Newhaven Fort

Feasiblity Study Report May 2012

Barrie Tankel Partnership (BTP)

2.0 Stage 1 Quotation We would anticipate our main role would be the Our lump sum fee for the above scope of services provision of construction cost advice and overall is in the sum of £3,500 excluding VAT and travel development cost management. We would also costs. advise on project and building programme time frames, procurement options and risk proﬁles of Travel would be charged at cost plus 10% for using the project. public transport or £0.55/mile if car is used.

Payment arrangements Monthly. 3.0 Stage 2 Quotation We would be happy to provide a lump sum quotation Professional Indemnity for stage 2 following agreement of a brief. We carry PII cover up to £5m. A copy of confirmation Should services be required on a day rate these of cover is attached. would be charged as follows – Note all rates exclude VAT and disbursements. References 1. Mr Peng Loh [email protected] 2. Norman Reed – [email protected] Director ...... £700/day Associate ...... £550/day We anticipate the stage 1 process to take place Surveyor ...... £400/day over a 3 month period and have based and resourced our cost consultancy fee on this basis. We have assumed that we will be required to provide up to 3 cost plans, our fee will include for value engineering proposals. We envisage providing initial programme and procurement advice and will summarise all other peripheral cost including consultant cost should this service be required. Due to the fairly extended 5 year work plan further consideration should be given to the effects inflation may have on the budget and an assessment made on this basis.

Newhaven Fort Feasibility Study 5 Lewes District Council Approaching Newhaven

Newhaven Fort Barrie Tankel Feasiblity Study Report / May 2012 Partnership (BTP)

Newhaven Fort Feasibility Study 5 Lewes District Council Table of contents

EXECUTIVE SUMMARY p. 05

CURRENT SITUATION p. 11

POTENTIAL LOCATIONS FOR ADDED PROGRAMMES p. 17

MARKET TESTING p. 21

DEVELOPMENT OPTIONS p. 25

FINANCIAL ASSESSMENT p. 31

PROPOSED DEVELOPMENT OPTIONS p. 35

RECOMMENDATIONS AND NEXT STEPS p. 65

APPENDIX p. 69

Context p. 71 Current Situation p. 81 Museum Enhancement p. 85 Potential Locations for added programmes p. 99 General Case Studies p. 111 Typological Case Studies p. 125 Market Testing p. 135 Development Options p. 169 Funding Sources p. 191 Initial Cost Analysis p. 203

Newhaven Fort Barrie Tankel Feasiblity Study Report / May 2012 Partnership (BTP)

Newhaven Fort Feasibility Study 5 Lewes District Council EXECUTIVE SUMMARY

Background In 2010/11, just over 32,000 people visited Newhaven Fort In October 2011, Lewes District Council commissioned a producing ticket sales of around £103,000. A significant study to “Test the market and deliver a range of possible proportion (32%) of visitors were return visitors/ season development and improvement options (for the Fort)” to find ticket holders. a commercially viable future. Following this Lewes District Council would develop a business plan to take forward the Currently, the Fort is owned and managed by Lewes preferred option, including developing funding applications District Council, It employs five full-time staff and a further where this is considered necessary. four part-time staff during the visiting period from March to October. This report sets out the findings from the study and presents four options for Lewes District Council to consider Financial forecasts for 2012/13 indicate that it is expected to secure the future viability of the Fort. to make a loss of around £197,000 on a turnover of £186,000. Furthermore, there needs to be significant About Newhaven Fort investment to improve its facilities if it is to become a high Newhaven Fort is the largest fortification in Sussex and was quality visitor attraction that can also host year round built in 1871 to defend the growing harbour at Newhaven. events. It was a vital element of Britain’s coastal defences during two world wars before being decommissioned in the Employee costs are considered to be high and £207,000) 1960’s. It is a are projected to exceed the level of projected income in Scheduled Ancient Monument and it is now one of 2012/13. However, the marketing and promotional Newhaven’ s main visitor attractions and a venue for local budget (£9,500) is low. Given this and the pressure on and community events. its finances, Lewes District Council needs to consider options to ensure that the long-term future of the Fort and It has five main elements: to ensure that it can support the wider regeneration of • 15 full-sized Casemates and an additional large room Newhaven. located on the northern side of the Parade Square (1558.2 m2) In addition to its current role, Newhaven Fort could host a • The Parade Square (2431.3 m2) wider range of events, provide educational facilities, be a • The Hilltop (3,600 m2) location for a range of commercial activities, be used as • The Carponier (88.6 m2) a film location, and/or be used to provide hotel or visitor • The Moat (1822.6 m2) accommodation.

Newhaven Fort Today Development Options The Fort is an important monument to Newhaven’s military Following a stakeholder consultation and market testing history and a significant focal point for the town. It houses exercise this study has identified three main development a museum and a café, and is open to the public between options for Newhaven Fort, mindful of the heritage and March and October each year. educational services that the Fort currently provides.

Newhaven Fort Barrie Tankel Feasiblity Study Report / May 2012 Partnership (BTP)

Newhaven Fort Feasibility Study 5 Lewes District Council A fourth option has considered the option of “mothballing” Some funding could come from a range of sources, the premises or keeping the Fort in its current status with including the Heritage Lottery Fund; income from minor changes, and postpone development. additional events and attractions; increased ticket prices; corporate sponsorship; and leasing part of the Fort (the Option 1: Battery Command) to the Landmark Trust for holiday let Improved Museum and Visitor Attraction – Maintain the accommodation. However, some upfront costs are likely to Status Quo: Lewes District Council to Own and Operate the have to be borne by Lewes District Council. Site This Option could increase income from Fort activities to Option 2: around £505,000, generating a profit of around £19,000 Mixed Use with Reduced, Improved Museum with per year. It would be retained as a publicly owned asset Commercial Uses) Lease Part(s) of the Site to Third Party and its position as a significant visitor attraction would Operator(s) be secured. However, it would require significant upfront investment, with modest financial returns projected over Option 3: the short to medium term at least. Commercial Uses Only - Long term Lease or Sell the Freehold Option 2: Mixed Use with Reduced, Improved Museum with Commercial Uses) Lease Part(s) of the Site to Third Option 4: Party Operator(s) Minor Changes – Maintain the Museum as Current with Minor Changes Under this option, Lewes District Council would continue to own the museum and visitor attraction elements of Each of these options is considered in more detail below. the Fort, which would be concentrated into a smaller area, releasing the casemates for a range of commercial uses. The Battery Command Post) would also be let to the Option 1: Improved Museum and Visitor Attraction – Landmark Trust on a long-term lease (as in Option 1). Maintain the Status Quo: Lewes District Council to Own and Operate the Site This would require re-organising its museum elements, so that they were concentrated in the east of the Fort, freeing Under this option, Lewes District Council would retain up 1000-1200 m2 of space for commercial uses, which ownership and management of the Fort. It would require could include arts studios; youth hostel accommodation; significant upfront to improve its facilities and to integrate educational facilities; retail units; space for outdoor and/ under-used elements of the Fort into the attraction. or cultural activities. This option would need a significant Such an investment could position Newhaven Fort as a upfront investment, but could increase annual revenue to significant, year round location for events, such as music around £655,000, generating an annual profit of around concerts; military tattoos; festivals; arts and crafts fairs £97,000. and corporate and/or educational events, for example.

Newhaven Fort Barrie Tankel Feasiblity Study Report / May 2012 Partnership (BTP)

Newhaven Fort Feasibility Study 5 Lewes District Council As with Option 1, it may be possible to secure some of In both Options 3a and 3b, detailed specifications could be the funding through the Heritage Lottery Fund, increased developed to ensure that the facility continued to operate ticket and event sales, revenue from commercial lettings as a museum and visitor attraction as a condition of the and revenue from a long-term lease to the Landmark sale or lease. Trust. However, it is also likely to require significant upfront costs.

Option 3: Commercial Uses Only - Long term Lease or Option 4: Minor Changes – Maintain the Museum as Sell the Freehold Current with Minor Changes

Lewes District Council would divest all or large parts of its Under this option, Lewes District Council would retain responsibilities for the Fort to a Third Party to provide a ownership and management of the whole Fort and mixed use facility. There are two sub-options within Option investment decisions would be delayed until there were 3: more favourable economic conditions. 3a) Lease the whole site on a long term lease Under this scenario, the Fort would be leased on a long- Closing or ‘mothballing’ the Fort would reduce the annual term lease as a visitor attraction. Market testing for this projected losses and negate the need for investment to study suggests that there would be interest in a long-term upgrade the facility in the short term, at least. leasehold. All costs associated with improvement works and site management would be the responsibility of the Alternatively, the Fort could remain open, with significant leaseholder and annual rental income could be expected cost savings made through a modest investment in to be in the region of £50,000 per year. A further option facilities, changes to the management of the Fort, more within Option 3a would be to retain elements of the Fort (for effective marketing, and creating better links with other example, the Caponier and Lunette Battery) as a museum organisations, such as the Imperial War Museum. under the management of Lewes District Council. Investment could be matched by funds from the Heritage 3b) Sell the freehold of the whole site Lottery Fund and the option to lease part of the Fort to Under this option, Lewes District Council would sell the the Landmark Trust for holiday let accommodation would freehold of the Fort, meaning that the District Council remain. would relinquish its responsibilities for the management and finances of the Fort. Both these options would cut the Fort’s annual losses to No estimate has been provided for the likely market value Lewes District Council, but they could restrict or remove of the Fort, but there would be some costs associated it from having a potentially important role as a catalyst with the sale and transfer of the assets. Whilst this option for regenerating Newhaven and could lead to a further would relieve the District Council of the on-going costs degradation of the facility. of managing and upgrading the Fort, it would mean that Newhaven Fort would cease to be a a publicly owned and operated facility.

Newhaven Fort Barrie Tankel Feasiblity Study Report / May 2012 Partnership (BTP)

Newhaven Fort Feasibility Study 5 Lewes District Council Recommended Option: Option 3a, (Leasing the Site on a Long Term Lease)

Newhaven Fort is an important symbol of Newhaven’s history and remains a key local asset. Given its position within Newhaven, its potential to be a part of a wider programme of regeneration within the town and its historical significance, it should be retained, at least in part, as a museum and visitor attraction with some form of public access.

However, it is currently making a significant annual loss and it will require considerable investment to upgrade the Fort into the high quality visitor attraction that it could become. Whilst some of this investment may come from leasing parts of the site and through successful grant applications from the Heritage Lottery Fund, for example, much of the cost may fall to Lewes District Council at a time when public finances are tight.

Option 3a, (Leasing the Site on a Long Term Lease), so that it is run as a visitor attraction, is the recommended option. This option divests Lewes District Council from the day to day responsibilities and costs of maintaining and managing the site, reduces the District Council’s statutory requirements associated with maintaining a Scheduled Ancient Monument, and preserves its heritage and educational qualities.

A careful drafting of the tender specification is crucial to obtaining viable interest, whilst retaining the site open to the general public on key dates throughout the year. This option enables revenue to be generated through a long- term tenancy agreement, whilst retaining an overview of the site’s development as part of Lewes District Council’s planning policy.

Newhaven Fort Barrie Tankel Feasiblity Study Report / May 2012 Partnership (BTP)

Newhaven Fort Feasibility Study 5 Lewes District Council