Agenda item

The Panel will receive a presentation which provides an update on the Community Asset Transfer Programme and approach.

Contact: Joanne Bartholomew, Service Director, Development Tel: 01484 221000.

Councillor Graham Turner introduced the agenda item, advising that this was the latest report on the Community Asset Transfer (CAT) process, which outlines current activity within Kirklees. The report presents a positive update and demonstrates the success of the programme to date.

Alistair Kimpton, Strategic Partnership Lead, informed the Panel that Kirklees is regarded as an example of good practice in the management of Community Asset Transfers. This recognition included being invited to present at the Local Government Association Conference a few years ago. The strength of the Kirklees approach lies in working with communities in a community?led, rather than asset?led, approach when progressing CAT proposals.

The Panel was reminded that:

Community Asset Transfer: (CAT)

-       the transfer of ownership and management of public land and buildings from the Council to a community organisation.

-       assets are transferred at less than market value for local social, economic or environmental benefit.

The primary purpose of CATs in Kirklees:

-       invest in our communities

-       help our communities achieve their aspirations

-       ensure assets and services remain available for the community

The Panel was informed that the current policy was updated in 2020, and in total there have been 27 asset transfers in addition to a variety of other assets.  The policy was developed to support the council’s corporate vision, and to reflect current best practice and the lessons learned. It was developed in consultation with a variety of stakeholders including locality, nationally recognised bodies who help to develop community capacity.

The policy sets out a framework for the process, the whys, the whats and the hows.  It is designed to be transparent to guide interested groups through the process and to make the process equal for all interested parties.

Transfers are by a long leasehold, and this is one of the examples of where there has been learning from previous practice and a move away from a freehold model to a leasehold model. The presumption is that all assets will be transferred by the grant of a leasehold for up to 125 years.  This enables any future CAT leaseholders to have more detailed and better conversations with funders when they are applying for funding for revenue costs.

A key advantage of granting a long leasehold is that it establishes and maintains an ongoing relationship between the community group and the Council. Experience has shown that, where a freehold is transferred, the Council may lose an element of control; for example, if the CAT arrangement fails, the asset could potentially be sold on the open market. By contrast, a leasehold arrangement enables the Council to retain a degree of oversight and safeguard its long?term interests

Covenants are included in the lease to ensure that the asset is predominantly restricted to community use.  There is a 70/30 model to restrict the commercial use of that building to 30% of the ongoing revenue, which means that they have the ability to raise revenue from commercial entities, however, the asset remains community focused.  The Council reserves the right to use the asset for libraries or polling stations.  The terms of the asset transfer do require a full repairing obligation to the people taking it on.

Referring to the presentation slides, the Panel was shown information which set out the indicative timescales associated with the Community Asset Transfer process. It was emphasised that these timescales are indicative only, as the Council works closely with groups taking on assets to ensure they have sufficient time to undertake their deliberations. Many of the stages are dependent on the capacity of the community group to engage in discussions and agree the heads of terms.”

It was further noted that another reason Kirklees is regarded as an example of good practice is the level of support provided to community groups, which takes two main forms:

Financial

•       Grant of up to £10,000 to cover professional fees, surveys etc, legal advice associated with the application, previously £5,000 maximum

•       Applicants able to apply to the Council for a grant in order to fund urgent condition works or physical adaptations to the asset that will improve accessibility

•       Match funding loan of up to £100,000, can be applied for retrospectively

•       Revenue funding for building running costs (1st and 2nd year)

Additional support available to groups

•       Internal support through Third Sector and Active Citizen teams

•       External support commissioned through Locality, a national charity network with broad experience of asset transfers

•       a critical friend for Kirklees and advice on current best practice

•       support with the review of business models, capital project development, funding bids and procurement

•       CAT Network meetings, workshops/bespoke training sessions for groups to develop knowledge and skills (as required)

•       The overall aim is to support the delivery of successful and sustainable Community Asset Transfers within Kirklees

The overarching aim is to support delivery and to ensure that community groups are given the best possible opportunity to succeed.

Currently there are three cases with cabinet approval, and these are progressing towards completion, with the aim that all three will complete by the end of this financial year.  These are Honey Village Hall, the Hudawi Centre and the DRAM centre.

Challenges

•       Council’s economic circumstances

•       Competing priorities for assets

•       Managing expectations of community organisations/Council

•       Capacity within the community

•       Access to and availability of external funding

•       Timescales – 18/24 months process

In response to the information presented, the Panel asked a number of questions and made comments including some of the following:

-       To date 27 asset transfers have gone through the process, when did it all start?

-       Has the council always given a loan in terms of helping the community and if they default is that factored in, because it can be a risk especially for communities who do not have the experience and at what point would the Council intervene before it gets to that stage?

-       In terms of the assets, if the community were to take over an asset and there are substantial repair works that needs to be done before they take it on, who is responsible and would the Council do that work?

-       Quite a lot has changes in terms of CAT since changed from freehold to leasehold. Is financial support only available to the ones that are leasehold or is it also available to the assets that have already gone through as freehold?

-       The government is currently introducing the Devolution and Community Empowerment Bill, which sets up a communities right to buy. Some of the assets may not be Council assets and will include private assets that could be at risk of being sold off.  Is there anything that the Council is doing or could do to share its expertise in dealing with this process to help community groups navigate this process?

-       How many of the existing CATs are freehold and are they all held by town councils and Parish councils and have any been disposed of by communities?

RESOLVED:

That

a)    the Cabinet Member and officers be thanked for proving an update on Community Asset Transfers.

b)    further information be provided outlining the chronology of asset transfers to date.