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Project Proposal – the Plough

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Project Proposal – the Plough PROJECT PROPOSAL – THE PLOUGH Presented by The Plough Pub Potten End C.I.C. 8th August 2020 Project Proposal – The Plough 1 Disclaimer – Important – Please Read This is a document for distribution to friends and family of members and directors of The Plough Pub Potten End Community Interest Company (C.I.C.); it is issued to high net worth or sophisticated investors only. It is not for public promotion and is not to be regarded as an FCA approved regulated investment. We, The Plough Pub Potten End C.I.C., maintain a record of anyone who has been invited to read this document as part of our recording system. This document contains statements concerning the financial condition, operation and business of The Plough public house in Potten End and speaks only as of the date of preparation. Therefore, changes in events, fact patterns, conditions or circumstances related to any such statement may make it inaccurate, incorrect, or materially different. Although The Plough Pub Potten End C.I.C. believes that the expectations reflected in such statements are reasonable, these statements are not guarantees of future performance and are subject to a number of risks and uncertainties and actual results. As such, performance and events could differ materially from those currently being anticipated, expressed or implied in such statements. In particular, nothing in this document should be construed as a profit forecast. This document does not constitute or form part of any offer or invitation to purchase any securities of any person nor any offer or invitation to sell or issue, nor any solicitation of any offer to purchase or subscribe for, any such securities. Project Proposal – The Plough 2 Executive Summary We, The Plough Pub Potten End C.I.C., are delighted to bring a new and exciting project to the residents of the Nettleden with Potten End parish and highlight the opportunity to support The Plough Pub Potten End C.I.C.’s plan to purchase The Plough Pub by making a personal loan towards the project and becoming a member of The Plough Pub Potten End C.I.C. The total project cost is estimated to be £750,000, which is intended to be used to complete the purchase and refurbishment of The Plough in Potten End. A fixed rate of between 2% ~ 4% per annum will be paid against personal loans. This project’s primary aim is to save the loss of The Plough as a public house and consequently to avoid its change of use into a residential dwelling. As with all development projects however, it is necessary to have multiple exit strategies in order to mitigate risk and to protect loaned funds. Business Objectives 1. To offer fixed rates of between 2% and 4% per annum. 2. To re-invent The Plough in Potten End as a venue of choice that benefits as wide a spectrum of the community as possible and creates a genuinely community owned and led asset – a community hub, not just a community pub. 3. To ensure we continue to have the option of The Plough as a public house within our village. 4. To prevent the loss of an amenity that could result in the village becoming a less desirable place to live and potentially see a decrease in local property values as a result. 5. To ensure the project has a minimum of 2 exit strategies to mitigate risk and protect loaned funds. 6. To leverage the best talent and skills to ensure the project is delivered on time and on budget. 7. To create a win-win scenario for all stakeholders involved in the project. Project Location The Plough in Potten End is situated on the corner of Plough Lane and The Back, opposite the Spencer Holland recreation ground and with residential dwellings to either side and the rear. The building consists of a local public house on the ground floor and living accommodation (including kitchen and bathroom facilities) on the floor above. To the rear of the building, there is a good-sized garden area which is currently accessed both from the rear of the public house and via a side access from the front of the property. The site is located in the original centre of Potten End and has operated as a public house since the 17th century. There is a mixture of terraced, semi-detached and larger detached dwellings in the vicinity together with the local school and two local public houses (Martins Pond and The Alford Arms) within walking distance. Potten End is served by a bus service which links to other villages close by, as well as to Hemel Hempstead and the market town of Berkhamsted, just 2 miles in either direction with their direct train link (approximately 30mins) to London Euston. Project Proposal – The Plough 3 Project Background The Plough public house was registered as an Asset of Community Value (ACV) on 2nd July 2018. Under the terms of Section 95(2) of the Localism Act 2011, it is necessary for the owner of a property listed as an ACV to give notification of any intention to sell. This is to give the local community a six-month moratorium with the opportunity to purchase and continue operation of the ACV before the property and land can be sold on the open market. On the 13th May 2020, dacorum Borough Council (DBC) wrote to the Nettleden with Potten End Parish Council informing it that the owner of The Plough public house in Potten End wished to enter into a ‘relevant disposal of the land’. The Parish Council then duly informed the local community of Potten End via various channels including social media. Following the notification from the Parish Council, a change of use application (reference no. 20/01195/FUL) was submitted to the planning department of DBC on the 16th May 2020. These events spurred a group within the local community to form The Plough Pub Potten End C.I.C. (Company number 12678625, incorporated on 18th June 2020) in order to request the full moratorium period and to explore the possibility of purchasing The Plough as a community asset. If The Plough Pub Potten End C.I.C. are unable to secure the purchase of The Plough within the six- month moratorium (which expires on 11th November 2020), the property and land can thereafter be sold on the open market. This could result in the pub being acquired by a developer from outside the village who would probably view the property mainly from a profitability and residential development opportunity perspective. As such, the benefit and amenity of the pub to the local community would be lost. Further to the situation with The Plough public house, a planning application (reference no. 20/01478/FUL) was submitted to DBC on the 12th June 2020 for the change of use from Class A4 (Drinking Establishment) to Class C3 (Dwelling House), including internal alterations, for Martins Pond public house, being the second of the two public houses located in Potten End. While this Project Proposal document is focused solely on The Plough public house, the planning application for the change of use of Martins Pond application is significant because of the very real potential of losing both public houses from the village. Project Proposals Primary Proposal The primary proposal seeks to address the struggling existing use of The Plough as a local public house by undertaking some renovation and restoration of the property, with the ground floor, restored to a high quality standard as a large open plan public house, and the commercial kitchen updated to provide a good quality ‘pub grub’ food offering, using locally sourced foods and ingredients where possible. As a potential way to reduce the burden on the pub as the sole source of revenue, consideration is being given to whether the first floor could be split into two separate dwellings, with each fully Project Proposal – The Plough 4 refurbished to a good quality standard. These two dwellings could then be made available for rent, with one potentially being offered to a manager of the pub as part of their remuneration package. The first floor is currently configured as a single dwelling and our initial understanding is that the accommodation space is well proportioned and provides a good space for any potential managers. As a result, the possibility of splitting the accommodation into two is only referenced here as a potential option to maximise income for the community. Further consideration and consultation would need to be made before any final decision is taken in this regard. It is intended that the pub’s garden to the rear would be landscaped to form an attractive outdoor social space for use by patrons of the public house. It should be noted that normal permitted development rights do not apply, due to The Plough falling within the Conservation Area of Potten End. Therefore, any significant changes to the building would require approval via a planning application. An architect has yet to be appointed and therefore at the time of writing this Project Proposal document, the finer details of layout and any works schedule are unable to be fully determined. These details will be shared with all members of The Plough Pub Potten End C.I.C. in due course. Secondary Proposal A secondary proposal needs to be considered in the event that the primary proposal fails to sustain an acceptable level of revenue and The Plough is unable to generate sufficient profits to repay personal loans within the committed timeframes. In such an event The Plough Pub Potten End C.I.C.
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