17
ITEM NO:
Executive
11th February 2008
Joint Report from the Directors of
Environment and Culture and
Finance and Corporate Resources
Wards Affected:
Dollis Hill/Dudden Hill/Mapesbury
Dollis Hill House – Evaluation of Training for Life Feasibility
Study
Forward Plan Ref: E&C-07/08–031
1.0
Summary
1.1
This report provides members with an evaluation of the feasibility study for the
future of Dollis Hill House as submitted by Training for Life (TFL) and
recommended future action.
2.0
Recommendations
The Executive resolves to:
2.1
Note the evaluation of the TFL feasibility study.
2.2
Instruct officers to support „Training for Life‟ in further developing their
proposal, subject to the following being agreed
a) Training for Life agree to keep the Council up to date with progress made
and allow the Council to monitor progress against agreed key milestones as
discussed in paragraph 3.13
b) Training for Life provide the Council with copies of all funding applications
as they are submitted and the outcome as soon as it is know.
Meeting Exec
Version no. V5
Date 11-2-08
Date29-1-08
2.3
Subject to Training for Life agreeing to the above paragraph 2.2, Members
agree that officers provide further support to Training for Life until December
2008.
2.4
Note progress made by officers with preparations for an application for listed
building consent to demolish Dollis Hill House and agree that this is put on
hold whilst TFL further develop their proposals.
3.0
Detail
3.1
At the October Exec 2006, Members received a report which detailed the
history of previous attempts to restore the Dollis Hill House, all of which have
failed. Members instructed Officers to „market openly the site for a period of
three months to anyone (including any community based trust) who could
renovate the listed building and provide it with a viable future, in a manner that
is likely to gain planning permission and protect the park setting, before
reporting back to the executive and option d) is considered‟. Option d) being to
demolish the building. Following this, Members received a further report at the
January 2007 Exec at which it was agreed that the stables block be included
as an option within the marketing exercise.
3.2
Specialist property consultants Knight Frank were appointed to oversee the
process and Members considered the outcome of the exercise at the
Executive in September 2007. Members decided not to progress with any of
the formal bids as it was not believed they would provide a viable solution for
the future of the House. The Dollis Hill House Trust submitted a proposal put
together by TFL. TFL do not take part in competitive processes but said that if
the Council was not successful in securing a future for the House via the
marketing exercise they would be willing to talk with us regarding their
proposal. At the Executive meeting in September, members decided to give
TFL three months to put together a viable feasibility study for the future of the
House.
3.3
The feasibility study was submitted by the agreed date of 11th December 2007
and officers have completed an initial evaluation based on the same criteria
as used for the previous marketing exercise. The overall score from the initial
evaluation is 77% (the executive summary of the submission is attached at
Appendix 1 and the evaluation matrix is attached at Appendix 2). TFl are an
established charity which aims to help the socially excluded improve their life
chances through training and employment opportunities. It delivers this
through „Prospect Centres‟. TFL have a successful track record working with
the London Borough of Hackney, London Borough of Southwark and South
Hams District Council (Dartmouth). Officers will be seeking references from
these Councils.
3.4
TFL have worked in partnership with the Dollis Hill House Trust (DHHT) in
putting together the feasibility study. In November 2007 a public meeting was
held by TFL/DHHT in a school near to the House to explain the proposal. In
Meeting Exec
Version no. V5
Date 11-2-08
Date29-1-08
general there was a positive reception to the proposed scheme, although
some concerns were raised around parking and noise late at night (see para
3.8). The following paragraphs provide an overview of the key aspects of the
feasibility study; financial comments are provided in section 4.
3.5
Refurbishment of the House – The proposed refurbishment includes both
the House and Stables and includes all land within the demised area
previously agreed by Members. TFL have requested that the demised area be
extended slightly to allow adequate space for deliveries and an area for tables
outside the café during the summer period. The refurbishment of the house is
to be undertaken by Giles Quarme associates an experienced and respected
Conservation Architect recognised on the RIBA Conservation register. The
practice has experience of working on historic buildings in Regents Park and
at Althorp Park. The preliminary proposals indicate that the design will
respect the original configuration and plan layout of the historic element of
Dollis Hill house. The extensions and alterations will be configured to be
sensitive to the setting and dominance of the original house. Officers will be
involved in the development of the preliminary design scheme and will liaise
with TFl and its designers during the development of the Listed Building and
Planning Consent packages.
3.6
Proposed uses of the refurbished house – The key proposals for the future
uses of the House are as a „social enterprise‟ restaurant, a café, function
rooms available for weddings, etc, community rooms available for hire by
organisations and space for exhibitions. The facility would be managed along
the lines of the current „prospect centre‟ model that TFL currently operate
elsewhere. TFL are a charity but are clear that the operation of the House
would be on a commercial basis with any surplus being ploughed back into
the facility. The design is purposely set out so that spaces can be used as
flexibly as possible to allow maximum use of the refurbished house and hence
maximise income levels. The feasibility study was accompanied by letters of
support from English Heritage, Department for Communities and Local
Government, Compass Group, Heritage Lottery Fund, The Learning and Skills
Council and The College of North West London. None of these were
committing funding but were supporting the scheme in general.
3.7
Officers met with TFL to discuss the feasibility study. TFL believe that, in the
time scales available, they have made good progress, but there is still further
work needed and for some of this they need the support of the Council.
Officers expressed concern that they felt some of the assumed usage levels
were too high (for example the number of weddings to be held each week and
the use of the café). TFL have revised the business plan following this
discussion, and whilst Officers still believe they are ambitious income targets,
TFL maintain, based on their experience elsewhere, they believe them to be
reasonable and achievable.
3.8
The main areas of concern and where TFL would want further support from
the council are in the areas of parking, park improvements (signage and
lighting) and the operation of the apprenticeship scheme. Due to its location,
Meeting Exec
Version no. V5
Date 11-2-08
Date29-1-08
the proposal is for a „destination‟ restaurant ie it will rely on people specifically
travelling to it rather than on passing footfall. As it is not on any immediate
public transport links this is likely to mean people will drive to the restaurant.
As members are aware, there is no parking adjacent to the House and the
existing park car park is a 5 – 10 minute walk away. Therefore, a destination
restaurant is likely to result in additional on-street parking. This is likely to be
more of an issue for events such as weddings where up to 100 cars may be
present (based on a maximum sized wedding of 300 people). It is unlikely
that late at night wedding guests/restaurant users will be willing to walk across
the park to the existing car park or to Dollis Hill tube station. It is for this
reason that TFL wish to have further discussions with the Council on the
parking issue and help with schemes that may mitigate the parking issue.
3.9
The first „Prospect Centre‟ to be opened by TFL was the successful Hoxton
Apprentice restaurant in East London. Whilst operating on a commercial
basis this centre provides opportunities for apprentices to train and seek
employment within the hospitality industry. TFL are proposing to repeat this
model at a refurbished Dollis Hill House. The Council and TFL will need to
work together to determine how such a programme would work to ensure it is
Brent residents who benefit and any scheme contributes to the achievement
of the Boroughs Regeneration Strategy.
3.10
The proposed finish time for the restaurant and any events is 11pm. Officers
tested this with TFL as it seems an early finish time for the proposed types of
uses. TFL believe this is acceptable to them but would wish to have further
discussions around possible later finish times on a set number of occasions
each year. At the public meeting help in November 2007, concern was
expressed by some local residents about additional on-street parking and
noise caused by customers leaving late at night.
3.11
There are currently two occupiers of the Stables Block; the Karmarama Café
and the Brent Arts Council. Whilst both are aware of the feasibility study
being worked up neither have been formally consulted with by TFL.
Discussions will need to be held if Members decide to move forward with this
scheme. The feasibility study includes provision for an art exhibition space
and other community spaces. Brent‟s Libraries, Arts and Heritage would be
happy to work with TFL to support plans regarding the future arts space within
the building.
3.12
If Members agree to provide TFL with further time to develop their proposal,
TFL believe it will take them until the end of 2008 to complete their capital
fund raising, finalise legal issues and obtain planning permission.
3.13
Officers have some concerns regarding the viability of the scheme in relation
to the effect any restrictions on parking and times of use resulting from the
planning process may have on the overall business plan. However, this study
does at this stage have the potential to succeed and officers believe it is worth
supporting TFL to progress this proposal. Two key milestones will occur over
the next six months; outcome of funding applications as discussed in
Meeting Exec
Version no. V5
Date 11-2-08
Date29-1-08
paragraph 4.3. Therefore, Members should consider whether they wish to
instruct Officers to work with TFL up to December 2008 to support them in
developing this proposal further. If this is the case, Officer will agree a work
programme with key milestones and will report back to the Executive on
progress as appropriate.
3.14
At the meeting in September 2007, members asked Officers to start preparing
an application to demolish pending the outcome of the feasibility study. To
date officers have prepared a brief for an experienced planning consultant to
develop the application. However, no further work has been undertaken as
this will incur further costs which may be unnecessary if TFL were to be
successful.
4.0
Financial Implications
4.1
The TFL submission estimates capital costs of approximately ÂŁ5.5M for the
refurbishment of the House. Officers believe this is a generous estimate and
it may be possible to complete the work for less. However, this level of
funding will ensure an excellent quality facility. There is no provision within
the Councils capital programme to contribute to this and TFL are not asking
the Council for a contribution. TFL propose to secure all the capital funding
via external grants. The main grants identified are
GLA/LDA – 2M
Heritage Lottery Fund (HLF) - ÂŁ1M
Futurebuilders London - ÂŁ1.5M
Community Assets Programme- CAP (Big Lottery Fund) - ÂŁ1M.
4.2
Obviously, at this stage, timescales have not allowed any of these funding
streams to be secured but initial applications and/or meetings have taken
place with each funder. Officers have supported TFL with an application to
CAP and it has progressed through the first stage; a final decision will be
known in April 2008. TFL are currently working up an application to the HLF
which will needs to be submitted by the end of February. The outcome of this
application will be known in June 2008.
4.3
TFL remain confident they can secure the necessary capital from the above
four sources but are also already working with smaller funders on other
projects, who they believe may fill any funding gap and prevent the need for
debt finance on the scheme. In addition, both the Department for
Communities and Local Government and the Learning and Skills Council have
provided capital funding for TFL prospect centres in the past. Both have
provided letters of support for the Dollis Hill House project and TFL are also
considering them as a source of capital funding.
4.3
The revised business plan submitted by TFL shows a forecast profit of
sufficient to fund a loan arrangement of up to ÂŁ1.5M should there be a
shortfall in the grant funding detailed at 4.1 (even allowing for a ÂŁ30K per
annum sinking fund for repairs).
Meeting Exec
Version no. V5
Date 11-2-08
Date29-1-08
4.4
As detailed in paragraphs 3.7 & 3.13 Officers have concerns about the income
projections used in the plan and in particular the impact that any restrictions
on parking and times of use, resulting from the planning process, may have
on these projections. TFL have recognised these risks in their plan and there
is some flexibility to reduce costs should income fall short of targets. This
flexibility will increase if TFL do not have to raise loan finance to cover any
shortfall in capital funding.
4.5
Members need to be aware that while TFL have not directly requested any
revenue funding from the Council some of the proposals in the Business Plan
could have revenue implications for the Council. Firstly the plan assumes that
some 52 Citizenship Ceremonies be held per annum at a room hire rate of
ÂŁ400 each. The majority of these Ceremonies currently take place in the
Council Chamber at no cost to the Registration and Nationality Service.
Switching 52 of these Ceremonies to Dollis Hill House would require an
annual payment to TFL of ÂŁ20,800 per annum for which there is currently no
budget provision. Secondly the Business Plan requires that all community
use of the house is paid for at commercial rates. It is likely that some
community groups may seek revenue funding from the Council to enable them
to hire the facilities. In addition, TFL have identified a revenue need for the
apprenticeship scheme and have not as yet identified the source for this
although they expect it may come from the Learning and Skills Council.
4.6
Maintaining the remains of the House in its current condition is covered by the
insurance fund. The insurance fund is the settlement received from external
insurers and the Council‟s own self-insurance for the two main arson attacks.
The fund is reducing at a rate of approximately ÂŁ20K per year. As of January
2008, it stands at ÂŁ74K. It should be noted that by extending the time
available to TFL, this will further reduce the insurance fund as the council will
be liable until any lease is signed. If at the end of this work TFL decide they
cannot progress with the scheme for any reason, the amount available for
demolition costs and making good the area afterwards will be further depleted.
5.0
Legal Implications
5.1
The Planning (Listed Buildings and Conservation Areas) Act 1990 does not
impose a duty on the owners of listed buildings to keep them in good repair.
However, Local Authorities and The Secretary of State have powers to
serve “Urgent Works Notices” and “Repairs Notices” on Owners who wilfully
neglect their historic assets indeed, paragraph 3.3.7 of PPG 15 states “the
Secretaries of State ask authorities to deal with their own buildings in ways
which will provide examples of good practice to other owners. It is particularly
important that every effort should be made to maintain historic buildings in
good condition, and to find appropriate new uses for buildings in authority
ownership which are no longer in active use”.
5.2
There are legal covenants on the property; the property is subject to the
Meeting Exec
Version no. V5
Date 11-2-08
Date29-1-08
Indenture dated 19th February 1900 between RA Finch and others and the
Willesden UDC. The land (Dollis Hill House and other properties) was
conveyed to the Council in “fee simple for the perpetual use thereof by the
public”. There has been debate over the years as to whether “for the
perpetual use thereof by the public” created a trust and had the effect of the
Council holding the land on charitable trust or not. A number of legal opinions
have been sought in the past. Given the time gap since the last legal opinion,
the council sought further external Counsel‟s opinion in March 2006. This
concluded that the House is not held on a charitable trust. The Charity
Commission is of the view that the building is not held on a charitable trust but
it is open to the Attorney-General to seek a court declaration that there is a
charitable trust if she saw fit. The Treasury Solicitor (on behalf of the Attorney
General) is currently considering the issue. Officers are pressing the Treasury
Solicitor for a response on this issue since if it was determined that the House
is held on a charitable trust this could restrict the uses which could be made of
it.
5.3
An unsuccessful application was submitted to register the park as a town
green during 2005. The House was not included within the area to be
registered. The application was refused on the basis that the necessary 20
year period of use by the public had not been shown. The applicant has now
submitted a further application. This again excludes the House but it is not
clear from the plan attached to the application what the exact boundaries of
the excluded land are. The applicant is being asked to clarify this. If the
application for registration succeeded then this would prevent the use of the
land for any purposes which interfered with its use for sports and recreation.
5.4
Assuming TFL are successful in the next phase of the scheme, the Council
will enter into an agreement to lease for 125 years, as advertised in the
marketing exercise. Upon satisfactory completion of the conditions within the
agreement to lease the council will enter into the lease. The TFL business
plan assumes a peppercorn rent for the site.
6.0
Diversity Implications
6.1
None specific to this report.
7.0
Staffing/Accommodation Implications
7.1
None.
Background Papers
Torkilsden & Barclay Leisure management report 20th June 1999
“Dollis Hill House – Development of a Community Trust” – report to the Public
Services deciding Committee, 27th June 2001
Meeting Exec
Version no. V5
Date 11-2-08
Date29-1-08
“Dollis Hill House Restoration Project” – Client Brief for Project Management
Consultancy
Dollis Hill House Project – Interim Report, May 2002 Dollis Hill House Steering
Group
Dollis Hill House Project - Outline Business Plan, July 2002 Dollis Hill House
Trust
Dollis Hill House – progress report on the development of a community
trust17th Sept 2002
Dollis Hill House progress report 2002-3
Dollis Hill house Trust Executive Summary of progress 2002
Dollis Hill House Business Plan –October 2003
Dollis Hill House and Stable Arts Gallery – Executive Report, December 2003
The Future of Dollis Hill House – Executive report, October 2006
Dollis Hill House: Update on Marketing Exercise – Executive Report, Jan 2007
Dollis Hill House – Results of Marketing Exercise 2007 – Executive Report,
Sept 2007
Training for life Feasibility Study December 2007
Contact Officers Any person wishing to inspect the above papers should contact Sue Harper
ext 5192/Richard Barrett, ext 1334
Richard Saunders
Duncan McLeod
Director of Environment and
Director of Finance and Corporate
Culture
Resources
Meeting Exec
Version no. V5
Date 11-2-08
Date29-1-08
