Defining purpose is the first stage of the asset transfer process. The building being developed should be chosen for a specific reason, rather than starting with a building and attempting to find a purpose for it.
Asset transfer works best where it responds directly to the needs of the community in which it is situated. This means defining the purpose must be led by and involve local people. Asset transfer is far more likely to be successful where there is buy-in and support from a good cross-section of the community.
In practice this means organisations engaging in asset transfer should have pre-existing roots and links to the relevant community that they can tap into. Where this does not exist links should be forged with voluntary and community groups in the area. This should happen at an early stage, when the purpose is still being defined. People are more likely to support a development when they have an input into the plans.
The exact strategy adopted depends on local circumstances. In areas rich in community activity and organisation it should be relatively straightforward. Where existing networks are weak more effort will be needed to engage and enthuse the local community. One option that should be looked at in these situations is establishing a Development Trust. Information on how to go about this is available from the Development Trust Association.
Defining purpose should happen in open and collaborative forums initially. This allows a wide range of suggestions to be explored at an early stage. Once ideas have been generated smaller groups can test their feasibility, where appropriate obtaining advise from professionals (accountants, planners etc.) This information allows the wider group to make an informed decision.
Defining purpose must therefore balance the idealism of the community with the realism of the specific circumstances. Both elements must be in place for a development to succeed, there needs to be community support as well as a sound financial basis for the project.
Finding this balance requires good leadership from a cadre of committed individuals ideally situated in the relevant community. These people need a range of skills, an understanding of the needs of the community but also the technical acumen needed to ensure the development has solid foundations.
Groups seeking to engage in asset transfer must consider this at an early stage and make sure this leadership is in place before, not after, purpose is defined.
Involve key local stakeholders in the process. This includes local MPs and Councillors, Council Officers, local journalists and high-profile public figures. Getting support from the beginning from local decision makers and people with influence can be a great help for a development if it runs into unexpected obstacles.
Each asset transfer will have a distinct purpose depending on the prevailing local circumstances. However there are common themes to developments across the country that include:
- Community Enterprise – generating revenue by providing products / services needed by the local area.
- Building Preservation – keeping an historic building in use and well-maintained
- Community Facilities – providing an area for community use that may be lacking
- Social Benefit – address local problems such as crime and unemployment by providing new opportunities
- Regeneration – encourage businesses to invest in the area
These themes are interdependent rather than mutually exclusive. For example generating the income needed to preserve the building may be dependent on revenue from community enterprise. Defining purpose is therefore an on-going process. The purpose will change in response to the circumstances, as trade-offs have to be made between competing aims. This process should include as many local people as possible and is vital to maintaining a sense of ownership.
When defining purpose think carefully about what you are trying to do and who you want to work with. Do market research. This means reviewing provision in the surrounding area and testing demand for the facilities and services that will be on offer in your new development. There is little point planning a crèche if the local community already has several well-established crèche providers.
While defining purpose there are some key strategic questions that need to be answered about the proposed development:
- Is the building aimed at the high-spec office Market or will it have a messy manufacturing feel?
- Is the space going to be rented at a market-rate or made available at low-rent?
- Is there a need for specialist spaces, such as catering facilities, in the building?
- What is the revenue-mix of the building? What proportion is to be used for events, tenant and other provision?
Make sure discussions in public forums retain a focus on these practical questions. It is easy for large meeting to lack direction. Have a clear agenda and try to avoid getting bogged down in one issue for too long. Be ambitious but accept the need for some compromises to make the development work in practice.
Don’t let your ideas run away with you. Keep checking that your plans are realistic and commercially viable. Avoid giving people false expectations and don’t be too rigid. Compromises will need to be made and hurdles overcome along the way. A long-term vision is important but it may not be achievable in one go.
In the other direction avoid giving too much control over the vision to ‘experts’. The key to making asset transfer work is the energy of the local community. Specialist advice is needed to provide guidance but this should not be at the expense of local input.
External Links
The Quirk Report – A Government-review highlighting the potential benefits of asset transfer
The Finance Hub Asset Transfer Briefing
Community Matters, an organisation providing information and support on asset management
The Development Trust Association