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East Ayrshire Council Council 27 June 2013

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East Ayrshire Council Council 27 June 2013 EAST AYRSHIRE COUNCIL COUNCIL 27 JUNE 2013 SCOTTISH GOVERNMENT REGENERATION CAPITAL GRANT FUND Report by Acting Executive Director of Neighbourhood Services PURPOSE OF REPORT 1. The purpose of this report is (i) to provide Council with details of the recently launched Scottish Government Regeneration Capital Grant Fund (RCGF); (ii) to seek agreement on the projects for which the Council should submit grant applications under the fund; (iii) to seek agreement in principle as to the level of financial support from the Council for each project to be submitted and (iv) to seek agreement as to the priority that should be given to each grant application. BACKGROUND 2. The Scottish Governments (SG) Achieving a Sustainable Future: Regeneration Strategy was launched in January 2012. It sets out as its vision:- “A Scotland where our most disadvantaged communities are supported and where all places are sustainable and promote well-being.” 3. Achievement of the vision relies on a wide range of supporting outcomes being delivered. The supporting outcomes are not unique to regeneration and many cross over into wider government policy, including economic development, policy and place making, education and skills etc. It is where there is a persistent and concentrated absence of these outcomes being delivered that additional intervention is required. 4. The vision points to a need for a coordinated approach across the public, private and third sectors, alongside community led action. The Regeneration Capital Grant Fund (RCGF), has subsequently been developed in partnership with local authorities‟, and will provide financial support to projects that will deliver large scale positive improvements to deprived areas. It will focus on projects that engage and involve local communities and those that can demonstrate the ability to deliver sustainable regeneration outcomes. SCOTTISH GOVERNMENT REGENERATION CAPITAL GRANT FUND 5. The Scottish Government opened its Regeneration Capital Grant Fund on the 31 May 2013. In the first year, April 2014 to March 2015, £20.5m is available to support projects from eligible organisations. Subject to the budget review process it is anticipated that up to £21.5m will be available for 2015/16. The fund is open to all 32 Scottish Local Authorities individually or whether they exercise their functions through Urban Regeneration Companies (URC‟s) or other Special Purpose Vehicles (SPV‟s). First stage applications must be submitted by 5:00pm Friday 28 June 2013. The fund is primarily aimed at providing new and/or improved infrastructure to enhance the economic, social, and physical environment of communities. The applicant must demonstrate that any submitted project fits with the aims and objectives of the fund and can demonstrate clear regeneration outcomes in line with Achieving a Sustainable Future: The Regeneration Strategy. The fund will focus on projects that: . Address areas with high levels of deprivation and disadvantage . Will deliver large scale transformational change . Can lever in private sector investment . Demonstrate clear community involvement 6. Key features of the fund comprise: There is no limit to the number of bids that may be submitted by any organisation. Multiple bids must however be prioritised. A two stage application process is being operated. It is anticipated that the outcome of stage 1 will be issued to applicants in August 2013. The money must be spent between 1 April 2014 and 31 March 2016. Projects must be on-site during 2014. 100% of the project cost may be applied for. However, leverage will be considered in the assessment of applications, in terms of either contribution to a wider programme or within the project itself. It is primarily a capital expenditure fund, however direct project management costs may be considered on a case by case basis. 7. The assessment process will involve: i. Stage 1 – 28 June 2013 applications must meet the basic aims of the fund, but will not be formally scored. The final list of projects progressing to stage 2 will be determined by the Regeneration Capital Grant Fund Investment Panel. ii. Stage 2 – October 2013 applications that progress to stage 2 will be assessed against: 1. Viability (10%); 2. Community involvement (15%) 3. Regeneration outcomes – physical (30%), economic (25%), social (20%) 8. Stage 1 applications require:- Project start date –on site during 2014 Project completion date – prior to April 2016 Project priority, if submitting multiple projects Total estimated cost of any wider regeneration activity to which it contributes Total spend on the specific activity to which this grant will contribute Sources of other funding, grant, loan investment contributing to spend on the project. How much RCGF is requested. Breakdown of proposed grant spend – consistent with start and completion dates. Identification of an identified Project Officer plus one additional contact. Project summary to cover - what the project will deliver, timescales, objectives, target groups, geographical coverage, partnership, community involvement, economic, social and physical regeneration outcomes, any additional financial contributions and the potential for wider regional impact. The project must also identify how it will benefit disadvantaged communities. 9. It is suggested that two distinct projects should be considered for support under the fund. These are Hill Street (the former Diageo Bottling Plant site) and Glaisnock Centre, Cumnock. Both projects fully meet the eligibility criteria of the fund as detailed in paragraph 5 above and in particular will provide new and improved infrastructure to “pump prime” the sites for further transformational development. In addition both projects will also help to deliver key elements of the Council‟s strategies for Kilmarnock and Cumnock town centres. In particular the re-development of the Hill Street site is highlighted in the Kilmarnock Integrated Urban Development Plan as a crucial component to revitalising the town economically, socially and physically. Finally both projects are consistent with the Council‟s comments on the third National Planning Framework Main Issues Report. Details of both projects recommended for submission under the RCGF to unlock their redevelopment are provided below. HILL STREET, KILMARNOCK 10. Planning Permission In Principle (ref 11/0242/PPP) for a „Mixed use development inclusive of further education college, residential, care home, business, small scale retail, hotel, public house, restaurant, cafe and crèche/nursery‟ was approved, with conditions, for the overall former Johnnie Walker site at Hill Street, by Full Council on 23 June 2011 following consideration by the then Northern Local Planning Committee on 15 June 2011. 11. Planning Permission in Principle (ref 12/0883/PPP) for „Proposed college campus development and detailed approval for upgraded access road from Hill Street to College site, location of College building zone and sports pitch/car parking zone, and maximum height of College building‟ was approved with conditions for part of the Hill Street, Kilmarnock site by full Council on the 16 May 2013, following consideration by the Planning Committee on the 19 April 2013. 12. The Klin Group has an exclusivity agreement with Diageo PLC over the ownership and intended redevelopment of the 23-acre town centre site at Hill Street, adjoining the proposed new Kilmarnock College. Their proposed “Halo” Project comprises the development of two areas of ground to the North & South of Balmoral Road extending to approximately 10 and 13 acres respectively. Local consultations on Klin‟s proposals commenced on 5 June 2013 to explore the feasibility and detail of what the Klin Group propose for the site. 13. The Klin Group‟s preliminary vision for the site is a dynamic new hub that will extend and complement Kilmarnock with an emphasis on linking education, health, community sports and culture. The anchor element will be a 7000-8000 seat arena that would provide a year round, all weather, venue for sporting, conferencing and entertainment events. The arena would include a range of retail/commercial/leisure facilities to ensure its sustainability and drive a new economy for Kilmarnock, serving a much wider area with facilities unique in Scotland. 14. The hub would include an Enterprise Gateway to provide premises and facilities for enterprise, entrepreneurs and start-up businesses. There will be a strong focus on developing key international business links. As well as stimulating employment generation and trade the international dimension would also provide unique linkages with the education, health, tourism, sport and culture elements of the development. 15. The Klin Group has identified demand for a 100 bed 4 star hotel, and a need for a football based regional youth facility. With this in mind a hotel and community facility accommodating one all-weather and one grass pitch and associated ancillary building are included in the proposals. Improved links to the railway station and Kilmarnock town centre are also proposed. 16. Everything Klin have in mind would link into the work of Kilmarnock College, in particular, and local schools in general and would seek to inspire and support local sports and cultural groups. 17. The Klin Group have established a not-for-profit company to take forward the development (Landmark Projects Ltd.) and have recently appointed lead architects to develop design proposals. The following is an indicative programme of anticipated timescales: Exclusivity agreement
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