The Expression of Interest Process a Brief Overview

/
Birmingham Site Development and Access Fund /
Guidance for Completing the Expression of Interest

The Expression of Interest Process – A Brief Overview

Birmingham City Council (BCC) has a defined process for appraising and approving requests for project funding under the Birmingham Site Development and Access Fund (SDAF), which can take the form of a grant, loan funding at commercial rates or both. This process has two stages identified as Expression of Interest (EoI) and Full Application. Successful applicants will be required to enter into contractually binding funding agreements.

The EoI stage provides the opportunity to obtain basic details of a project to enable BCC to assess if this is a project they wish to support further through the SDAF because it has the potential to provide the outputs and benefits identified within the Enterprise Zone (EZ) Investment Plan. Focus for funding purposes will be given to those projects/sites that will generate early business rate growth and employment opportunities.

The EoI must be submitted by 14:00 on 28th February 2014.

Assessment will be undertaken based upon the following criteria;

·  Eligibility

-  Project must be located within an Enterprise Zone site

-  Project must include uses capable of delivering Business Rates income

-  SPVs must have adequate guarantor in place

-  Paradise Circus and Southern Gateway sites are excluded due to other funding commitments

-  State Aid compliance

-  Capable of Funding Agreement being completed by June 2014

·  Deliverability

-  Track Record of Developer

-  Site Ownership/Control

-  Planning Position

-  Programme

-  Other Funding Secured

-  Pre-Lets/Sales in Place or Speculative

·  Business Rates Generated

-  Value of Business Rates Delivered

-  Delivery of Business Rates – Timescale

·  Value for Money

-  Jobs Created

-  Cost Per Job (SDAF Specific)

-  RV Floorspace Created/Refurbished

-  Cost Per Area (Rateable Value Generating)

-  Funding Leverage (Ratio)

·  Strategic Objectives

-  Proposed Uses and Sectors Supported

-  Sustainability and Other Strategic Fit

If the assessment of a project shows the above potential and accords with identified criteria, then the EoI may be endorsed and the Applicant invited to develop a Full Application. Any endorsement is likely to carry conditions which will provide guidance in the development of a project to make the case for funding at Full Application Stage.

If the assessment of the EoI project determines that this does not have the potential to make the full case for funding, the reason(s) for this decision will be explained. This will avoid any further abortive work in developing a project that the SDAF will be unable to fund.

Applicants are encouraged to discuss proposals with officers at BCC prior to submission of the EoI. Please contact Simon Garrad or Russell Poulton on 0121 464 7138 / 9841 or / . Questions on the completion of the EoI should be directed to Thomas Lister Limited Chartered Surveyors (see section 5).

Completing the Expression of Interest

Project Name: What will the project be called? Please try and avoid long and over-complicated names, but be explicit if for example this relates to particular phase of a larger scheme. Include the name of the EZ site(s) to which it relates.

Project Start Date: The estimated start date assuming funding is approved. This date must be realistic and evidenced in the GANTT chart (see section 2) to allow for the further development, appraisal, approval and any legal processes.

Project End Date: The estimated physical completion date based on the start date given.

Nature of Scheme: State whether the project for which funding is sought is Speculative or Occupier led.

Project Value: The total estimated market value of the completed project.

Project Cost: The total estimated costs in developing and delivering the project.

SDAF Funding: The total amount of funding required from SDAF by way of Grant and the overall proportion that this is of Total Project Costs as a percentage. Similarly for amount sought by way of loan. Please note that the maximum amount of funding available per application is £5 million.

1.  Applicant Details

Company Name: The name of the organisation who is submitting the EoI.

Company Address: The address of the organisation submitting the EoI.

Company Registration No: The number of the company as registered with Company’s House.

Contact Name: The person who will work with us on the day-to-day funding application for the project.

Email address: For the point of contact noted above.

Contact telephone Numbers: For the main point of contact.

Number of Employees: Total number of persons employed by the Company submitting the Application.

Small & Medium Enterprise

(SME) Status: Use the definition of Micro, Small, Medium and Large Enterprises as defined as follows:

·  A micro-enterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million.

·  A small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million.

·  A medium-sized enterprise is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.

·  A large enterprise is defined as an enterprise which employs 250 or more persons with an annual turnover exceeding EUR 50 million and/or an annual balance sheet total not exceeding EUR 43 million.

Financial Status: Please confirm that Appendix A – Financial Evidence Requirement Checklist - has been completed by stating yes. Note that the application cannot be progressed until Appendix A has been completed as this will be used to assess the ability of the applicant to deliver the project.

Previous Experience: Confirm whether the organisation has previously delivered development projects, whether any public sector funding has been awarded for a specific project and whether this project has been successfully delivered.

2.  Project Description

Location: For the site (or part of the site) upon which the project is to be developed.

Ownership/Occupation: Confirmation of the current ownership of the site and if not held by the applicant how a controlling interest can be secured to enable delivery of the proposed project. Also confirm any occupational interests on the site/buildings and how vacant possession will be obtained if required to facilitate development.

Site Area: For the subject project in hectares.

Existing Floorspace: Provide building address and/or description, together with overall Planning Use Class (see https://www.planningportal.gov.uk/permission/commonprojects/changeofuse/), approximate overall floor area in terms of Gross Internal Area and rateable value (see http://www.2010.voa.gov.uk/rli).

Current Total Rateable Value: Provide the total current rateable value of the site (derived from sum of previously provided individual rateable values).

Project Proposals: A full description of the project including what it is, who is undertaking the scheme and the target market for the completed scheme. Also provide information relating to any known requirements/need for the project.

Development Funding

Sources: Confirmation as to the type and level of funding required from SDAF to facilitate development. Set out what funding has already been secured (including details of any key conditions). Confirm proposals including for loans, timescales and means for repayment of funding to the SDAF and for grants, why funding by way of loan will not enable the project to proceed.

Programme: Attach a GANTT chart (in PDF format) for the project relating to key milestones, acquisition, obtaining planning permission and other required consents, site investigations, commencement of development, practical completion and occupation/disposal.

3.  Project Outputs

Jobs created/safeguarded: An estimate of the total number of employees that could be accommodated within the completed building(s) either as a new company to, or retaining an existing company to Birmingham.

Note: only include figures relating to completion of those works or phases which will be directly facilitated as a result of SDAF funding input (other figures relating to later phases may be stated under 3.3).

Temporary Construction Jobs: An estimate of the number of FTEs employed as a result of the project through the construction process.

Note: only include figures relating to completion of those works or phases which will be directly facilitated as a result of SDAF funding input (other figures relating to later phases may be stated under 3.3).

Private Sector Investment: The amount of funding to be vested by the Applicant either from own resources or bank finance/lending.

Note: only include figures relating to completion of those works or phases which will be directly facilitated as a result of SDAF funding input (other figures relating to later phases may be stated under 3.3).

Public Sector Investment: The amount (if any) of public sector funding to be expended in the project (excluding SDAF).

Note: only include figures relating to completion of those works or phases which will be directly facilitated as a result of SDAF funding input (other figures relating to later phases may be stated under 3.3).

Project Deliverables: This section will be used both to assess scale of the project and to calculate envisaged future business rates income to be generated from the scheme

Note: only include figures relating to completion of those works or phases which will be directly facilitated as a result of SDAF funding input (other figures relating to later phases may be stated under 3.3).

Note that for commercial uses floor areas are to be stated in terms of Net Internal Area, industrial and residential in terms of Gross Internal Area.

Tick appropriate box whether space created will be refurbished or new.

Where uses will be delivered over a number of years, indicate broad phasing based on when occupation is expected.

Other Outputs: Describe how the scheme will help to deliver other benefits. For example, will subsequent phases or wider delivery of sites follow as a result? Will it enhance public realm or other infrastructure? Will the scheme benefit key target sectors? Are design and/or sustainability credentials of the project such that the scheme will set a benchmark?

Applicants are recommended to have regard to the EZ Prospectus and Investment Plan in completing this section (http://bigcityplan.birmingham.gov.uk/wp-content/uploads/2013/01/EZ-Prospectus-FINAL.pdf and http://bigcityplan.birmingham.gov.uk/wp-content/uploads/2013/01/EZ-Investment-Plan.pdf)

4.  Deliverability

Issues and Risks: Information is required in respect of any issues which would prevent or delay the project being delivered as proposed. A number of key issues have been identified in the form which is required to be completed along with any other potential issues which may be specific to individual projects.

5.  Submission of Expression of Interest

Submission of the completed EoI and accompanying documentation must be carried out electronically by email to Simon Garrad – Head of Project Delivery (Planning and Regeneration) at the following address;

The EoI must be submitted by 14:00 on 28th February 2014

Queries relating to completion of the EoI should be addressed to;

Thomas Lister Limited Chartered Surveyors – Chris Thomas or Andrew Croot

Contact Tel. No. 01527 871 640

NB: Thomas Lister’s role in the process is to respond to applicant’s queries relating to the Fund, the provision of Due Diligence services to BCC and subsequent preparation and agreement of Heads of Terms to enable legalities to progress.