glascairn community project : feasibility study...
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22 Westhall Gardens Edinburgh EH10 4JQt. 0131 477 0676
GLASCAIRN COMMUNITY PROJECT :FEASIBILITY STUDY REPORTDecember 2014
Glascairn Community Project :Feasibility Study Report
Report Summary
1. Introduction2. Methodology3. Community And Stakeholder Engagement4. Project Proposal5. Funding And Financial Viability6. Project Delivery
Appendices :
1. Feedback Sheets From Drop-In Session, 30 October 20142. Draft Project Proposals, 30 October 20143. Culbokie Community Trust - Skills Audit Summary4. Action Plan
Project Team :Richard Heggie, Urban AnimationHazel Allen, Athena SolutionsAmanda Bryan, Aigas ConsultingSam Foster, Sam Foster Architects
22 Westhall Gardens, Edinburgh, EH10 4JQ t. 0131 477 0676e. [email protected]
Report SummaryCulbokie is a village on the Black Isle, with a population of around 1200 people. It has expanded rapidly in recent years, becoming increasingly attractive as a commuter village. Culbokie does not have a recognisable centre and has relatively poor provision of local services in comparison with other villages in the area.
The Glascairn Community Project aims to use a central 0.5 hectare site to provide the services and facilities local people need and provide a village heart for Culbokie.
The Glascairn Community Project Feasibility Study has been promoted by the Culbokie Community Trust (CCT), with funding support from the Big Lottery Fund, The Highland Council and Highlands and Islands Enterprise. A ballot carried out under Community Right To Buy provisions has recorded a majority of local people in favour of a purchase of the site by CCT for community bene!t.
Community and wider stakeholder consultation and engagement have been an integral part of this Feasibility Study and the Project Proposal has been shaped by the responses. It provides :
Business planning for the development indicates that the Project can be made viable if constructed on a phased basis. Sheltered housing to meet local needs would be constructed !rst, bringing with it road access, paths, services and landscaping. The community cafe/shop and health care rooms would form a second phase, followed by the public space and !nally a covered space.
The Feasibility Study highlights a wide range of social/health, environmental and economic bene!ts which can be delivered for Culbokie through the Glascairn Community Project.
1. Introduction1.1 Culbokie is a village on the Black Isle, with a population of around 1200 people. It has expanded rapidly in recent years, becoming increasingly attractive as a commuter village with easy access to both Inverness (20 Km) and Dingwall (10 Km).
1.2 The village has grown from a population of 532 people in 1981 to 1179 in 2011 and a further 137 housing units are proposed in the forthcoming Local Development Plan. The scale of development has overwhelmed the original integrity of the village. It is divided into two main development blocks separated by farmland and linked by a 1.8Km long main road.
1.3 Unlike other historic settlements in the area, Culbokie does not have a recognisable centre and has relatively poor provision of local services. The facilities in the village are scattered and include a small Spar shop, a primary school (older children are bused to Fortrose Academy), a football ground, a village hall and a church centre plus Forestry Commission woods. The Culbokie Inn has recently re-opened but lacks parking which
constrain opportunities for informal social activity. Other villages in the area typically have a better range and mix of local services.
1.4 The issue is recognised by zoning of a site of 0.5 hectares (known as site CU4) at Culbokie in the current Ross and Cromarty East Local Plan, for the development of new community services. The Glascairn Community Project aims to use this site to provide the services and facilities local people need and, above all, to provide a village heart for Culbokie.
1.5 The site lies to the north west of a larger area which is located for housing develop-ment (known as site CU1) in the Local Plan.
1.6 The Glascairn Community Project Feasibility Study has been promoted by the Culbokie Community Trust (CCT), with funding support from the Big Lottery Fund, The Highland Council and Highlands and Islands Enterprise. CCT has an opportunity to buy the 0.5 hectare site in the middle of the village, to be used for the bene!t of the community.
1.7 This Feasibility Study assesses the potential for a !nancially sustainable, community-led development on the site. It has been prepared by a consultant team led by Urban Animation.
2. Methodology 2.1 The Feasibility Study brings together three important areas of work :
community and stakeholder engagementproposals for the development of the sitea business plan for the Project
2.2 The following three sections of this Report address these work areas in detail. The community and stakeholder engagement work has been central to the whole Study, directly shaping the development proposals for the site and the business plan.
A ‘due diligence’ engineering desk top report for the site A best practice review of similar community projects A robust community consultation Examination of the economic feasibility of a number of options :
: Replacement village store of a size appropriate to the village and its hinterland : Additional community facilities such as sheltered/amenity housing, a family and teenager friendly café/restaurant/bar, community health services, a volunteer
and shared public toilets : Open space for informal social interaction, with wildlife friendly spaces, facilities
A !nancial evaluation and business plan Proposals for the shared aspects of the development with the adjacent CU1 housing site. Investigation of potential funding sources for land purchase and site development Architects drawings and speci!cations for costed development proposals Proposals for !nance, land swap and tenure arrangements between partners A review of legal and governance options for the community company Recommendations for further work by the Project Team
2.4 Urban Animation commenced work on the project in September 2014, working to a tight programme for completion of the Feasibility Study by the end of December 2014. The Project programme has been tied to the Community Right To Buy process for the purchase of the site by the Trust.
plan, desk top engineering report, best practice review and funding sources assessment, along with a Risk Register and Outcomes/Indicators Assessment, which are the subject of separate papers. The business plan is summarised in this Report but a more detailed docu-ment has also been prepared for CCT.
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3. Community And Stakeholder Engagement3.1 Community and wider stakeholder consultation and engagement have been an integral part of the study and the Project proposal has been shaped by the responses. As demonstrated by the summary below, a small number of consistent messages emerged through this process both on community needs/ priorities and on concerns regarding development of the Glascairn site and the potential impacts of the proposals.
3.2 The availability of results from an earlier consultation undertaken by the Culbokie Development Group in 2011 provided a starting point for both the consultation and the project development. A summary of each element of the consultation is provided below:
3.3 The 2011 HOUSEHOLD SURVEY was issued to all households in the area and senior pupils attending Fortrose Academy. A total of 85 responses were received from 410 house-
Culbokie Primary School. The results of the survey were exhibited at Findon Hall in Culbokie. This survey gathered a signi!cant amount of information about Culbokie and
community needs. The following priorities were identi!ed as by a signi!cant proportion of respondents. Items in bold were prioritised by at least two of the three age groups :
Reducing dog mess in woodsTaking action for better roads
Health CentreCafé
Bigger village shop
Better public transportTakeaway restaurant
3.4 In September 2014 COMMUNITY STAKEHOLDER TELEPHONE INTERVIEWS were held with over 30 people representing a wide range of community groups, existing facility managers and individuals with a speci!c interest in the Glascairn project (eg. immediate site neighbours and owner of Culbokie Shop). These interviews explored priorities for the area and the Glascairn site, issues or concerns about the site or its development and initial thoughts about the design of any future development. Feedback from these interviews was used in designing wider community consultation and is summarised below.
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Priorities
form of outreach GP clinic and space for other visiting health professionals.
Design of space
village green but not in the traditional sense. Also somewhere to put a village Christmas
Site Based Concerns
which could increase tra"c and parking issues.
Wider Concerns
community services. Will these activities stop? However, also recognition that these things only happen once a week/ once a month and that the community has wider needs.
through the Hall/ Football Club as these are mainstays of the community.
3.5 In addition TELEPHONE INTERVIEWS AND MEETINGS have been held with numer-ous potential partner organisations, including The Highland Council, the Highland Small
3.6 To further explore priorities and site design COMMUNITY DROP-IN SESSIONS were held from 1pm-9.30pm on Tuesday October 7th 2014 at venues in Culbokie (Church Cafe, Culbokie Shop and Findon Hall). Information boards/panels and an interactive map were used to gather feedback from participants. Over 70 people attended with the majority
of the Project proposal. The following priorities and issues arose :
Priorities
Issues/ Concerns
3.7 Following this an OPEN MEETING was held on the evening of Thursday October 30th 2014 to consider three design options for the site and also to discuss possible operational
shop, housing and health care services. This meeting was attended by 56 people at least half of whom had not attended previous sessions. The feedback from this meeting indicated that a preferred development option should bring together elements of Option 2 and Option 3. This included elements such as:
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Proposal and the development of the business case.
3.8 Finally, another OPEN MEETINGcommunity up to date with the Project Proposal. This meeting was attended by 58 people, around a third of whom had not attended any previous consultation events. A pre-meeting DROP-IN INFORMATION SESSION was attended by 35+ people. After hearing presentations about the vision, the design and the business case for the proposals a number of points were raised which have been taken on board in the !nal proposals :
for the site and whether this should be delivered by the community or the housing devel-oper. This Report and the Business Plan con!rm the housing would be small, possibly
The Business Plan takes account of this point.
relating to these developments need to be realistic. The Business Plan explores this matter in detail and makes robust assessment of the anticipated income and costs associated with these uses.
3.9 CCT also undertook a number of ADDITIONAL CONSULTATION EVENTS taking presentation materials produced by the Urban Animation team to a number of commu-
the area who had not contributed their views to date.
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3. Community And Stakeholder Engagement3.1 Community and wider stakeholder consultation and engagement have been an integral part of the study and the Project proposal has been shaped by the responses. As demonstrated by the summary below, a small number of consistent messages emerged through this process both on community needs/ priorities and on concerns regarding development of the Glascairn site and the potential impacts of the proposals.
3.2 The availability of results from an earlier consultation undertaken by the Culbokie Development Group in 2011 provided a starting point for both the consultation and the project development. A summary of each element of the consultation is provided below:
3.3 The 2011 HOUSEHOLD SURVEY was issued to all households in the area and senior pupils attending Fortrose Academy. A total of 85 responses were received from 410 house-
Culbokie Primary School. The results of the survey were exhibited at Findon Hall in Culbokie. This survey gathered a signi!cant amount of information about Culbokie and
community needs. The following priorities were identi!ed as by a signi!cant proportion of respondents. Items in bold were prioritised by at least two of the three age groups :
Reducing dog mess in woodsTaking action for better roads
Health CentreCafé
Bigger village shop
Better public transportTakeaway restaurant
3.4 In September 2014 COMMUNITY STAKEHOLDER TELEPHONE INTERVIEWS were held with over 30 people representing a wide range of community groups, existing facility managers and individuals with a speci!c interest in the Glascairn project (eg. immediate site neighbours and owner of Culbokie Shop). These interviews explored priorities for the area and the Glascairn site, issues or concerns about the site or its development and initial thoughts about the design of any future development. Feedback from these interviews was used in designing wider community consultation and is summarised below.
4. Project Proposal4.1 The community consultation process identi!ed a clear need for greater access to an identi!able village centre, better community space, improved access to healthcare, and for some small housing. There was a clear wish that the site remain predominantly ‘green’ landscaping, recalling a traditional village green. The Project Proposal shows how these uses and preferences can be combined to create an attractive, convenient and success-ful heart for the village of Culbokie.
4.2 The Project site is the key component of a wider opportunity to create a public realm for Culbokie. The existing shop can be integrated with the new community development through the layout of buildings, paths and parking areas and the use of co-ordinated surfac-ing materials and landscaping. The adjacent housing site could extend paths and landscaping to the south, along the edge of the B9169 - the main road through the village - and to the east along Glascairn Road, to consolidate the public space and knit the development into the surrounding village. The accessibility and prominence of the development will enable it to act as a hub, encouraging and bene!ting from active travel. CCT could work with others such as the social enterprise, Black Isle Bicycles, to encourage use by local and visiting cyclists. Use of public transport can also be promoted through bike racks, timetable information and shelter.
4.3 The need for a bigger, better local shop also emerged from the community engagement. Early in the Feasibility Study work, the existing shop was taken on by a new operator who recog-nised the potential to provide enhanced local shopping. Signi!cant changes have already been undertaken to extend the range and choice of goods available for customers. The operator has expressed a commitment to continue these improvements and to consider extending the premises if necessary. There is a small area of adjacent land owned by The Highland Council
identi!ed need for improved local shopping to be met without a community-led intervention. The shop operator should be encouraged to enhance the paved areas, access and parking around the shop to achieve integration with the community development.
4.4 The Project Proposal provides :
4.5 The buildings and structures are arranged to enclose the public space and achieve good links to the shop. The new buildings are single storey, rectangular in plan and with
insulated, with high performance glazing to reduce running costs. Detailed design of all new buildings would be subject to further community consultation. Some examples of
covered space
sheltered housing
cafe & health
care
shop
bus stop
future phase
B916
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5
Priorities
form of outreach GP clinic and space for other visiting health professionals.
Design of space
village green but not in the traditional sense. Also somewhere to put a village Christmas
Site Based Concerns
which could increase tra"c and parking issues.
Wider Concerns
community services. Will these activities stop? However, also recognition that these things only happen once a week/ once a month and that the community has wider needs.
through the Hall/ Football Club as these are mainstays of the community.
3.5 In addition TELEPHONE INTERVIEWS AND MEETINGS have been held with numer-ous potential partner organisations, including The Highland Council, the Highland Small
3.6 To further explore priorities and site design COMMUNITY DROP-IN SESSIONS were held from 1pm-9.30pm on Tuesday October 7th 2014 at venues in Culbokie (Church Cafe, Culbokie Shop and Findon Hall). Information boards/panels and an interactive map were used to gather feedback from participants. Over 70 people attended with the majority
of the Project proposal. The following priorities and issues arose :
Priorities
Issues/ Concerns
3.7 Following this an OPEN MEETING was held on the evening of Thursday October 30th 2014 to consider three design options for the site and also to discuss possible operational
shop, housing and health care services. This meeting was attended by 56 people at least half of whom had not attended previous sessions. The feedback from this meeting indicated that a preferred development option should bring together elements of Option 2 and Option 3. This included elements such as:
4.6 The Sheltered Housing is located at the south of the site to provide a degree of privacy and allow integration of use with the adjacent housing site. It can provide high
potential for solar gains
4.7 The Community Cafe is located at the north of the site, positioned close to the
located around the buildings during good weather or under a covered walkway at the frontage at inclement times. Play space for toddlers could be provided. The cafe could also be used to promote and sell local crafts and produce, second hand books and other items
-tives and act as an information point. It can provide a base for volunteer activities, in conjunction with the health care rooms. It would provide accessible public toilets for residents and visitors. There is a widely expressed need for facilities and places for young people in Culbokie and the cafe has enormous potential for this group.
4.8 The Health Care Rooms would be located within the cafe building, with separate access. They would be rented out to a number of practitioners to provide a range of services. The existing shop, the cafe and the health care rooms would provide comple-mentary services, creating a critical mass of uses at the village centre.
4.9 The Covered Space would be a simple single storey structure providing a sheltered space for activity, events, markets, festivals and social interaction. It would be a light and
excellent opportunity for events and activity for young people, in association with the cafe. It could in part be designed by young people to meet their needs as fully as possible.
4.10 The Public Square would be a hard surfaced area providing an attractive setting for new buildings and the covered space. It would be part of a larger open space which would
creates the opportunity for the Culbokie community to provide a civic focus for the village. It could be the focus for Christmas lighting and a tree, festivals events and markets, in conjunction with the covered space. It also provides an ideal location for public art.
4.11 Car Parking is provided at the north of the site, the most convenient location for use by the cafe building, as well as some shared use by the shop and those visiting Culbokie for other purposes such as walks, cycling and events at Culbokie Inn.
a later date, to accommodate small o"ces/business space, retail or other community uses. Detailed proposals for this third building and use have not been prepared as its deliver-ability depends upon construction and successful operation of the earlier developments set out above. Other potential services which were highlighted as lower priorities in the community engagement work could be located in this additional building, for example child care, day care or enterprise units.
4.13 Landscaping, planting and drainage should use indigenous species and sustainable design approaches. For example, a drainage swale is shown along the east edge of the site
swale would assist in ground water control. The shelter belts could include Sessile Oak, Ash
planted behind the cafe and the edge of main road to add Spring colour. Grassed areas
attenuate rainwater and increase biodiversity.
covered space
sheltered housing
cafe & health care
shop
bus stop
future phase
B9169
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provide a co-ordinated, consistent, attractive and practical surface, suitable for all users.
Shared Responsibilities
housing site to be co-ordinated. Road access for the sites is to be shared and should be
Road and the B9169. The Project Proposal allows for these works. At the community engagement events, some residents suggested access should be taken from the main road at the west. This option could be explored with the Council in due course but for the
permission conditions for developments on both sites.
purchaser of the adjacent housing site once this is known (it is expected that the site will -
ment has not established a clear position in terms of the timing and extent of access provi-sion and junction improvements, since this depends to some extent on whether the community or housing development proceeds !rst. However, the Council is well aware of
permission conditions once detailed proposals are available. The Project Proposal and
value and greater scale of the housing development.
-ing developments to provide improved path access at Glascairn Road. The Project
north and west of the housing site to consolidate the public realm at the heart of the village is noted above.
allows space to provide this but assumes it will be a !nancial obligation falling upon the
Surface Water Drainage
4.19 The potential issue of poor surface water drainage was raised by a number of people at the community engagement events. The Project Proposal allows for new drainage
planning application. Pre-application advice has not been forthcoming from Scottish
throughout the country at the present time).
Integrated Development
community and housing developments. Due to the tight timescale for the Feasibility Study, the Council comments were made in response to the draft options produced in late
4.21 At the detailed design stage, the opportunity to maximise integration should be fully explored. However, it is in the nature of the community proposal that the development should turn itself towards the main road, as it seeks to create a visible and immediately
the development relates visually and physically to the shop, since the proposed uses are directly related to it.
4.22 There are opportunities to adjust the layout of the sheltered housing to face other houses on the adjacent site and convenient paths can be created between and through both developments. The paths at the north and west of the site can help to integrate the developments, as noted above. Detailed Design
4.23 It should be noted that the !nal design and layout of the development will be the subject of further discussion with public agencies, the Council and the local community. There will be opportunities with aspects of the design, such as the open spaces, landscap-
-ing could be done by community volunteers.
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Project Bene!ts - Culbokie in 2025
4.24 The characteristics of Culbokie in 2015 will be as set out in the Introduction to this Report. By 2025, the bene!ts of the Project should be evident. Culbokie should be a more vibrant, connected community with a visible heart at the centre of the village. This village hub, designed and built by and for the community will combine a welcoming open space with community services and living. 4.25 The whole village will bene!t from the community café: a welcoming place to be, to meet, to sell locally produced goods and to showcase work from the wider community. Black Isle-grown produce and crafts, from Ballicherry Farm, Balmungie Farm, Knockfarrel Produce and others will be used in the café and sold in the shop. The café will provide healthy local food for those who increasingly struggle to shop and cook for themselves.
4.26 Rather than driving 7 miles to !nd a café or being unable to access this facility due to
4.27 By 2025, residents and visitors can use the café before or after enjoying new all-abilities access to Culbokie Woods and Loch built by the Culbokie Woods Group. For the
covers the top of the Black Isle and is an established recreational destination. The café will be a welcome stop on the developing Transition Black Isle cycle network, which is estab-lished cycling as a key transport mode on the minor roads of the area.
4.28 Outside the café, there will be a small toddlers play area (older children already have
(or shed) group and other support groups will meet at the cafe.
4.29 In the café building, the health and care rooms will be well established by 2025, -
tors, physiotherapists, and podiatrists. These will help keep the local increasingly older population mobile and well, avoiding the need for lengthy and irregular public transport to Dingwall or Inverness. Other services such as hairdressers and beauty therapy will be available, again reducing the need for travel and providing placements for local students.
the weather, views and company, or admire the planting maintained by the expanded Culbokie Community Garden volunteer group. The covered space will provide shelter in inclement weather and house an expanded programme of community events. The annual Gathering organised by Culbokie’s young people will have a more sheltered venue, ensur-
community events which are not suitable for the local Findon Hall will be staged here.
4.31 Local schoolchildren will have outdoor lessons in the covered space, providing an exciting new venue for learning and teaching. This will be linked to the wildlife planting in
4.32 Culbokie’s young people have long sought their own space to gather and socialise
hang out, in a location which is visible for informal adult supervision. The paved surface will provide for boarding and skating, one of the expressed wishes of young people.
4.33 By 2025, Culbokie will have a signi!cant population of older people who retired to the village some time ago and are struggling to manage and !nance the larger homes typical of the area. The 6 CCT houses in the village centre , purpose-built for people with limits to sight and mobility, will provide accommodation for the increasingly frail but independent older aged; the location will enable them to remain in a social centre, reduc-ing the risk of social and geographical isolation with its attendant health issues.
-ing a destination for visitors. Like the Old School in Beauly, the Cheese Shop in Cromarty,
add to the sense of a community, bring visitors to the café, and bring economic bene!ts through the provision of jobs in a community that has lost almost all local employment. The units will include business and o"ce space, providing an alternative to commuting for employes and local business owners. The shop and Inn will be thriving and congestion at Glascairn Road will have been resolved. 4.35 All of this development and growth will be through a community with an increased con!dence and capability to manage its own destiny, a huge step for a village which has seen very signi!cant growth in population with little or no say in how, when, or what that looks like. By 2025, the Glascairn Community project is a dynamic and developing enter-
the community. It will have paid its debts and be supporting other community ventures.
4.36 A full list of outcomes, indicators, and measures is provided as a supplementary paper to this Report. The main bene!ts are:
Social and Health
Culbokie is a more cohesive society with strong social and support networks.Local people’s ability to maintain their health and wellbeing is improved. People with speci!c needs (including older people) are enabled to live with greater
independence in their community
Environmental Culbokie is a well-designed, sustainable place where we are able to access the amenities
and services we need.
greenhouse-gas emissions.
EconomicPeople are able to access more jobs locally.Younger people are able to access training opportunities locally.
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5. Funding And Financial Viability
5.1 The key elements of the plan are :
5.2 The !nancial study identi!ed a gap in the market for the two key trading entities, the community café and the healthcare rooms, and has demonstrated that these would be viable within the normal local and industry measures for such activities. These trading activities would deliver total operating surpluses, after the costs of maintaining the community site, of between £16,000 and £18,00 on sales of £101,000 to £108,000.
5.3 Total capital costs are estimated at £2,153,000. Capital funding of £867,000 would come from sales of the houses (with restrictions on their future use), from grant funding of £1,234,000 and from a loan to cover the remainder of £65,000. These costs and income sources are well within the normal levels for this type of community development.
Legal structure – Charitable Limited Company
5.4 The Culbokie Community Trust (CCT) is already a limited company and would become a registered charity to regulate the return of any trading surpluses to the community, and to limit all legal and !nancial liability to the CCT itself.
5.5 CCT has already been registered with the Regulator, Companies House, as a Scottish Limited Company. This means that it is bound by UK Company law and regulations, includ-ing provision of information to the regulator. Limited liability means only the Trust itself is legally or !nancially liable for any of its actions. Individual members of CCT and individu-
due course, CCT should establish an additional trading company to manage the completed project. Trading pro!ts would be gifted to the parent company which would own the site and buildings.
5.6 The Trust will also be registered as a Charity, which will allow it the bene!ts of that -
lator. CCT will operate its ‘trading’, for example, the café, as a Social Enterprise. This means that any surpluses from trading will be put back to the Trust to be used for its declared charitable and community purposes.
Advantages and disadvantages of a Social Enterprise
5.7 This kind of legal structure is often used where organisations :
on charitable purposes.
5.8 Unlike enterprises which operate mainly ‘for pro!t’, charitable bodies also often bene!t from people who are willing to volunteer in activities and at times that suit them
costs, which can be very considerable; and they have to balance, continually, the need for !nancial viability with the drive for delivering their charitable aims. They rely on volunteers as Trustees, and this can be onerous for individuals.
A growing and maturing local population
5.9 Research into the local economy from Census data, Scottish government statistics on economy and population, and Highland Council forecasts, has identi!ed a local popula-tion more economically active, more mature, and wealthier than the Highland average.
5.10 Culbokie has a population of 1,200 people, in 586 households (1). It has grown signi!-cantly over the last several years, and will grow further. The Highland Council has set an expectation of over 100 housing units to be built in the CCT area over the next 10 years (2). The total Black Isle ward has 10,000 people, and neighbouring Dingwall and Seaforth has
(3). The Black Isle is set to grow further, with around 650 housing units expected to be built in the next 10 years (4). It is already more densely populated than average for the Highlands (5). There is a real possibility that Culbokie is further developed as a commuter base for Inverness and Dingwall, having little identify of its own.
5.11 In the Black Isle, the proportion of the population aged between 45 and 74 is well above the Highland average. The same is true for Culbokie (6). The Black Isle is also relatively wealthy; it has third highest average household income in Highland, with above-average employment !gures compared to Highlands and Scotland. The CCT
(7).
(1) Scottish Census !gures 2011; extracted from postcode-level data for CCT postcodes(2) Highland Council, Housing Audit 2010(3) Scottish Census !gures 2011(4) Highland Council, Housing Audit 2010(5) Highland Council, Ward Population Information(6) As footnote 1
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provide a co-ordinated, consistent, attractive and practical surface, suitable for all users.
Shared Responsibilities
housing site to be co-ordinated. Road access for the sites is to be shared and should be
Road and the B9169. The Project Proposal allows for these works. At the community engagement events, some residents suggested access should be taken from the main road at the west. This option could be explored with the Council in due course but for the
permission conditions for developments on both sites.
purchaser of the adjacent housing site once this is known (it is expected that the site will -
ment has not established a clear position in terms of the timing and extent of access provi-sion and junction improvements, since this depends to some extent on whether the community or housing development proceeds !rst. However, the Council is well aware of
permission conditions once detailed proposals are available. The Project Proposal and
value and greater scale of the housing development.
-ing developments to provide improved path access at Glascairn Road. The Project
north and west of the housing site to consolidate the public realm at the heart of the village is noted above.
allows space to provide this but assumes it will be a !nancial obligation falling upon the
Surface Water Drainage
4.19 The potential issue of poor surface water drainage was raised by a number of people at the community engagement events. The Project Proposal allows for new drainage
planning application. Pre-application advice has not been forthcoming from Scottish
throughout the country at the present time).
Integrated Development
community and housing developments. Due to the tight timescale for the Feasibility Study, the Council comments were made in response to the draft options produced in late
4.21 At the detailed design stage, the opportunity to maximise integration should be fully explored. However, it is in the nature of the community proposal that the development should turn itself towards the main road, as it seeks to create a visible and immediately
the development relates visually and physically to the shop, since the proposed uses are directly related to it.
4.22 There are opportunities to adjust the layout of the sheltered housing to face other houses on the adjacent site and convenient paths can be created between and through both developments. The paths at the north and west of the site can help to integrate the developments, as noted above. Detailed Design
4.23 It should be noted that the !nal design and layout of the development will be the subject of further discussion with public agencies, the Council and the local community. There will be opportunities with aspects of the design, such as the open spaces, landscap-
-ing could be done by community volunteers.
5.12 Unusually for a growing population of this economy and size, Culbokie has very little social infrastructure. While it has a primary school, a church, football/recreation facilities and the Findon Hall, it has few activities for teenagers and young adults, one shop and limited informal social or gathering space for the population; made more stark by the Inn’s recent closure (now reopened). Residents are compelled to travel to access these ameni-
increasingly unsustainable. Further, spending and pro!t leave the community for the bene!t of others, rather than being spent in the community and reinvested in delivering better services locally.
5.13 With its recent and forecast growth, Culbokie has the necessary population locally (and more widely), the economy and an increasing need to sustain improved local ameni-ties. The Project Business Plan is based on the assumption that with the appropriate devel-
is currently transferred elsewhere could be re-centred in the heart of the village.
Delivering the vision: the business plan
5.15 The Business Plan considers the !nancial viability and social bene!ts of each part of the proposal, taking into account the capital costs and the need for all of the develop-ments to make su"cient money to cover running and maintenance costs in the long term.
funding and !nancial realities indicated a likely phasing for these activities.
depend on the availability of funding and, crucially, on the timing of new housing devel-opments in the surrounding area. The sheltered housing would be constructed !rst, bring-ing with it access, services, landscaping and parking which will set the context for the next phase. This will consist of the community cafe, health care rooms, covered space, public
future community needs. The third phase is unlikely to be viable until the !rst two phases are successfully completed and operational. Since is will take several years to complete phases one and two, detailed business planning for phase three is of limited value at this time.
Small sheltered private housing
5.17 This element of the proposal meets the expressed wishes of the community for small and possibly supported or sheltered housing. This would provide for residents as they get
leave their community. These are assumed to be private homes, but with a restriction in their deeds that ensures that they remain under Trust control.
5.18 There is currently a signi!cant lack of smaller homes across the Black Isle and the
proposal is for around six 2-bed homes, with a small private outdoor space, at the south end of the site. The houses would be screened for privacy from the more public areas of the Project site.
5.19 This Business Plan assumes that CCT will !nance, design and build these homes for sale. The CCT would set a condition in the sale contract restricting the future sale of the homes to bene!t members of the community. This will reduce the immediate sale price but ensure the community continues to bene!t.
5.20 The estimated housing development costs include the necessary landscaping, utilities, access and parking for the south part of the site. Access costs including new roads
site next to the community site (see section 4).
and ensure that CCT is able to !nance the construction of the next houses.
5.22 The costs of building and site establishment (including costs such as professional
homes, with site preparation, services and selling costs of £137,000. The income for the homes is estimated at £148,000 per house. This is around current market rates for good-
meet total costs; any surplus above this would be reinvested in the community spaces.
5.23 The housing proposal for small housing meeting a local need is !nancially viable and
10
Community Cafe
5.24 The community café/community shop was identi!ed by a number of consultees. Culbokie is very unusual in having only one food provider, the Culbokie Inn, which recently closed but has since reopened. The need for an alternative for informal meeting
reopened. The use should complement the church cafe (which is a distinctive, once weekly
5.25 Almost all settlements on the Black Isle and in neighbouring Dingwall and Seaforth are well able to support both at least one café and a pub. The markets for these facilities
The lack of a commercially-run café in Culbokie leaves a gap in the market in a prosperous area, and creates an opportunity for the CCT to provide this service in a business-like way.
5.26 The Business Plan model assumes that the CCT runs and manages the café. This ensures that the various social activities (e.g. opening for speci!c community occasions, provision of local information, local history displays) can be easily integrated with the café. The cafe could also provide complementary services such as a small scale community ‘shop’, sale of locally produced crafts etc. and could be used by speci!c groups such as
maintaining and improving the community facilities.
5.27 The Business Plan assumes that by maturity, the café will be open 26 hours per week,
turnover, meeting industry norms.
enough cash is generated to meet any loan repayments. CCT cannot run a cash de!cit, so
café will generate £9,000 annual cash surplus on a turnover of £76,000. This surplus will be applied in the !rst instance and for the !rst 5 years to the loan repayments.
5.29 There is a gap in the market for a community café, both from a social and from a
right price exist in all the Black Isle settlements of similar and smaller sizes, demonstrating that it can also be delivered in Culbokie. The identi!ed gap means CCT can develop this café provision and achieve a relatively fast growth rate.
Health & Personal Care Rooms
5.30 The consultation showed a clearly expressed need for more accessible health and
providers consulted thought this unlikely and were keen to promote outreach by ancillary healthcare professionals using rented rooms. This could better meet the ongoing needs of those with, for example, continuing or chronic conditions.
5.31 There is also both a market and a need for other health and personal care in Culbokie, and private providers such as podiatrists, physiotherapists, or therapeutic massage. Personal care providers may also provide a weekly drop-in or appointments service.
privacy standards, which would be rented out to organisations and individuals providing care. These rooms would be in the same building as the café but with a separate entrance and a small waiting area.
with a rental rate based on the current market for community centre room hire (£75 per day). CCT would provide light, heat, janitorial services, and cleaning.
5.34 As with the café provision, while the service provision can be developed over time,
mature state proposed above. Based on the assumptions above, the rooms would gener-ate an operating surplus of £9,500 on a turnover of £19,500.
5.35 Room hire, while potentially risky, is also highly pro!table; which is why most
-ing other service providers where the local community has already identi!ed a need and is travelling to access the service.
Project Bene!ts - Culbokie in 2025
4.24 The characteristics of Culbokie in 2015 will be as set out in the Introduction to this Report. By 2025, the bene!ts of the Project should be evident. Culbokie should be a more vibrant, connected community with a visible heart at the centre of the village. This village hub, designed and built by and for the community will combine a welcoming open space with community services and living. 4.25 The whole village will bene!t from the community café: a welcoming place to be, to meet, to sell locally produced goods and to showcase work from the wider community. Black Isle-grown produce and crafts, from Ballicherry Farm, Balmungie Farm, Knockfarrel Produce and others will be used in the café and sold in the shop. The café will provide healthy local food for those who increasingly struggle to shop and cook for themselves.
4.26 Rather than driving 7 miles to !nd a café or being unable to access this facility due to
4.27 By 2025, residents and visitors can use the café before or after enjoying new all-abilities access to Culbokie Woods and Loch built by the Culbokie Woods Group. For the
covers the top of the Black Isle and is an established recreational destination. The café will be a welcome stop on the developing Transition Black Isle cycle network, which is estab-lished cycling as a key transport mode on the minor roads of the area.
4.28 Outside the café, there will be a small toddlers play area (older children already have
(or shed) group and other support groups will meet at the cafe.
4.29 In the café building, the health and care rooms will be well established by 2025, -
tors, physiotherapists, and podiatrists. These will help keep the local increasingly older population mobile and well, avoiding the need for lengthy and irregular public transport to Dingwall or Inverness. Other services such as hairdressers and beauty therapy will be available, again reducing the need for travel and providing placements for local students.
the weather, views and company, or admire the planting maintained by the expanded Culbokie Community Garden volunteer group. The covered space will provide shelter in inclement weather and house an expanded programme of community events. The annual Gathering organised by Culbokie’s young people will have a more sheltered venue, ensur-
community events which are not suitable for the local Findon Hall will be staged here.
4.31 Local schoolchildren will have outdoor lessons in the covered space, providing an exciting new venue for learning and teaching. This will be linked to the wildlife planting in
4.32 Culbokie’s young people have long sought their own space to gather and socialise
hang out, in a location which is visible for informal adult supervision. The paved surface will provide for boarding and skating, one of the expressed wishes of young people.
4.33 By 2025, Culbokie will have a signi!cant population of older people who retired to the village some time ago and are struggling to manage and !nance the larger homes typical of the area. The 6 CCT houses in the village centre , purpose-built for people with limits to sight and mobility, will provide accommodation for the increasingly frail but independent older aged; the location will enable them to remain in a social centre, reduc-ing the risk of social and geographical isolation with its attendant health issues.
-ing a destination for visitors. Like the Old School in Beauly, the Cheese Shop in Cromarty,
add to the sense of a community, bring visitors to the café, and bring economic bene!ts through the provision of jobs in a community that has lost almost all local employment. The units will include business and o"ce space, providing an alternative to commuting for employes and local business owners. The shop and Inn will be thriving and congestion at Glascairn Road will have been resolved. 4.35 All of this development and growth will be through a community with an increased con!dence and capability to manage its own destiny, a huge step for a village which has seen very signi!cant growth in population with little or no say in how, when, or what that looks like. By 2025, the Glascairn Community project is a dynamic and developing enter-
the community. It will have paid its debts and be supporting other community ventures.
4.36 A full list of outcomes, indicators, and measures is provided as a supplementary paper to this Report. The main bene!ts are:
Social and Health
Culbokie is a more cohesive society with strong social and support networks.Local people’s ability to maintain their health and wellbeing is improved. People with speci!c needs (including older people) are enabled to live with greater
independence in their community
Environmental Culbokie is a well-designed, sustainable place where we are able to access the amenities
and services we need.
greenhouse-gas emissions.
EconomicPeople are able to access more jobs locally.Younger people are able to access training opportunities locally.
11
This business planThis business planThis business planThis business plan2015/16 2016/07 2017/18 2018/19 2019/20 2020/21
Land PurchaseDetailed
Preparation for Development
(SLF application)
House build & sales – 6
units
Café / health care rooms / community
shop
Village square & landscaping
Covered Space
Further developments
(not in this Plan)
£000sHousing Café , Shop & Rooms
Village square & landscaping
Covered Space
Total
Capital Costs 857 667 357 271 2,153House sales 867 867Grant funding 634 339 258 1,231Long-term loans 33 18 14 65Working capital loans - costs (10)
Total funding 857 667 357 271 2,153
Community space
better, and more easily accessible, community ‘heart’ to the village, ful!lling the functions
-ate venue, such as for The Gathering, or other seasonal events
The community area would be owned and managed by CCT.
5.37 There is no assumption or expectation of income directly from the community space. The attractive space will add to the viability of the café, and the café will encourage use of the space. The costs of management and maintenance will be met from the income from the other activities on the site, including the café and health care rooms.
5.38 The assumed costs include 15 hours per week for management and maintenance of
small in the !rst years as !rstly, the infrastructure is new and secondly, as the on-site presence of maintenance will ensure that small repair issues are not neglected.
5.39 While CCT is growing the café and health room business, it may not have su"cient cash to pay for a site manager or for minor repairs. These are activities that are very often done on a voluntary basis by many communities, unless and until there is income to
£8,600 per year would be met from the surpluses from other activities.
5.40 CCT can plan to provide part-time employment to ensure that the site is maintained and the facilities managed to an appropriate standard. In the !rst years while the café and room hire are building up, the Trust should have an alternative plan for volunteers to carry out some of these tasks.
Summary !nancial information - capital costs and funding
table below. Housing sales income is for 6 homes at £148,000 each. The estimated grant
of total costs, is in line with the experience of the Urban Animation team and of similar developments elsewhere. Applications would be made to funders, including Big Lottery,
early discussion with Big Lottery and Leader have had a good initial response.
5.42 This related to the need to generate capital receipts early to pay for initial services such as the access road; the need for income generation from the café and health rooms as early as possible, to meet loan repayments; and, in practical terms, the need to build housing
5.43 The timeline is also constrained by the availability and timing of funds. The proposal is for one build at a time, taking into account the capacity of the Trust volunteers. It is also
as coherent as possible during this extended build period. The proposed timeline is:
5.44 The capital costs of the elements in this business plan, based on Quantity Surveyor estimates from the Design Plan, and their funding package is as below:
5. Funding And Financial Viability
5.1 The key elements of the plan are :
5.2 The !nancial study identi!ed a gap in the market for the two key trading entities, the community café and the healthcare rooms, and has demonstrated that these would be viable within the normal local and industry measures for such activities. These trading activities would deliver total operating surpluses, after the costs of maintaining the community site, of between £16,000 and £18,00 on sales of £101,000 to £108,000.
5.3 Total capital costs are estimated at £2,153,000. Capital funding of £867,000 would come from sales of the houses (with restrictions on their future use), from grant funding of £1,234,000 and from a loan to cover the remainder of £65,000. These costs and income sources are well within the normal levels for this type of community development.
Legal structure – Charitable Limited Company
5.4 The Culbokie Community Trust (CCT) is already a limited company and would become a registered charity to regulate the return of any trading surpluses to the community, and to limit all legal and !nancial liability to the CCT itself.
5.5 CCT has already been registered with the Regulator, Companies House, as a Scottish Limited Company. This means that it is bound by UK Company law and regulations, includ-ing provision of information to the regulator. Limited liability means only the Trust itself is legally or !nancially liable for any of its actions. Individual members of CCT and individu-
due course, CCT should establish an additional trading company to manage the completed project. Trading pro!ts would be gifted to the parent company which would own the site and buildings.
5.6 The Trust will also be registered as a Charity, which will allow it the bene!ts of that -
lator. CCT will operate its ‘trading’, for example, the café, as a Social Enterprise. This means that any surpluses from trading will be put back to the Trust to be used for its declared charitable and community purposes.
Advantages and disadvantages of a Social Enterprise
5.7 This kind of legal structure is often used where organisations :
on charitable purposes.
5.8 Unlike enterprises which operate mainly ‘for pro!t’, charitable bodies also often bene!t from people who are willing to volunteer in activities and at times that suit them
costs, which can be very considerable; and they have to balance, continually, the need for !nancial viability with the drive for delivering their charitable aims. They rely on volunteers as Trustees, and this can be onerous for individuals.
A growing and maturing local population
5.9 Research into the local economy from Census data, Scottish government statistics on economy and population, and Highland Council forecasts, has identi!ed a local popula-tion more economically active, more mature, and wealthier than the Highland average.
5.10 Culbokie has a population of 1,200 people, in 586 households (1). It has grown signi!-cantly over the last several years, and will grow further. The Highland Council has set an expectation of over 100 housing units to be built in the CCT area over the next 10 years (2). The total Black Isle ward has 10,000 people, and neighbouring Dingwall and Seaforth has
(3). The Black Isle is set to grow further, with around 650 housing units expected to be built in the next 10 years (4). It is already more densely populated than average for the Highlands (5). There is a real possibility that Culbokie is further developed as a commuter base for Inverness and Dingwall, having little identify of its own.
5.11 In the Black Isle, the proportion of the population aged between 45 and 74 is well above the Highland average. The same is true for Culbokie (6). The Black Isle is also relatively wealthy; it has third highest average household income in Highland, with above-average employment !gures compared to Highlands and Scotland. The CCT
(7).
(1) Scottish Census !gures 2011; extracted from postcode-level data for CCT postcodes(2) Highland Council, Housing Audit 2010(3) Scottish Census !gures 2011(4) Highland Council, Housing Audit 2010(5) Highland Council, Ward Population Information(6) As footnote 1
12
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Total all years
Revenue Income � � � � � � ����-����%##*$!),�� %& - - - 44 86 92 222 �%%#���$)�" - - - 8 15 16 39 �) �' - - - - - - -�+�' �����*$�!$���'�$)( - 3 3 - - - 6 Total income - 3 3 51 101 108 266 �!'��)��%()( - - - 14 28 ��� 73 �����(�����"�'!�(� - - - 19 37 39 95 �+�' ���( - 2 2 �� 17 18 48 Total costs - 2 2 43 83 88 216 ��#��! '#��� ""����� !��Finance Costs - 1 1 8 19 20 50 �%)�"�0$�$����%()( 2 8 1 2 2 2 17 ���� ����� ��� ��� ��� �� ��� 18 ���
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�$(�!��!!�,��&'
�����(���'��/$+��&$"�$%�&�( $#' (2) ��� � 22 �������(���'�� #/$+��$)(/$+���&$"���*�!$%"�#(���( * ( �' �� � � �� ����� (332) � ����������'�� #/$+��&$"��&�#('�&��� *�� � � �� 424 � � ����$�#'�&��� *�� � �� � 22 � � � �$�#�&�%�,"�#('��� #(�&�'( � ��� � � �� �� �� ��������$(�!���'�� #/$+��$)(/$+���&$"�!$�#' � ��� � �� �E = A+B+C+D �� ��������%�#���! %�#������ ��������� 7 ��� ��� ��� �� �� �� !�!�� �"������������������$�� �������������#��� 7 1 1 (1) 9 20
Key factor Current Forecast Assumption Breakeven position Grant intervention % of development costs
95% 92.5%
Revenue See detailed assumptions Loss of around 12% revenueCosts See detailed assumptions Increase of more than 12% in all
costsInterest rates 7% for long term loans Doubling of interest rates to 14%
5.45 The assumption regarding loan funding is driven by two considerations: that, even at
have enough income-generating activities to meet the loan repayments.
café/shop and a health/personal care suite of 2 rooms, in the same building.
5.47 The income generation has been calculated based on key assumptions about the market. There is additional capacity for additional activity in the café / shop and care
income of the café in particular will vary seasonally, but the forecast shows two years to achieving maturity at the following annual pro!ts.
5.48 The loss in 2016-17 is driven by interest costs on the Working Capital Loan for the housing build. This P&L loss will not result in a cash loss, as it will be covered by capital receipts from the sale of houses, which are excluded from trading Pro!t and Loss. In 2016-17 and 2017-18 the Trust will not yet be trading and costs in these years relate to ongoing administration of the Trust, which would be covered by a small revenue grant of £3,000. In all future years, the Trust shows an increasing then stable pro!t up to £16-£17k.
5.49 The Cash Flow is more important from the Trust’s perspective than Pro!t & Loss state-ments, as cash is key to ensuring that the Trust can meet its liabilities as they become due
summarised below:
5.50 The Trust’s main concern is to remain cash positive. In the construction phase, this is managed by the timing of grant receipts, payments for construction, receipts from hous-
5.51 The ongoing sustainability of the Trust will rely on the trading activities (café/shop
-tions begins to cover the loan interest repayments. Earlier annual cash losses are covered by cash from loans in earlier periods. By 2020-11, after just under 3 years of trading, the Trust has a healthy cash balance of £20,321 for use for further community bene!ts.
5.52 Sensitivity analysis shows the Trust will fall to cash breakeven; that is, will generate just enough cash to cover costs and loan repayments; under a range of scenarios, below:
5.53 These sensitivities provide the Trust with critical factors to success, the !rst of which is ensuring the highest possible level of funding in its development projects before taking out loans. The Trust will also exercise close !nancial management of ongoing trading activities to ensure any revenue misses or cost increases are addressed as soon as possible.
5.12 Unusually for a growing population of this economy and size, Culbokie has very little social infrastructure. While it has a primary school, a church, football/recreation facilities and the Findon Hall, it has few activities for teenagers and young adults, one shop and limited informal social or gathering space for the population; made more stark by the Inn’s recent closure (now reopened). Residents are compelled to travel to access these ameni-
increasingly unsustainable. Further, spending and pro!t leave the community for the bene!t of others, rather than being spent in the community and reinvested in delivering better services locally.
5.13 With its recent and forecast growth, Culbokie has the necessary population locally (and more widely), the economy and an increasing need to sustain improved local ameni-ties. The Project Business Plan is based on the assumption that with the appropriate devel-
is currently transferred elsewhere could be re-centred in the heart of the village.
Delivering the vision: the business plan
5.15 The Business Plan considers the !nancial viability and social bene!ts of each part of the proposal, taking into account the capital costs and the need for all of the develop-ments to make su"cient money to cover running and maintenance costs in the long term.
funding and !nancial realities indicated a likely phasing for these activities.
depend on the availability of funding and, crucially, on the timing of new housing devel-opments in the surrounding area. The sheltered housing would be constructed !rst, bring-ing with it access, services, landscaping and parking which will set the context for the next phase. This will consist of the community cafe, health care rooms, covered space, public
future community needs. The third phase is unlikely to be viable until the !rst two phases are successfully completed and operational. Since is will take several years to complete phases one and two, detailed business planning for phase three is of limited value at this time.
13
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�$(�!��!!�,��&'
�����(���'��/$+��&$"�$%�&�( $#' (2) ��� � 22 �������(���'�� #/$+��$)(/$+���&$"���*�!$%"�#(���( * ( �' �� � � �� ����� (332) � ����������'�� #/$+��&$"��&�#('�&��� *�� � � �� 424 � � ����$�#'�&��� *�� � �� � 22 � � � �$�#�&�%�,"�#('��� #(�&�'( � ��� � � �� �� �� ��������$(�!���'�� #/$+��$)(/$+���&$"�!$�#' � ��� � �� �E = A+B+C+D �� ��������%�#���! %�#������ ��������� 7 ��� ��� ��� �� �� �� !�!�� �"������������������$�� �������������#��� 7 1 1 (1) 9 20
Community Cafe
5.24 The community café/community shop was identi!ed by a number of consultees. Culbokie is very unusual in having only one food provider, the Culbokie Inn, which recently closed but has since reopened. The need for an alternative for informal meeting
reopened. The use should complement the church cafe (which is a distinctive, once weekly
5.25 Almost all settlements on the Black Isle and in neighbouring Dingwall and Seaforth are well able to support both at least one café and a pub. The markets for these facilities
The lack of a commercially-run café in Culbokie leaves a gap in the market in a prosperous area, and creates an opportunity for the CCT to provide this service in a business-like way.
5.26 The Business Plan model assumes that the CCT runs and manages the café. This ensures that the various social activities (e.g. opening for speci!c community occasions, provision of local information, local history displays) can be easily integrated with the café. The cafe could also provide complementary services such as a small scale community ‘shop’, sale of locally produced crafts etc. and could be used by speci!c groups such as
maintaining and improving the community facilities.
5.27 The Business Plan assumes that by maturity, the café will be open 26 hours per week,
turnover, meeting industry norms.
enough cash is generated to meet any loan repayments. CCT cannot run a cash de!cit, so
café will generate £9,000 annual cash surplus on a turnover of £76,000. This surplus will be applied in the !rst instance and for the !rst 5 years to the loan repayments.
5.29 There is a gap in the market for a community café, both from a social and from a
right price exist in all the Black Isle settlements of similar and smaller sizes, demonstrating that it can also be delivered in Culbokie. The identi!ed gap means CCT can develop this café provision and achieve a relatively fast growth rate.
6. Project Delivery6.1 The Feasibility Study Report has been prepared on the assumption that CCT is able to purchase the site on behalf of the community. In that event, CCT will be in a position to
the rate of progress, including the availability of grant funding/commercial loans, the timing of the adjacent housing development and the availability of prospective tenants for the new buildings.
6.2 It is important that CCT has the necessary skills and experience to manage the delivery of the project. As part of the Feasibility Study, a skills audit has been undertaken. In September 2014, eight of the nine CCT Directors completed an online self assessment to
-ment for community development organisations (e.g. strategic planning, community consultation & engagement) and others which related more speci!cally to the Glascairn Community Project (e.g. facility construction and operation, housing etc.). The results of the audit are provided in Appendix 3.
6.3 In summary, the group is strong on project development and management, planning, running a business and engaging with stakeholders at all levels but lacks a skills base in a range of areas which may be useful for delivering and managing this speci!c project. As the project develops and priorities for the site are agreed it would be useful to bring on board individuals with a speci!c understanding of housing and social care issues, construction projects and buildings and grounds maintenance. Local fundraising will need to be tackled as this is a weakness: raising funds locally will be a necessary compo-nent of any funding application, demonstrating local commitment and support. Finally strengthening legal skills would also be useful although it may be easier here to employ a speci!c professional adviser to cover this area.
hours a week (some are already doing more than this), with one person able to do consid-erably more hours, within realistic limits. At speci!c points during the site purchase,
larger time contribution to come from the group. If this cannot be provided by the Direc-tors or would place undue strain on one or two Directors then some thought needs to be
o"cer) and specialist advisers including an accountant and an architect/build project manager. CCT have in place a system of nominated Directors who take a lead on particular aspects of business but this still results in unbalanced workloads. It is recommended that workload should be spread by forming sub-groups who will lead on the more challenging and time consuming aspects of the project.
14
This business planThis business planThis business planThis business plan2015/16 2016/07 2017/18 2018/19 2019/20 2020/21
Land PurchaseDetailed
Preparation for Development
(SLF application)
House build & sales – 6
units
Café / health care rooms / community
shop
Village square & landscaping
Covered Space
Further developments
(not in this Plan)
£000sHousing Café , Shop & Rooms
Village square & landscaping
Covered Space
Total
Capital Costs 857 667 357 271 2,153House sales 867 867Grant funding 634 339 258 1,231Long-term loans 33 18 14 65Working capital loans - costs (10)
Total funding 857 667 357 271 2,153
Community space
better, and more easily accessible, community ‘heart’ to the village, ful!lling the functions
-ate venue, such as for The Gathering, or other seasonal events
The community area would be owned and managed by CCT.
5.37 There is no assumption or expectation of income directly from the community space. The attractive space will add to the viability of the café, and the café will encourage use of the space. The costs of management and maintenance will be met from the income from the other activities on the site, including the café and health care rooms.
5.38 The assumed costs include 15 hours per week for management and maintenance of
small in the !rst years as !rstly, the infrastructure is new and secondly, as the on-site presence of maintenance will ensure that small repair issues are not neglected.
5.39 While CCT is growing the café and health room business, it may not have su"cient cash to pay for a site manager or for minor repairs. These are activities that are very often done on a voluntary basis by many communities, unless and until there is income to
£8,600 per year would be met from the surpluses from other activities.
5.40 CCT can plan to provide part-time employment to ensure that the site is maintained and the facilities managed to an appropriate standard. In the !rst years while the café and room hire are building up, the Trust should have an alternative plan for volunteers to carry out some of these tasks.
Summary !nancial information - capital costs and funding
table below. Housing sales income is for 6 homes at £148,000 each. The estimated grant
of total costs, is in line with the experience of the Urban Animation team and of similar developments elsewhere. Applications would be made to funders, including Big Lottery,
early discussion with Big Lottery and Leader have had a good initial response.
5.42 This related to the need to generate capital receipts early to pay for initial services such as the access road; the need for income generation from the café and health rooms as early as possible, to meet loan repayments; and, in practical terms, the need to build housing
5.43 The timeline is also constrained by the availability and timing of funds. The proposal is for one build at a time, taking into account the capacity of the Trust volunteers. It is also
as coherent as possible during this extended build period. The proposed timeline is:
5.44 The capital costs of the elements in this business plan, based on Quantity Surveyor estimates from the Design Plan, and their funding package is as below:
were appointed; one has experience of management and working with young people, the other has facilities/catering management experience. The skills audit should be re-run in light of these changes to identify if the skills strengths and gaps have changed.
6.6 It is important to re-emphasis that the !nal details of the Project Proposal and business plan are subject to further consideration, design development and updating. CCT will need to respond to numerous external factors such as construction pricing, market condi-
6.7 As delivery of the project proceeds, CCT should continue to build support and capacity across the community, which has already voted in favour of the land purchase. The project is being undertaken for and on behalf of the community and it is essential that it is embraced and supported as widely as possible by local people. CCT should continue to ensure that good communication and engagement continues and that the views of those who don’t fully support the project are also heard and taken into account. The loss of community support during the delivery stage or beyond would pose a high risk.
6.8 CCT should continue its dialogue with the current shop owner, who has made a
enhanced local convenience shopping as a priority for Culbokie. There is a risk that the
ownership. This is beyond the control of CCT at present but if necessary, there may be an opportunity in future to take the shop into community ownership.
6.9 Dialogue with the purchaser of the adjacent housing site will also be important, as development of the two sites needs to deliver shared access. The design and layout of the two developments should be integrated as far as possible. At this stage it has been impos-sible to predict how a housing developer may arrange development on the adjacent site.
6.10 A detailed Action Plan has been prepared to guide delivery of the project and this is attached as Appendix 4.
6.11 CCT has recognised that community projects of this type can involve high risks and that these risks must be mitigated and managed. A full Risk Register has been prepared as a separate report, highlighting mitigating actions which should be addressed in relation to the future Action Plan. The risks rated as ‘high’ are summarised in the adjacent table, which also sets out mitigating actions which can reduce these risks to ‘medium’.
15
Glascairn Community Project Risk Register
1
The Trust recognises that community projects can involve high risks, and that these risks must be mitigated and managed. Through a review of risks, this brief developed a full Risk Register (please see Appendix …..) and ensured that mitigating actions are included in the Trusts’ workplan.
The Risks rated as High are summarised below. The CCT believes that the mitigating actions reduce the risks to Medium.
There is a risk that: Because: Mitigating Actions.
1. Pre-acquisition risks
1.1. The land purchase cannot be completed
Insufficient funding - SLF - Other grant funders - community funding
Grant applications to SLF Grant applications to other funders Fundraising plan for community funds
1.3 Site preparation costs are significantly higher than planned
Ground survey reveals issues with geology / drainage
No mitigation possible. Higher costs will require more funds to be raised.
3. Site preparation & Development
3.1. Funders not prepared to commit levels of funding required for either whole or parts of development
Either does not fit with criteria or due to excessive demands for funding from higher priority projects/ communities
Work with funders from earliest opportunity to ensure fit with objectives. Take a flexible approach to phasing to respond to funding climate. Ensure highest quality preparatory work and secure adequate buy in from community through other fundraising.
4. Small / Sheltered Housing
4.1 Significant up-front funding required for small / sheltered housing
Need to pay architects etc fees before any housing units sold / loan available
Liaise at an early stage with grant funders re set up grants e.g. Investing in Ideas, a stage 1 GCA application, possibly Leader. Liaise early with social funders to establish terms of lending. Liaise with HSCHT
6. Café
6.1 Café run at a loss, impacting all of CCT activities
Café does not achieve sales / profit targets due to poor marketing, poor service / quality, higher than anticipated costs
Incorporate trading arm for trading activities Appoint Board to trading co with relevant experience / interests For risks to site maintenance, see above For managing risks of losses, see below. As final step, consider leasing out café space to other operator & achieving rental income
7. Health / Personal Care rooms
7.1 Health / personal care rooms do not achieve occupancy or rent levels, reducing income to the CCT
NHS not interested in pursuing outreach care Cannot attract private care providers
Continue discussions with NHS through Development Period Carry out community / market research for potential uses including non-healthcare uses Marketing plan to target private care providers See above under “Community Space” for volunteer efforts for Site Maintenance
�""�0�*'�(�!$�� %*(�$�(��.����2015-162016-172017-182018-192019-202020-21 Total all years�%)�" �%)�" �%)�" �%)�"� �%)�"�� �%)�"
Total all years
Revenue Income � � � � � � ����-����%##*$!),�� %& - - - 44 86 92 222 �%%#���$)�" - - - 8 15 16 39 �) �' - - - - - - -�+�' �����*$�!$���'�$)( - 3 3 - - - 6 Total income - 3 3 51 101 108 266 �!'��)��%()( - - - 14 28 ��� 73 �����(�����"�'!�(� - - - 19 37 39 95 �+�' ���( - 2 2 �� 17 18 48 Total costs - 2 2 43 83 88 216 ��#��! '#��� ""����� !��Finance Costs - 1 1 8 19 20 50 �%)�"�0$�$����%()( 2 8 1 2 2 2 17 ���� ����� ��� ��� ��� �� ��� 18 ���
�!!�.�)&�'� #���$)'�#�'�-���'� ����������������������$(�!��!!�,��&'�$(�! �$(�! �$(�! �$(�! �$(�! �$(�!
�$(�!��!!�,��&'
�����(���'��/$+��&$"�$%�&�( $#' (2) ��� � 22 �������(���'�� #/$+��$)(/$+���&$"���*�!$%"�#(���( * ( �' �� � � �� ����� (332) � ����������'�� #/$+��&$"��&�#('�&��� *�� � � �� 424 � � ����$�#'�&��� *�� � �� � 22 � � � �$�#�&�%�,"�#('��� #(�&�'( � ��� � � �� �� �� ��������$(�!���'�� #/$+��$)(/$+���&$"�!$�#' � ��� � �� �E = A+B+C+D �� ��������%�#���! %�#������ ��������� 7 ��� ��� ��� �� �� �� !�!�� �"������������������$�� �������������#��� 7 1 1 (1) 9 20
Key factor Current Forecast Assumption Breakeven position Grant intervention % of development costs
95% 92.5%
Revenue See detailed assumptions Loss of around 12% revenueCosts See detailed assumptions Increase of more than 12% in all
costsInterest rates 7% for long term loans Doubling of interest rates to 14%
5.45 The assumption regarding loan funding is driven by two considerations: that, even at
have enough income-generating activities to meet the loan repayments.
café/shop and a health/personal care suite of 2 rooms, in the same building.
5.47 The income generation has been calculated based on key assumptions about the market. There is additional capacity for additional activity in the café / shop and care
income of the café in particular will vary seasonally, but the forecast shows two years to achieving maturity at the following annual pro!ts.
5.48 The loss in 2016-17 is driven by interest costs on the Working Capital Loan for the housing build. This P&L loss will not result in a cash loss, as it will be covered by capital receipts from the sale of houses, which are excluded from trading Pro!t and Loss. In 2016-17 and 2017-18 the Trust will not yet be trading and costs in these years relate to ongoing administration of the Trust, which would be covered by a small revenue grant of £3,000. In all future years, the Trust shows an increasing then stable pro!t up to £16-£17k.
5.49 The Cash Flow is more important from the Trust’s perspective than Pro!t & Loss state-ments, as cash is key to ensuring that the Trust can meet its liabilities as they become due
summarised below:
5.50 The Trust’s main concern is to remain cash positive. In the construction phase, this is managed by the timing of grant receipts, payments for construction, receipts from hous-
5.51 The ongoing sustainability of the Trust will rely on the trading activities (café/shop
-tions begins to cover the loan interest repayments. Earlier annual cash losses are covered by cash from loans in earlier periods. By 2020-11, after just under 3 years of trading, the Trust has a healthy cash balance of £20,321 for use for further community bene!ts.
5.52 Sensitivity analysis shows the Trust will fall to cash breakeven; that is, will generate just enough cash to cover costs and loan repayments; under a range of scenarios, below:
5.53 These sensitivities provide the Trust with critical factors to success, the !rst of which is ensuring the highest possible level of funding in its development projects before taking out loans. The Trust will also exercise close !nancial management of ongoing trading activities to ensure any revenue misses or cost increases are addressed as soon as possible.
Appendix 1 :
Feedback Sheets From Drop-in Session30 October 2014
6. Project Delivery6.1 The Feasibility Study Report has been prepared on the assumption that CCT is able to purchase the site on behalf of the community. In that event, CCT will be in a position to
the rate of progress, including the availability of grant funding/commercial loans, the timing of the adjacent housing development and the availability of prospective tenants for the new buildings.
6.2 It is important that CCT has the necessary skills and experience to manage the delivery of the project. As part of the Feasibility Study, a skills audit has been undertaken. In September 2014, eight of the nine CCT Directors completed an online self assessment to
-ment for community development organisations (e.g. strategic planning, community consultation & engagement) and others which related more speci!cally to the Glascairn Community Project (e.g. facility construction and operation, housing etc.). The results of the audit are provided in Appendix 3.
6.3 In summary, the group is strong on project development and management, planning, running a business and engaging with stakeholders at all levels but lacks a skills base in a range of areas which may be useful for delivering and managing this speci!c project. As the project develops and priorities for the site are agreed it would be useful to bring on board individuals with a speci!c understanding of housing and social care issues, construction projects and buildings and grounds maintenance. Local fundraising will need to be tackled as this is a weakness: raising funds locally will be a necessary compo-nent of any funding application, demonstrating local commitment and support. Finally strengthening legal skills would also be useful although it may be easier here to employ a speci!c professional adviser to cover this area.
hours a week (some are already doing more than this), with one person able to do consid-erably more hours, within realistic limits. At speci!c points during the site purchase,
larger time contribution to come from the group. If this cannot be provided by the Direc-tors or would place undue strain on one or two Directors then some thought needs to be
o"cer) and specialist advisers including an accountant and an architect/build project manager. CCT have in place a system of nominated Directors who take a lead on particular aspects of business but this still results in unbalanced workloads. It is recommended that workload should be spread by forming sub-groups who will lead on the more challenging and time consuming aspects of the project.
Appendix 2 :
Draft Project Proposals 30 October 2014
Glascairn Community Project Risk Register
1
The Trust recognises that community projects can involve high risks, and that these risks must be mitigated and managed. Through a review of risks, this brief developed a full Risk Register (please see Appendix …..) and ensured that mitigating actions are included in the Trusts’ workplan.
The Risks rated as High are summarised below. The CCT believes that the mitigating actions reduce the risks to Medium.
There is a risk that: Because: Mitigating Actions.
1. Pre-acquisition risks
1.1. The land purchase cannot be completed
Insufficient funding - SLF - Other grant funders - community funding
Grant applications to SLF Grant applications to other funders Fundraising plan for community funds
1.3 Site preparation costs are significantly higher than planned
Ground survey reveals issues with geology / drainage
No mitigation possible. Higher costs will require more funds to be raised.
3. Site preparation & Development
3.1. Funders not prepared to commit levels of funding required for either whole or parts of development
Either does not fit with criteria or due to excessive demands for funding from higher priority projects/ communities
Work with funders from earliest opportunity to ensure fit with objectives. Take a flexible approach to phasing to respond to funding climate. Ensure highest quality preparatory work and secure adequate buy in from community through other fundraising.
4. Small / Sheltered Housing
4.1 Significant up-front funding required for small / sheltered housing
Need to pay architects etc fees before any housing units sold / loan available
Liaise at an early stage with grant funders re set up grants e.g. Investing in Ideas, a stage 1 GCA application, possibly Leader. Liaise early with social funders to establish terms of lending. Liaise with HSCHT
6. Café
6.1 Café run at a loss, impacting all of CCT activities
Café does not achieve sales / profit targets due to poor marketing, poor service / quality, higher than anticipated costs
Incorporate trading arm for trading activities Appoint Board to trading co with relevant experience / interests For risks to site maintenance, see above For managing risks of losses, see below. As final step, consider leasing out café space to other operator & achieving rental income
7. Health / Personal Care rooms
7.1 Health / personal care rooms do not achieve occupancy or rent levels, reducing income to the CCT
NHS not interested in pursuing outreach care Cannot attract private care providers
Continue discussions with NHS through Development Period Carry out community / market research for potential uses including non-healthcare uses Marketing plan to target private care providers See above under “Community Space” for volunteer efforts for Site Maintenance
Appendix 2 :
Culbokie Community Trust - Skills Audit SummaryOf the 9 CCT Directors in post in September 2014, 8 completed a skills audit survey, so a fairly full picture was obtained. The current directors have a broad range of skills. At least one Director has a good working knowledge of most relevant subject area. Areas of relative strength for the organisation have been identi!ed as those where four/!ve or more of the respondents have stated they have primary skills or working knowledge of a particular topic and where at least one Director has identi!ed the former. These include:
Areas of particular challenge where none or only one of the respondents indicated a
Areas of particular challenge where none or only one of the respondents indicated a primary skills set and two or fewer indicated at least a working knowledge include:
Additional feedback from the survey indicates there is some concern within the group about the lack of younger people and long term residents within the Directors. Comment was also made about the need for both ‘selling’ skills and managing build projects.
The following table indicates self-assessment of skills level and expertise on a sliding scale of 0-3, noting interest in increasing skills/knowledge in particular areas.
Appendix 4 :
Action Plan
Key activity Start Date Finish Date Who is responsible for delivering the activity
BEFORE ACQUISITION
Establish Board working groups as follows: business and technical; communication and volunteering and fundraising
5th Jan 2015
Feb 2015 Board
Fundraising for community purchase
5th Jan 2015
22nd April 2015
Board
Update skills audit and try to fill gaps on Board through co-options, advertising vacancies if needed
5th Jan April 2015 Board
Director skills development in governance
Jan 5th May 2015 Board
Establish charitable status for CCT Jan 2015 April 2015 Board
Establish Community Forum and initiate regular liaison
Jan 2015 Feb 2015 Board
Develop community communications plan
Jan 2015 Feb 2015 Board
CCT EGM to approve site acquisition
Feb 2015 April 2015 Board
AFTER AQUISITION
Initiate volunteer management of site
April 2015 June 2015 Board
Host celebratory community event May 2015 June 2015 Board
Appoint Development Officer May 2015 July 2015 Board
Prepare volunteer development plan
May 2015 July 2015 Board / Development Officer
Continued Director and volunteer development/ training
May 2015 End of project Board / Development Officer
Regular liaison with Community Forum
May 2015 End of project Board / Development Officer
Undertake ground survey work May 2015 July 2015 Out-sourced
Further market research on demand for small housing in Culbokie
May 2015 Aug 2015 Board
Fact finding tour for small/sheltered community housing projects
June 2015 July 2015 Development Officer
Identify small/sheltered housing procurement options, negotiate with potential partners and identify preferred option including deed restrictions
July 2015 Sept 2015 Board / lawyer
Continued community consultation on evolving plans
July 2015 End of project Board / Development Officer
Local market research into demand and supply of health care services and cafe
Aug 2015 Dec 2015 Development Officer
Focussed consultation with young people and parents on village square/covered space, cafe offer
Sept 2015 Nov 2015 Development Officer/ Board
Fact-finding tour to gather information about successful café/ community hub projects
Sept 2015 Oct 2015 Development Officer/ Board
Liaise with Transition Black Isle and Stagecoach on sustainable transport opportunities
Sept 2015 Nov 2015 Development Officer
Liaise with planning authority and other statutory bodies on site plan for housing (phase 1) and café, village square and covered space (phase 2)
Sept 2015 Oct 2015 Development Officer/ Board
Consult with potential stakeholders / partners for phase 2 such as NHS, private health professionals etc.
Sept 2015 Nov 2015 Development Officer
Invite ideas (maybe a competition) from all sections of community, including school, for village square focal feature
Sept 2015 Dec 2015 Development Officer
Identify funding sources and finance for phase 1
Oct 2015 End of project Development Officer
Identify funding sources and finance for phase 2
Nov 2015 End of project Development Officer
Liaise with potential grant aiding bodies and finance institutions to establish application processes and requirements
Nov 2015 Feb 2016 Development Officer
Revise phase 1 business plan in light of all R&D
Nov 2015 End of project Out-sourced / Dev Officer
Revise phase 2 business plan in light of all R&D
Nov 2015 End of project Out-sourced / Dev Officer
Community consultations on final plans for approval
Jan 2016 End of project Development Officer / Board
Prepare architects brief for the development of housing and café to include design, sustainability, planning consent, building warrants and build
Feb 2016 End of project Development Officer / Board
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