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Public Document Pack ARGYLL AND BUTE COUNCIL Argyll & Bute Council DEVELOPMENT & ENVIRONMENT 2 May 2002 CAMPBELTOWN COMMUNITY PROJECT 1. SUMMARY 1.1 This report supplements the reports recently considered by the Mid Argyll, Kintyre and Islay Area Committee in relation to:- a) The Campbeltown Community Project b) The Burnet Museum Project, Campbeltown 1.2 There is an imperative to immediately progress this project to the design stage or risk the loss of major partnership and added value funding opportunities of up to £4 million pounds. 2. RECOMMENDATIONS 2.1 That the recommendations contained with the Campbeltown Community Project and Burnet Project Reports be approved. 2.2 That the consultants for the Campbeltown Community Project be contracted to proceed with the project and that a further report be submitted at the end of Stage E of the process. The cost of taking the project to stage E in professional fees is £191,800 (see appendix). 2.3 That a Member/Officer Working Group be established in order to progress the funding package for the programme and that this group meets at an early date with a view to reporting back to the Council with recommendations. 3. BACKGROUND As outlined, both projects have completed feasibility stage and the Area Committee has accepted the recommendations. In order to meet the project timescales, the most important of which is to meet the funding agencies deadlines, applications must be prepared over the summer. These cannot be submitted until planing permission has been granted and land ownership confirmed. The recommended site for the community project is in Council ownership. This gives a significant boost to the financial position of Council and gives credibility to the grant applications. The Burnet project cannot be started in full prior to the completion of the community project in Spring/Summer 2004. This 2-year period is the estimated timescale for obtaining funding from Heritage Lottery for the Burnet project. Approval for the architects to proceed at an early date is therefore essential to the implementation of the project. 4. DETAIL 4.1 PROPOSED CAPITAL FUNDING ARRANGEMENTS Funding Agencies (Capital) It is estimated that the capital cost of the project will be in the order of £5,750,000, including fees and internal fittings. The professional fee element of the project is attached. 4.1.1 Objective One Transitional Programme It is unlikely that funding would be forthcoming for a single element of the project. As the project involves a number of different but related elements of a community £825,000 nature it is regarded as a good example of joined up working and partnership activity which would be likely to receive an estimated15% of project costs at around £825,000. Applications require to have ownership and planning permission approvals in which case an application should be submitted in the very near future. Ongoing discussions with the programme Convenor and Director have indicated that, in principle, the figure indicated would be a reasonable expectation assuming other funding is confirmed. This figure is based on a £2million contribution from the Council. 4.1.2 Sportscotland Following discussions with Sportscotland, the figure forthcoming is likely to be £700,000 based on a two-stage application. However, there is also the opportunity to £700,000 apply for additional funding in relation to specific elements of the project e.g. playing fields (which are not included in the current costing estimates). This is under discussion. Given the timescales involved the stage one application will require to be submitted immediately. Ongoing discussions are taking place with senior officials from Sportscotland. This figure is based on a £2million contribution from the Council. 4.1.3 Argyll and the Isles Enterprise (AIE) Discussions are ongoing with the Agency who have been kept involved in the ongoing project and invited to project meetings. The Council recently responded to their Currently business plan and from that it would not be unreasonable under to seek a contribution to the project under the key priority negotiation of strengthening communities. At this stage they have not committed to the project but are actively considering a study on the future of the urban site and have indicated that they would also consider, without prejudice, an application for small scale partnership match funding. 4.1.4 Lottery Funding (New Opportunities Fund/Arts Council) It is intended to pursue applications to both organisations, To be and in particular to the various strands of the New discussed Opportunities Fund (NOF). The first strand of NOF funding has been released directly to Councils and involves sport in education and for the community generally. The Council will require to view this in accordance with Strategic Priorities, of which Campbeltown and South Kintyre is high. Other funding will require separate applications to be made directly to NOF. A sum of £802,000 has already been allocated to Argyll and Bute Council and a proportion of this would be eligible for the Campbeltown Community Project. It is recognised that other projects will also be eligible and the sub-group on New Opportunity Funding will consider reports in respect of all projects. The second and third strands of this programme, relating to energy management, health, child-care, transforming communities and other detailed programmes will be introduced in the current year. Arrangements are currently being made with all NOF funding agencies to hold a seminar in Campbeltown within the next month with a view to co- ordinating NOF participation in the project. 4.1.5 West of Scotland Water Legal action is being considered with a view to possible Information compensation in respect of works carried out adjacent to awaited the former swimming pool but further information is being sought before a final recommendation can be made. 4.1.6 Argyll and Bute Council The former Policy and Resources Committee on 15 February 2001 agreed an addition to the Capital Current Programme of £300,000 and also agreed that a further Council £1,465,000 be noted for inclusion in the draft Capital funding Programme for 2002-2005 for this project, when it was £1,099,000 brought forward for consideration. These additions, when agreed and added to the provision already in the Programme at that time, would give a total allocation to this project of £2,000,000. This provision was fully included in the most recent Economic Development, Tourism and Leisure Service Plan. In the currently approved Capital Programme, however, there is a total of only £1,099,000 as a sum £901,000, shown in the Service Plan as an Additional Bid for 2004- 5, but is not included in the current Capital Programme. Consideration of inclusion of this sum must be addressed in the context of the 2004/5 Capital Programme to fully fund the Council contribution to the project. 4.2 PROPOSED REVENUE FUNDING ARRANGEMENTS Revenue Implications for Council An initial assessment has been made with regard to the Revenue costs to run the new facility. Having regard to existing similar facilities it is reasonable to assume that the revenue subsidy costs will be in the order of £500,000 (2004/05) to operate this multi- functional community facility. The Burnet project would not come on stream until 2005/06 with a running cost of £80,000. Revenue Source for Project in 2004/05 The revenue budget for Campbeltown Swimming Pool was taken by the Council as a saving in 2001/02 and is therefore not available to count towards the projected revenue costs. There are a number of possible contributors to the overall revenue costs of operating this facility, but the Council will require to identify monies from within the revenue budget from 2004/05 onwards to operate the project which will require savings elsewhere. The identified sources are: 4.2.1 Victoria Hall, Campbeltown As indicated in the main report the disposal of the Victoria £65,000 Hall would release £65,000 per annum of existing revenue costs. 4.2.2 Library The library budget is currently £60,000 and this is regarded as a contribution to the Campbeltown £60,000 Community Project. 4.2.3 Reprioritisation of 2004/05 Revenue budget It is envisaged that efficiencies will be created as a result of a review of service Delivery and the Revenue Budget £75,000 with appropriate savings in the Revenue Budget £200,000 contributing to operational costs. OTHER POTENTIAL REVENUE FUNDING 4.2.4 Healthy Living Centre Project This five-year contribution is currently under consideration and £30,000 per annum has been indicated £30,000 as a targeted contribution. The result of the NOF application should be known in June. 4.2.5 New Opportunities Fund A total of £444,000 has been allocated to Argyll and Bute Council for an initial period of three years, with the To be revenue stream being allocated in accordance with the discussed project timescales and phasing. The New Opportunities Fund subgroup should be requested to give consideration to funding for the Campbeltown Community Project in view of its strategic priority. 4.2.6 Education Due to the importance of health and sport as part of the curricular activities for school children in South Kintyre To be there may be partnership funding from the Education discussed. Service. There is an absence of facilities of the proposed standard and the intention of the project is to provide an inclusive service to school children and the wider community. It is suggested that Education give consideration to making a contribution to the Revenue Budget given that in the catchment area there are approximately 2000 children. ADDITIONAL REVENUE FUNDING £30,000 TOTAL REVENUE FUNDING (Including funding of £200,000) £230,000 A provisional estimate of £500,000 revenue funding for this project is included in the approved Economic Development, Tourism and Leisure Service Plan.
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