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CONTENTS OVERVIEW OF THE STRATEGIC OUTLINE PROGRAMME (SOP) PROCESS

Executive summary

Purpose

Strategic case

Economic case

Commercial case

Financial case

Management case

Appendix 1

Map 1 Barry: Strategic Context Map 2 Barry: Assets and Challenges

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1. Executive summary Most urban centres in Wales have populations below 50,000. Only Newport, Swansea, Rhondda, Cardiff and Barry are larger. Barry is changing and that change is tangible. You can see it as work on Barry’s £230m waterfront regeneration project, known as The Quays gathers pace. The Barry Regeneration Area Programme has also delivered significant change since 2010/11. The challenge is how to maintain momentum and scale-up from this base and respond to the challenge of: 1. Narrowing the gap of aspiration and achievement across the town; and, 2. Stepping up the quality of infrastructure; education and skills; tourism

and leisure facilities to make a unique contribution to the South East Wales City Region.

This submission sets out a clear joined-up programme of coherent and achievable actions that can be turned into reality. While it is possible to present a single story for Barry as a town, port and seaside resort there are still significant distinctions at the local level where circumstances vary widely, as does the capacity to respond. We want to develop and deliver a new narrative for our communities and traditional shopping areas in Barry and ensure that the targeted Welsh Government investment and the investment it levers in are aligned to achieve the maximum effect. The key proactive interventions proposed in this submission are aligned with the National Outcomes for Regeneration and have all been assessed to demonstrate that they have the potential to lever other investment and both create jobs and help people access jobs which either already exist or are created by other investment. The proposed investment for this programme is as follows: Overall Programme Cost: £20,120,000 Vibrant and Viable Places (Welsh Government) 74.6%: 15,000,000 Indicative Match Funding (Council) 25.4%: £5,120,000

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2. Purpose The Vale of Glamorgan Council is keen to drive forward its shared regeneration agenda and we are seeking support from the Welsh Government to realise it. Approval is being sought to proceed with the development and delivery of a clear joined-up programme of coherent and achievable actions known as Barry – a centre of growth and opportunity. The proposed programme is aspirational and pragmatic and demonstrates a range of responses to the long term structural changes in the town’s economy and the opportunities change offers. Operating in a climate that is and will continue to be tough the Vale of Glamorgan Council is committed to developing and harnessing the expertise and rigour of partner organisations to bring interventions to life at the local level in Barry. 3. Strategic case 3.1 Organisation overview This application is submitted by the Vale of Glamorgan Council as lead partner and grant recipient in liaison with a local advisory partnership known as the Barry Regeneration Area Partnership Board. The Senior Responsible Owner is Rob Thomas, Director of Development Services. This proposal complements the key services provided by the Development Services Directorate which includes Leisure, Tourism, Planning (including the LDP), Transportation, Project Management, Town Centre Management, Community Safety, Private Sector Housing Renewal, Business Support and Employment Training and the Barry Communities First Cluster. The complementary mix of services and the corporate role of the Directorate in coordinating regeneration activity in respect of the Vale of Glamorgan Local Service Board and the St Athan-Cardiff Airport Enterprise Zone Board gives a firm basis for ensuring that all interests can benefit from the wide-ranging rejuvenation this proposal promotes. The proposed programme is focussed on the settlement of Barry (Appendix 1: Map 1) defined by the eight wards (Appendix 1: Map 2). Barry, as identified by the 2011 Census, has a usual residential population of approximately 51,500. The town and settlement of Barry is located 10 miles west of Cardiff (and its Enterprise Zone), approximately 20 minutes drive from Junction 33 of the M4 (11 miles) and less than 5 miles east of Cardiff Airport (which is part of the St Athan-Cardiff Airport Enterprise Zone). In the late 19th and early 20th century the town experienced rapid population and industrial growth, becoming the largest coal exporting port in the world in 1913. Barry retains a strong industrial heritage, particularly through its port and four railway stations, which means that all areas of the town are easily accessible. There are excellent rail connections between Barry and Cardiff (four journeys per peak hour) and the reopening of the Vale of Glamorgan

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Line provides services between Bridgend and Barry with stations at Rhoose and Llantwit Major. Barry is also a seaside resort with key attractions including Barry Island, The Knap and Porthkerry Country Park. 3.2 Strategy and programme investment aims The Regeneration Vision for Barry takes a long-term perspective, being designed to remain relevant until the end of the decade. It complements the strategic policy direction of the LDP, Corporate Plan 2013-17 and Community Strategy 2011-21 and the generic regional and national policies of the Programme of Government including the National Outcomes for Regeneration. There is a single minded commitment locally, to deliver the following Vision Statement, which reflects the importance of linkages and the need to dovetail Barry’s assets and challenges with the emerging City Region approach: By 2020 Barry will be a distinct, attractive and safe place to live, work, invest and visit, and will make a unique contribution to the economic growth of the South East Wales City Region. Its reputation for excellence will be focused on opportunities for skills development, employability and progression augmented by the profile and academic distinction of a leading edge higher and further education sector. A number of complementary strategic objectives flow from the Vision Statement. These fall into the following strategic framework that Barry needs to be: 1. A great place to live – outstanding quality of life is enjoyed by everyone 2. A rising star – spreading the benefits of major investment 3. A learning town – building a culture of lifelong learning 4. A great place to work and grow a business 5. A place where opportunities are harnessed to improve health 6. A great place to visit – improve the visitor experience 7. An easy place to access – promoting sustainable transport 8. A place to be proud of – investing in quality design 9. A place with sustainable communities – meeting local needs The specific investment aims for the programme for which approval is being sought are as follows: 1. Create a fertile environment to develop cohesive communities by

providing the tools to improve and maximise opportunities; 2. Develop a new housing model around the occupation of empty flats,

empty commercial properties and other properties in our traditional shopping areas;

3. Broaden the mix and appeal of traditional shopping areas by supporting proposals to locate public facilities, leisure and homes;

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4. Renew infrastructure to improve accessibility and perception; and, promote more efficient public transportation provision and usage;

5. Achieve well connected complementary growth by investing in property that will stimulate business and creative industry to start-up or expand; directly creating jobs and growth;

6. Create a brand for the town based around its outstanding waterfront setting and the marine and lifestyle assets; and,

7. Create a strong sense of place by protecting and enhancing Barry’s heritage, reusing historic buildings and encouraging new contemporary developments that respect the town’s unique identity.

3.3 Existing arrangements The Barry Regeneration Area is a £9.8m programme of investment which started in March 2010. The programme runs until March 2014. Following consultation with stakeholders in 2011, the local advisory partnership agreed two strategic objectives for the Programme: 1. Support the development of Barry as an attractive place to live; and, 2. Support the development of Barry Island as a destination primarily for

activity based day trips. Skills and employment was also identified as an overarching theme. 3.4 Business needs Following the publication of Vibrant and Viable Places the challenge is how to maintain the momentum created by Regeneration Area status and scale-up from this base to harness the development benefits from investment such as The Quays; St Athan-Cardiff Airport Enterprise Zone; Welsh Housing Quality Standard; and, Renewal Area activity to realise community benefits and narrow the gap of aspiration and achievement across the town. There is also a need to dovetail the rejuvenation of Barry’s assets with the activities of the Barry Communities First Cluster and the emerging City Region approach. Barry: its assets (Appendix 1: Map 2) Barry has many positive factors on which to build, most notably: 1. An outstanding waterfront setting with its marine and lifestyle assets a

potential cornerstone of a brand for the town; 2. The town has a unique identity defined by its maritime setting,

topography and special character of its seaside resort, docklands, retail areas and contrasting residential neighbourhoods;

3. The town enjoys close proximity to Cardiff Airport and the Capital City; 4. Barry is in an enviable position, boasting four railway stations making all

areas of the town easily accessible; 5. Barry, as identified by the 2011 Census, has a usual resident population

of 51,500. When compared with the 2001 Census an 8% increase in population can be seen whereas the Vale of Glamorgan and Wales as a

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whole has experienced a lower rate of growth of around 6% over the same period;

6. In a tough financial climate private sector investment is evident at The Quays bringing forward housing and employment opportunities during the lifetime of the proposed programme; and,

7. A legacy of Regeneration Area status is that there are defined programmes, processes and delivery mechanisms already in place to scale-up from.

Barry: its challenges (Appendix 1: Map 2) With reference to the Corporate Plan, Community Strategy and the themes and priorities of the Barry Regeneration Area programme, the key challenges include: 1. Census data (2011) shows there is a lower proportion of residents in

Barry with a NVQ Level 4 (20%) compared to the Vale of Glamorgan (30%) and Wales (24%), suggesting there is a relative lack of higher skilled individuals in the area and higher skilled job opportunities within Barry;

2. The largest shortfall of affordable housing for the Vale of Glamorgan exists within Barry where existing supply is considered to be less than two-thirds (552 or 59.9%) of the annual requirement;

3. During the key recession period of 2007-12 the yearly average claimant rate in Barry has risen from 3.1% in 2007 to 5.9% in 2012, an increase of 87%. Over the same period, the overall rate for the Vale of Glamorgan rose from 2% to 3.6% and the rate for Wales rose from 2.2% to 4.1%. Barry has therefore retained higher levels of unemployment compared to its wider geographic counterparts through this period. This evidence combined with the Indices of Multiple Deprivation (2011) in respect of the housing, education, health and income domains has been the basis for Welsh Government approval of the Communities First Cluster area, which covers large parts of the Barry;

4. Over the period 2013-17 the Council is spending circa £67m on bringing Council housing up to Welsh Housing Quality Standard, 830 of which are in the Gibbonsdown area. The provision of a much improved home environment is fundamental to the Gibbonsdown community and is one of the key aims of Welsh Housing Quality Standard to deliver more than ‘bricks and mortar’ improvements;

5. The scale of change and unprecedented challenges facing the main traditional shopping areas (Holton Road, High Street/Broad Street and Main Street) in Barry;

6. The relative lack of holiday bed spaces in the town -even with the opening of Premier Inn in October 2012- provides limited opportunity for Barry to be anything more than a predominantly day visitor destination;

7. The expansion of Communities First and a financial climate that is and will continue to be tough is evidence of the need to create the necessary conditions for a more supportive culture for cohesive communities to develop; and,

8. A perception of decline, and a need to improve its image as a place to live, work and visit.

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3.5 Potential scope and service requirements With section 3.4 of this document in mind the scope for the proposed programme is based around the Vibrant and Viable Places guidance and the critical success factors in section 4.1 of this document. The proposed programme is an opportunity for the Council to develop a new model for service provision for supporting people into work; develop new housing model around our traditional shopping areas; and, develop a new model for Town Centre Management. 3.6 Benefits, risks, dependencies and constraints A key benefit of the proposed programme is that there are defined programmes, processes and delivery mechanisms already in place to scale-up from. The key risk/dependency of the proposed programme is the reliance upon a single minded commitment from all sectors (beyond the short term) to deliver in a financial climate that is and will continue to be tough. A further risk is to forecast for key measures e.g. job creation at Stage 1 of the bid process. This evidence should be determined at Stage 2 of the bid process which is in keeping with the principles outlined in HM Treasury’s Green Book and the Five Case Model for Public Sector Business Cases. 4. Economic case 4.1 Critical success factors The proposed programme (and evaluation of options) has been assessed against the following criteria: 1. Priority Areas for Targeted Investment: will the investment target Town

Centre and/or Coastal Community and/or Communities First Cluster areas?

2. Housing: will the investment encourage wider investment in housing (both supply and conditions) and the home environment?

3. Synergy with National Outcomes for Regeneration: does the investment align with Prosperous/Learning/Healthier Communities?

4. Key Performance Indicators: does the investment have the potential to lever in other investment and both create jobs and help people access jobs which either already exist or are created by other investment?

4.2 Main options Option 1 (Baseline): minimum level of activity after the current programme closes at the end of March 2014 Advantages: none. Disadvantages: missed opportunity to maintain the momentum of the Regeneration Area programme and scale-up from this base.

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Option 2 (Piecemeal Approach): activity focused on either Town Centres or Coastal Communities (Barry Island) or the Communities First Cluster Advantages: has the potential to make a greater impact but on a smaller scale. Disadvantages: missed opportunity to develop linkages and incentivise behaviours likely to deliver successful regeneration across the whole town. Option 3 (Proactive whole-town Approach): a single joined-up suite of interventions Advantages: best fit (in Strategic and Policy terms) with the bid guidance as it directly addresses the needs of traditional shopping areas; coastal communities; and, the Communities First Cluster. Disadvantages: reliant upon a single minded commitment from all sectors (beyond the short term) to deliver in a financial climate that is and will continue to be tough. 4.3 Preferred way forward Option 3 (Proactive whole-town Approach): Barry – a centre of growth and opportunity Table 1 (below) sets out the key investments in the proposed programme and the components that will be subject to individual business cases at Stage 2 of the bid process:

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Funding Envelope - Indicative Gross Costs £

(f: feasibility)

Table 1. Key Investments & Associated Components

14/15

15/16 16/17

Synergy between Key Investments &

Associated Components

1. Create a fertile environment to develop cohesive communities by providing the tools to improve and maximise opportunities (a) Gibbonsdown Community Regeneration 10,000(f)

800,000

1,100,000 50,000 4,5

(b) Barry Community Regeneration/Capacity Building Grant Programme 50,000 140,000 110,000 1(a),1(c),3,5,6,7

(c) Legacy Programme – Third Party Projects 250,000 250,000 250,000 1(b),3,5,7 2. Develop a new housing model around the occupation of empty flats, empty commercial properties and other properties in our

traditional shopping areas (a) Castleland Renewal Area 550,000 505,000 130,000 3,4(a),4(b),7 (b) Main Street Action Plan 15,000(f)

300,000

500,000 250,000 3,4,7

3. Broaden the mix and appeal of traditional shopping areas by supporting proposals to locate public facilities, leisure and homes (a) Voluntary Sector & Social Enterprise Hub 20,000(f) 200,000 100,000 1,5 (b) Barry Leisure Centre 255,000 1 (c) High Street/Broad Street 45,000(f) 1,000,000 1,000,000 2,4(c),5,7

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4. Renew infrastructure to improve accessibility and perception; and, promote more efficient public transportation provision and

usage (a) Barry Docks Station 20,000(f) 250,000 500,000 2(a),3,5,6 (b) Holton Road (Central) 733,333 1,466,667 2(a),3,4(c),5,7 (c) Town Centre Wi-Fi 20,000(f) 1,2(a),3(c),4(b) (d) Gateway Improvements 100,000 350,000 200,000 5,6 5. Achieve well connected complementary growth by investing in property that will stimulate business and creative industry to

start-up or expand; directly creating jobs and growth (a) Education & Skills Cluster 100,000(f) 1,6,7 (b) Routes into Enterprise 100,000 100,000 100,000 1,3,6,7 6. Create a brand for the town based around its outstanding waterfront setting and the marine and lifestyle assets (a) Waterside Hub 500,000 500,000 250,000 1,5,6(b),7 (b) Legacy Programme – Barry Island 1,000,000 475,000 375,000 1,5,6(a),7 7. Create a strong sense of place by protecting and enhancing Barry’s heritage, reusing historic buildings and encouraging new

contemporary developments that respect the town’s unique identity (a) Business/Creative Industry Hub – Innovation

Quarter (Historic Pump house) 25,000(f)

365,000

1,500,000 2,700,000 1,5,6

(b) Heritage in Regeneration – Barry Island 150,000 350,000 5,6 Total Indicative Gross Costs (per year) 5,238,333 8,506,667 6,365,000 Overall Programme Cost 20,120,000* Funding Required from Vibrant and Viable Places 74.6% 15,000,000

Indicative Match Funding (Council) 25.4% 5,120,000

*10,000 added for monitoring and evaluation.

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5. Commercial case 5.1 Commercial strategy There is a gap and an opportunity for the Council to take the lead and bring benefits not just to traditional shopping areas (in terms of increasing residential footfall) but to the general shortage of affordable housing. The market trend has seen demand for shop units fall while the need for affordable and rented homes has grown. Without the easy mortgage finance of the recent past, responsibility therefore falls on public sector initiatives and the particular need for affordable homes. 5.2 Procurement strategy Where the Council is responsible for delivery, Council policy will be followed to comply with our Constitution, financial rules and legislative requirements. Due diligence will be undertaken in all procurement matters. All Project Managers will follow corporate project management methodology to ensure consistency. In respect of grant support for third parties due diligence will be undertaken in all matters including procurement. State aid rules will also be considered from the onset of any proposal to ensure compatibility with EU regulations. 6. Financial case 6.1 Indicative cost The total financial cost of the programme £20,120,000 is set out in the Table 1. This also identifies the components that will be subject to individual business cases at Stage 2 of the bid process. 6.2 Funding arrangements It is intended that the proposed investment will be funded as follows: Overall Programme Cost: £20,120,000 Vibrant and Viable Places (Welsh Government) 74.6%: 15,000,000 Indicative Match Funding (Council) 25.4%: £5,120,000 Options for additional match funding e.g. HLF will be explored at Stage 2 of the bid process. In addition to this potential sources of leverage, include Registered Social Landlords, WHQS, Eco Fund, Private Sector and Third Sector. 6.3 Affordability Affordability of the overall programme is based on the process of identifying the preferred way forward including the use of critical success factors in section 4.1 of this document; an adjustment for optimism bias; and, the fact

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that there are already defined programmes, processes and delivery mechanisms in place to scale-up from. 7. Management case 7.1 Programme management arrangements The programme management arrangements are set out in the line chart below:

When necessary the Senior Responsible Owner will bring interventions to life through maintaining links with the Barry Communities First Cluster Board; the Local Service Board; St Athan-Cardiff Airport Enterprise Zone; Corporate Management Team; the Vale Retailers Forum; and, the Vale Business Forum. Key stakeholder engagement has commenced with the local advisory partnership and other partners for preparation of this bid. This input will form the basis of the stakeholder engagement and communication plan at Stage 2 of the bid process. 7.2 Programme milestones Subject to the preparation of individual business cases at Stage 2, the programme will be delivered to time and budget in compliance with project management methodology, financial rules and legislative requirements. 7.3 Programme assurance As previously stated there are already defined programmes, processes and delivery mechanisms already in place to scale-up from.

Senior Responsible Owner

(Rob Thomas)

Local Advisory

Partnership

Project Sponsors

Project Managers (responsible for delivering the Key Investment Components)

Welsh Government

Cabinet (If the

recommended decision is within the

Policy Framework)

Council (If the

recommended decision is not

within the Policy

Framework)

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Appendix 1

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ST. ATHAN - CARDIFF AIRPORT

ENTERPRISE ZONE

BARRY REGENERATION AREA

FUNDING 2013/14

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ENTERPRISE ZONE

1.

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REDEVELOPMENT

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QUARTER2.

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