Re-Development of Meath Street Community Centre and Former Carlow Street Clinic Site

RE-DEVELOPMENT OF MEATH STREET COMMUNITY CENTRE AND FORMER CARLOW STREET CLINIC SITE

CLLR DAVID BUDD - EXECUTIVE MEMBER FOR

ECONOMIC REGENERATION & CULTURE

TIM WHITE, CHIEF EXECUTIVE OFREGENERATION

29 September 2005

PURPOSE OF REPORT

1. The purpose of the report is to seek delegated authority from the Executive Member to the plans for the redevelopment of the site on which Meath Street Community Centre and former Carlow Street clinic (demolished) are situated and for the transfer of the building and assets associated with the Meath Street Community Centre to WMNT.

BACKGROUND AND EXTERNAL CONSULTATION

1. WMNT acquired Carlow Street Clinic from Middlesbrough Primary Care Trust in 2003. The former health clinic has now been demolished, however the adjacent building Meath Street Community Centre is in a run down condition offering a limited range of services and facilities to the community.

1. A report was taken to CMT on 9th October 2003 that WMNT lead on a scheme to redevelop the whole site. A number of options were considered including refurbishment of the current building but the preferred choice was a new build which as well as improving community facilities would also make a significant environment improvement in the area.

1. This agreement from CMT was followed by a Single Member Executive Meeting for the Executive Member for Regeneration on 9 October 2003 where delegates authority was sought and approved for:
2. The proposal to demolish the existing Meath Street Centre.
3. To build a new facility on the site of Meath Street Centre and the adjacent Carlow Street Clinic funded by WMNT.
4. Disposal of the Meath Street Centre to WMNT.

1. Architects were commissioned to design the building and detailed consultation was carried out with local residents, the Meath Street Management Committee and Ward Councillors. At this point owing to concerns from residents about the large size of the building in such a ‘tight’ location and scale of activity it would generate in a residential community and excessive costs, it was decided to carry out a further appraisal of options for the site. This resulted in a modified proposal presented to WMNT’s Neighbourhood Trust Development Group in February 2005 which resulted in a smaller building with a more energy efficient design.

PROPOSALS

6. Facilities and Services within the new Centre

The new community centre development will provide a range of services to the community of the WMNT area. A range of services is already operating or have operated from the facility.

These include:

• Over 60s club
• 50/50 dancing
• Luncheon Club
• Venue for social events
• Venue for youth activities
• Ward surgeries

As part of the consultation process partners including Middlesbrough Primary Care Trust, MiddlesbroughCollege, the Libraries Service and Middlesbrough Council’s Lifelong Learning team were asked to specify any requirements they would need in order to deliver services from a new centre.

• Middlesbrough PCT advised that they would able to provide a range of ‘drop in’ services operated by a nurse practitioner.
• MiddlesbroughCollege confirmed that they would be interested in using the facilities; however, discussions would need to take to place closer to the opening date of the new centre.
• The Libraries Service advised that they could not operate an in house service but could operate a mobile service.
• The new facilities will include ICT, which was a requirement of all training providers.

7. During the development stages of the building, significant research was being undertaken

to identify how similar buildings have been developed with the aim of identifying best

practice. Facilities will meet all Health and Safety standards. There has been provision made for a high standard of mechanical and electrical services to reflect the need to minimise lifetime costs.

Management Arrangements

8.WMNT have worked with the Community Regeneration Service to agree the future management arrangements for the new centre. WMNT will manage the Centre Manager and reconstitute the current Centre Management Committee to oversee the new arrangements. Previously the council employed a part-time officer at Meath Street. The council has agreed to contribute the current running costs and part time salary costs as its funding commitment to the new centre.

9.A key to the success of the centre will be the appointment of a centre manager who is able to market the centres facilities and develop agreements with service organisations to use the facility as a base as well as income gained through community usage. A draft job description has been developed.

The Estimated Costs of the Facility and Funding Requirements

10.On 28 March 2005 Christopher Padgett, Architects were awarded a contract for the Scheme Design Study (SDC) for the new facility. A planning application for the centre was approved by the Planning Committee on 5 August 2005. An application was completed for Big Lottery Funding which has since been rejected. Pre tender estimates have been provided as follows and are currently pointing to a cost of £1487 per sq metre (454 sq metre) compares to £950 estimated in February 2005.

Capital Costs

£

Construction costs674,500

Demolition costs 30,000

Design Fees 69,400

Legal Fees (estimated) 12,000

785,900

Contingency (2%)

15718

801618

Furniture and ICT 15 000

Purchase of Meath Street Centre 5 000

Revenue contribution from WMNT 40,000

(To undermine any potential deficit until 2010)

WMNT funding Total 861618

Middlesbrough Council

Capital Grant Contributions 86000

£775,618

11.WMNT is still in the process of applying for additional funding from Future Builders (100k) and has been notified it has been longlisted and 25k for ICT equipment. The funding commitment from WMNT was approved at the board meeting on 26 July 2005 subject to confirmation from Middlesbrough Council of its contribution to the ongoing running costs.

RISK ASSESSMENT

Business Plan

12.A Business Plan has been prepared to set out the strategy for making the centre a sustainable investment within the community. The Business Plan concentrates on the need for the centre to become self-sustaining and a copy of the plan is attached at Annex A.

13.This has been agreed in principal with the Community Regeneration Service. In the early years of the building, the centre will depend on the ongoing support of Middlesbrough Council and West Middlesbrough Neighbourhood Trust. The reliance on external support will remain throughout the plan period, however the level of support will diminish as the centre becomes more widely known and the occupancy rates increase. The plan identifies that much will depend on the manager appointed to run the centre and their ability to run the centre and their ability to generate income. Any shortfall between expenditure and income will have to be met by WMNT, however, the manager will be set targets to be aimed at reducing the WMNT contribution to the running costs to nil by March 2010. Middlesbrough Council have confirmed that their existing budgets for the Meath Street Community Centre will be transferred on an annual basis to WMNT, however the amount of the contribution has not as yet been confirmed.

14. The proposals and draft Business Plan were discussed and agreed at CMT on 8th September 2005. It was recognised that further work would be needed on the Business Plan once a Centre Manager was in place.

Timetable

15.The following provides an indicative timescale for the build of the centre.

Transfer of Meath St Community Centre to WMNT
Complete all drawings, specifications and bills of quantities
Complete demolition of Meath Street Centre
Contract awarded for construction
Centre Manager appointed
Construction complete
Centre opens / September 2005
End September 05
November 2005
December 2005
January 2006
August 2006
September 2006

16. There are a number of issues which need to be confirmed around closure of the current centre and what interim provision and facilities can be made until the new centre opens. For example, there will be need to devise a timetable for current groups to be relocated as part of the transitional arrangements which will be coordinated by the Town Area Community Regeneration Team. There will also be a need to establish a new management committee established that will include WMNT Board Members. This will be led by WMNT working with the Town Area Community Regeneration Team.

FINANCIAL, LEGAL AND WARD IMPLICATIONS

16. Financial

Middlesbrough Council has committed £86k capital towards the construction costs and will be allocating the current revenue costs for the Meath Street Centre and including the current salary budget as a contribution towards the overall running costs. These costs are identified in the Business Plan but the exact amounts are expected to be confirmed by the end of September 2005. This means there may need to be some minor adjustments to Annex A.

1. The Business Plan is based on estimated expenditure and income. WMNT as the owner of the building will need to underwrite any deficit in running costs. Whilst this will be met from NDC funds until 2010, arrangements post 2010 will need to be put in place if the centre has any problems in becoming self-sufficient. The situation will need to be closely monitored on an ongoing basis and you are asked to note there will be a formal review in 2008.

18. Legal

Provisional agreement has been reached with the Council to sell the land and the building on the understanding that WMNT will be providing new replacement facilities on the whole site. It is recommended that the Council be protected by the implementation of a restrictive covenant to stop profit taking should the site be sold for commercial purposes at some time in the future. On that basis it has been provisionally agreed to sell the site and building for the sum of £5,000.

19. Ward

These proposals will be of particular benefit to residents in the Gresham Ward as well as in the WMNT neighbourhood.

RECOMMENDATIONS

20. It is recommended that Individual Executive Member:

a)Agree to the plans for the new Meath Street Community Facility and the proposed management arrangements.

b)Confirm Middlesbrough Councils contribution to the ongoing running costs.

c)Approve the transfer of the current Meath Street Centre and assets to WMNT so that it can be demolished and work on a new centre get underway.

d)Note that a formal review of how the facility is performing against it’s income targets will be carried out in 2008 to provide sufficient time to address any under performance.

REASONS

21. The proposal would make a significant contribution to the regeneration of the neighbourhood and meeting objectives set out in both the Community Strategy within Investing in Our Neighbourhoods and would help WMNT fulfil it’s objectives in it’s own Delivery Plan in improving services for local people.

BACKGROUND PAPERS

22.The following background paper’s were used in the preparation of this report:-

CMT Report’s on 8th September 2005 and 9thOctober 2003

AUTHOR:

Jan Sinclair, Director of West Middlesbrough Neighbourhood Trust

Sandra Cartlidge, Head of Economic/Community Regeneration

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