St John's Community Centre
Background
The St John’s Project has been in development for a number of years and through various iterations as national and local circumstances have changed. The St John’s estate, on the fringes of Mildenhall in west Suffolk, currently consists of predominantly social housing with an aging community centre which has become uneconomical to operate or refurbish.
A partnership of Keystone Development Trust, Orbit Homes and Forest Heath District Council have developed a scheme to build a new centre and twenty plus homes. Keystone will own and operate the new centre and 2/3 houses to rent in the private market to cross subsidise the running costs of the facility. The rest of the homes will be social houses. Keystone is operating the existing centre on behalf of the council until it is demolished.
Counterweight strategy
The concept emerged during discussions with Forest Heath District Council (FHDC) on the possible ‘asset’ transfer of a number of community centres in disadvantaged neighbourhoods. As the partnership did not consider community centres in poorer areas to be an economic asset (although clearly a social asset) and a potential liability, the idea of a ‘counterweight’ strategy emerged.
A counterweight strategy involved a liability (such as a community centre) being transferred with land or property which could generate income to cross subsidise the running costs and activities of community facilities. The land or property did not necessarily have to be on the same site as the community centre; the more economically viable the better. Such arrangement also means that a local authority does not have to continue with revenue support.
For FHDC the imperative was to ensure the local community has a sustainable neighbourhood facility. To achieve that they recognised the need to find a creative solution; in this case, providing land which would allow a registered provider partner to create a viable scheme and release a proportion of houses to Keystone.
Trials and tribulations
Although the strategy was agreed in 2007, achieving a workable scheme has taken considerable time and creativity. The original plan involved a private sector partner and the East of England Development Agency with 50 homes, shops and community centre. However the credit crunch impacted on the private sector partner’s willingness to continue as well as EEDA’s capital budget.
During 2008-10 Keystone worked with two separate registered providers to create a viable scheme. Site investigations revealed that the original level of housing and shop units where unachievable due to a rising water main. Ongoing financial austerity also made it problematic for the registered providers. Numerous options were assessed, including a re-examination of the potential for a refurbishment using grant support from Communitybuilders and the Asset Transfer Unit. FHDC remained committed and open to ideas throughout.
In 2010 Keystone entered into a partnership with Orbit Homes and developed a workable scheme which will be considered by planners in early 2012.
Asset transfer
The original schemes envisaged a transfer of land to Keystone then onto a registered provider. The current scheme has simplified the asset transfer arrangement (and reduced costs). FHDC will transfer land to Orbit Homes, who will develop the site and on completion of the scheme will transfer the ownership of the new centre and 2/3 homes to Keystone. FHDC are providing capital grant to provide the community centre and a small element of funding toward the housing.
Subject to planning, the scheme will begin in 2012 and complete in late 2013.
Success factors
The delivery of the final scheme rests on the following factors;
- Shared strategic objective; Keystone and FHDC have maintained their shared objective of providing new community facilities. The homes are a means to an end, not an end in themselves; however additional social housing adds social impact.
- Building a strong alliance and compromising to ensure all parties objectives are met as far as possible
- Delivery partners with a strong track record and mutual trust
- Political will
- Creativity and willingness to adapt
- Patience and perseverance
Applying learning
Persuading holders of assets to transfer them plus additional land or property is not an easy ask. The drivers in this case are the council’s commitment to providing much needed community facilities and remove the revenue commitment. Early business planning (and experience) clearly demonstrated that a new centre would be unviable without some form of endowment.
Building on the St John’s experience, Keystone is working with Suffolk County Council on the refurbishment of a Victorian School in Brandon as a community/public service hub (Police, library, district council, children’s centre, playgroup and meeting space). Developing a housing scheme on nearby land is being investigated to generate income for the centre and service providers.