North Lanarkshire Council Report Community Empowerment Committee ☒approval ☐noting Ref LMcM/HL Date 23/08/21 Cumbernauld Theatre Funding Agreement From Lizanne McMurrich, Head of Communities Email [email protected] Telephone 07973 726496 Executive Summary This report provides an overview of the work undertaken with Cumbernauld Theatre Trust (CTT) to move towards the opening of the new Cumbernauld Theatre together with the proposed partnership agreement and future operating model. Recommendations The Community Empowerment Committee is recommended to: (1) note progress in the work with Cumbernauld Theatre Trust in preparing for the opening of the new Cumbernauld Theatre; (2) note the level of external investment that this initial phase of the hub partnership model has generated, £471.771 in capital, and £645,000 in revenue funding from Creative Scotland; (3) note the proposed establishment of a multi-partner Steering Group to ensure appropriate governance; and (4) approve the funding levels and approach to finalising the funding agreement and the associated Funding Agreement as set out in section 2.5 of the report. The Plan for North Lanarkshire Priority All priorities Ambition statement (24) Review and design services around people, communities and shared resources. 1. Background 1.1 In January 2014, the Learning & Leisure Services Committee gave approval to include a new Cumbernauld Theatre into the scope of the Schools and Centres 21 new build of Cumbernauld Academy. Cumbernauld Theatre was originally founded in 1960 as a Cottage Theatre by a group of committed town residents who persuaded the Cumbernauld Development Corporation to lease them an abandoned set of farm cottages to convert into a performing arts space – the original building was largely unchanged from the early 1970s. 1.2 While the impact of the COVID19 pandemic has slowed progress towards CTT’s occupation of the new theatre, in recent months the organisation has been working with the council, the former CLNL and NLP to move towards an agreed position on a future operating model and partnership approach which ensures CTT’s ability to secure approved funding and ultimately supports the council’s ambition as set out in the Plan for North Lanarkshire. 2. Report 2.1 Cumbernauld Theatre Trust Business Plan 2.1.1 The new theatre will provide a cultural and community hub which presents a varied and quality cultural programme and supports the creative industries. The venue will provide access to the community, provide an asset to schools, community groups and colleges and support employability opportunities in North Lanarkshire. 2.1.2 The business model for the theatre element of the hub operation seeks to provide a range of entertainment and participative opportunities for the local community, including: • music venue; • theatre and dance venue; • community base for a range of projects with third sector partners, including photography groups, crafting and creative writing; • drama groups for young people and families, including work with ASN children facilitated in conjunction with our ASN schools; • 98 seat capacity cinema, operating over 7 days; • community café (training base for young people); • vocational courses in the creative industries in partnership with New College Lanarkshire; and • support to the senior phase of the school curriculum (i.e. Drama/technical theatre skills - (sound/lighting, stage management) early discussions on this took place pre pandemic and will resume. 2.1.3 With the support of the council, CTT has secured capital funding of £471,771 from a range of investors including Campsies Cumbernauld, Creative Scotland, Foyle Foundation and the Robertson Trust. Revenue support of £645,00 in total has been provided by the council, Creative Scotland, and the Scottish Government. Fundraising activity has also contributed to overall revenue budgets. 2.1.4 Whilst the impact of the COVID19 pandemic will undoubtedly influence the operation of the theatre in the coming months, CTT are working on a three-year marketing plan and engaging with a range of local and national production companies to provide a diverse and engaging programme to the community. 2.2 The Role of NLC as Lead Hub Partner 2.2.1 CTT will play the primary role in facilitating and managing an annual programme of arts and entertainment events. However, the council, managed through Active & Creative Communities, has a critical role to play in overall leadership of the new theatre. 45% of overall scheduling with be managed by the council, working with community groups to encourage a diverse and engaging entertainment programme for local people. 2.2.2 This approach has been designed to be compatible with the emerging hub Leadership model. 2.2.3 Situated on the campus of Cumbernauld Academy, the theatre offers will provide an important opportunity to support the council’s ambitions for our children and young people. Discussion continues with Education & Families to establish the model for the use of the café area as a training base for ASN pupils. As highlighted below, the proposed Steering Group will include Head Teachers from Cumbernauld Academy, Glencryan and Redburn schools, Carbrain, Kildrum, Abronhill Primaries. By ensuring a broad representation from local schools, there is a clear opportunity for our young people to benefit from the extensive facilities within the theatre. 2.2.4 More broadly, the theatre is an important community facility which can offer a broad range of activities to support participation and engagement. Using planned input from local community boards, the theatre venue will also be used for the delivery of community arts, physical activity and social engagement groups. Both CTT and the council will work with local groups to make the theatre a key focus of the Cumbernauld community. The ongoing development of the Physical Activity Strategy (PO48) will also reinforce delivery of our agreed principles of Sport, Dance, Play and Active Living from this important local venue. 2.3 Licence to Operate Agreement/Building Preparation 2.3.1 Working with North Lanarkshire Properties (NLP), a 15-year licence to operate agreement is currently being finalised with a proposed rental of £50,000 per annum. CTT will be responsible for all utility, heating, water rates and energy bills pertaining to the Theatre. Rental will be reviewed on a five yearly basis and legal advisors are currently assisting in the finalisation of the agreement, as advised by NLP. 2.3.2 CTT have now relinquished their occupation of the building formerly operated by them, with keys returned to NLP. A date for occupation of the new Theatre space is still to be confirmed, although the Trust is keen to secure entry soon to allow for planning of a winter event. 2.3.3 In preparation for the finalisation of the lease, CTT are working with the council to progress final fit-out arrangements. Detailed drawings have been submitted to allow installation of the training kitchen and cafe area. Education and Families have been fully sighted on this to allow them to design a focussed and effective ASN training programme. 2.4 Joint Operating Model Agreement 2.4.1 Also currently in the process of being finalised is a Joint Operating Agreement (JOA) which defines the relationship between the parties and sets out roles and responsibilities; governance, the duration of the arrangement, principles of working together and agreed terms and conditions. Overall, the JOA seeks to: • define a partnership approach which brings together joint areas of expertise to deliver the venue’s programme and activities; • secure funding streams to manage and deliver the venue and its activities; and • work with local partners to deliver a community focussed and driven activity programme, in support of key council ambitions. 2.4.2 Governance will be established with a new Steering Group including representation from CTT, the council (through Active & Creative Communities), Education & Families (local Head Teachers as outlined above), New College Lanarkshire and other co-opted community parties, as agreed. 2.4.3 The Steering Group has specific responsibility for ensuring all aspects of service, activities and work stream delivery is on track, and that the activities are compliant with funders or other requirements. 2.5 Funding Agreement 2.5.1 North Lanarkshire Council provide the Cumbernauld Theatre Trust with budgeted grant funding (£100,320 during 20/21). A revised rental of £50,000 per annum, as outlined above, presents CTT with a significant financial challenge. 2.5.2 To support the Trust, the council has offered additional, tapered support as outlined: 2021/22 Additional grant of £22,000 This reflects the shortfall CTT occupy identified in expected vs from Sept 2021. actual rental. 2022/23 Additional grant of £22,000 As above, first full year of operation. 2023/24 Additional grant of £14,500 66% of difference between £50k and £28k. 2024/25 Additional grant of £7,300 33% of difference between £50k and £28k 2.5.3 The additional grant will be subject to annual review linked to achievement of outcomes, including ongoing sustainability of the CTT business model. 2.5.4 Finalisation of the Funding Agreement will be based on the terms of the licence to operate and the joint operating model and will be concluded over the course of August, with future reports to the appropriate Council committees as required. 3. Public Sector Equality Duty and Fairer Scotland Duty 3.1 Fairer Scotland Duty 3.1.1 No concerns at this time. Input from the community on the direction of service development will be sought throughout. 3.2 Equality Impact Assessment 3.2.1 An Equality Impact Assessment is not required at this stage. Input from the community on the direction of service development will be sought prior to the finalising of the operating model. This will inform an Integrated Fairer Scotland Equality Impact Assessment. 4. Impact 4.1 Financial impact 4.1.1 As highlighted above, CTT have secured Creative Scotland funding of over £266,000 per annum.