Heritage Investment Working Group

A report on the first Heritage Dragons Event

Report

2012

Forward
The Heritage Dragons event in October 2012 was the first of its kind, and this report outlines what took place and what we learned from it. The opportunity for four very different historic environment projects, all led by voluntary sector organisations, to work with a group of hand-picked experts and then present to three dragons, was a unique and exciting one, allied to the tempting prize on offer of an allocation of pro bono work to support the development of their projects. The event itself was both fun and informative, with a very positive atmosphere and some excellent discussion on the day and in the follow-up activities online. I am grateful to all my fellow members of the Heritage Investment Working Group, which devised and developed the event, to the Heritage Lottery Fund, English Heritage and the Princes Regeneration Trust (PRT) for their financial support, to all the experts, speakers and consultants who gave so generously of their time on the day itself and for the pro bono support subsequently, and in particular to Manuela Bell of PRT and her team for the excellent organisation of the Heritage Dragons day and for compiling this report. Ian Lush
Chair, the Heritage Investment Working Group Chief Executive,The Architectural Heritage Fund

The Heritage Investment Working Group Members Ian Lush (Chair) Chief Executive of the Architectural Heritage Fund Chris Brown Chief Executive of the Igloo Regeneration development team Stephen Clarke Trustee of the Princes Regeneration Trust Ros Kerslake Chief Executive of the Princes Regeneration Trust Matthew McKeague Regeneration Taskforce Manager at the Churches Conservation Trust Ian Morrison Head of Historic Environment Conservation at the Heritage Lottery Fund Liz Peace Chief Executive at the British Property Federation Kate Pugh Chief Executive of the Heritage Alliance John Sell Executive Vice-President at Europa Nostra Jess Steele Director of Innovation at Locality Nick Way Director General at the Historic Houses Association Charles Wagner Head of Planning and Urban Advice at English Heritage

Content
Forward Contents Executive Summary Introduction Heritage Dragons Event Heritage Dragons Event Heritage Dragons Event Structure The Heritage Dragons Projects The Old Black Lion Pub, Black Lion Hill, and St Peters Marefair, Northampton The Hill Primary School, Blairgowrie Northern Counties Club, Derry/Londonderry Lister Steps Carnegie Community Hub, Liverpool - The Winner Challenges By Project Common Challenges Recommendations The Event General Recommentations The Heritage Investment Working Group Appendices Appendix 1 Appendix II 2 3 5 9 15 17 18 23 25 27 29 31 33 35 37 43 47 49 49 52 55 57 59

Executive Summary
This report follows the first Heritage Dragons event, held in October 2012. It describes the challenges faced by the four participating projects and makes recommendations to the Heritage Investment Working Group (HIWG) and the wider sector on what could be done to help community groups such as these to deliver their projects successfully.

AIMS OF THE REPORT

The HIWG group was set up in 2011 with the aim of encouraging new approaches to funding and investment in heritage in the context of declining public investment. The Heritage Dragons event was organised by the group to explore the issues surrounding investment in heritage within the context of challenging economic conditions. The event took inspiration from the format of the popular TV show Dragons Den to make it fresh and engaging. Experts from the private and third sector spent the day working with representatives of four selected projects, investigating the barriers they faced and looking at how these could be overcome in order to guarantee the long term sustainability and success of their projects. At the end of the day each project had a chance to present their pitch to the three dragons Ian Marcus, George Ferguson, and Clive Dutton. The winner was awarded the top prize of 20 days of pro bono support. The runners up also received 10 days of pro bono support, all tailored to meet the needs of each project.

THE HERITAGE DRAGONS EVENT

Lister Drive Library is a Grade II listed former library in Tuebrook, Liverpool. Lister Steps Trust - currently located in 29 portacabins - believes that by restoring the building they will not only able to continue offering childcare services and family support to the local community but also help the Tuebrook community to kick start greater involvement and create a sense of community ownership. This project emerged as the winner of the Heritage Dragons event. The Old Black Lion pub is a Grade II listed building situated in the most historic part of Northampton, which also includes the remains of Northampton Castle and St Peters Church and Churchyard. The Churches Conservation Trust, in partnership with The Friends of Northampton Castle and The Friends of St Peters, plans to restore the pub back into is former use and at the same time create a heritage gateway centre for Northampton. This gateway will tell the tale of the long lost Northampton Castle, the Saxon Town, the Church of St Peters, and tempt visitors into the town centre.

THE PROJECTS

The Hill Primary School in Blairgowrie, Scotland, is a Grade B listed former school. The Ericht Trust intends to transform the rapidly deteriorating school into a vibrant and self-sustaining mixed-use community asset. The Trust believes that this development would be a welcome addition for both the local community and visitors to the area. The Northern Counties Club lies within the historic city of DerryLondonderry. It occupies a prominent and historically sensitive site on one of the main thoroughfares within the walled city boundaries. The Inner City Trust plans to refurbish the building and, for the first time, open it up to all the residents of the city and beyond. The project has two key objectives: to achieve long term sustainability and to enhance the shared city centre for the people of DerryLondonderry. One of the key observations made during the event was the fact that the four projects - despite involving very different buildings, locations and end uses - experience many of the same challenges. a. FUNDING: securing funding, both for project development and capital investment, in such a challenging and competitive environment. b. RELATIONSHIP WITH LOCAL AUTHORITIES & OWNERSHIP: persuading Local Authorities (LAs) of the benefits of heritage projects and of the need for them to share the risk in heritage projects. c. ARTICULATING THE VISION: articulating a strong project vision, which is essential in order to involve LAs, engage with the local community and be credible to funders. d. GOVERNANCE/CAPACITY OF THE TRUST: having a group of people with the right skill set to move the project forward at each stage. Campaigning, developing and running a project all require very different skills. e. WIDER REGENERATION: the importance of creating a project that, instead of focusing on an individual building, centres around place and faces outwards, considering the impact and interaction it can have with the wider community. This requires the involvement of a bigger group of stakeholders and will ensure, in the long run, a greater impact and a range of economic and social benefits in the wider area, making it more likely to attract investment. 6

THE FINDINGS: COMMON CHALLENGES

f. BUSINESS MODEL: ensuring that the community group has suitable expertise to be able to prepare a Business Plan, or at the very least to direct and assess the work of the consultants. It was recognised that a robust Business Plan is fundamental in the success of a project as it is through this document that the group will be able to assess the strength of their options, explore how their chosen option will work in practice and most importantly prove how it will generate enough income to cover its costs.

A set of recommendations was developed following the outcomes of the event. These recommendations are: i. to repeat the event and engage isolated community groups from across the UK. ii. to increase awareness amongst LAs of the benefits of heritage-led regeneration projects. iii. for community groups to engage strategically with LAs at an early stage and present a strong offer that LAs can buy into. iv. to raise awareness of the breadth and variety of funding mechanisms available. v. to facilitate the sharing of best-practice and expertise by providing a gateway to existing resources and fostering peer to peer support.

RECOMMENDATIONS AND CONCLUSIONS

INTRODUCTION
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Introduction
This report follows the first ever Heritage Dragons event, which was designed by the Heritage Investment Working Group to support community groups in their work to regenerate local historic buildings at risk and act as a springboard for a wider discussion about the value of investment in heritage. Four diverse project groups from across the UK took part in Heritage Dragons. The day consisted of intensive workshops with sector experts, building up to a competitive pitch to Dragons Ian Marcus, George Ferguson and Clive Dutton. The Dragons awarded pro bono expert support to the winners and runners up according to their needs from a time bank of over 400 hours of expert advice across a variety of specialisms, including business planning, commercial, funding, local authority, negotiation and marketing. Thanks to the unique opportunity presented by this event to evaluate the heritage landscape through the four participating projects, this report will also offer an analysis of the challenges faced by each project and highlight where there are common issues. Based on these findings, the report will make a series of recommendations on heritage-led regeneration for the heritage sector, the property sector, government and beyond, to help promote investment in heritage. These recommendations will also look at prospective future events in this format and examine whether there is a need for the work of the Heritage Investment Working Group (HIWG) to continue in its current format, or in a different guise. Finally, this report will consider how best to follow up the Heritage Dragons event in order to evaluate its direct impact and the resulting pro bono support awarded to the four projects.

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Background
The HIWG was set up in September 2011 with the aim of encouraging new approaches to funding and investment in heritage in the context of declining public investment. A prior incarnation of this group, the Heritage At The Heart Of Communities group, had been in existence since 2007. Chaired by Ian Lush, Chief Executive of the Architectural Heritage Fund, HIWG brings together organisations from across the heritage sector, including charitable trusts, funders and social enterprises. The HIWG agreed to exist for a year and then report on its work. From the core aim of encouraging new approaches to funding and investment in heritage the group developed more specific objectives: I. to influence policy, lobby and disseminate work on alternative funding and best practice examples throughout the heritage sector; II. to explore ways to bring together community and private investment; and III. to review how investment opportunities can be attractively packaged for target groups, identified by HIWG as long-term investors, that would be likely customers for the heritage investment products such as pension funds and large estate managers, who might have an interest in changing longterm perspectives of an area.

The Heritage Investment Working Group

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From these objectives grew the idea of a workshop to explore the issues surrounding investment in heritage within the context of challenging economic conditions, bringing in a wider group of stakeholders from across the private and third sectors. Plans for the workshop coincided with the development of the Heritage Lottery Fund (HLF) Heritage Enterprise scheme, which will support heritage regeneration projects that seek to generate commercial income and promote partnerships between community trusts and the private sector. It was therefore agreed that the workshop scope should be broadened to take into account the new HLF scheme, facilitate a dialogue between different groups interested in heritage investment (funders, developers, community groups and heritage professionals) by working through issues at a general and project level, and enable the exchange of innovative ideas.

The intended outcomes of the workshop were to encourage investment in heritage, increase understanding of the barriers to investment and how these barriers can be overcome and to disseminate learning and practical hints across the sector. In order to raise the profile of the workshop, the group took inspiration from the well-known and popular format of Dragons Den to create Heritage Dragons, an event that would provide a platform to explore and encourage more innovative and prolific investment in heritage whilst directly supporting regeneration projects in the early stages.

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HERITAGE DRAGONS EVENT

Heritage Dragons Event

Heritage Dragons opened the door to any community group developing a heritage-led regeneration project in the UK, inviting them to participate and benefit from coaching by experts and compete against each other the prize not being a financial investment but highly valuable pro bono expert support. Entry was deliberately left open in order to encourage a diverse range of groups to apply. The HIWG short-listed four groups to attend the Heritage Dragons event, each of them demonstrating a desire to develop a sustainable end-use for their project, deliver strong benefits to the local community and make the best possible use of the expert support on offer in order to overcome barriers. Shortlisted projects: The Hill Primary School, Blairgowrie Lister Steps Carnegie Community Hub, Liverpool The Old Black Lion Pub, Black Lion Hill, and St. Peters Marefair, Northampton Northern Counties Club, Derry/Londonderry As the groups are based across the UK it was judged that London would be the most accessible location. The HIWG was fortunate to be able to host the event at EC Harriss offices in Kings Cross and secure support from Heritage Lottery Fund, English Heritage and The Princes Regeneration Trust.

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Heritage Dragons

Welcome and introduction Ian Lush WELCOME AND INTRODUCTION Ian welcomed the project representatives and experts and introduced the first ever Heritage Dragons event. HLF presentation: Objectives and Broad Details of the New Programme Ian Morrison Ian introduced the new Heritage Lottery Fund Enterprise scheme. Introduction to the Workshop Sessions - Ros Kerslake INTRODUCTION TO WORKSHOP SESSIONS Ros explained the format for the two workshops and outlined the project criteria to give groups a better idea of exactly what the Dragons would be looking for at the end of the day. First workshop session exploring the project FIRST WORKSHOP SESSION Guided by a facilitator and assisted by a team of four experts, each pair of project representatives worked through the project criteria, exploring the strengths and weaknesses of the project and drawing on the experience of the experts to come up with innovative solutions. A full list of experts and facilitators can be found in Appendix 1. Second workshop session pitch development SECOND WORKSHOP SESSION During this session each group developed their pitch for the Dragons, ensuring that they explored each of the questions in the project criteria. Project representatives were encouraged to practice delivering their pitches to the experts, who in turn gave feedback and anticipated what the Dragons might ask after the pitch.

HLF PRESENTATION

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Event Structure

Welcome to Dragons and Spectators Ian Lush Ian introduced the Dragons, welcomed the additional spectators who joined for this part of the event and set out the agenda for the rest of the afternoon. Spectators were invited from central government, Local Authorities, the Local Government Association, organisations from the heritage sector and finally all the experts who had pledged their support as part of the Time Bank. Inviting in a wider audience for the afternoon was key in spreading the core messages from the event, above all the value of investing in heritage-led regeneration for the benefit of the local community and the importance of crosssector collaboration in achieving successful outcomes for historic buildings. Project pitches Each project selected one representative to deliver a short 5 minute pitch. Both representatives were then quizzed by the Dragons for up to 10 minutes, providing an opportunity for the Dragons to fill in any gaps in their understanding of the project and work out what their needs were. Question session/Dragons conferring Whilst the Dragons withdrew with Ros Kerslake to confer, Ian Lush chaired an open discussion with the project, experts and invited guests. Final results The Dragons summarised their discussion, focusing on the strengths and weaknesses from each project, before announcing the winner. Dragons, experts, guests and participants then enjoyed an opportunity to network with some well-deserved refreshments. FINAL RESULTS Q&A / DRAGONS CONFERRING PROJECT PITCHES WELCOME TO DRAGONS AND SPECTATORS

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PROJECT CRITERIA

HIWG devised a list of questions to guide project groups in their workshops and whilst developing their pitches.These questions were designed to challenge groups on areas of interest to investors and funders, namely the capacity and sustainability of the project and the expected economic, social and environmental impacts. The Dragons, who all have extensive experience of assessing the viability and investment potential of regeneration projects, were also guided by these criteria in choosing a winning project. Investment Potential: - Is the vision distinctive and clear, fulfilling a real need?

- Will the project attract capital investment? (private, public, charitable or a combination) - Will the proposed end use be sustainable? (not requiring on-going revenue support) - Will the community group deliver? (e.g. right mix of skills, governance and structure)

Benefit to the community: - Will the project produce a significant economic benefit? (jobs, skills and local growth) - Will the project produce a significant social benefit? (increase the well-being of the community) - Will the project produce a significant environmental benefit? (improvement to quality of place and the historic environment) In the run up to the event HIWG created a Time Bank of over 400 hours (50 days) worth of pro bono advice and guidance from a selection of experts from the heritage sector, a full list of whom can be found in Appendix II. Using the criteria above the Dragons selected a winning project, which received 20 days of pro bono support and a magnum of champagne, whilst each of the runner up projects was offered 10 days of expert time to help overcome the barriers and challenges that they face. Because of the wealth of expertise in the time bank, the Dragons were able to tailor the pro bono support to meet the skill gaps and challenges of each individual project. The support offered by individuals both to act as experts or facilitators on the day and to support projects after the event has been the key element of the Heritage Dragons, without which the event would not have been possible.

PRO BONO SUPPORT

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To maximise the potential of this event to support greater investment in heritage by publicising the rewarding investment opportunities that heritage presents, Heritage Dragons was accompanied by a comprehensive digital campaign to reach out to the sector and share the messages of the event. The Storify page at http://storify. com/HIWG combines blogs, information and videos, allowing both heritage professionals and community groups to benefit from the event. This page has been publicised through partners websites and via Facebook and Twitter. The publication of this report is another key way to share the outcomes and lessons learnt from this event; recommendations made in this report will include measures to continue the public face of Heritage Dragons as the project groups benefit from pro bono support and become heritage regeneration success stories.

MEDIA ENGAGEMENT

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The Heritage Dragons

Prior to joining Evans Property Group earlier this year, Ian was in the banking industry for over 30 years having previously worked for Bank of America, UBS, NatWest and Bankers Trust/Deutsche, always focusing on the real estate industry. Ian joined Credit Suisse First Boston in 1999 to establish the Real Estate Group, and became Managing Director and Chairman of the European Real Estate Investment Banking Group. Ian is Chairman of the Prince's Regeneration Trust, a Crown Estate Commissioner, and Chairman of the Bank of England Property Forum. He is past President of the British Property Federation, and past Chairman of the Investment Property Forum. Ian graduated from the University of Cambridge in 1981 with a degree in Land Economy. He is a member of the University of Cambridge, Department of Land Economy Advisory Group, an Eminent Fellow of the Royal Institution of Chartered Surveyors, and a member of the Chartered Surveyors Livery Company. Ian Marcus
Managing Director of Evans Property Group and Chairman of the Bank of England Property Forum

George Ferguson is an architect and founded Ferguson Mann Architects in 1978 and the UK-wide network of practices, Acanthus, in 1986. The original foundation of his architectural practice was regeneration and historic building work. Key achievements have been Royal William Yard in Plymouth and most notably the Tobacco Factory in Bristol. This mixed-use project includes the Tobacco Factory Theatre and many other creative activities and has been credited with stimulating the generation of the southern part of the city. George is a past president of the Royal Institute of British Architects (2003-2005). He writes, broadcasts and lectures on planning, architectural matters and sustainability. He has been recently elected first Mayor of Bristol.

George Ferguson
Founder Ferguson Mann Architects and Acanthus

In September 2009 Clive joined the London Borough of Newham, host Borough to the 2012 Olympic and Paralympic Games. The development platform in this part of East London is half the size of Manhattan Island and the Mayor of Londons regeneration priority for the foreseeable future. Prior to this he was Director of Planning and Regeneration at Birmingham City Council from 2005 to 2009 and directed a dramatic regeneration programme within the city, unprecedented in its recent history.This included projects such as the 600m New Street Station project, 193m Library of Birmingham project, and the Big City Plan.

Clive Dutton
Executive Director for Regeneration Inward Investment

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THE PROJECTS

The Old Black Lion Pub, Black Lion Hill, and St Peters Marefair, Northampton
The Old Black Lion pub is a Grade II listed building situated in the most historic part of Northampton and is currently owned by the Wellington Pub Company. In addition to the Pub this project extends within the Medieval and Saxon area of Northampton to include Northampton Castle and the Grade I listed St Peters Church and Churchyard, as well as drawing on the excavation evidence of a substantial Saxon building to the east of the church. The Churches Conservation Trust (TCCT), in partnership with The Friends of Northampton Castle and The Friends of St Peters, plans to restore the pub back into is former use and at the same time create a heritage gateway centre for Northampton; to tell the tale of the long lost Northampton Castle, the Saxon Town, the Church of St Peters, and to tempt visitors into the town centre. The Old Black Lion pub will be refurbished and open as a successful gastropub serving great food and drink, acting as a heritage hub for the local area and attracting visitors to what is currently a seldom visited part of Northampton. In addition the outbuildings will provide space for an interpretation centre and support events in conjunction with St Peters Church. The group also hopes to re-engage interest in the castle, which has long been forgotten as a place of interest in the town, and it will create a destination in a seldom visited area of Northampton and tell the story of what lies beneath the modern streets and what can still be seen there today. The success of this project depends entirely on the creation of a successful hospitality business in the pub and events put on in the Church.

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The Hill Primary School, Blairgowrie

The Hill Primary School in Blairgowrie is a Grade B listed former school site, built in 1878, and owned by Perth & Kinross Council (PKC). The schools architectural character and location is of critical importance; it belongs to an 1878/1909 block of buildings close to the town centre, forming an integral part of the towns boundary structures and street pattern.The adjacent Parish Church and terraced character of the site give Hill Primary School added value. In addition local people attended the school, therefore there is strong emotional support for the planned regeneration, along with an acceptance that it must pay its way. The Ericht Trust (the Trust) intends to transform the rapidly deteriorating school into a vibrant and selfsustaining community asset. The Trust believes that there is currently a lack of community facilities in Blairgowrie and that this development would be a welcome addition for both the local community and visitors to the area. Currently the principal economic drivers in the area are: Tourism, with activities: shooting, fishing, skiing, walking and cycling;. Agriculture and small service industries and trades for the large hinterland;. The town is in the commuter belt for Dundee and Perth, and also attracts many retired people due to its scenic location. The aim of the project is to provide access to a range of cultural, sport and leisure activities in addition to business, enterprise and social provision. Focus groups and surveys have shown there to be local demand for facilities that ought to be provided in a town of this size such as space for cultural activities, conference venues and budget accommodation. The project aims to address the needs of the community as a whole, with a focus on youth as due to the cold climate there is a need for indoor facilities for young people. As a result of Blairgowries historic place within the Berry industry there is a wealth of cultural heritage and artefacts to be displayed, in addition to a unique collection of printing presses currently housed in an historic house nearby. The aim is to link this heritage with commercial activity, for example a print works museum with a state of the art retail print/copy outlet and a link for local art/design colleges. To fulfil their aims and objectives the Trust plans to carefully consider which building is most suitable for each of the proposed uses. All of these could be sited in the 'School Buildings' which, being near the centre of the town, would create a vibrant new hub and provide leisure, education and work opportunities for residents, visitors and businesses. The site has been on the market for the past four years and has no prospective commercial developer lined up. The group is raising their profile through the Development Trust Association for Scotland and by lobbying local members of the Scottish Parliament. By demonstrating the wider social impact of the plans on the wider area the Trust hopes to prove that Best Value outstrips Best Price, and get buy in from PKC.

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Northern Counties Club, Derry/Londonderry

This three-storey B1 listed building lies within the historic walled city of Derry-Londonderry, and the site of the former Northern Counties Club. The area acted as an iconic base for the business and civic leaders of the city for many years and, as such, was not an accessible building for the general population of Derry. Having lain vacant for 15 years, it is now owned by the Inner City Trust (the Trust), who plans to refurbish the building and, for the first time, open it up to all the residents of the city. The existing building occupies a prominent site on one of the main thoroughfares within the walled city boundaries. Adjacent to the courthouse and in a conservation area, the building is of considerable local and national importance. As the building has been vacant for a long period of time it needs to be fully refurbished in accordance with its historic value and with consideration for its listing, with the full agreement of the Environment and Heritage Service. This project will provide the building with a new life whilst maintaining the signature design of the architect Alfred A. Forman. The vision for the building is to provide an accessible venue for all the people of the city and beyond. Proposals include public spaces on the ground and first floor, providing a restaurant and coffee facilities and a venue for exhibitions, public meetings and formal events, such as weddings and partnership ceremonies. The upper floors are envisaged as a business centre, providing employment and training for local people and serviced office accommodation, which is in demand due the proximity of the court house. These proposals will be further defined by the Trust as they develop their business case. The project has two key objectives: to achieve long-term sustainability and to enhance the shared city centre for the people of the city. By bringing a key, iconic building in the city back to life and in an inclusive way for the first time, the Trust will enhance Derry as a whole and bring immediate social and economic benefits to the local area, including new jobs during the construction phase and in the longer-term. The project will be owned and managed by the Inner City Trust, making use of their core administration, management and maintenance teams. Being run by a charitable trust, the project will benefit from reduced local tax rates. In line with the Trusts vision the project is likely to deliver a lower rate of return than those of commercial operators but will still be sufficient to satisfy the project finance requirements and safeguard the viability maintenance requirements of the building for years to come. The current economic conditions do not assist any city centre redevelopment, especially one with listed building and conservation area constraints. However, Bishop Street is benefiting from the redevelopment of 10-18 premises into a community hub, supported by the Modernisation Fund and the International Fund for Ireland. The investment of 3.5m will bring over 100 community jobs and their associated programmes into the city centre in a development that is complementary to the Northern Counties Club project. Another opportunity to raise the profile of the project will be in 2013 when Derry/Londonderry will be the first UK City of Culture.

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Lister Steps Carnegie Community Hub, Liverpool Winner

Lister Drive Library is a Grade II listed former library in Tuebrook, Liverpool, approximately 2 miles from Liverpool city centre. Donated to the people of Liverpool in 1905 by philanthropist Andrew Carnegie, it is now owned by Liverpool City Council and has been closed to the public since 2006 due to safety concerns. Lister Steps (the Trust) offers childcare services and family support to the local community. The Trust currently occupies a modular building made up of 29 portacabins. The cabins are uneconomical as they are expensive to maintain, have no insulation and have to be heated using stand-alone electric heaters. The cabins are ill-suited to the delivery of quality childcare services. By moving into an iconic building located on the main road, the Trust hopes to attract more families looking for quality childcare, increase take up of their services and drive up income. The Trust intends to continue offering existing services, including a 45 place nursery, a pre-school play group and an after-school service, as well as creating new services such as a community meeting space, a reading club for children and adults and a local history project. The proposal will enable the Trust to deliver on the full range of charitable objects agreed by the Trust in 1997. The Trust believes that the project will help kick start greater community involvement and create a sense of community ownership in Tuebrook and shared responsibility by opening up a centre for use by all sectors of the community. Many of the older residents remember visiting the library in their youth and throughout their lives. The Trust plans to develop an audio archive of peoples experiences and memories to create an audio backdrop within the building. Facebook group Tuebrook Uncovered are keen to get involved to develop a material archive of recollections, photographs, and anecdotes from members of the online community. The Trust plans to build on existing partnerships with local primary schools by allowing class visits to complement the formal educational curriculum and allowing the passing on of local heritage to future generations. Tuebrook is within the 1% most deprived wards in the UK; of its population of 16,000, almost 30% are in receipt of benefits. The Trust aims to address this deprivation through the delivery of four key social benefits: Education - Flexible childcare enabling parents to return to education or training. Opportunities for children and young people of all ages to engage in developmental activities supported by consistent, positive role models. Health - Helping improve the health of all people. Economic - Reduce welfare payments by creating jobs, providing training opportunities and facilitating parents and parents to return to work. Social - Growing community cohesion by allowing people to come together and socialise, whilst providing a venue for other groups to deliver support and advice services.

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CHALLENGES

During the Heritage Dragons event each project was given the support of a panel of four experts and a facilitator. As described in the introduction, the project representatives started by giving an overview of their project, including the significance of the buildings, their vision, the barriers, and challenges that they had faced so far in their project. This was followed by a very lively and constructive discussion where experts challenged the project representatives, pointing out new risks and issues, before working to identify potential solutions and ways to overcome the obstacles. The following paragraphs describe and analyse the individual challenges that the four projects face, which could easily be experienced by many other heritage-led regeneration projects nationally.

By Project

Lister Steps Carnegie Hub The Winner

OWNERSHIP/ RELATIONSHIP WITH THE COUNCIL

One of the biggest challenges for Lister Steps is related to the ownership of the building. Negotiations with Liverpool City Council (the Council) regarding the transfer of the asset have started but are slow as the Council is not keen to make a commitment until the funding for the restoration of the building is in place. Although an officer has been appointed to work with the Trust, communication with the local authority is still not working as well as it could. The Council put the property up for sale in February 2012 and despite Lister Steps being awarded the status of preferred developer, the Council has refused to take the property off the market, generating concern about the possibility of a private cash offer coming forward, rendering the Trusts efforts, energy, and money spent to date redundant.

Renovating the library will be expensive with the total cost estimated at 1.5-2m. Unfortunately the Council hasnt conducted remedial works to the building and it is suffering from both dry and wet rot as a result of continuing water ingress. The Trust is concerned that the damage will cause refurbishment costs to soar unless the building is made weather-tight in the near future. This issue has been raised with the Council, who has stated that money has been budgeted for emergency repair works but to date no work has been carried out. Moving into the library would also have a significant impact on the running costs of the nursery, particularly energy costs, which are currently running at 16,000 per year.

COST AND URGENT REPAIRS

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BUSINESS PLAN

Lister Steps is aware that they need some help with reviewing their Business Plan to make sure that it is robust. This could be undertaken if grant funding is achieved. The Business Plan should also consider the 29 portacabins (750 sq m) currently owned by the Trust that house the nursery and have 17 years remaining on the land lease from the council. The portacabins have a residual value of 60,000 and a sustainable solution should be found to make them an asset rather than a liability. The surrender of the lease could also be used in negotiations with the Council or the land could be used for development in order to generate capital income to invest in the library.

GOVERNANCE

The organisation needs help to negotiate with the Council. They need a prominent trustee who can carry weight with the Councillors. Possibilities include the Duke of Westminster (a large landowner in the North West), someone involved or working at the nearby Territorial Army base or alternatively someone from the Grosvenor Estates, a property group active in Liverpool which has also established a charity called Liverpool ONE.

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The Old Black Lion Pub, Black Lion Hill, and St Peters Marefair
The pub is currently owned by the Wellington Pub Company, who are unlikely to want to sell the building. Although Wellington responded positively to initial ideas about the scheme, it remains to be seen whether an appropriate long-term agreement to bring the pub into the scheme can be struck. Similarly, if St Peters House, a nearby vacant office building, is to be part of the scheme it will need to be integrated effectively as there is some doubt over whether the landlord can make the lease sufficiently attractive to draw in an interested party given the context of the local area. There is a need to raise the capital required to repair and adapt the buildings in order to deliver the project proposal. The project hinges on turning the Old Black Lion pub into a profitable business in order to attract visitors to the area and provide financial support for the heritage and interpretation aspects of the project. At present there are no gastropubs in Northampton, and the conversion would meet this need. However, questions were raised about whether there would be sufficient demand for it to be profitable. The Old Black Lion closed down because of insufficient business, which suggests that demand may be low, however the picture may change in light of the regeneration taking place in the area and the improved offering of the new gastro pub. To make this venture a success will require the creation of a destination venue. For The Churches Conservation Trust (TCCT) it is also critical that the scheme is able to secure a sustainable revenue stream and enable greater use of St Peters Church. Whilst it is used for some concerts and public gatherings, its capacity of 100 limits its ability to generate revenue. Investors and funders may be deterred if the plans to generate revenue are not developed further and subjected to rigorous appraisal. OWNERSHIP/ STAKEHOLDERS

BUSINESS PLAN

The church in itself is beautiful and of moderate size, however it is not a popular attraction, despite it being one of the best Norman churches in the country. Only the castle, dating back to 1084, has sufficient gravitas to become the centre of the campaign and together with St Peters church, could tell a new story and create a heritage offer for the town, encouraging footfall and securing the economic viability of the project. St Peters Church is located next to some empty offices, a deprived housing estate at Spring Boroughs, and a largely disused shopping

SIGNIFICANCE - WIDER SCHEME

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centre. Despite the pub being on the walking route from the railway station to the town, this area of the town is not busy. This scheme could benefit from the increased footfall and investment steaming from wider plans for this area of Northampton which are currently in progress and are supported by public and private sector partners.

HERITAGE

Northampton Castle is an important element of the original vision for the project and has a fascinating history, which is not currently told on the site. Unfortunately its remains are mostly hidden, buried under roads and buildings and therefore it is difficult to predict how feasible it would be to uncover these remains and make them available to the public as the cost for this work would need to be met by a considerable income stream.

GOVERNANCE

The group involved in this project is not formally constituted. TCCT is the lead organisation and the key body with experience of regeneration projects. As the project progresses additional commercial expertise, and a larger group of people, would need to be involved. The roles of local organisations in the management of the project would also need to be considered carefully to assure that roles and responsibilities are clearly defined Furthermore, due to the complexity the stakeholder group, which includes the Local Authority, various local interest groups, local residents and the freeholders, cooperation has been difficult.

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The Hill Primary School

The worrying condition of the buildings at Hill Primary is the greatest challenge that the ErichTrust faces and is the primary reason for their involvement and their aim to acquire the site. Although the buildings are listed, due to a lack of maintenance in the past, urgent repair work is needed to avoid further damage and deterioration. The project includes a major site with different buildings, therefore it is crucial to understand the demand for different facilities in the town and develop a plan that is both commercially viable and meets the needs of the growing local population. The Council will not put a price on the building until they have seen a feasible and sustainable plan for the site. The local Councillors represent a challenge since they have very different opinions amongst themselves on what should happen to the buildings, including the idea of demolishing them. As a result, the Trustees are finding it difficult to negotiate with the Council. The group is aware of the necessity of expanding their board in order to make sure that they have the right skills set. They are finding it very difficult to bring on board people with different expertise, however, they are passionate about the project and are therefore prepared to spend significant time and energy on it. The Trust has been offered a collection of printing machinery which is currently kept in a building in the town centre. The Council has apparently agreed in principle to the collection being moved to Hill Primary School as part of a publicly accessible centre. The Trust believes it could attract visitors to see this important collection. They think that this is the best way to preserve the collection and machinery, and they envisage part of the site becoming a working museum. The Trust does not have experience in this area and will need expert advice to refine this aspect of their proposals.

SAVING THE BUILDINGS

MARKETING RESEARCH

OWNERSHIP

GOVERNANCE

HERITAGE

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Northern Counties Club

The first challenge the group faces is identifying possible sustainable uses and assessing them to make sure they fulfil a real need. Owing to the relatively quiet nature of the street where the building is situated, it cannot rely on footfall and needs to create a destination venue. One of the proposed uses is a high-end restaurant. This is risky as potential customers may perceive the local area as being unsafe or unattractive, putting them off from going out of their way to leave the commercial centre and go to the restaurant. More market research needs to be done to investigate this option and understand the associated risks.

MARKET RESEARCH/ BUSINESS PLAN

PHASING/ TEMPORARY USES

Another challenge is finding an appropriate temporary use for the building to maximise the opportunities presented by DerryLondonderry being the City of Culture for 2013 to engage the community and generate revenue.

ARTICULATING THE VISION

It is clear to the Trust that having an articulated and attractive vision is vital in order to engage local government and secure funding. They are currently finding it very difficult to clearly communicate their vision as they still have a number of options on the table and need to develop their business case.

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One of the key observations made both during the Q&A session and at the end of the event was the fact that the four projects despite involving very different buildings, being located across the UK and proposing a wide range of uses experience many of the same challenges. The HIWG was then able to develop, via this report, a set of recommendations that could be applied not only to the four projects attending the Heritage Dragons event, but to a wider range of community-led heritage regeneration projects.

Common Challenges

One of the biggest challenges identified during the day relates to the difficulty of securing funding in such a challenging and competitive environment, both for project development and capital investment.

FUNDING

Another common challenge that can compromise the delivery of projects is the difficulty of persuading Local Authorities (LAs) of their benefits and of the need for them to share the risk. They need to be more robust and work with local groups and see what can be achieved. LAs can potentially present many barriers, however the greatest barrier identified was the conflict between the reluctance of the LAs to let leases without confidence in the financial future of a project and the impossibility of applying for funding without the security of a long-lease or agreement on the use of buildings. It was commented that it was always preferable for projects to be taken forward by groups who see the building as an asset rather than a liability. In some circumstances groups have found that if a LA asks for a business plan, the plan will be declared unviable by consultants employed by the LA due to the non-commercial nature of the proposals, failing to recognise the non-commercial benefits that the project would bring to the local community. There was much debate about where the blockages were in gaining permission/ownership and how if the community get behind projects then Councillors are often more prepared to support projects which benefit their constituency and generate political capital. However Councillors are usually outlasted by officers in the LA who take a longer-term view and tend to be more risk-averse. In some cases the only solution is for the community groups to walk away from particular buildings or projects if owners or other interested groups are inflexible.

RELATIONSHIP WITH LOCAL AUTHORITIES & OWNERSHIP

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ARTICULATING THE VISION

During the event it was noticed that all groups had difficulties articulating their vision, despite having a great deal of passion and a wealth of ideas for how their projects could develop. It became clear that groups found it difficult to summarise their ideas, aims and objectives at this early stage in their project while still in the process of exploring all the potential opportunities and final uses. It is recognised, however, that having a clear and attractive vision is of vital importance to keep LAs involved, engage with the local community and be credible to funders.

GOVERNANCE/ CAPACITY OF THE TRUST

There was also discussion around the challenge of having a group of people with the right skill-set to move the project forward at each stage. Campaigning, developing and running a project all require very different skills. Trustees sometimes find it difficult to recognise which expertise is missing within the group and identify new people with those skills that could get involved. It is also hard for people to let go when they are very committed and have invested substantial time and energy in a project, becoming emotionally attached.

WIDER REGENERATION

Another challenge identified was the difficulty and importance of creating a project that centres around place rather than on an individual building. The projects were commended for all being developed in the context of the surrounding place, for being outward facing and focusing on the impact and interaction the project can have with the wider community. Looking at the wider context requires the involvement of a bigger range of stakeholders and this could cause many difficulties, from the complexity of communicating with all different parties and including them in the decision-making to the delays inevitably caused by having to liaise with a larger number of stakeholders and the potential impact on project delivery. It was recognised that the effort invested in engaging stakeholders is worth it because as a result the project will have a greater impact, deliver a range of economic and social benefits in the wider area and be more likely to attract investment.

BUSINESS MODEL

A big challenge for groups that take on heritage-led regeneration projects is ensuring that they have suitable expertise within the group to be able to prepare a Business Plan or at the very least, if a third party is preparing it, to direct and assess the work of the consultants. It was recognised that a robust Business Plan is fundamental in the

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success of a project, as it is through the Business Plan that the group will be able to assess the strength of their options, work through how their chosen option will work in practice, and most importantly how it will generate enough income to cover its costs. It is accepted that communities cant walk away from their heritage because it remains at the heart of their local area, however, they do need to prove whether the project is sustainable in order to avoid wasting money, time and energy in a project that will not be financially viable in the long-term. Economic sustainability is even more critical in the current economic climate as both public and private funders have less money and do not expect heritage-led regeneration projects to have to rely on revenue funding in order to survive.

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RECOMMENDATIONS

These recommendations build on the findings of this report, which identified a number of challenges facing the four project groups. During the discussion at the event it became clear that these challenges were not exclusive to the four project groups and were in fact symptomatic of the sector more widely. Therefore, the report recommendations not only suggest how to build on the Heritage Dragons format, but also advise on how the heritage sector, property sector, government and others can change their behaviour to help promote investment in heritage and consider the future role that could be played either by the Heritage Investment Working Group or other groups to make these changes a reality.

The Heritage Dragons 2012

The Heritage Dragons event has been very successful and due to the positive feedback it is recommended that the event should be repeated. In particular, it was interesting to hear the feedback from the project representatives who said that whilst it was challenging to see their project stripped apart and put back together again it was a beneficial and unique experience and definitely worth doing to give a quick and solid steer to their projects. This feedback suggests that the event should run along the same format in future, maintaining a high ratio of experts to representatives and including a competitive pitch in order to give the event some direction. The event should also be publicised more widely in order to attract isolated community groups across the UK who would benefit the most from accessing expert advice, enabling them to unlock the delivery of their project. RECOMMENDATION 1: to repeat the event and engage isolated community groups from across the UK. THE FUTURE OF THE EVENT

General recommendations include: 49

General Recommendations
RELATIONSHIP WITH LOCAL AUTHORITIES LAs should realise that often community groups who take on heritageled regeneration projects are effectively taking care of a building that would be a liability for the Council and should therefore be more proactive and take up opportunities (i.e. asset transfer) that are in the public interest. More generally LAs should encourage heritage-led regeneration projects and support voluntary groups that are willing to save historic buildings whilst bringing investment to the area. Community groups should also take a more strategic and high level approach with LAs and try to establish good relationships at an early stage. This recommendation could be supported by establishing project steering groups to regularly update key stakeholders such as trustees, owners, and LA officials on progress and address issues that arise at each stage. RECOMMENDATION 2: to increase awareness amongst LAs of the benefits of heritage-led regeneration projects. RECOMMENDATION 3: community groups to engage strategically with LAs at an early stage and to secure buyin. It is important that community groups do not give up if they are not successful in securing money from public funders such as the Heritage Lottery Fund and English Heritage. Groups would benefit from improved awareness of the great variety of funders, small and large, who give grants towards specific items of work or the overall costs of a project. The Heritage Alliance Funding Directory and the Fund for Historic Buildings website both provide valuable assistance on researching the availability of funds for community groups, however they still need to consider carefully if they meet the criteria for each funder before making applications. Criteria may include the statutory designation of the building, the nature of the applicant, the work being undertaken, the total cost, location and the final end use or mix of uses, including whether plans include providing public access. Another option for groups is to apply for specialist short-term or longer-term loans. 50

FUNDING ALTERNATIVE MECHANISM

Depending on the project, potential sources of funding (both grants and loans) may include: English Heritage and other funding from Government departments and agencies; European funding; Local Government and local/regional agencies; Lottery funds and in particular the Heritage Lottery Fund; The Architectural Heritage Fund (small grants and large loans) and other low-cost loans; Charitable Trusts and Foundations; Commercial sector (including planning gain and enabling development, plus contributions in kind); Community Shares and Community Right to Bid schemes; Private individuals/Friends schemes/local fundraising. Some of these alternative funding mechanisms are not widely known of or understood by project groups, such as the Community Shares scheme. These alternatives present means of generating and proving local interest and support for a project, since the community contributes to the project with its own money. This makes the project look more attractive to funders whilst raising significant capital. Another alternative way to secure an asset could be to share future income streams with the owner. RECOMMENDATION 4: to raise awareness of the breadth and variety of funding mechanisms available. There is much more help and support for community groups available than they are aware of. There are also networks available to prevent groups from feeling isolated and reinventing the wheel, such as the Association of Preservation Trusts and a new Heritage Help website to be launched later this year. However, many community groups feel that this information is not easy to access unless you already know where to look as there are so many different organisations working in the sector, each with their own specific agenda and resources. It is therefore suggested that a hub should be created, where it is possible to guide community groups through all steps required to deliver a project.This would not seek to replace the wealth of resources already available in terms of guidance and direct support but act as a single gateway for resources and advice. 51

JOINED-UP SUPPORT

The hub would be designed to support groups right from the very start when a group of people show interest in a building, up to the point when the project is up and running. In addition to linking to resources and online guidance, the hub would connect community groups, interested individuals, sector experts and investors. This would provide an interactive forum promoting innovation and best practice, where an experienced project group can share their lessons learnt with groups in the early stages or an expert can answer a technical question. As evidenced during the Heritage Dragons event, groups find it valuable not only to access expert advice but also to network, share ideas with their peers and hear about the latest developments in the sector. These type of events, however, are not feasible on a wide scale.The hub is a far reaching alternative that provides a comparable virtual experience (expert support, peer-to-peer networking, knowledge sharing, sector updates) for all community groups. As the hub will be self-supporting it will require little resource when up and running. RECOMMENDATION 5: to evaluate and report on the impact and benefits of the pro bono expert support provided to the HD projects. RECOMMENDATION 6: to review the support currently available to community groups taking forward heritage projects with a social/commercial enterprise focus, to highlight gaps and inefficiencies and to make recommendations for improvement. 52

The Heritage Investment Working Group

The HIWG is in a good position to make a real difference in the heritage sector. The Heritage Dragons event could be repeated in future years if HIWG decides it to be a sensible use of time and resources but there are other more effective ways to help community groups on a wider scale. It is also clear that there is a great deal of resources and advice in the sector and that a directory, much like the Heritage Alliance funding directory, would undoubtedly be helpful for community groups. The opportunity for groups to network is equally valuable. Such resources could be more effectively signposted online, especially if they were all accessible from one place. The HLF could play a role in this and provide a list of those groups successful in gaining a start-up funding to HIWG, who would then write to the group, congratulating them and providing a checklist and links to relevant sources of help and advice. The same would apply for the AHF viability assessment, as these sources of funding would help identify groups at an early stage that could benefit from support and advice. This approach would go some way towards filling a gap in the heritage sector, namely the lack of support for groups in the very early stages of their project. These groups are hard to reach but undoubtely guidance at an early stage is the most valuable and will put them on the path to success. The first step for the HIWG could be to do a review of the advice and support currently available to community groups taking forward heritage projects. By understanding the extent and quality of this advice, its accessibility and whether it is adequately signposted the group will then be able to establish where their help is most needed and take action to address the gaps. RECOMMENDATION 7: to set out options for the continuation of the HIWG and propose a 12 month work programme for the Group. THE FUTURE ROLE OF HIWG

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APPENDICES

APPENDIX 1 The Participants

Ian Lush Clive Dutton George Ferguson CBE Ian Marcus Architectural Heritage Fund London Borough of Newham Ferguson Mann Architects Evans Property Group
MASTER OF CEREMONIES THE DRAGONS

Ian Morrison Jess Steele John Sell Matthew Mc Keague Adrian Babbidge Andrew Robinson Andrew Ryan Barry Reynolds Caroline Fosters Charles Wagner Edward Holland Fred Taggart Gareth Meaar Hugh Rolo Ian Harrabin Jon Penfold Michael Chambers Peter Jenkins Ros Kerslake Stephen Clark Yolande Barnes

Heritage Lottery Fund Locality Sell Wade Consultants The Churches Conservation Trust Egeria Consulting CCLA The Osborne Group Kirklees Council Adventure Capital Fund English Heritage The Princes Regeneration Trust The Princes Regeneration Trust Heritage Lottery Fund Locality Complex Development Projects Big Society Capital British Property Federation The Princes Regeneration Trust The Princes Regeneration Trust Earth Regeneration Limited Savills (L&P) Ltd

THE FACILITATORS

THE EXPERTS

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Gaynor McKnight Adrian Thompson Helen Quigley Damian Mc Ateer Peter Aiers Isabel Assaly Ian Gordon Myra Shearer Huw Moore Elisabeth Brook Matthew Wright Ruth Stone

Lister Steps Carnegie Community Hub, Liverpool

THE PROJECTS REPRESENTATIVES

Northern Counties Club, Derry/ Londonderry The Old Black Lion Pub, Black Lion Hill, and St Peters Marefair, Northampton The Hill Primary School, Blairgowrie

The Princes Regeneration Trust The Princes Regeneration Trust The Princes Regeneration Trust Architectural Heritage Fund

THE NOTE TAKERS

Judith Cligman Catherine Young Claire Horan Giles Barrie Ioana Sirca Belintan James Moir Liz Peace Morwenna Wilson Naomi Diamond Peter Philips Sarah Stewart Steven Boxall Tony Hutchinson Viv 58 Jorissen

Heritage Lottery Fund The Princes Regeneration Trust The Heritage Alliance Property Week LSE UKAPT British Property Federation Argent Group Locality Arts Council England Property Week Regeneration X Capita Symonds Ltd PRT Advisory Panel

PUBBLIC SESSION

APPENDIX I1 The Pro Bono Support

Adrian Babbidge Andrew Burrell Architectural Heritage Fund Brian Harris Caroline Forster David Topham Fionnuala Jay-O'Boyle Imelda Havers Jess Steele Joanna Chambers John Sell Ken Dytor Philip McGirr Pippa Savage The Princes Regeneration Trust Richard Martin Richard Rogers Robyn Pyle Stephen Clark Steven Boxall Tony Hutchinson Viv Jorissen Earth Regeneration Limited Regeneration X Capita Symonds Ltd PRT Advisory Panel Prime PRT Advisory Panel EC Harris The Social Investment Business CTP Limited PRT trustee Bluefish regeneration Locality Changing Cities Sell Wade Consultants English Heritage LAC National Trust N Ireland Transport for London Egeria The Burrell Company

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Heritage Investment Working Group