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Tunbridge Wells Final Feasibility Study Report

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Tunbridge Wells Final Feasibility Study Report A FEASIBILITY STUDY FOR A NEW SHARED CULTURAL AND LEARNING HUB FOR TUNBRIDGE WELLS Kent County Council and Tunbridge Wells Borough Council November 2013 A New Shared Cultural and Learning Hub For Tunbridge Wells CONTENTS 1. Executive Summary 4 1.1. Engagement Synopsis 1.2. Needs Analysis 1.3. Financial and Business Case 1.3.1 Qualitative Analysis 1.4. Conclusions 2. Introduction and Project Objectives 10 2.1. Introduction 2.2. Aims of the Project 2.3. The Project Brief 2.4. Strategic Fit 2.5. Project Objectives 3. Key Stakeholders, Potential Partners and Needs Analysis 13 3.1. Overview 3.2. The Library 3.3. The Museum & Art Gallery 3.4. Potential Partners 3.4.1. Adult Education 3.4.2. Gateway 3.4.3. Tourist Information 3.4.4. Box Office 3.4.5. Creative Industries Development 3.4.6. Youth Service 3.4.7. Café & Restaurant 3.5. Shared Spaces & Synergies 3.6. The Tunbridge Wells Centre 3.7. Conclusions 4. Operation and Governance 28 4.1 Overview 4.2 Governance and Organisation Options 4.3 Conclusions 5. Site Analysis and Zoning Options 39 5.1. Qualitative Appraisal 5.2. Site Options 5.2.1 Evaluation Criteria 5.2.2 Sites Under Consideration 5.2.3 Conclusion 5.3 Site Analysis 5.4 Zoning and Space Options 5.4.1 Service Diagram 5.4.2 The Heart 5.4.3 How it Might Work 5.4.4 Zoning Plans 5.4.5 Shared Spaces 5.4.6 New-build and Refurbishment 5.4.7 Basement 5.4.8 Sustainability Approach 5.4.9 Flexibility in the Hub 2 A New Shared Cultural and Learning Hub For Tunbridge Wells 6. Financial Information 54 6.1. Quantitative Appraisal 6.2. Project Costs and Assumptions 6.2.1 Basis 6.2.2 Assumptions 6.3. Results 6.3.1 Overall Cost of the Project 6.3.2 Development Phase Funding 6.3.3 Ongoing Affordability in the Operational Phase 6.3.4 Risk / Opportunities 6.4. Conclusions 7. Taking the Project Forward 61 7.1. HLF Process 7.1.1 Scale of support and project assembly 7.1.2 HLF Activities 7.2. Programme 7.2.1 Budgets 7.3. Consultation 7.4. Economic Impact Assessment 7.5. Recommendations Appendices 70 Appendix A - Museum and Art Gallery - further detail Appendix B - Café and Restaurant - further detail Appendix C - Financial Model Information Appendix D - Schedule of Accommodation Appendix E – Analysis of an Updated Gateway Service in the Hub 3 A New Shared Cultural and Learning Hub For Tunbridge Wells Executive Summary 1.1 Engagement Synopsis Kent County Council and Tunbridge Wells Borough Council (“KCC//TWBC”, “the Councils”) wish to explore the feasibility of a joint Cultural and Learning Hub (“the project”, “the Hub”) which will incorporate a range of related services providing the potential for joint working. The project has a number of wide ranging objectives which can be summarised as follows: Providing a central focus for culture and learning in Tunbridge Wells, increasing the attractiveness of the existing offer and reaching a wider user base stretching beyond Tunbridge Wells and the Weald; Improving service delivery whilst providing a more cost effective service through providing more for less, and increasing the potential to attract greater levels of income, and Driving greater economic prosperity in the town. To take this project forward, on the 14th June 2013, the Councils engaged Gleeds (in collaboration with Bissett Adams and DCA Consultants) to provide an outline business case and report to demonstrate the feasibility of the project. This report sets out the findings and conclusions of the feasibility study and provides the next steps to be undertaken in order to move the project towards delivery. 1.2 Needs Analysis A key function of this report is to determine what need exists for the provision of a Cultural and Learning Hub in Tunbridge Wells. We have undertaken extensive consultation with key stakeholders which has identified a number of underlying issues with the delivery of existing services currently provided: There is a general consensus that the existing facilities and locations are broadly good for the Library, Museum, Adult Education and Gateway, however going forward there is the need for modernisation and updating to maintain competitiveness and effectiveness; There is a general need for better suited / flexible space - the Museum and Art Gallery also require additional space; Key stakeholders have identified the need for additional services that would complement / enhance the services already provided – these include highly visible display / potential retail space (which is a requirement for most services). There is also a shared need for a café / coffee shop, and There are clear synergies between a number of the services and a clear willingness among certain services to capitalise on the benefits this allows - taking all parties on this journey will be the challenge. 4 A New Shared Cultural and Learning Hub For Tunbridge Wells Market research and consultation with key stakeholders has identified that the Library, Museum & Art Gallery would be the principle services in the Hub, however a number of additional services and organisations could also be included within the Hub proposal: Visitor / Tourist Information Centre (“TIC”); Theatre Box Office; Performing arts facilities; Registration, ceremonies (fully integrated with the Library); Café, social spaces; Third party arts, heritage and cultural organisations, and Creative industries. As well as examining which traditional and arts services should comprise the Hub, there is the need to establish whether any other potential services provided by the Councils could fit into the Hub concept: Gateway could potentially be in the Hub but in the main body of this report it is assumed that Gateway is not to be included the Hub. However, an option for providing an updated Gateway sized at 40% of existing is shown in the schedule of accommodation in Appendix E. However, we have not fully integrated this into the cost model due to the uncertainty of the operational model and therefore the impact on cost. A high level of the building related impacts is set out in Appendix E; Adult Education (AE) is looking to change and operate as a separate business unit. The impact of this change and the ability of AE to afford a competitive rent at the current site needs further review as AE’s plans become clearer, and Discussions have been held with the Youth Service; the type of space being sought and the timescales, did not align with the Hub. Integrating the new services as noted above and allowing for a number of existing services to potentially vacate will give rise to a number of interesting configurations and collaborations to develop. 1.3 Financial and Business Case In terms of the qualitative appraisal, the work we have undertaken has concluded: In site terms, the existing site is by far the most appropriate as well as the preferable site in accommodating the new Cultural and Learning Hub, and Given the needs analysis (and accepting that a new build option has been ruled out - due to there being no other suitable sites), a “do nothing“ approach on the existing site will clearly not deliver against the increased / changing demand on the existing services and achieve the Hub vision. As a result, a refurbishment / extension option on the existing site is the preferred option. 5 A New Shared Cultural and Learning Hub For Tunbridge Wells 1.3.1 Quantitative Analysis We have completed a financial model for the scheme in order to perform a quantitative analysis of the preferred option. The analysis is based on the following assumptions recreated from the financial model and included in full as Appendix C of the report: Input Assumptions Current assumed Museum & Art Gallery, TIC, Box Office TWBC “occupation” of space Library KCC and associated costs, Tunbridge Wells Story / Centre Split KCC & TWBC income, risks Café / Restaurant TWBC / KCC (70:30) Creative Industries Space KCC Creative Learning Spaces KCC Capital Costs and Capital costs of £12.00m (exc. VAT) (including risk) have been Programme included based on Gleeds’ estimate and assumed to be incurred over a 2 year build period. Lifecycle Costs and Lifecycle costs have been included based on an assumed Programme recurring annual sinking fund amount of £125,000 (in practice costs would not be incurred at this rate in early/late years but this will smooth the impact) and assumed to be paid over the 25-year operational phase. Operating Costs and Operating costs as follows are assumed to be paid over the Programme: 25-year operational phase. Staffing With the exception of the Museum (see below), these have been taken from the existing budget and uplifted for inflation to the price date for the financial model of 2014/15 at an annual rate of 2.50%. No allowance has been made for the impact of new ways of working/sharing space etc. however, DCA have estimated that staffing costs (excluding the impact for any new operating model for Gateway) could reduce by a net amount of up to £100,000 dependent on the benefits from service integration that could be developed. Cleaning, Building These are charged based on occupied space at a rate per m2 Maintenance and Utilities of £8, £10 and £15 respectively. Business Rates These have been taken from the existing budget and uplifted for inflation to the price date for the financial model of 2014/15 at an annual rate of 2.50%. No allowance has been made for any betterment that could be achieved through utilising some form of Trust structure. Museum Costs These are based on a business/financial planning exercise undertaken by DCA.
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