Agenda item

Report of Director of Service Delivery.

Cabinet lead member:  Councillor Margaret Bannister.

Progress of creative hub cluster initiative noted.

(2) Agreement be given to East Sussex County Council’s external funder conditions set out in paragraph 5.6 of the report and confirmation given that associated grant be spent on the councils’ buildings ahead of being leased to a new community interest company (CIC) for use as a creative hub cluster.

(3) Council officers to facilitate the establishment of a CIC as set out in the report

(4) Initial members of an independent CIC; Devonshire Collective be the Chair of Devonshire West Big Local Board ,the council’s Director of Tourism and Enterprise and Eastbourne Homes Limited’s Senior Programme Manager DDF.

(5) Waiver of the contract procedure rules agreed to allow the award of up to 15 year leases to the new CIC, Devonshire Collective, for 67-69 Seaside Road and 1-5 Seaside commercial spaces without a competitive process for the reasons set out in paragraph 5.5 of the report.

(6) Director of Tourism and Enterprise, in consultation with the lead cabinet member for tourism, granted delegated authority to take all necessary steps to complete the lease arrangements with the CIC as outlined in paragraphs 5.2 and 5.3 of the report.

27.1 Cabinet considered the report of the director of service delivery providing an up-date on, and setting out plans for the Devonshire Collective Creative hub cluster project as part of the Driving Devonshire Forward programme. 

27.2 The Driving Devonshire Forward (DDF) programme had been running for just over 2 years.  It aimed to improve the Devonshire ward through a range of initiatives including new build housing; the acquisition and refurbishment of priority empty buildings; public realm investment funded by external grants and via the housing investment programme; and investment in new tourist facilities – beach huts.  The project was strategically co-ordinated by the DDF steering group which included ward councillors, residents, members of the local business community and other key stakeholders such as the University of Brighton and the Devonshire West Big Local (DWBL).  To date a total of more than £6m of investment had been delivered.  The report gave a summary of projects, either completed, underway or planned. 

27.3 This report recommended the council to facilitate the set-up of a new community interest company (CIC), the Devonshire Collective, to support creative enterprises in the ward through the establishment of a creative hub.  A mixed offer was planned across a number of buildings with the 3 priority properties providing the main focus:-

·         67-69 Seaside Road: Gallery space and café.

·         1-5 Seaside: Workshops.

·         137- 139 Seaside Road: Maker spaces and studios.

In addition to the 3 main buildings the offer would extend to the Hippodrome (office space, exhibitions, events) and Leaf Hall: (contemporary dance, pilates, events).

27.4 In March 2016 cabinet agreed a report summarising initial feasibility work and providing an outline of the plans to establish the CIC in the Autumn subject to sufficient funding being secured.  Since then key progress had been:-

·         £193,300 of additional external funding secured (DWBL £80,000. East Sussex County Council (ESCC) £93,300 and Arts Council £20,000).

·         Interim project sponsors board established

·         Planning approval for change of use for the three commercial spaces; from retail to sui generis.

·         Work on branding, marketing, PR , social media, all underway.

·         First tenants identified e.g. printers and ceramicists.

·         Outline launch programme for Sept 2016 – Jan 2017 agreed.

·         Legal advice on the formation of the CIC via external lawyers.

27.5 With the additional external funding now secured the total capital budget,  for the two council owned buildings (67-69 Seaside Road and 1-5 Seaside) was £227,535.  This was sufficient to enable the initial launch of a high quality offer in the two commercial spaces that would significantly enhance the area.  A paper was due to be presented to the Eastbourne Housing Investment Company (EHIC) board in respect of 137-139 Seaside Road for the fit-out and letting of this property as the third venue.  A paper is scheduled to be presented to the EHIC Board 137-139 Seaside Road in September in relation to the associated fit out and letting of 137-139 Seaside Road as the third venue.

27.6 The 3-year revenue budget for the CIC was considered to be realistic and robust.  The revenue forecast for the CIC indicated a deficit in year 1, offset by surpluses in years 2 and 3.  The collective would be fully self-financing and non grant reliant from year 4.

27.7 The interim sponsors board was established and had been supporting and directing the project since March.  The intention was that the interim board initially make up the board of the new CIC, based on nominated post holders: DWBL chair; EBC director of tourism and enterprise; and Eastbourne Homes Limited senior programme manager DDF.  Following legal advice and consideration by the interim board, the new CIC would be formed as a non- profit making CIC limited by guarantee with no share capital.  The target date for incorporation is 30 September 2016.  The board’s focus for the first 6 months to 31 March 2017 would be to launch the collective; ensure it was fully operational and was achieving income targets; recruit the CIC staff; recruit up to 3 more board members (not replacement members); and establish the collective as a sustainable model.  In terms of ongoing governance, the intention was that the CIC would become wholly independent of the council and operate to develop the creative offer in this part of the town without council support and without the council being exposed to any future risk.  Also, once the CIC was up and running, the council members of the Board would be expected to resign although the council would retain the option to review this if continued involvement was felt necessary.

27.8 The report also detailed legal advice in respect of procurement and land disposal issues and set out the conditions for the ESCC match funded grant (paragraph 5 of the report).  Key risks and actions to mitigate risk were set out in paragraph 7.

27.9 Resolved (key decision): (1) That progress of the creative hub cluster initiative be noted.

(2) That agreement be given to East Sussex County Council’s external funder conditions set out in paragraph 5.6 of the report and confirmation given that associated grant be spent on the councils’ buildings ahead of being leased to a new community interest company (CIC) for use as a creative hub cluster.

(3) That the council’s officers facilitate the establishment of a community interest company (CIC) as set out in the report.

(4) That the initial members of an independent CIC; Devonshire Collective be the chair of Devonshire West Big Local board ,the council’s director of tourism and enterprise and Eastbourne Homes Limited’s senior programme manager (Driving Devonshire Forward).

(5) That a waiver of the contract procedure rules be agreed to allow the award of up to 15 year leases to the new CIC, Devonshire Collective, for 67-69 Seaside Road and 1-5 Seaside commercial spaces without a competitive process for the reasons set out in paragraph 5.5 of the report.

(6) That the director of tourism and enterprise, in consultation with the lead cabinet member for tourism, be granted delegated authority to take all necessary steps to complete the lease arrangements with the CIC as outlined in paragraphs 5.2 and 5.3 of the report.

(Note:  Councillors Wallis and Tutt both declared an interest in this matter.  See minute 20 above.)