Funding of Conversion of Part of the Murray Library, Anstruther to Creative Business Units

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1 Executive Committee 28 June 2012 Agenda Item No.15 Funding of Conversion of Part of the Murray Library, Anstruther to Creative Business Units Report by: Keith Winter, Head of Enterprise, Planning and Protective Services Wards Affected: 13 and 20 Purpose To seek approval to use 200,000 capital funding to contribute to the delivery of creative business units as part of the restoration of the Murray Library, Anstruther. Recommendation(s) Recommend approval to allocate 200,000 capital funding, to contribute to the restoration of the Murray Library, Anstruther in the form of revenue to: deliver an important project providing 7 creative business units provide match funding to draw on 150,000 of approved ERDF grant deliver the scale and quality of project anticipated by the funders and partners Resource Implications Fife Historic Buildings Trust and Enterprise, Planning and Protective Services has secured funding of 1,415,000 from The Heritage Lottery Fund and Historic Scotland to proceed with the Anstruther historic regeneration projects including works to Hew Scott Hall, Murray Library and other schemes in the town. (Appendix 1) The application process has been complex. Over a two year period and two rounds of applications, adjustments were made to refine both the projects and the funding. EUROPEAN REGIONAL DEVELOPMENT FUNDING In November 2011, six months after an anticipated decision date, an award was made on a European Regional Development Fund (ERDF) application for funding towards the conversion of part of the Murray Library to creative business units. 150,000 or 40% grant funding was awarded towards eligible costs totalling 375,000. The ERDF funding provides the opportunity to retain, repair and convert the Snooker Hall at the rear of the Murray Library for business space. Match funding of 225,000 is however still required to deliver the project. 200,000 is available by diverting a portion of Dysart THI/CARS capital in 2012/13 and 25,000 is found from within the existing project budget. The contribution will be paid to the Murray Library Trust subject to Fife Council receiving a 50% share of surpluses generated by the letting of the business units. The surplus share will be calculated annually for a period of 20 years as the gross rental income less direct costs for management and repair of the business units and depending on occupancy is estimated to return around 50,000 to the Council.

2 ANSTRUTHER THI/CARS FUNDING The table in Appendix 1 shows the current funding position for the Anstruther Townscape Heritage Initiative (THI) / Conservation Area Regeneration Scheme (CARS) totalling 2.72 million. All funding from HLF, Historic Scotland, Murray Library Trustees and ERDF is confirmed subject to match funding. Fife Council s contribution of 375,000 over the five years of the scheme is assembled as follows: Proposed contribution from Dysart Capital 200,000 Locality Budget 60,000 Former Town Scheme 75,000 Additional EP&PS contribution 40,000 TOTAL 375,000 Legal & Risk Implications All contracts with funders and partners are subject to legal advice from a Fife Council conveyancing and contracts solicitor. Without the 200,000 contribution, the ERDF grant will be lost to Fife and the project will not proceed. There are tight deadlines to meet in order to secure ERDF funds a decision is required on the proposed contribution now if the work is to proceed. Impact Assessment The impact of this investment will be to support the sustainability of the historic core of Anstruther and enhance the attractiveness of the area for tourism. 7 creative business units will be provided as a direct result of this investment. It will draw down significant European funding and build credibility for Fife Council delivering a complex project dealing with a historic town centre environment. Consultation Consultatons have taken place with Kirkcaldy East members, Cllr Lawrence Brown, Cllr Kay Carrington and Cllr Arthur Morrison to assure them that the Dysart THI/CARS programme will be completed in accordance with a revised agreement with Historic Scotland and the Heritage Lottery Fund. The Investment Strategy Group considered a similar report to this one at its meeting on 20 th March 2012 and supported the proposal for approval by the Policy, Finance and Asset Management Committee. The Executive Directors for Finance and Resources and the Executive Director for Corporate Services have been consulted during the preparation of this report and have supported this proposal.

3 1.0 Background 1.1 Anstruther THI/CARS is a 2.72 million programme involving eight partners and seven separate project areas. It will consume just 375,000 of Fife Council monies but attract 470,000 of private sector investment and attract grant funding support of million. 1.2 One element of the overall THI/CARS programme was the delivery of a creative industries hub consisting 7 creative business units. This element was in doubt until the ERDF offer was made in November 2011 and is still dependent on a further of contribution of 200, The remainder of the programme will deliver a refurbishment of the front portion of the Murray Library to create backpacker accommodation, the restoration of Hew Scott Hall, some public realm improvements, grant support to private sector owners and education and legacy benefits for Anstruther community. These elements are already fully funded and could proceed. 1.4 Project management will be provided in a partnership between Fife Council and Fife Historic Buildings Trust over a 5 year period. A design team is in place and urgent repairs to the front of Murray Library began this month. The programme anticipates works to convert the snooker hall starting on-site in January 2013 subject to planning approval and finalisation of a land deal to improve the access to the business units and for future maintenance of the building. 2.0 Issues and Options 2.1 The Murray Library has an impressive red sandstone frontage on Shore Street, Anstruther which is close to the harbour masters office at the main entry point to Anstruther seafront and commercial frontage. To the rear, the Snooker Hall extends almost as far as Cunzie Street adjacent to a demolished house site now used for four car park spaces. 2.2 European Regional Development Fund monies were awarded for the conversion of this element to form creative business units. As the decision was delayed, the option of demolition of the snooker hall had already been explored fully as the fall-back alternative option It is considered the better option is to employ 200,000 of fundng from Fife Council to restore the rear part of the property as business units; thus using money that was already earmarked for historic restoration purposes. It secures the award of 150,000 ERDF for this project, delivers the business units in creative industries, supports a community enterprise, conserves a historic property and enhances a key area of Anstruther Town Centre. 3.0 Conclusions 3.1 ADVANTAGES OF THE PROPOSAL The proposed re-assignment of 200,000 available capital from Dysart THI/CARS to Anstruther THI/CARS is a realistic and flexible response to generate the necessary funding. It will support a community-driven project that will offer significant local regeneration impact.

4 3.1.2 The advantages include: ensures that Fife benefits from the funding on offer of 150,000 from ERDF, which would otherwise be lost to Fife safeguards the future of the snooker hall at the Murray Library this part of the listed building would otherwise be demolished. removes the need to argue for listed building consent to demolish, where we would need to show that sufficient effort has been made to secure alternative uses for the space this would be difficult to argue with the current opportunity to fund its conversion available. with the THI/CARS in Dysart substantially complete, and all other Fife Council and external funding commitments to it met, the proposal is an opportunity to spend the 200,000 where it can still fulfill a historic restoration purpose. delivers economic benefit to Anstruther town centre by providing 7 business units where there are no other proposals to deliver creative industries space provides business space which could accommodate around 10 jobs in activities which could attract additional spend and visitor promotion for Anstruther provides an uplift to the environment in front of Anstruther Town Hall and Library in Cunzie Street and improves the link through to the High Street from the esplanade area Fife Historic Buildings Trust is acting as advisers to the Murray Library Trust. FHBT has a strong track record in delivering restoration projects employing experienced conservation architects. For example, in January 2012, a second phase of Burntisland Station was opened providing additional creative industry space in 5 units which were let to tenants quickly The Design Team was appointed last year following a competitive tendering process and survey work has begun to be in position to seek early approvals for start of works in January following urgent repairs begun this summer. List of Appendices 1. Funding for Anstruther THI/CARS Background Papers The following papers were relied on in the preparation of this report in terms of the Local Government (Scotland) Act, 1973: None Report Contact Jim McLeish Service Manager, Regeneration, Environment & Place Town House, KIRKCALDY Telephone: jim.mcleish@fife.gov.uk

5 Appendix 1: Funding for Anstruther THI/CARS Anstruther THI and CARS Category Total Cost Eligible Cost HLF HS FC FET AIA MLT CofS ERDF Public Private Building Repair Hew Scott Hall 660, , , ,000 50, ,000 25,000 10, ,000 Murray Library 1,000, , , , , , ,000 1,000,000 Cunzie Street 300, ,000 75,000 20,000 15, , ,000 Small Grant Scheme 400, ,000 50,000 50,000 20, , ,000 Education 30,000 30,000 15,000 10,000 5,000 30,000 Training 50,000 50,000 20,000 20,000 10,000 50,000 Public Realm 100, ,000 40,000 30,000 30, ,000 Administration 180, ,000 90,000 45,000 45, ,000 TOTAL 2,720,000 2,505, , , , ,000 25, ,000 10, ,000 2,250, ,000