Options for Upton House - Leisure Services

BOROUGH OF POOLE

ENVIRONMENT OVERVIEW GROUP – 2 DECEMBER 2004

OPTIONS FOR UPTON HOUSE – LEISURE SERVICES

Report of the Head of Leisure Services

1.0 Introduction

Since 1998 Leisure Services has managed Upton House for events, training seminars, and wedding ceremonies. During this time there have been some positive developments in the usage of the House. Any future development is, however, now limited due to constraints in the current house usage policy, which limit the expansion of services. Research has been undertaken into future potential development of Upton House however prior to writing any formal business plan it is important to identify how the Council wishes the usage and management of the house to develop. This report explores alternative uses for the house and considers other potential ways of management, including private partnerships.

The report generates a number of options resulting in two alternatives for Members to consider:

The first alternative would be to maintain the status quo however Officers feel that, due to lack of corporate investment together with the current restrictive constraints placed on the usage, the sustainability of this option would be questionable and it is therefore not recommended to Members.

The second alternative would be to engage a consultant to undertake a feasibility study of the various options for future development as highlighted in attached report and summarised as Options B and C. Whilst this feasibility study is being carried out Members may wish to consider taking a more business-like approach to the management of the house by developing and increasing the number and range of functions permitted in line with those identified in Option C.

2.0 Decision required

2.1 The Environment and Overview Group to recommend Cabinet to consider:

2.1.1 Confirming that maintaining the status quo is not a sustainable option for Upton House.

2.1.2 The appointment of a consultant to undertake a feasibility study to determine the recommended course of action for the future management of Upton House.

2.1.3 Whilst feasibility study is undertaken Officers should develop an interim business plan to increase the number and range of functions in Upton House.

Clive Smith Head Of Leisure Services

Officer Contact: Jayne Taylor 01202 261311 UPTON HOUSE

SETTING THE SCENE FOR THE FUTURE An Options Report

NOVEMBER 2004 SECTION ONE

Background

Upton House and Country Park is situated on the outskirts of the Poole and Bournemouth conurbation with a population catchment of 500,000 within a 30 minute drive time of the Park. Both the house and the country park, including a tenanted farm, are owned by the Borough of Poole and managed by the Leisure Services Unit.

Approximately 50 hectares (100 acres) of land are currently open to the public. This includes formal gardens, woodlands, parkland and shoreline. The built facilities include Upton House (a Grade 2* listed building), Peacock Tearooms, a number of units of staff accommodation, public toilets and outbuildings.

Upton Country Park Management Plan

In March 1999 the Culture and Leisure Committee approved a management plan for Upton Country Park. The plan was structured around the following aim for the Park - “The Upton Country Park Estate will be managed to preserve and enhance its landscape value, wildlife and historical interest associated with its history as the country estate of one of Poole’s merchant families. It will be developed for recreational and educational use related to, and compatible, with these qualities”. It should be noted that this aim does not directly acknowledge the distinct identity of Upton House amongst the estate and therefore the need for separate management objectives for the facility to enable effective management to its full potential.

Fifteen Objectives for the Park were then derived from the overall aim. The first five objectives were concerned with the preservation of key features of the estate: its peace and tranquillity, its style, and the architectural, historical, horticultural and wildlife interest it has developed. Five objectives were then laid down for the development of the estate for public use (though the pursuit of these was to be subject to their compatibility with the first five objectives). The remaining objectives covered the need to minimise conflicts, to secure resources and to work with other organisations (including the Friends of Upton Country Park) and to comply with legal obligations.

It can be seen that the objectives, again, focused primarily on the park with no specific reference to development of the house. There is, however, scope for the house to play a more prominent role given that it is a primary income generator and the contribution this asset gives to the community. Upton House Business Plan

Since the publication of the Upton Country Park Management Plan changes to the structure of Leisure Services led to the direct management of the house being passed from the Open Spaces Section to the Business Section. Following this there have been some positive developments in the usage of the House (reflected in the turnover and occupancy figures, shown later in this document) and research has been undertaken (including a comprehensive report undertaken by Bournemouth University MBA students) into future potential development.

It is clear that the lack of a coherent business plan for the house has led to some confusion about its future use and has therefore hindered any development. However it should be recognised that it is not possible to write an effective business plan without first identifying and agreeing clear objectives on the future usage of the house and how it should be managed in the future.

This report has therefore been written, in preference to a formal business plan, to report on how usage in the house has developed and propose options on how further development could be achieved. SECTION TWO

The Value of Upton House

In purely financial terms Upton House has a net expenditure of around £50,000 per annum. In 2000/01 this figure was £55,141k per annum, which has reduced down to a forecast outturn figure of £43,000 in 2004/05 – due primarily to increase in income.

This net expenditure must however be balanced against the benefits and enjoyment derived from Upton House by the residents of Poole. These benefits have been grouped below under the Council’s Priorities as published in 2004.

Supporting young people - Upton House is the venue for much of the training carried out by Schools Advice and Support Services (SASS) and School Centred Initial Teacher Training (SCITT) aimed at future primary school teachers. In addition SASS also organises summer and Easter schools, which are funded by the LEA and are well attended by local children.

Vibrant economy - Upton House generates some of its income from providing a cost- effective venue for local organisations to hold meetings and train their staff. It also provides an exhibition venue for local businesses and individuals to display their products and services to the local and wider community.

Clean, green and safe - Upton House and Country Park provides a number of events that educate local people in conservation awareness. In addition, The Friends of Upton Country Park1 host regular tours of the House enlightening local people on its history and encouraging an interest in its preservation and development.

Strong sense of community – Upton House hosts a number of social and fundraising events for local clubs and associations. Improvements to the house have enabled increasing accessibility to all residents, who are encouraged to visit all public events in the house and park.

Health and well-being – Leisure Services works in partnership with Social Services to provide catering facilities at Upton House. This enables people with special needs to undertake work experience allowing them the opportunity to contribute to the provision of services to the public. Upton House and Country Park provides a place for local residents to walk, cycle, play or just relax and enjoy the peaceful surroundings.

The following mission statement and aims & objectives for Upton House have been written taking into account the above contributions, whilst also reflecting on the objectives set out by the Upton Country Park Management Plan.

Mission Statement

To care for and protect Upton House, improve public access and generate income to support this

1 The Friends of Upton Country Park (UCP) is a registered charity and was established in 1976. Currently there are around 150 members of which approximately 15 are active members and sit on the executive and liaison committees with BoP representatives. Since its formation The Friends have organised many fund-raising activities and events in the house and park, proceeds of which have been used for maintenance and development of the house and park. They fully support the conservation of the house and help guide improvements for the benefit of all users. They have much experience and expertise to offer BoP and have a supportive role to play in the future management of Upton House and Park. Aims & Objectives

1. Facilitate flexibility of public access to raise awareness and stimulate interest in Upton House.

2. Improve internal decoration in a style, which reflects the history of Upton House.

3. Generate income, enabling re-investment in Upton House thereby providing improved facilities and services.

4. Maximise income and manage costs in line with Council objectives.

5. Ensure development considers the interests of all users and Council objectives.

6. Actively engage in external fund-raising to help maintain the house

The mission statement, aims & objectives and the value of Upton House should be borne in mind when planning any future developments and together provide the foundations of this report. SECTION THREE

Current Position

Upton House has four floors of accommodation but the principle rooms currently utilised (5 reception rooms and 6 bedrooms) are situated on the ground and first floors of the house. There is extensive attic and basement space currently not being used mainly as a result of the fire regulations imposed on the building (access to the attic rooms is very limited with only one narrow staircase).

The six rooms on the first floor are currently used as offices by the Borough of Poole’s Schools Advice and Support Services whilst the rooms on the ground floor are hired out by Leisure Services for:

Conferences This market at present is very limited to just a handful of regular organisations. There is a need to actively attract the external market by making companies aware of what the house has to offer. There is a lucrative corporate business market, which has yet to be exploited, and there is great potential to reach new customers and generate new income all year round.

Training Seminars and Meetings There is a lot of demand for training facilities and high quality meeting venues from many different organisations. Upton House is ideal for this type of activity and this sector is considered to be the core business. Potential customers include local private companies, colleges and universities, other local authorities, Dorset Business Link and many other bodies with an interest in the provision of training.

Events The house is well suited to small-scale events. In addition to the Friends of Upton Country Park (FUCP) craft shows, there is potential for many different “themed” events including food, music, historical, corporate and other special interest events.

Exhibitions Based upon the number of enquiries received exhibitions is a growing market. They have a big impact on public access and create awareness of the house and gardens, as well as generate income from hire with little staff time required. Exhibitions held in the house include craft shows, wedding fayres, flower shows and art exhibitions. They do not require catering and do all their own promotion. This is another area that could be encouraged and supported. Private Functions Upton House is increasingly becoming a popular venue for private functions such as milestone birthday parties/wedding anniversaries, corporate dinners, christening teas, cheese and wine parties. Private functions are usually booked for evenings or weekends.

Wedding Ceremonies Upton House is a popular venue for civil wedding ceremonies. The market for this service has reached maturity at around 62 ceremonies per year. Increasing competition and proposed changes in legislation (licensing Registrars and not venues) are likely to reduce the number of ceremonies substantially in the future. Enquiries for weddings at Upton House amount to approximately 550 per annum with more than half requesting a full package (i.e. ceremony and reception). These enquiries are increasing due to a lack of similar venues in the local area. The potential market for Upton House as a venue for a full package wedding booking is enormous.

General Public Access In accordance with current policy Upton House is made accessible to members of the public, under the supervision of the Friends of Upton Country Park, on 26 Sundays throughout the year (dependent upon availability of voluntary helpers).

Maintenance and Decoration

There is an on-going need to fix repairs and maintain the house for its use as a public building. Certain improvements have been identified and await the funds to enable work to be carried out. There are also moves to address (where possible) disabled access in order to make the house accessible to all.

Current annual maintenance response repairs costs average £10,000 and it should be noted that any potential increase in usage of the house may result in a correspondingly higher maintenance cost.

There is currently no corporate planned maintenance money although Upton House has been going through a phase of internal decoration. This programme of on-going works has been the result of an initiative between the Friends of Upton Country Park and BoP Officers. The first phase of work, in 2001, concentrated on decoration of the Drawing Room including drapes for the French windows and mahogany name plaques with gold leaf lettering for all rooms. The introduction of period wall paper, drapes, paintings and books compatible with the building has enhanced the Drawing Room’s appearance and added to its historical and cultural value.

Door surfaces and furniture have also been refurbished. Phase two carried out during the autumn of 2002 involved the decoration of the Study & Morning Rooms. This was followed by renewal of all ground floor carpets in the main hire rooms during May 2003. An Upton House Working Group, which include members from the Friends and also BoP officers, has been set up to identify other areas for improvement, as funding becomes available.

Security and Health & Safety

Although security at Upton House has recently been greatly improved, there is still cause for concern in some areas. The problem of occasional members of the public walking in when the front door has been left open or another visitor lets them is difficult to police. There is supervision by a member of BoP staff at all private functions to ensure that security is maintained and there is a resident caretaker on site who is responsible for locking up and securing the house at night. There is, however, no effective back-up to cover residential staff absence.

Risk Assessments have been produced for the varied activities within the house, which are constantly reviewed and updated to facilitate usage and comply with H&S legislation. House user guidelines are available in all ground floor hire rooms to assist hirers with information on health & safety including fire evacuation procedures.

Catering

The house has catering provided by Country Park Catering, managed by Adult Social Services Provider Unit, based on-site from Monday to Friday 7.30 a.m. to 2.00 p.m. There is a gap in service from 2.00 p.m. daily, which places a restriction on afternoon and evening booking requests. Part of this demand is dealt with by leaving pump pots for visitors to use but this is not ideal and does not represent good customer service. External caterers are used for weekend and evening functions as and when required. No self-catering is permitted.

Car Parking

Parking is easily accessible and free. The public car park can accommodate up to 250 vehicles.

Staff Resources

Current staff resources in the house are as follows:

1. One full-time Visitor Services Officer responsible for the management of Upton House 2. One Housekeeper/Wedding Co-ordinator (part time 7.30 a.m. to 9.30 a.m., Monday to Friday) plus ad-hoc hours for wedding viewing requests and to facilitate weddings ceremonies primarily on Saturdays as and when required. 3. Casual staff for evening duties and weekends as and when required - employed through the Borough of Poole’s Civic Temp scheme. Income Generation

There is potential to increase the income by increasing the number of private functions and public events and exhibitions at Upton House – the 2002/03 room occupancy stood at 40% (represented by 672 bookings). There has been a significant rise in bookings and consequently the turnover figures since the appointment of a full-time Visitor Services Officer in 1999 (figure 1). This officer is based at the house and has the overall responsibility for maintenance, bookings, room set-up and customer care. Despite a fairly minimal amount being spent on marketing and advertising (c£1,000 per annum) the occupancy figures continue to increase, reflecting the importance of maintaining a high level of customer care and service, which encourages repeat business and word of mouth recommendations.

Upton House Turnover

£90,000 £80,000 £70,000 £60,000 £50,000 £40,000 £30,000 £20,000 £10,000 £0 Yr 97/98 Yr 98/99 Yr 99/00 Yr 00/01 Yr 01/02 Yr 02/03 Yr 03/04 Financial years

Figure 1 – Upton House Turnover (notes (i) income from the Friends of Upton Country Park, Schools Advice and Support or Country Park Catering have not been included in these figures; (ii) due to foot and mouth epidemic in 2001/02 access to park and house was restricted; (iii) 2003/04 is projected figure)

In line with current budget strategy the Council is looking at ways to increase and maximise opportunities for income generation, particularly from properties under the ownership of the Borough of Poole. This is echoed in the “Upton House Future Maintenance Management and Use Rolling Programme 2000” which states “Upton House is a significant income generator. There is potential for increased levels of use to help fund improvements to the building and to the services offered”. There is certainly a potential for raising income at Upton House, which could subsequently contribute towards the improvement of facilities. Current Performance Indicators

Indicator 2001/02 2002/03 2003/04 2004/05 2005/06 Actual Actual Target Target Target Revenue 61K 82K 90K 95K 100K Occupancy (annual room) 35% 40% 45% 50% 50% Number of Bookings 694 673 700 720 740 Number of 0 0 0 0 0 Complaints(formal) Public Satisfaction % 0 0 80% 82% 84% completed questionnaires

The following section examines some of the emerging issues surrounding the management of Upton House and makes some proposals for future development. SECTION FOUR

Emerging Issues

There are a number of key emerging issues, which may help to guide the future development plans for the house. These include:

 Schools Advice & Support Services (SASS) – there is a definite possibility that SASS may move from Upton House towards the end of 2004. Whilst this would mean losing the £21k contribution they make to the running costs of Upton House the vacating of the first floor would offer the Council opportunities for development.

 Infrastructure – despite a number of significant improvements made to the house there still remains a number of significant factors, which restrict the development opportunities. The house remains largely inaccessible to people with physical disabilities and therefore, as a public building, does not conform to the DDA 1995. Fire regulations prohibit the use of the attic and basement rooms and severely limit any potential use other than storage space. In addition fire regulations limit the use of the first floor to 10 permanent occupants and 100 total people in the house at any one time.

 Catering - all catering in Upton House (apart from private evening functions) is provided and managed by Adult Social Services in the form of Country Park Catering. This is proving to be problematic as service is only provided until 2.00 p.m., despite a Service Level Agreement, which states that the service should be provided until 5.00 p.m. The Visitor Services Officer therefore incurs additional work to service afternoon refreshment bookings. This agreement should be clarified in order to achieve a consistent customer service. There are opportunities to improve this partnership and these should be actively pursued.

 Staffing – current staff levels are adequate for the current usage but any further development and increase in current usage would necessitate the employment of further staff to ensure a seven day a week cover.

 Fundraising - In October 2003, a fundraising steering group was set up to explore the possibility of raising funds through a variety of methods including, major grant application, special events, commercial partnerships, donations and expansion of usage. This group is enthusiastic and have the necessary skills to put forward a comprehensive grant application however any such application can only be made once a decision has been made on the Council’s future aspirations for Upton House.

Section Five outlines some options for the future of Upton House taking into account all the points raised in earlier sections. SECTION FIVE

Options for the Future

Before considering options for the future of Upton House it is worth reflecting again on the Mission Statement:

To care for and protect Upton House, improve public access and generate income to support this

In 2001 MBA students from Bournemouth University researched and produced a report “The Future of Upton Country House”. This report generated a long list of potential usage opportunities for the house. In order to avoid duplication this report has not repeated the process of option generation and evaluation but has referred back to the five areas that were deemed suitable, feasible and acceptable for Upton House. These were (in order of ranking):

1. Leisure (e.g. hotel, restaurant, etc)

This option would require imagination linked with a suitable investment programme if it was to be realised. As a country hotel very little of the grounds would be disturbed thus still leaving public access. Conferencing, weddings, and specialist weekends could also be undertaken to maximise the use of the property. Professional advice has indicated that, whilst parts of the house have the potential to be converted into a unique restaurant facility, the out-of-town location and lack of passing trade would not make any such venture viable unless residential conference facilities were on-site. Linked with the substantial investment required (estimated cost of converting part of the cellar for a restaurant facility is c£500k), and the potential high risks, this option would be more suited for funding from within the private sector. However, despite the involvement of a private partner this option would still enable public access to the house whilst enabling significant investment in the fabric of the building.

2. Business Use (e.g. residential conference/training facility)

This option would build on some of the existing uses of the house, but with the aim of maximising income. This option could also go part of the way to restoring the house back to a period residence. Initial confidential discussions with professional firms with experience in developing partnership working between local authorities and private organisations have revealed that this could be a possibility and this option would continue to enable public access and improve the infrastructure of the house. 3. Schools/Education (e.g. private school/college)

The house and grounds have the potential to be used as an agricultural college. The house would require expansion to accommodate all the space required and could be used for residents as well as day students. As there is currently a farm within the grounds the conversion to an agricultural establishment could be fairly simple although the lack of dormitory accommodation would have to be addressed. Again this option would continue to enable public access whilst also providing a training venue for conservation/environmental studies.

4. Private Services (e.g. retirement home/drug therapy unit)

Most of the services in this option would be run by organisations external to the Borough of Poole, although there may be the potential and existing competencies within the Council to run social care facilities in partnership. Any use for this purpose would require significant investment in the house to create the necessary accommodation, working space, etc. The implications of pursuing this option would mean the use of the house would restrict public access.

5. Redevelopment (selling gardens and/or house and/or farm or any combination)

This option would entail the Council divesting the asset by selling any combination as above to a private vendor. The facilities could then be redeveloped, subject to planning consent and within the realms of current regulatory restrictions (Grade II listing, covenants, etc). In 2001 it was conservatively estimated that the income obtained from the sale of the whole would be circa £5million. Revenue from the sale could be used for investment and subsequent annual income or used to fund other projects within Poole. Legal advice has confirmed that the Deed of Gift when Upton House was conveyed to Poole was made on 12 November 1957. There is no restriction on selling the property in the Deed but it does require the Council and its successors in title to observe a number of restrictions intended to preserve the character of the house. The Deed also permits the Council to demolish the building after forty years and (if the Council so decides) to build something else in its place according to its own intentions for the land. The option to sell the house would obviously be extremely controversial and would severely restrict public access to the house but it may be considered that the best way to care for and protect the house would be to place it in other hands. An Alternative Option

Alternatively, it could be decided to continue to self-manage the house and maintain the current incremental changes, whilst pursuing external funding via grants to improve the infrastructure of the house. There is no doubt that there is still room for growth in the current target markets of: weddings, conferences, training facilities, corporate entertainment, community events, private and public functions. Officers from Leisure Services have visited two similar properties2 to Upton House, both managed solely by local authorities, and reports from those visits have been written up. Interestingly both premises have residential accommodation and this is considered to be a key factor for their continued success. If SASS does vacate the first floor it would provide further opportunities to develop facilities there although there would be a financial implication in making the house fully accessible.

Section Six outlines the options facing the Borough of Poole when debating the future of Upton House.

2 Oakwood House, Maidstone, Kent and Dillington House, Somerset SECTION SIX

Option A – Maintain Status Quo

As mentioned at the beginning of this report it is clear that the lack of any clear objectives on the future usage of Upton House has hindered any constructive development plans. Whilst usage of the house has increased over the past five years it is felt that this is now peaking under the current constraints, which limit the usage to a narrow market. In addition the necessary funding to carry out both response and planned maintenance has long been a major concern and any option for the future management should address this. Officers therefore believe that this option is not sustainable and would not be of benefit to the future development of the house.

Option B – Partnership Working

Options 1 to 5 (identified in section five) would mean that the Borough of Poole would have to explore opportunities for potential partnerships within the private sector. The complexities of modern business means that no single organisation can claim to be effective in every field and inevitably at some time there will be the need to harness the knowledge of others. Working in partnership is now commonplace for UK government initiatives and is normally a requirement for lottery funding, as the aim is to benefit local communities. Most partnerships are not subject to government capital controls – which frees services from any constraints, which can often be applied to local councils.

The advantages of this option would include:  Substantial inward investment (unlikely from any other source),  Greater diversity of potential usage and enhancement of service  Funding to maintain and preserve heritage of the building,  Eliminate current subsidy from the Borough of Poole (2004/05 - £45k)

Whilst the disadvantages could be:  Borough of Poole would have to accept at least partial loss of control of the management of Upton House  Potential loss of community usage  Loss of elements of expenditure in areas that have been traditionally managed in-house.  Negotiations of the partnership set-up can be time-consuming and incur substantial costs  Opposition of stakeholders and public perception Option C – Incremental Changes whilst seeking Grant Funding

As mentioned previously usage of the house has been increasing incrementally over the last five years. There is still scope to develop the in-house provision by running the house more professionally whilst also developing a number of additional areas, including:

 Increasing the number of private functions, e.g. presentations; press releases; product launches; filming and photo shoots; corporate team building events; dinner, birthday and anniversary parties; shows; exhibitions; naming ceremonies; reunions; wine tasting events; business breakfasts and musical recitals.  Offering a total wedding package including wedding receptions both in the house and within a marquee in the park. A separate marquee feasibility study has been undertaken, which conservatively estimates that 20 wedding receptions per annum could generate (after deducting costs) an additional £15,000 income. Demand for receptions in the house is very high and could realistically deliver an additional £18,000 from 20 bookings.  The house is currently registered with South West Screen and the potential is there to capitalise on this type of event. Income from this could yield an extra £4,000 based on three modest productions per year. This usage also generates interest and awareness of the venue at no costs to the Council.  If SASS were to vacate the first floor there would be an opportunity to develop the rooms into additional meeting rooms, etc. However this would be dependent upon the viability of enabling access to that floor in accordance with DDA 1995.

In addition to the above, officers would develop a long-term fund raising strategy for identified major projects. This would include, for example, seeking Heritage Lottery Funding - however in order to do this there must be clear objectives, linked to a conservation plan, for how such funding would be used

The advantages of this option would include:  Full control and management of the whole house would remain with the Council  More control over events and activities in the house, including community usage  The management of the house could be linked to the potential developments of the Guildhall providing the Council with three distinct venues for events (Upton House, The Guildhall and Branksome Dene Community Room)  The generation of additional income, which could reduce to zero the Council’s current net expenditure (£45,000)

Whilst the disadvantages may include:  Large capital bid to fund necessary improvements to infrastructure of house. Until the usage of the house has been confirmed it is difficult to produce accurate costs.  Renegotiation or termination of existing catering SLA with Social Services to ensure a more comprehensive catering provision  Opposition from stakeholders to expand more commercial usage of the house – especially wedding receptions, the idea of which has previously been contentious SECTION SEVEN

Summary

Option A has been considered by officers to be unsustainable. The house is in dire need of substantial maintenance and, to date, no capital or maintenance monies have been identified to ensure that this work is done. The income generating capacity of the house is reaching its ceiling and without the restrictions placed by current policies being lifted there is no possibility of any further development. In addition the potential move by SASS will leave the second floor unoccupied, which will result in a loss of income of £21,000 unless other tenants or uses for this space are found.

Option B would require the appointment of a consultant to investigate future development potential (without prejudice to the eventual outcome) through the procurement of a private partner to invest into and manage the house; consult with stakeholders and submit viable options to the Council. The initial cost for this would be up to £25,000 with additional costs for implementation including market testing and subsequently negotiating agreements.

Option C may require the appointment of a consultant to assist officers in drawing up a further report setting out clear proposals for the development of the house including a comprehensive business plan to include full financial projections. In order for this option to be feasible it would be essential for the whole house to be available for use with the Council having full control of the management and determination of usage policy.