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Charleston Trust Business Case COAST TO CAPITAL LOCAL GROWTH FUND BUSINESS CASE Project Title: The Charleston Trust Centenary Project Lead delivery organisation: The Charleston Trust Lead contact name: Nathaniel Hepburn and Emily Hill Version No: 1 Issue Date: 8 September 2017 This document provides a template for a Business Case (BC) in support of Coast to Capital’s investment in a project to be funded through the Local Growth Fund. The main purpose of the BC is to put forward the case for change and the preferred way forward identified in an internal Strategic Outline Case (SOC); which establishes the option which optimises value for money; outlines the deal and assesses affordability; and demonstrates that the proposed scheme is deliverable. In practice, you will find this entails updating the strategic case; undertaking investment appraisal within the economic case; and completing the commercial, financial and management cases, with supporting benefits and risk registers. Please note that this template is for guidance purposes only and should be completed in accordance with any guidance issued by Coast to Capital and the guidelines laid down in HM Treasury’s Green Book which can be found at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220541/gr een_book_complete.pdf The OBC should cover the 5 cases – the Strategic case, the Economic case, the Commercial case, the Financial case and the Management case. Business cases should be robust and well evidenced documents as the Business Case will be evaluated based upon content if called to present. Coast to Capital Disclaimer There shall be no expectation of grant payment unless and until a funding agreement is signed by both parties. All the Applicant’s costs and charges incurred as a result of making this application shall be for the Applicant’s account and cannot be claimed as part of the project except where feasibility funding has been prior awarded. 1. Executive Summary 1.1) Overview of the project including what opportunity or barrier the investment will unlock: Charleston – ‘a Small Museum of National Importance’ In over thirty years since from opening its doors to the public in 1986, Charleston has developed from a community project concerned with the restoration and preservation of cultural heritage into a thriving and growing museum of national importance. The seventeenth century farmhouse – located around seven miles from Lewes – hosts a collection of artwork and artefacts of unique cultural and historical significance. In July 2016 it was named by The Times as one of Britain’s 25 Best Small Museums. With almost 15 million people within its 120-minute drive-time catchment, Charleston is recognised as one of the key developing visitor economy assets for Greater Brighton and the wider Coast to Capital region. Charleston is the Bloomsbury home of art and ideas – the residence of two of Britain’s best twentieth century artists, Vanessa Bell and Duncan Grant, for over 60 years from 1916 to Grant’s death in 1978. As the country retreat of the Bloomsbury group it hosted some of the century’s most influential thinkers and writers, including Virginia and Leonard Woolf, T.S. Eliot, Lytton Strachey, E.M. Forster and John Maynard Keynes. Today the three key permanent attractions at Charleston attract 35,000 visitors a year and generate an estimated £3m spend in the local economy: The House – a seventeenth century farmhouse decorated and furnished by Bell and Grant. The collection – including Bell and Grant’s work alongside pieces by Renoir, Picasso, Derain, Matthew Smith, Sickert, Stephen Tomlin and Eugene Delacroix. The Garden – “a quintessential painters’ garden” designed by Roger Fry for Bell and Grant. In addition, for the last 29 years, Charleston has hosted one of the UK’s leading literary festivals and is home to Small Wonder, one of the UK’s most important short story festivals. However, current visitor capacity and limitation of facilities mean that Charleston operates restricted opening times – five afternoons a week between April and October – significantly constraining visitor numbers, revenue generation and business growth. The Charleston Trust Centenary Project The Centenary Project aims to preserve Charleston’s heritage, enhance the Trust’s economic and cultural role, and expand the site to achieve a sustainable financial future. A two-phase £7.6m capital project is nearing completion – which will step up the scale of the Trust’s work and its impact – at a time when the attraction is operating at 93% visitor capacity. However, as the project is majority funded from charitable donations, the Trust has a shortfall of £400,000 to complete the project – fit-out of the new build and refurbished buildings and completion of a new retail space. The completion of the works will provide the potential for a third phase at a later date; the design and funding of which is currently being explored. The initial investment will increase capacity by at least 15,000 visits to 50,000 per year. The Trust has already raised £7.194m – 94% of the estimated construction cost – including £4.52m of private sector investment, for example from the Garfield Weston, Wolfson and Rothschild Foundations, and £2.7m from the Heritage Lottery Fund (HLF), Arts Council England and the South Downs Sustainable Communities Fund. Through extensive fundraising efforts and grant applications, all current potential sources of funding to enable the completion of the project have now been exhausted. The Centenary Project will enable year-round operation, extending the visitor season and improving the visitor experience; unlocking significant revenue streams for the Trust. In the past small exhibitions have taken place in the shop but its lack of museum conditions has prevented the Trust’s ability to loan from arts institutions. With a dedicated exhibition gallery, Charleston will be able to show much more of its collection, as well as its dedicated temporary exhibitions and touring works, adding a third entrance fee to the current House and Garden options. The Centenary Project also allows the Trust to expand its education and learning programmes, utilising the capacity provided by the larger café, the auditorium and new outdoor public spaces. The programme is currently constrained to times when the House is closed. The refurbishment of the barns will raise the capacity of each workshop, as well as allowing the simultaneous use of the House and new Café. A new Auditorium will be a flexible space, available for venue hire, able to hold lectures, artistic performances and film screenings. The Trust’s current commercial operations will benefit from increased footfall but will also be a draw in their own right – the local crafts, ceramics and fabrics on offer in the shop have been endorsed by the British Craft Council and British Vogue magazine, and the Café/restaurant will be in a restored listed barn. 2 This broader offering will draw greater numbers to Charleston for cultural, educational and leisure purposes. By extending East Sussex’s cultural tourism offer, there will be greater dwell time in Lewes and the surrounding region, increased visitor numbers, day visitor spend and overnight stays. Overnight visitors from other parts of the UK spent £360.9m in East Sussex in 20151. The completion of Phases 1 and 2 of the Charleston Centenary Project will enable the final transformation Charleston into a unique cultural visitor attraction, extending the quality and range of visitor facilities whilst sustaining and preserving itself for future years. The project has involved the following works: rd A new contemporary building to host some of Increased revenue from addition of 3 Exhibition gallery Charleston’s collection and touring exhibitions – entrance fee option alongside House and three exhibitions per year Garden. Also frees capacity in the shop Research studio A new studio to host the Angelica Garnett Gift Provides facilities for art history research collection and accommodate researchers Protects Charleston’s artistic and cultural Collection store New building adjacent to the gallery to provide proper environmental storage and security heritage – whilst allowing access for research Visitor facilities New and redeveloped facilities including Enhanced visitor experience and accessibility interpretation areas and WCs Conservation work and construction of 200 seat Facilitates the expansion of Charleston and Hay Barn Auditorium in Grade II listed barn as a flexible Small Wonder literary festivals Auditorium space, available for hire, capable of hosting New revenue stream from venue hire lectures, artistic performances and film screenings Increased revenue generation and capacity Conservation and redevelopment of Grade II Threshing Barn for educational and outreach programmes listed barn as a new café-restaurant with and large events. café-restaurant additional capacity and kitchen space for expanded catering operation New revenue stream from venue hire Expanded and improved shop, which also Increased revenue generation capacity and Shop operates as a local concierge service, tourism support for place-making and the wider visitor advice point and box office economy Allows for Charleston to increase its staff Re-developed and expanded office facilities both capacity and improved efficiency in enhanced Offices in terms of facilities and IT infrastructure facilities. We will also be able to update all elements of our digital work, bringing in new A strategic investment by Coast to Capital will make a significant contribution and enable the completion of this project. We are asking for £400,000 which will enable the completion of new quality physical facilities to meet the needs of future visitors. Fully aligned with the priorities of Coast to Capital’s business plan and the East Sussex Growth Strategy, and reflecting many of the assets of East Sussex, Charleston attracts a loyal and relatively high-spending audience that generates an estimated £3m spend in the local economy. Research undertaken by TSE Research on behalf of the Trust has assessed the economic impact of the uplift of visitor numbers following completion of the Centenary Project using the PRIME – Project Impact Evaluation model.
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