Meeting documents

1 THE ISSUE

1.1 Development of the vacant derelict land in the centre of Radstock is a key regeneration priority within Bath and North East Somerset. The Norton Radstock Regeneration Company (NRR) is leading the development of this site. The Company has requested resources from the Council to assist running the Company in order to progress with the next stage in developing the site.

2 RECOMMENDATION

2.1 The Executive grant fund the Company up to £25,000 to assist with future Company operations until a more permanent funding regime for the Company is agreed.

2.2 The Executive request officers ascertain future resource requirements of NRR and report to the next full Council in November detailing the long term resource needs and options about how they could be met.

3 FINANCIAL IMPLICATIONS

3.1 There is currently no budget provision in 2002/03 for financial assistance to the Company and no provision within the financial plan at present for 2003/04. Grant assistance of up to £25,000 will represent a call on general balances in 2002/03.

4 THE REPORT

4.1 NRR is made up of 12 unpaid Directors drawn from four stakeholder organisations (one of which is Bath and North East Somerset Council) and eight specially skilled directors. The Company was established to purchase the land in Radstock and lead the regeneration of the centre of the town.

4.2 The Company purchased the land in March 2001. NRR was enabled to do this via a grant from the Norton Radstock Regeneration Partnership (SRB Management Board) of £788,400, together with the following contributions from Bath and North East Somerset Council;

£207,000 towards land purchase.

Land valued at £118,000 and sold to NRR with Secretary of State approval for £1.

£25,000 grant towards project management of the Company.

Staff time from the SRB Co-ordinator and since January this year from via a secondment of the Local Partnerships Co-ordinator for Norton Radstock.

4.3 The NRR Company has undertaken several activities within recent months leading to a situation where further operational funding is now required. Such work has been on site clean-up and demolition, business planning, footpath provision, ecological, tree and structural surveys and community liaison. A detailed five year business plan prepared in March was submitted to the South West of England Regional Development Agency (SWERDA) seeking funding to operate the Company, together with funding to take forward the development of the site. This business plan envisaged funding of up to £250,000 for running the Company which includes for costs such as insurance, site management, legal, audit, office space, communications and public relations etc.

4.4 The SWERDA has agreed a sum of £500,000 to take forward the next stages in the development process (masterplanning with the community, new outline planning application, financial and delivery plan and securing of development partners). SWERDA have recently stated however that they will not fund the full costs as set out in the business plan and request that Bath and North East Somerset Council invest in the Company. This has meant that the Company now faces a potential issue whereby it has to proceed with the next stage in developing the site but doesn't have the necessary resources to operate as a Company.

4.5 NRR Company is pursuing other sources of funding, including commercial loans, although at this stage this does not meet the requirements of SWERDA that Bath and North East Somerset Council invest in the project. The NRR Company is keen to ensure that maximum regeneration benefit is gained from this project and repayment of commercial loans will diminish the potential community benefits that can be achieved from development of the former railway lands. In order to enable NRR to progress the project and access the £500,000 from SWERDA, a grant of up to £25,000 is sought from Bath and North East Somerset Council for Company operations in the short term. The Council would be acting in pursuance of the powers granted under the Local Government Act 2000, Section 2 which allows Local Authorities powers to do anything "... they consider likely to achieve the promotion or improvement of the economic, social or ... environmental.... wellbeing of the area."

4.6 Further work is required to ascertain future resource requirements for The Norton Radstock Regeneration Company and ensuing recommendations for assistance will be put before full Council in due course.