Development Trust (RDT).  The outcome of this bid was successful, and a Stage 2 application was invited, and HLF monies were given to the Council/RDT to assist the preparation of further work.

 

7.                  The Stage 2 submission was made in December 2004.  Following further work it was approved in August 2005.

 

8.                  The area of the Ryde Inner Core THI scheme aims to improve the appearance and condition of both the public realm and the building stock within Ryde’s core retail sector.  It is intended to create an environment in which business development derived through retail, service and tourism can


fashion job creation whilst at the same time providing a quality of experience for all who use the space.

 

9.                  The THI also lies wholly within the Ryde Conservation Area.  It includes Union Street, High Street, George Street and other related streets.

 

STRATEGIC CONTEXT

 

 

10.             The Ryde THI is an important strategic project.  Its successful delivery will:

 

·                    Assist in the development of a robust economic infrastructure in balance with the environment (Aim High page 25)

·                    Develop more prosperous individuals and businesses (Aim High page 27)

·                    Protect and enhance the Island’s environment and heritage for the benefit of residents and visitors alike (Aim High page 36)

 

CONSULTATION

 

11.             Detailed consultation has been at the forefront of the preparation of the bid thus far.

 

12.             Community and business groups have been engaged in general, and property owners in particular.

 

13.             There is a high level of local support for the initiative.

 

FINANCIAL/BUDGET IMPLICATIONS

 

14.             The HLF has allocated £750,000 of the Initiative towards a common fund of £1,500,000.

 

15.             The common fund is then allocated to target buildings/proposed works.  This common fund is matched by building owners who supplement the difference between the cost of works and the grant offered, (itself varying between a rate of 40-85%).  The rolling out of the Ryde THI initiative is likely to have a far wider impact both on investments in the town centre (on schemes not eligible for THI funding) as investor confidence develops in the area.

 

16.             The key issue for determination is that of the identification of the £750,000 of public sector money to create the common fund.

 

17.             The Stage 2 submission proposed match funding by SEEDA through the SRB VI programme funds granted for the delivery of the Ryde Town Improvements.

 

18.             This match funding stream is no longer available via the Area Investment Framework.

 

19.             Alternative funding sources are as follows:-

 

(a)               Section 106 Agreements – particularly in respect of major commercial and retail schemes in and around Ryde.

 

(b)               Capital receipts from the disposal of land and properties in Ryde.  The retention of 50% of capital receipts from land disposals has been developed for Newport Harbour, and would be appropriate in this context.

 

20.             Capital receipts likely to be achieved in Ryde in the five years of the THI project include the proposed new hotel site adjacent to Planet Ice and the disposal of land for future industrial/commercial development.

 

21.             £122,859 match funding is already in place via the SRB VI spend currently taking place in St Thomas’ Square.  On this basis a total of £627,141 is required to be identified to meet the Council’s contribution of £750,000 to the Common Fund.

 

LEGAL IMPLICATIONS

 

22.       To proceed with the THI proposal will not result in a legal obligation for the council to expend monies over and above those received through the two sources identified.  Any monies to be negotiated as part of the planning application process must be relevant or desirable to that particular application and as is identified in this report, uncertainty will therefore exist around the precise nature and timing.

 

OPTIONS

 

22.             The following appear to be the principal options in this matter:-

 

(a)               Decide not to proceed with the THI proposal.

 

(b)               Proceed on the basis of financial package set out in paragraph 19 of this report.

 

(c)               Proceed on the basis of some other package.

 

23.             A decision not to proceed with the THI proposal would undermine the confidence that has been generated in Ryde both generally, and as a result of preliminary work.  A decision to proceed on the basis of some other package is dependent on other sources of match funding being secured.  Advice from colleagues in Financial Services is that no other proposal would be practicable.  A decision not proceed would also undermine the confidence of HLF, EH and possibly other regeneration bodies such as SEEDA and English Partnerships in respect of future grant awards.

 

EVALUATION/RISK MANAGEMENT

 

24.             The option being recommended to Members is that set out in Paragraph 19 of this report.  The Ryde THI will make an important contribution to the regeneration of Ryde Town Centre and the Council’s wider regeneration objectives set out in Aim High.

 

25.             There are risks in pursing this option, principally based around the uncertainty at this stage of both the precise nature of the funding package or its timing.  In some cases capital receipts will be subject to appropriate planning consents being granted.  Similarly Section 106 Agreement monies will properly need to be negotiated as part of the planning application process and as in themselves dependant both on planning permissions and eventual implementation of proposals.

 

26.             In the event that the Council and/or others cannot achieve the full extent of the local share of the Common Fund, the Common Fund is reduced on a pro-rata basis.

 

27.             There is also the risk that he private sector will not come forward with the range and type of schemes to match the Common Fund, and that regeneration of important properties is not secured.  This risk is minimised due to the extensive discussions that have already taken place with property owners in the period during which the staged application has been made.  In the event that the THI does proceed appropriate staff will be allocated to deliver the proposal.

 

28.             A decision not to proceed with the THI is initially risk free.  The financial package would not need to be assembled and officer resources would not need to be allocated to its implementation.  Such a decision would, however, preclude the investment of £750,000 into Ryde via the HLF.  On this basis it would be unlikely that the type of proposals envisaged by the scheme would proceed without the funding envisaged from the Common Fund.  In the event that schemes did proceed it would be likely that they would not meet the high standards which both the Council and English Heritage would expect in relation to buildings in the Ryde Conservation Area.  There is a wider and more long-term risk associated with not proceeding with the Ryde THI.  A failure to deliver this project could undermine future regeneration projects both in Ryde and elsewhere on the Island if the Council cannot demonstrate a proactive approach in delivering such schemes in partnership with key agencies and the private sector.

 

29.             Other packages to secure the Council’s match funding have been considered but have not been pursued in any detail.  It is inevitable that any financial package would be subject to its own particular risks.

                       

RECOMMENDATIONS

 

It is recommended that Cabinet:

 

30.             Support the ongoing promotion of the Ryde Inner Core Townscape Heritage Initiative; and

 

31.             Approve the Council’s contribution to the Common Fund as set out in paragraph 19 of this report; and

 

32.             Approve the use of funding from capital resources.

BACKGROUND PAPERS

 

Ryde Inner Core THI – Stage 3 submission

Ryde Development Trust/IOWC

 

Contact Point :     Andrew Ashcroft, Head of Planning Services ( 825556 email: [email protected]

 

 

 

MR ANDREW ASHCROFT

Head of Planning Services

COUNCILLOR IAN WARD

Cabinet Member for Environment, Transport and Planning