Drew McEwen: Community Club Ownership & Asset Transfer

DREW McEWAN

COMMUNITY OWNERSHIP AND ASSET TRANSFER

COSS is delivered by the Development Trusts Association Scotland. The service has been funded by the Scottish Government since 2011 to support community based groups take a stake in or ownership of previously publicly owned land or buildings.

Provide support for Local Authorities and Community Organisations

Website & printed resource

COSS Advisers: Provide support, information, advice, objectivity and share other groups experiences

Facilitate Learning events.

212 open cases : community centres, land for allotments, caravan sites, visitor centre, former schools, day care centre, piers & harbours, sports facilities, theatre, station buildings, parks, woodland

28 Local Authorities engaged

Many with proactive CAT strategies

Working with ACES

1st Quarter of this year 3679 downloads from our website.

75,891 assets

2,718 organisations

Estimated value of £1.45 billion

Most common uses: housing, community halls/centres, amenity space (e.g. green space), business lets, cafes/restaurants, educational facilities, grocery shops, heritage, renewable energy, sports and fitness

Source: Community Ownership in Scotland: a baseline study, DTAS, 2012.

Community Empowerment Action Plan, Scottish Government, 2009.

Assets are taken to be property (land, buildings) and related rights

“the transfer of an asset from the public or private sector to community organisations at less than market value”.

Types of Tenure

Transfer – Sale

To maximise the benefits of asset transfer, outright ownership of the title is the preferred mechanism of community involvement in the management and development of assets.

Types of Tenure

Long Term Lease

In some situations the use of a long term lease may be the most appropriate form of tenure. This may be linked to assets which are of such strategic or historic significance that retaining ownership and therefore control by the local authority would be required.

Types of TenureShort Term Lease

From a community’s perspective short term leases can be very effective interim step to full ownership It can provide a range of benefits.

Types of Tenure

Occupation Agreement / Licence to Operate

This type of agreement may well be appropriate where there is an interconnected lease and service level agreement

For example, in the delivery of care services from a local authority owned care facility, swimming pool or a facility where the local authority continues to deliver services from part of the facility

This type of arrangement has also been used effectively to enable community groups’ time to develop their business plan while keeping a facility open.

Can make major alterations/ extend/ re-furbish

Greater incentive to make such improvements

Balance sheet strength – can borrow against (depends)

Control and certainty over future of asset – can make long-term plans around it

Increased civic pride / community confidence

Better stewardship of local assets if community owns (and uses) them.

Benefits of Asset Transfer to Local Authorities

1. Helps with budgetary pressures 2. Greater efficiency through the rationalisation of

property portfolio & service delivery 3. Contributes to wider council objectives:

i. Potential for long-term regeneration of communities

ii. More confident /sustainable community organisations

iii. New opportunities for learning and capacity building

iv. New local partnerships/collaborations.

1. Are we giving away the family silver?

2. Have the community the capacity?

3. What if it fails?

4. Setting a precedent?

5. Control v empowered communities (NB leases, claw back)?

Focused on a clear social mission based on local needs

Legal model and governance structure fit for purpose

Strong leadership

Constantly developed in-house capacity

Good succession planning

Prepared to seek the support of intermediaries and/or public agencies.

Issues to be considered which are sometimes overlooked which can ultimately turn the asset into a liability;

o historic lack of investment in facilities

ohidden structural problems

oLimited market demand for an asset due to changing tastes and needs by customers

oPoor location of an asset

oCostly environmental liabilities such as contaminated land or asbestos

orestrictive leases for clubs

ounrealistic expectations by all parties

oFailure to explore all current and anticipated costs (management and maintenance) on the site.

Is there still a need?

does this asset help us deliver that?

If we own the property/land can we make it viable?

will the project have the financial resources to survive?

Will the project be sustainable?

does the group/ organisation have the capability and

resilience to ensure continuation /adaptation into the future?

Do you have a committee and are they an elected body?

Do you have a clear and agreed mission, aims and objectives

Does the governing structure prevent personal profit

Do you have a business plan inclusive of operational costs of running the facility?

Do you have written financial procedures with checks and balances to avoid misuse of funds which are regularly reviewed?

Do you have a Football development Plan aligned to your aims and objectives?

Have you developed a good and active relationship with the SFA

Have you developed links with key organisations in the local community?

Do staff and volunteers have clearly defined roles and responsibilities and you have a plan to replace those people as and when they leave?

Do you have experience of managing a facility and understand the requirements and legal undertaking?

Do you have sufficient operating reserves.

THANKYOU

PARTING THOUGHT: If we as communities do not strive to influence some of the major economic, educational and recreational aspects in our community;

be it the protection of key services and facilities, or opportunities in employment, training and business,

then we run the risk of having decisions taken for us by external elements who do not know or understand the needs of our community.”

Contact us

0131 225 2080

drew@dtascot.org.uk

www.dtascommunityownership.org.uk

Development Trusts Association Scotland

54 Manor Place

Edinburgh

EH3 7EH