Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Otley Civic Centre Feasibility Study Page 1 of 45
OTLEY TOWN COUNCIL: CIVIC CENTRE WORKING GROUP Civic Centre Business Plan Stage 1: Revenue Feasibility Study
Executive summary
0 Introduction
0.1 Surely the building’s a white elephant: why not just sell it for development?
0.2 Background to this study
0.3 Further consultation
1. Preferred option for the development of the Civic Centre
1.1 Goals
2 Evidence for the business case
2.1 Community profile
2.1.1 Otley town
2.1.2 Otley’s urban and rural hinterland
2.2 Community facilities audit
2.3 Consultation
2.4 Contribution to wider regeneration
3 Examples of refurbished buildings from elsewhere
3.1 Buildings visited, business plans reviewed
3.2 Key learning points from other projects
4 Future uses of the Civic Centre
4.1 The Auditorium/Event Hall
4.1.1 Cinema
4.2 Other uses of space
4.2.1 Long term tenants
4.2.2. One off room booking: function room / office space / hot desk to hire by
the day / hour
4.2.3 Café / Bar
4.2.4 Community use
4.2.5 Marketing and promotion
4.2.6 Staffing
4.2.7 Partners / stakeholders / sponsors
Otley Civic Centre Feasibility Study Page 2 of 45
5 The building’s ownership and management structure
5.1 Current ownership, asset transfer or lease
5.2 Options for an arms length organisation
5.3 Transitional arrangements
5.4 Future governance
6 The preferred option for future development
6.1 Town planning
6.2 Conservation
6.3 Building regulations
6.4 Access issues
6.5 Environmental sustainability
6.6 Theatre report (2008)
7 Revenue projections
7.1 Financial sustainability
7.2 Income and expenditure summary for first 5 years
7.3 Income and expenditure assumptions
7.4 Annual revenue projections – summary
8 Funding opportunities and strategy
9 Risk assessment
9.1 Public sector liability for cash flow difficulties
9.2 Lack of capacity to take the project forward
9.3 Lack of demand for proposed uses
9.5 Lack of car parking
9.6 Failure to get local buy in
10 Action plan
11 Conclusion
Otley Civic Centre Feasibility Study Page 3 of 45
Appendices
Appendix 1: Income and expenditure projections for first five years
Appendix 2: Event Hall: Year 5 revenue project
Appendix 3: Staffing
Appendix 4: Preferred option for future development (drawings and elevation)
from Pulse report, 2008
Appendix 5: Theatresearch consultancy report on the auditorium from Pulse
report, 2008
Appendix 6: Cinema options
Appendix 7: Community consultation July 2013
Appendix 8: Previous users
Otley Civic Centre Feasibility Study Page 4 of 45
“Old buildings resonate deeply, especially for those who have new ideas or want to
be innovative. That is why world-wide thousands of old buildings, some ordinary,
some extraordinary, some quirky and some grand have been put to new use. Think
of the houses, shops, warehouses, breweries; train, bus or fire stations; cement,
coal, textile, tobacco or steel factories; old markets or military barracks that have
been transformed into retail emporia, culture or experience centres, incubators and
company breeding grounds and as hubs for wider urban regeneration.”
Charles Londry, in New ideas need old buildings, a report by the Heritage Lottery Fund, 2013
“I’m less interested in demolition of old buildings. Because it’s amazing how new
things are soulless, even really interestingly designed new things so often don’t feel
soulful until they’re old. And so I’m quite interested in how you lean on, work with,
adapt [old buildings] and you end up with places that have a spirit. Even if they’re
not super treasures you can make them super treasures by the way you work with
them.”
Thomas Heatherwick, English designer described by Terence Conran as the ‘Leonardo da Vinci of our
times’, in an interview on the Today programme, 27 December 2013.
Otley Civic Centre Feasibility Study Page 5 of 45
OTLEY TOWN COUNCIL: CIVIC CENTRE WORKING GROUP
Civic Centre Business Plan Stage 1: Revenue Feasibility Study
Executive summary
This Revenue Feasibility Study represents Stage 1 of the Business Plan for Otley
Civic Centre. It is a first draft and is presented for discussion, constructive criticism
and further refinement.
The study considers whether the Civic Centre, once refurbished, can generate
enough revenue as a cultural, creative, entertainment and community facility to cover
its running and maintenance costs. The income and expenditure projections in the
study are supported by evidence from similar venues elsewhere. A realistic budget
has been allocated to ensure that the building’s fabric, services and finish can be
maintained over a 30 year lifecycle. This will prevent the need for further public
subsidy at a future date and will remove the burden of maintenance responsibility
from Leeds City Council.
The capital costs of refurbishment are to be dealt with separately.
Objectives
To make the Civic Centre financially sustainable, it is proposed to:
Provide a large town centre venue with a flexible 400 seat auditorium space that
can offer moveable raked seating and stage or flat floor, with a full range of
supporting facilities: technical equipment, dressing rooms, attractive public foyer,
café and bar, access lifts, etc. The auditorium was under used for at least 15
years before closure due to access and fire safety issues that refurbishment will
resolve. No other venue in Otley offers comparable facilities.
Develop diverse uses of this and other spaces in the building that will generate
enough income to cover the running costs of the building, including staff, over a
30 year lifecycle.
Build local users/audiences through energetic marketing and promotion to
achieve maximum use of the spaces the building offers.
Otley Civic Centre Feasibility Study Page 6 of 45
Offer facilities for community activities and events, at affordable rates, alongside
commercial income-generating activities.
Seek links and partnerships with a range of stakeholders (e.g. Leeds City Council,
Otley Town Council, Otley Town Partnership, Otley Chamber, Otley Bid, Otley
Courthouse, individual local businesses, other agencies involved in regeneration,
etc.) to promote the Centre and the town as a visitor destination, raise the profile
of the area, and attract future inward investment.
The aim is to complement rather than compete with the Courthouse Community Arts
Centre, and there have been initial discussions with the Courthouse on possible
areas for collaboration.
National research shows that a large, successful events venue would have practical
spin-off benefits for the wider economy: it will enhance the offer to visitors and
tourists, providing an all season venue for festivals, fairs and other entertainment and
cultural events. It will help support the people working in the local cultural and
creative sector, with spillover benefits to other businesses offering visitor services
like restaurants, accommodation, bars, cafés and retailers, so contributing to the
economic vibrancy of the town. And it reduces the leakage of local money to
elsewhere: when Otley residents travel to Ilkley, Harrogate, Leeds or Bradford for
cultural and entertainment events, they also take their retail spending.
Future governance
The building is owned by Leeds City Council but is assumed that the Town Council
will be responsible for the the building after refurbishment. The two councils will need
to agree an appropriate legal and management structure for this to happen. The
Town Council’s preference is for an arms length politically independent legal entity,
such as a development trust or charitable company limited by guarantee, which will
protect the use of the building into the future for the benefit of the local community.
Revenue projections
Vigorously promoted and marketed as an arts and entertainment venue, with a
budget allocated for a Business and Creative Director to oversee this, it is estimated
that the flexible 400 seat auditorium space could within 5 years achieve a 72%
occupancy rate and generate around £179,000 in Year 5, or 78% of the annual
income required to cover the full costs of running the building. These costs include
Otley Civic Centre Feasibility Study Page 7 of 45
full maintenance of fabric, services and finishes over a 30 year lifecycle, a marketing
budget, team of staff, and training and development.
Other uses of the spaces in the building that will generate income include:
long-term tenants (e.g. East Street Arts has expressed interest in a 5-10 year
lease of studio space)
One off room booking: function room / meeting room / office space / hot desk to
hire by the day / hour for community and business use
lease of the Café and Bar, tendered in the first instance to local proprietors
The feasibility study shows that the building will run at a deficit in the first few years,
but by around Year 5 and thereafter the deficit will equate more or less to the
repayment of the Public Works Board loan.
The revenue projections show the deficit in Year 1 is expected to be around £69,000.
This includes the Public Works Loan Board loan repayment of £30,000 pa. The
deficit will reduce over 5 years so that projected annual income in Year 5 is
£229,494, and expenditure is £265,863, a deficit of £37,169.
The income will be supplemented by a transfer from Otley Town Council to cover the
Public Works Loan Board loan repayments and the reducing annual shortfall. From
Year 5 onwards this is projected to be between £2,000 and £7,000. It is proposed
this arrangement is be guaranteed through a leasing contract whereby Otley Town
Council commits to a fully maintaining lease and then sublets the Civic Centre to a
charitable trust that will run the building. Before committing to this agreement, Otley
Town Council would need any final business plan and leasing contract to be
reviewed by an external auditor. It is also proposed that the Town Council commits to
the higher levels of support required by Otley Civic Centre during Years 1-4 and, in
preparation, is in the process of building substantial capital reserves, projected to be
£38,000 by 2014/15 and increasing in subsequent years. This will prevent the need
for a precept rise to cover a subsidy to run the building during Years 1-4.
If this Stage 1 Revenue Feasibility Study is accepted, the second stage of the
business plan should identify sources of funding that will support specific aspects of
the project’s development, and help to reduce the revenue gap. This work will
become the responsibility of Trustees and the Business and Creative Director once
Otley Civic Centre Feasibility Study Page 9 of 45
0 Introduction
This feasibility study represents Stage 1 of the proposed business plan for Otley
Civic Centre. The building is owned by Leeds City Council and was run by Otley
Town Council until it closed in 2010. The aim of this feasibility study is to consider
whether the Civic Centre, once refurbished, can generate enough revenue as a
cultural, creative, entertainment and community facility to cover its running and
maintenance costs.
The capital costs of refurbishment are to be dealt with separately from this study of
the revenue projections. When Otley Town Council established the Civic Centre
Working Group in May 2013, Leeds City Council asked the group to focus on
whether the building could generate enough revenue to be financially sustainable.
0.1 Surely the building’s a white elephant: why not just sell it for development?
Otley Civic Centre is a Grade II listed heritage building with large interior spaces
designed for public use in the 19th century. The building has symbolic value for local
people. As the former Mechanics Institute, former home of the Town Council, and
above all as a previously well-used community facility, it is widely regarded with
affection, a physical symbol of the rich and diverse personal memories of events
attended and times spent within its walls. From intimate memories: “I had my first
kiss on the dance floor”: “I had my wedding reception here”, to collective community
memories of success and achievement: ‘Folk Festival now ranks amongst top three
in country’ (Wharfedale Observer, 22 Sept 2005) – the building is part of the town’s
sense of place and history.
As well as the Civic Centre’s cultural value to the town, it is also an important
architectural landmark, located as it is on the gateway to the town centre from the
east, facing onto the historic Cross Green with its Maypole. It is no accident that this
site was chosen for a major civic building, and its location is no less significant today.
Architecturally, the building has the external presence and dignity to read as a major
public building, appropriate to the size and status of the town, and internally, has a
large, purpose-built, dignified but adaptable auditorium not available elsewhere.
In the present economic climate, many councils are reviewing and consolidating their
assets, and selling off buildings that they no longer need or cannot support. Some
old building lend themselves to conversion for new uses such as housing or offices,
others are far more difficult. The size of the interior spaces and the protective Grade
Otley Civic Centre Feasibility Study Page 10 of 45
II listing make the Civic Centre uneconomical to convert for housing or offices.
Developers would not be interested such a project and given its historic importance,
consent to demolish it is very unlikely.
So the town and city council are faced with the question: ‘Can a sustainable use be
found for this large disused heritage building in the centre of Otley?’
If a sustainable use cannot be found for the building, the City Council as the owner
has a duty of care to maintain the empty Grade II listed building in a weatherproof
state, so the building will continue to consume public resources.
This feasibility study represents the first stage of the business plan: it considers
whether future uses for the building can be found that will generate enough annual
revenue to make it financially self-sustaining.
This study takes place in the wider context of Otley Town Council’s work on the Otley
Neighbourhood Plan (NP), which will take place over the next 2 years. The Plan will
help to shape future developments and enhance the unique character of Otley’s
Conservation Area. The NP provides an opportunity for the Civic Centre
refurbishment to be considered as part of a whole town vision for future
development.
0.2 Background to this study
The feasibility study has been developed by the Town Council Civic Centre Working
Group. The study builds on:
the 2005 feasibility study1 and 2008 development plan2 commissioned by the city
and town councils respectively on the future use of the building,
an initial consultation exercise in July 2013 (see 2.3)
fact-finding visits to similar projects in Yorkshire, Northumberland and Lancashire
(see 4)
analysis of business plans where projects have kindly made them available
(see 4)
internet research to compare other venues of similar size and the programme of
events they offer
an initial round of consultation with the local community in summer 2013.
Otley Civic Centre Feasibility Study Page 11 of 45
0.3 Further consultation
Although this feasibility study included an in initial round of consultation, the
proposed next stage of the project (see 10 Action Plan) will require a second round
of detailed research and consultation with the fullest range of current and potential
stakeholders, users, and supporters in order to refine the proposals for future uses of
space outlined in Section 4. This is a prerequisite to specifying the final architectural
brief in detail.
1. Preferred option for the development of the Civic Centre
The proposed business case for the building represents a step change: to be
financially sustainable, future use will need to be very different from the past.
Previous levels of public subsidy from city and town councils are no longer available
to run the building, and local residents and council tax payers would be unwilling to
support such a level of long-term subsidy. Alongside its role of providing facilities for
the community, and to be able to fulfil this role, the building will need to generate
enough revenue to cover its running costs.
1.1 Goals
The broad goals of the Civic Centre will be to:
contribute to a vibrant creative and cultural economy in the town
promote community cohesion by providing community facilites
contribute to the economic vitality of Otley Town Centre.
Specific objectives are to:
Develop diverse uses of the building that will generate enough income to cover
the long term running costs of the building, including staff.
Provide a large town centre venue with a flexible 400 seat auditorium space that
can offer raked seating and stage or flat floor, with a full range of supporting
facilities: dressing rooms, attractive public foyer, café/bar, access lifts, etc.
Build local users/audiences through energetic marketing and promotion to
achieve maximum use of the spaces the building offers.
Offer facilities for community activities and events, at affordable rates, alongside
commercial income-generating activities.
Provide opportunities for enterprise development (e.g. in uses of the auditorium,
studio and office spaces and café/bar)
Otley Civic Centre Feasibility Study Page 12 of 45
Work with providers of services to young people to identify demand for and
develop activities and facilities that will engage and include this age group, for
whom there is a lack of leisure/entertainment facilities in the town
Seek links and partnerships with a range of stakeholders (e.g. Leeds City Council,
Otley Town Council, Otley Town Partnership, Otley Chamber, Otley Bid, Otley
Courthouse, individual local businesses in the creative, entertainment and retail
sectors) to promote the Centre and the town as a visitor destination, raise the
profile of the area, and attract future inward investment.
Developing partnerships where possible and strong links with other organisations is
essential as the Civic Centre, successfully promoted and marketed as a creative,
cultural and community venue, can directly contribute to the local economy:
growing audiences and markets for Otley’s creative and cultural enterprises
expanding and enhancing Otley’s offer to visitors and tourists, with all-weather
events that will increase the numbers of visitors to the town throughout the
calendar year
showcasing Otley’s tourism offer through events and exhibitions, promotions in
the café/bar, and signposting visitors to local retailers, creative producers and
other businesses
increasing the proportion of leisure spending that stays in the town, and thereby
food, drink and retail spending as well.
The Civic Centre facilities will be complementary to facilities supplied by the
Courthouse Community Arts Centre, and the aim is to work collaboratively with the
Courthouse. The Working Group has held initial discussions with the Courthouse on
possible areas for collaboration, such as a joint ticketing system.
2. Evidence for the business case
2.1 Community profile
2.1.1 Otley town
Otley had a population of just under 15,000 at the 2001 census.3 The population is
due to grow as the priority of the Leeds Local Development Framework Core
Strategy to is to direct new housing towards the main urban area followed by major
towns such as Otley.
Otley Civic Centre Feasibility Study Page 13 of 45
The Otley population has a higher proportion of people aged 40-60 than the Leeds
average, with a slightly larger than average older population, and a lower than
average proportion of people in their twenties and thirties. Population data is
available separately for the areas north and south of the river in Otley.4 Acorn 2010
profiles (based on census, lifestyle and other survey data) divide neighbourhoods
and postcodes into five broad economic categories. Combining figures for north and
south of the river, the Otley population overall falls into 3 main categories:
‘comfortably off’ (46%)
‘hard pressed’ (22%),
‘wealthy achievers’ (19%).
The proportion of people in other categories is smaller:
‘moderate means’ (6%)
‘urban prosperity’ (7%).
The town has a range of smaller arts, cultural, and entertainment venues and
activities and a higher than average proportion of home workers and small
businesses involved in the creative sector. In the last five years the town has seen a
growth in music groups and activities that need performance venues (Otley Brass
Band, Otley Chamber Orchestra, The Woolpack Studio), and the opening of two new
art galleries.
2.1.2 Otley’s urban and rural hinterland
Otley sits at the north west end of Leeds Outer North West Area, which has a total
population of just under 88,000. Compared to the Leeds average, Outer North West
has a very high proportion of residents who are ‘wealthy achievers’ and ‘comfortably
off’ – 73% of the total population.5
Sitting on the western edge of Yorkshire’s ‘golden triangle’ (Harrogate/ North Leeds/
York), with Ilkley to the West and right on the border of North Yorkshire, Otley has a
relatively affluent rural hinterland population who regularly use Otley Waitrose and
visit the monthly Farmer’s Market.
The Acorn population profiles suggest there is arts and entertainment spending
capacity within the town and hinterland population. The continuing success of Otley
Courthouse, growth in orchestra activities, opening of the Woolpack music centre
and two new art galleries, and opening or refurbishment of five pubs and bars in the
Otley Civic Centre Feasibility Study Page 14 of 45
town since 2010, in the face of a recession, are all further evidence of interest in local
spending on arts and leisure activities.
There is also evidence of cautious optimism on the business front. A 2013 survey of
businesses by the Leeds North West MP6 found that although 46% of the 97
businesses who responded said the state of the economy was a barrier to growth, 4
in 10 respondents (40%) thought their business would improve in the next 12
months.
2.2 Community facilities audit
Many of the groups who previously used the Civic Centre have found alternative
meeting rooms. With the exception of Otley Museum, tenants have also found
alternative accommodation. Otley has a range of halls and meeting rooms for hire,
mostly attached to churches or schools. No other venues, however, are directly
comparable with the flexible 400 seat auditorium space, office and studio spaces that
would be offered in the refurbished Centre. Below is a summary of the facilities
offered by town centre halls, and information from the Pulse report on available office
space in 2008.
2.2.1 Town centre halls
An initial review identified these central venues with hall space in Otley:
Otley Methodist Church Hall is the largest comparable venue with 400 seats,
including the gallery, full sound system and induction loop. It has a fixed dias
stage and no tiered seating, a kitchen, but no alcohol is permitted.
Otley Courthouse has an established arts and entertainment programme, a small
auditorium which holds a maximum132 seated theatre style, or 200 standing, bar
and café, and other small meeting/activity rooms.
Bridge Street Church Hall has a maximum capacity of approximately 120 seats.
Because of the limitations of size or catering offer, none of these town centre venues
are directly comparable with the proposed Civic Centre multi purpose 400 seat event
hall and supporting facilities.
2.2.2 Office space
In 2008, the Pulse study found from contacting commercial agents in the town that
there were few offices to rent in the town centre: much existing office provision was
owner occupied by small businesses or sole traders such as accountants and
Otley Civic Centre Feasibility Study Page 15 of 45
solicitors, and most office accommodation was located above shops at first floor
level. The agents contacted in 2008 thought that high quality office accommodation
in the town centre should be easy to market and rent, especially small units linked to
other facilities such as meeting and training rooms. 7 Further work is needed to
identify how far this potential demand has changed in the current economic climate.
The 2008 findings, however, echo the situation in Hebden Bridge where the recent
Town Hall development has helped to provide office space, business facilities and
development support for small businesses in the town.8
2.3 Consultation
In summer 2013, the Town Council organised the ‘Your Centre, Your Say’
consultation on the future of the building. This consisted of:
An article in the local paper, posters in the Town Council display windows, and a
letter and briefing sheet to community organisations on the Town Council
database, publicising the consultation and inviting people to submit their views
through several channels.
A Listening Panel – an afternoon and evening session where interested parties
could book an appointment to discuss their needs and aspirations for future
facilities with members of the working group. A total of nine appointments were
requested by local organisations and individuals to discuss their views, and one
organisation sent a written submission.
A Facebook page posted on 25 June invited views on future uses. The page
reached 3,163 people on the first 2 days of posting, with an average reach of 123
per day from 25 June to 9 July. 178 people liked the page and 29 posted
comments.
Posters and suggestions boxes in Otley’s three supermarkets.
In total the Town Council received around 130 responses from the public to their
invitation to comment over a three week period. (This is a better level of response
than that of the previous Pulse ‘public consultation evening’ which yielded only 13
public responses in 2008). The majority of comments showed a positive level of
interest in the building’s future. The most frequent suggestions were:
Cinema 16
Youth facility 16
Concert / live music venue 11
Otley Civic Centre Feasibility Study Page 16 of 45
Theatre Space comedy shows etc 8
Otley Museum 7
Function rooms for hire e.g. weddings 6
A total of eight different types of sports/fitness facility were suggested. Ten
responses favoured either demolition, permanent closure or sale. Details of all the
responses are set out in Appendix 7.
As already flagged up, the second stage of the project will require a second round of
research and consultation with stakeholders, potential users, and potential
supporters, as a prerequisite to refining use of spaces and specifying in detail the
final architectural brief.
2.4 Contribution to wider regeneration
In terms of the wider economic benefits of a major cultural and entertainment venue
for Otley, a recent national survey by the Centre for Economics and Business
Research (CEBR) for Arts Council England has analysed the mechanisms by which
arts and cultural amenities contribute to wider economic regeneration:
The regeneration effects of investment in the arts and culture
ECONOMIC SOCIAL ENVIRONMENTAL
Employment Increased social capital Re-use of redundant buildings
Inward Investment Change in perception of area
Increased sense of public safety
Attracting a skilled workforce
Volunteering Reduced vandalism
Property values Residents’ confidence Pride in place
Visitor and resident spending
Community cohesion
Educational achievement
Improved health and wellbeing
Crime reduction
Source: Centre for Economics and Business Research, The contribution of the arts and culture to the
national economy, May 2013, p.88
The CEBR report notes that, while the exact mechanisms driving regeneration vary
with the past and current circumstances and location of individual amenities, local
investment in the arts and culture can as a rule be expected to vitalise local
Otley Civic Centre Feasibility Study Page 17 of 45
commercial creative endeavour and businesses. It also pinpoints the potential
benefits to the wider local economy:
“Other sectors of the local economy also benefit from direct spillovers. For example, those offering visitor services like restaurants, hotels, bars, cafés and retailers all benefit from the spending of visitors to the local arts and cultural attractions. Furthermore, new projects in the arts and culture could attract significant media attention, thus increasing the area’s profile and drawing even more visitors to the locality. The money these visitors spend as a consequence of their trip to the arts and culture attraction spreads through the broader economy, sustaining local jobs and businesses.”9
Further key findings10 of the report are:
arts and culture generate more per pound invested than the health, wholesale
and retail, and professional and business services sectors
the economic contribution of the arts and cultural sector has grown since 2008,
despite the UK economy as a whole remaining below its output level before the
global financial crisis.
The CEBR findings reinforce a 2009 Local Government Association Report, Investing
in creative industries which found that creative industries are increasingly considered
as one of the sectors likely to be a future source of jobs, innovation and
productivity.11
In short, these findings translate into practical benefits for Otley: a successful events
venue will enhance the offer to visitors/tourists, draw more all-season visitors,
providing a winter venue for festivals, fairs and other entertainment and cultural
events. It will help support the people working in the local cultural and creative
sector, with spinoff benefits to other business, so contributing to the economic
vibrancy of the town. And it reduces the leakage of local money to elsewhere: when
Otley residents travel to Ilkley, Harrogate, Leeds or Bradford for cultural and
entertainment events, they also take their retail spending.
3. Examples of refurbished buildings from elsewhere
As part of the feasibility study research, members of the Working Group visited
several projects that have successfully redeveloped historic buildings as community
and cultural facilities. This has helped provide a realistic assessment of maintenance
Otley Civic Centre Feasibility Study Page 18 of 45
and running costs, income generation, governance and management issues, what
has worked well for other projects, and the pitfalls to avoid. Otley Town Council
would like to thank all the people involved in those projects who so generously gave
us their time, knowledge, experience and advice, hard facts and figures to guide us,
and tea and biscuits!
3.1 Buildings visited, business plans reviewed
Dukes Theatre, Lancaster
A church in the centre of Lancaster, converted in 1971 to become home to a
building-based producing theatre and an independent cinema, with public spaces
including a café, at a cost of £108,000. A registered charity, it achieved an earned
income of more than £975,000 in 2012 – 62% of annual turnover. The Dukes attracts
visitors to the district, 57% of bookers in 2012/13 came from outside the area. In
2011/12, 38% of annual income came from core funding partners, Arts Council
England, Lancashire County Council, Lancaster City Council and Creative England.
Queen’s Hall, Hexham
The Queen’s Hall is an early Victorian building in the Centre of Hexham. After
refurbishment it opened as an arts centre in 1983 with a 350-seat theatre and two
galleries, under local authority control. It was handed over to a charitable
organisation, Queens Hall Arts, in 2001. The building is shared with tenants Hexham
Library and the Exchange Café. Queen’s Hall’s resident theatre company Théâtre
Sans Frontières is based in offices at QHAC and opens all of its shows in the
Theatre.
The Centre has established itself as a strong base for an extensive range of artistic
activity, attracting the best international and national artists from music, drama,
dance and national touring comedy to non professional shows put on by local
community groups. Queen's Hall also provides office space for Hexham Book
Festival and English Heritage curator Judith King.
QHA receives regular financial support from Northumberland County Council, Arts
Council England and Northern Film & Media. It also provides an arts outreach
service to a large part of rural Northumberland. QHA provided the Civic Centre
Working Group with a copy of their Business Plan 2012–2015.
Otley Civic Centre Feasibility Study Page 19 of 45
Members of the Working Group who visited QHA were immediately struck with the
quality of the building, its presence in the Town, the way in which the welcoming
foyer and clear circulation related to the Café and Auditorium spaces. They were also
immediately inspired by the possibilities of what could be achieved in Otley Civic
Centre to achieve the same results.
Community Centre, Hexham
Built in 1899 as an annexe of Hexham Abbey and used for church related activities,
the building was bought by Hexham Community Association, a charitable trust, in
1962, and maintained and upgraded on an ad hoc basis over the years with support
from Northumberland County Council.
In 1990 the building was nominated by the Town Council for major refurbishment as
a community facility. The £300,000 refurbishment was completed in 1997 with grants
from the National Lottery and several other major charities. The Hexham and
Tynedale Community Trust was set up to run the new Centre which has three halls,
the largest of which seats 200, meeting rooms, a range of weekly activities, and
several tenants. The Centre is well-used and demand for space is growing.
Pocklington Arts Centre
Pocklington Arts Centre opened 2000, following an intensive period of fundraising to
support the funds provided by Pocklington Town Council to purchase and refurbish
the former Ritz cinema.
The Arts Centre offers a programme of film, music, drama, dance, lectures,
workshops and exhibitions. It provides conference facilities and hire opportunities for
business, and is used regularly by local charities and community groups. Pocklington
Arts Centre operates independently of Pocklington Town Council, as a not for profit
organisation, and it achieves its objective to break even.
The local community is heavily involved in the management and operation of the
venue, principally through the Friends of Pocklington Arts Centre (a registered
charity) and there is a stated aim to involve as many people as possible in the area
as participants. The Friends provide volunteer staffing for box office, auditorium
duties and leaflet distribution.
Otley Civic Centre Feasibility Study Page 20 of 45
Hebden Bridge Town Hall
Hebden Bridge Town Hall is the first community-owned Town Hall in the north of
England. Hebden Bridge Community Association considers the project to be a
symbol of what a community can do when it pulls together with a common ambition
and vision. The Grade 2 listed Town Hall was built in 1897, and has had many
functions over the years, including home of the local fire station and council offices.
In 2010 the Hebden Bridge Community Association (HBCA) was formed and
acquired The Town Hall from Calderdale Council through an innovative Asset
Transfer Scheme.
HBCA’s vision was to transform the barely used building falling into disrepair into a
state-of-the-art centre for community and creative enterprise – putting it back at the
centre of the town’s civic life. They went on to raise £3.7m for a major development
on the site, funded by the European Regional Development Fund, Community-
builders, Heritage Lottery Fund and Key Fund. The 1960s additions to The Town Hall
were knocked down to create a space for a major new modern extension to sit
alongside and complement the original building.
In 2012, a large new contemporary community and business building was opened
offering a range of spaces for community, enterprise and recreational use. The new
Town Hall combines a range of services for local people and creative businesses
that reflects the Town’s dynamic, independent spirit. Offering state of the art fibre
optic wi-fi, a range of office units for businesses, a light and airy cafe and one of the
largest conferencing and event venues in the Calder Valley, the new Town Hall now
buzzes with activity at the heart of Hebden Bridge’s community life. The Town Hall
receives no grant funding and generates all its income through trading. The
organisation is supported by around 600 Friends of The Town Hall. The HBCA
website has a library of useful documents, including annual reports and the business
plan submitted to the European Development Fund, available at
www.hebdenbridgetownhall.org.uk.
Hebden Bridge Trades Club
The Trades Club was built in 1923, when Hebden was a thriving centre for the cotton
industry, as a joint enterprise by half a dozen local trades unions.The unions levied a
one penny contribution from each member per week, and when finally built, the
building was equipped with a fully sprung dance floor for the purposes of ballroom
dancing.
Otley Civic Centre Feasibility Study Page 21 of 45
As the cotton factories closed down, the building fell into disuse. It was taken over by
the combined Hebden Bridge and Luddendenfoot district Labour parties, who
appointed a Building Management Committee to run it.
The club is now a well known venue for live music and was in 2013 voted into the
finals of the NME Small Venue of The Year Awards, having recently updated its
facilties with a new stage, PA system, mixing desk & LED lighting rig. The venue is a
also community hub that is committed to hosting fundraisers for worthy local and
international campaigns.
Four Clocks Community Centre, Bishop Auckland
The Four Clocks Centre is a converted church, with a four-clock tower, in the Centre
of Bishop Auckland, County Durham. Created as a result of the vision and dedication
of the Bishop Auckland Community Partnership (BACP), the Four Clocks Centre
combines a creative mix of modern and traditional design, incorporating a stained
glass windows which dominates the Reception Area.
The Centre houses the Four Clocks Youth Project, the CAB, Learning Concepts free
basic computer courses, the Town Clerk of the recently established Town Council,
and a popular café, which supports local crafters and artists selling a select range of
crafts and showcasing local artists’ work on the walls.
Available for hire are a large room seating 50, a ‘hot office’ seating up to 6 people,
with Wi-Fi and induction loop, arts and an crafts room on ground floor. Upper floors
are all accessible by lift or stairs.
Spetchells Community Centre, Prudhoe
The Spetchells Centre differs from the other projects visited in that it is a new £1.6m
three storey Centre, purpose-built on the footprint of the demolished library building
in the centre of Prudhoe, funded by a grant and loan from Communitybuilders plus
contributions from Northumberland County Council and Prudhoe Town Council.
The Centre, which opened in 2012, was developed by the Prudhoe Community
Partnership to provide a central hub of information and services for local people, and
Otley Civic Centre Feasibility Study Page 22 of 45
is the home of the Partnership along with Prudhoe Town Council, Northumberland
County Council Library and Customer Services, Isos Housing plus a range of
voluntary and community groups & services.
‘Spetchells’ means ‘gathering’ place and the Community Partnership has designed
the building to be a place to meet and access a wide range of helpful services all
under the one roof.
The Centre also has meeting room facilities, offices to rent, and offers a variety of
services ranging from photocopying to document printing for which there is a charge.
Internet access is available via computer terminals within the library
area. Information on local groups, public transport and other town matters is
also available.
3.2 Key learning points from other projects
The Working Group learnt a great deal from visiting other projects. The most
important learning points are:
Imaginative new uses have to be found for old buildings at critical points in their
life or they die.
This necessary leap of imagination takes vision and extended commitment.
Building regeneration projects depend on dedicated people to drive them: most of
the projects we visited relied in different ways on substantial commitment from
individuals, in the form of many hours of unpaid work, either as trustees, or
managers, or promoters, or volunteers, or fundraisers, or in two or more of these
roles.
Some financial support in the form of subsidy, loans, grants, donations and
sponsorship is necessary to get old and deteriorating buildings back on their feet,
but with this initial support, some projects (e.g. Hebden Bridge Town Hall,
Pocklington Arts Centre) have become self-financing.
All the projects visited had, in their recent history, set up new charitable
governance arrangements to manage the building, such as a charitable company
limited by guarantee, development trust or community partnership.
Diversity of uses is essential to ensure several income streams – most projects
have a mix of commercial, public sector, third sector and community users;
anchor tenants with 5-10 year leases; large and small spaces available for one-
Otley Civic Centre Feasibility Study Page 23 of 45
off hire, including business spaces such as meeting rooms or hot desks; and a
café and/or bar to support events and activities.
Centres that have the cinema facilities to screen ‘live’ national events (e.g.
theatre, ballet, opera sport) have found this to be a popular and profitable source
of income.
4. Future uses of the Civic Centre
Previous studies have considered a range of future uses for the Civic Centre but
none has specifically focused on the full potential of the large upper hall: this is the
unique feature of the Civic Centre, not available elsewhere in the town, with the
potential to seat 400 and function as a flexible multi-purpose auditorium. The
feasibility study proposes this as the central use of the building, along with a range of
uses of other spaces to provide additional /complementary income streams.
4.1 The Auditorium / Event Hall
The upper hall /auditorium is the most significant space in the building and the
largest public space in Otley. Sadly, because of fire safety and access issues, this
space was not used to its full capacity for more than 20 years before the building
closed in 2010. A fully accessible auditorium, equipped to appropriate fire safety and
technical standards, complemented by dressing rooms, catering and bar facilities,
with a large public foyer at the entrance to the building, outside pick-up/drop off area
and clearly identified additional parking (see 9.5) would transform the viability of the
building.
Re-designed as a flexible multi-purpose space with retractable bleacher seating, and
vigorously promoted and marketed as an arts and entertainment venue, this space
could within 5 years generate around 78% of the annual income required to cover the
costs of running the building (Section 7 shows how this is calculated).
The goal is to generate a wide range of entertainment, arts and community events,
programmed right through the year:
Commercial: e.g. antique fairs, craft fairs, wedding fairs
Arts: e.g. festival events, touring theatre productions, cinema, brass bands, folk
bands, rock bands, tribute bands, Otley Folk Festival, Otley Brass Band, Otley
Chamber Orchestra
Otley Civic Centre Feasibility Study Page 24 of 45
Community: e.g. young teens discos, tea dances, amateur theatre and
pantomime productions, fitness activities, public meetings, community
consultations and exhibitions, wedding receptions, birthday parties
4.1.1 Cinema
From the initial public consultations on the future of the Civic Centre, one of the most
frequent suggestions was that a cinema should be provided in the building.
The Centre potentially allows two options for showing films:
1) In the refurbished main hall, where a roll-down screen could be installed at the
front of the stage, and projection facilities installed on, and managed from, the
balcony; or
2) In a new purpose-built theatre elsewhere in the building.
The first is the recommended option because the theatre is already in place, with the
capacity for a 7 metre ‘big screen’ experience and enough audience capacity to be
economically viable. Only one space is feasible for the second option, but this space
is too small to install digital equipment and be economically viable on its own.
Otley already has a Film Society which has been operating successfully and
expanding for 14 years. For the past 7 years it has hired The Courthouse to show its
films, but is in fact completely independent. Its programme features mainly foreign
language and 'arthouse' movies, with occasional popular mainstream films.
It is proposed that a cinema in The Civic Centre would screen an almost entirely
mainstream programme and provide Otley residents with an alternative to having to
travel for miles to see popular recent releases on a big screen. Because of its size, it
would also be able to screen National Theatre Live (NTL) productions, and other live
drama, opera or sporting events. Initial inquiries to NTL have received a positive
response.
The aim would therefore be to complement and not compete with the Courthouse
film offer. Information from other venues suggests this ‘big screen’ approach can
even stimulate interest in and help grow audiences for less mainstream films and
smaller local venues.
Full details of the cinema options and likely costs are set out in Appendix 6.
Otley Civic Centre Feasibility Study Page 25 of 45
4.2 Other uses of space
4.2.1 Long term tenants
Some continuity of income will need to be secured through ‘anchor tenants’, that is
organisations who will take a 5–10 year lease on part of the space in the building, at
a realistic rent for the space occupied.
East Street Arts has expressed interest in a 5-10 year lease of studio space for
people working in the creative sector (e.g. artists, musicians, writers). Such a tenant
would provide a good fit with the goals of the building. (See 7.3 for details.)
The Working Group would also welcome further discussions with the Museum on
their possible occupancy of part of the building.
4.2.2 One off room booking: function room / office space / hot desk to hire by
the day / hour
Several venues visited offer spaces for short term hire to small businesses, home
workers and other users who need occasional office or meeting room space:
one-off room booking – function rooms for one-off meetings or events, hired by
the hour or day and available throughout the year
hot desks / small meeting rooms for home workers wanting access to a
professional environment or small businesses in need of occasional office space /
meeting rooms.
Further discussions with local business networks may identify a need / demand for
more specific business support facilities in what will become a prestigious setting,
along the lines of those now offered by Hebden Bridge Town Hall Trust.
As well as one off booking, Hebden Bridge Town Hall also offers ‘virtual membership’
for small businesses or homeworkers, for a monthly fee. The top level of membership
consists of:
the Town Hall as the business’s postal address, handling incoming post providing
a ‘pigeon hole’ for correspondence
Otley Civic Centre Feasibility Study Page 26 of 45
access to a business development programme
super fast, reliable wi-fi over a fibre optic line
secure fob access to the building during office hours
reduced cost hire of function rooms
hot-desk lounge
secure bike lock up
a ready-made network of businesses
access to an active programme of business development and networking events
which take place across the year.
4.2.3 Café and Bar
Other venues visited have a café and/or bar which is an important publicly accessible
focus of activity for the building and a subsidiary source of income. Arrangements
vary from an in-house service to franchise or lease. It is proposed to create and
lease the café/bar area initially, subject to review. (See 7.2)
The aim is to create a catering offer that complements rather than competes with
other businesses, and that supports and promotes the local ‘food web’. In 2012, a
CPRE study to map Otley’s local food web noted that ‘the wide variety of local foods
on offer in the town, its range of outlets, suppliers, a weekly livestock market and a
highly successful farmers’ market connect Otley to the local countryside. The outlets,
which include market stalls, award-winning butchers and bakers, and a cake and
sweet shop, add to the character, vitality and distinctiveness of the historic centre.’
The CPRE survey found that there is good access to locally sourced, fresh, high
quality food form a range of outlets, supported by over 85 suppliers within 30 miles.
70% of outlets sourced their produce locally.
The aim is for a carefully designed café and bar service that could help address two
of the challenges identified by CPRE:
the benefits of local food need to be promoted to local shoppers to encourage
more demand locally, and also to the tourists who visit Otley and the surrounding
area
independent outlets need marketing support ….12
The Café and Bar could be an excellent vehicle to showcase Otley’s independent
food and drink retailers, market / farmer’s market traders and local food suppliers,
Otley Civic Centre Feasibility Study Page 27 of 45
with offers such as: “This month’s guest sausage/pork pie/ostrich
burger/loaf/cake/house wine/local beer/supplier of organic vegetables.”
4.2.4 Community use
A core aim is that the auditorium and other spaces will be available for community
use at affordable rates. This will need to be carefully balanced with income-
generating uses.
4.2.5 Marketing and promotion
The proposed new uses for the building will require a vigorous marketing and
promotion strategy, and experienced staff to put the plan into action. A total of
£47,000 per year is allocated for full time staff to market, promote and manage the
Centre and a marketing budget of £15,000 is allocated in the first year. (See 7.3 and
Appendix 2)
4.2.6 Staffing
The quality and experience of staff will be crucial to establish a financially sustainable
multi-purpose venue. Two full time posts are proposed:
Business and Creative Director
Centre and Volunteer Coordinator
and the following part time staff:
Front of House Staff
Door Security (for some events)
Technical Staff (for some events)
Cleaners
In addition it is assumed that a team of volunteers will be recruited to help with
activities such as stewarding and reception, and will be paid travel and out of pocket
expenses.
The annual cost of these staffing roles is estimated at £65,000 in Year 1 (including
training and development), rising to £109,000 in Year 5. Details of staff job
descriptions are set out in Appendix 3.
4.2.7 Partners / stakeholders / sponsors
When the business case has been accepted, it will be essential to build strong links
with potential partners, stakeholders and sponsors. The success of the building will
Otley Civic Centre Feasibility Study Page 28 of 45
depend on buy in from the local community and businesses. Other venues visited
have developed a wide range of collaborative relationships for mutual benefit, such
as:
Educational / learning partnerships with college departments, young people’s
services, local schools
Partnerships with business tenants and business support networks
Special deals with local pubs, restaurants (e.g. discounted pre-show meal or
drink) and food retailers (e.g. guest local brewery beer in bar, guest butcher
produce in café)
Exhibition space for local artists
a showcase for local businesses, public sector and voluntary and community
organisations to publicise what they do
Advertising opportunities for local sponsors at events, in event publicity, on
named theatre seats, brass plaques, role of subscribers, etc.
5. The building’s ownership and management structure13
5.1 Current ownership, asset transfer or lease
The building is owned by Leeds City Council. The City and Town Council will need to
agree the ownership, governance and management arrangements for the building
once it is refurbished, and the point at which transition to the new arrangements
should happen. Two options have been suggested:
Option 1: LCC passes ownership of the building over to Otiey Town Council on
completion of the refurbishment.
Option 2: LCC leases the building long-term to Otley Town Council for a
peppercorn rent.
Whichever option is agreed, it is assumed that responsibility for the future
management of the building will pass to the Town Council. The City and Town
Councils will need to agree an appropriate legal and management structure for this to
happen. The Town Council is keen to protect the use of the building into the future
for the benefit of the local community. Its preference is for an arms length and
politically independent legal structure to allow the project to:
Otley Civic Centre Feasibility Study Page 29 of 45
develop partnerships where possible with other groups and organisations, in
order to maximise use of the Centre so it contributes to the economic life of the
town
access sources of funding not available to the town council as a public sector
body
achieve the most beneficial status for VAT and business rate liabilities.14
5.2 Options for an arms length organisation
The ideal would be an existing local organisation willing to take on ownership
of the Centre. So far none has emerged. The Town Council has had
constructive discussions with Otley Courthouse and Otley Town Partnership,
but neither organisation wishes or has the capacity to take on the project.
The main options for a new legal entity to take responsibility for the building are:
1. Company limited by guarantee, with charitable status
2. Charitable Incorporated Organisation (CIO): this new form of legal entity
designed for non-profit organisations in the United Kingdom became available
in March 2013
3. Dual structure – company limited by guarantee with charitable status OR CIO,
and a trading subsidiary company
4. Community Interest Company (CIC)
5. Industrial and Provident Society (IPS)
6. Development Trust (community based partnership company involved in
regeneration – can be a limited company, charity, CIC or IPS).
The Pulse Report 2008 discussed the pros and cons of all these options, apart
from option 2 which did not exist at the time. Initial discussions by the current
Working Group suggest that a charitable company limited by guarantee, CIO
or development trust would be most appropriate. Further evaluation of the
legal and financial implications of these two preferred options will be required
at the next stage.
5.3 Transitional arrangements
The Town Council will need to negotiate transitional arrangements with Leeds City
Council. The key questions to resolve are:
Otley Civic Centre Feasibility Study Page 30 of 45
What is the optimum point in the regeneration project to make the transitional
arrangements?
Will a new or alternative legal form needs to be established from the outset?
Which organisation (i.e. LCC, OTC or charitable company) will:
project manage the construction/refurbishment works?
deal with funding obligations?
recruit and employ staff?
set in place relevant financial and operational systems?
5.4 Future governance
If the Town Council opts for a charitable company / development trust to run
the building, members of the company and the Board of Trustees will need to
be recruited.
Members of the company
A company is owned by its members. The first members of the company are
the subscribers, who sign the original Memorandum and Articles of Association
as part of the incorporation process. The Articles specify how additional
members are admitted.
Membership should preferably acknowledge capital contributions to the
development costs of the Civic Centre. However, legal restrictions prevent a
local authority from owning more than a 20% in a company.
Potential members could include, for example, representatives of Otley Town
Council, Otley Town Partnership, Otley Courthouse and other arts
organisations, Chamber of Trade and Rotary Clubs, user group and tenants
representatives, local community representatives, and other potential partners,
for example key agencies or businesses in the area.
Company Board
A company requires a board of directors, and if charitable status is chosen
then the directors will also become the Trustees of the charity. The Directors
are the individuals who are responsible for running the company in line with the
wishes of its members. The Town Council or eventual Project Steering Group
Otley Civic Centre Feasibility Study Page 31 of 45
may wish to form a shadow Board to oversee the development process, before
the final board is recruited and established.
Size - The Board needs to have enough members to represent a range of
viewpoints, but should also be small enough to make decisions quickly and
effectively – say, 8 to 10 people.
Representation – the Board should adequately represent the different
partnership and stakeholder interests.
Skills – The Board will need legal, financial, enterprise development, asset
development, human resources, marketing and funding skills.
Training – Board members should receive appropriate training and updating,
informed by a skills audit and training needs analysis.
The Working Group recommends that the recruitment process for the Board is
fully transparent.
A subsidiary trading company, if required, would need its own board, which
could have some of the same members, but not all.
6. The preferred option for future development
Work so far on the feasibility study suggests that an appropriate architectural
response to the requirements of the proposed uses would be along the lines of “The
preferred option for development”, ( Appendix K in the Pulse report, and for reference
at Appendix 4 to this report). The Pulse report also sets out in its section 12 a
narrative of what this preferred development option will achieve, and further design
development work which will be required at the next stage. The scope of this study is
not to take the design further than previous studies. The conclusions of those
studies, however, demonstrate that the refurbished building can support the uses set
out in this report.
Detailed development of the business plan will lead to development of the
architectural brief and may require review of further options for the refurbishment.
These would be no more inherently expensive than the previously costed options.
There may even be opportunities for saving money on some aspects of previous
options.
Otley Civic Centre Feasibility Study Page 32 of 45
6.1 Town planning
External alterations to the building will need Planning Consent, however it is not
envisaged that a change of Planning Use Class will be required for the range of uses
proposed in this report.
6.2 Conservation
As the building is listed, a Listed Building Consent Application for the proposed
refurbishment and alterations will be required at the appropriate stage. Initial
comments from English Heritage obtained by J.M. Witherick Associates on the
“preferred option for development” were supportive15, and it is confidently predicted
that an appropriate scheme will attract support from the Leeds City Council
Conservation Officer and English Heritage.
The listed building will be put to the most appropriate use, continuing the purpose for
which it was designed.
6.3 Building regulations
The refurbishment will require Building Regulations Approval, and again, initial
consultations carried out on the “Preferred option for development” with Leeds City
Council Building Control and West Yorkshire Fire and Rescue Service concluded that
the proposals were acceptable in principle, and most importantly the revised means
of escape from the main auditorium will increase maximum capacity to over 400.
6.4 Access issues
One of the most attractive aspects of the “Preferred option for development” is that it
includes a disabled access lift in the front foyer. This will mean that access to the
auditorium will be possible via the same route for all users regardless of mobility. The
most attractive way into the auditorium for all audiences is direct from the front
entrance, and the “Preferred option” shows that this can be made a very attractive
space, transforming the experience of all users.
A further lift is also provided at the rear of the building, accessing all levels. This will
enable service as well as passenger access, which is likely to be key to the
functioning of the auditorium for theatre and musical productions for scenery, props
and equipment.
Otley Civic Centre Feasibility Study Page 33 of 45
6.5 Environmental sustainability
In future design stages, the brief for environmental sustainability enhancements will
be developed within the constraints of the listed status of the building, and where
cost benefits analysis shows favourable pay-back times. Opportunities will be taken
wherever possible to improve thermal and acoustic insulation of building elements,
and plant and services systems will be selected for efficiency.
As in any refurbishment scheme, the savings on embodied energy over a new-build
option weigh heavily in its favour.
6.6 Theatre Report (2008)
The Pulse report contained notes prepared by the Theatre Consultant
Theatresearch, which identified key issues, opportunities and constraints regarding
future development of the auditorium for a number of performance types. The
conclusion of this initial study was “The new proposals which have been developed
to date will clearly make a dramatic improvement to the of the building. There is an
opportunity to create a very interesting, exciting and vibrant space within the existing
historic building and the design work to date demonstrates the significant potential
which the building has to offer.”
The scope of this study has not allowed further specialist input, however it is believed
that the uses identified can be supported by a appropriately designed adaption of the
existing space along the lines identified in the preliminary Theatresearch study.
A key aspect of the next stage of the design and brief preparation process will be to
engage with theatre/auditorium design specialists to ensure that all identified uses
are optimised.
7. Revenue projections
7.1 Financial sustainability
This feasibility study explores the financial sustainability of Otley Civic Centre as a
vibrant arts, entertainment and community venue. In the past the Civic Centre has
suffered from underuse and the lack of sufficient revenue to fully maintain the
building. This has resulted in material degradation over the years and led to the
current situation where the building requires a full multi-million pound refurbishment.
Otley Civic Centre Feasibility Study Page 34 of 45
Although this study focuses on revenue and not capital costs, it aims to demonstrate
that, once refurbishment is completed, the mistakes of the past can be avoided, and
shows how a more ambitious vision for the building can provide it with a sustainable
future requiring minimal ongoing subsidy from external sources.
Three central assumptions underpin the financial analysis:
The upper hall/auditorium is the most distinctive feature of Otley Civic Centre. It is
the largest public performance space in Otley and has the potential to host a wide
range of significant entertainment, arts and community events (see 4.1). This
study therefore looks to maximise the potential of the auditorium and replicate the
success of similar buildings and event venues across the UK (see 3.1). It is
estimated that the auditorium – with the use of supporting facilities/adjoining
rooms – can generate 78% of total annual revenue by Year 5. This is a realistic
projection supported by robust evidence (see 7.2 and Appendix 1).
A clear lesson from similar venues (see 3.2) is the importance of mixed use to
avoid financial shocks or overoptimistic projections. The deliberate intention is
that the main auditorium will provide a wide range of mixed daytime, early
evening and evening events for a number of different audiences/markets. The
other spaces in the building are configured to generate several different revenue
streams, including anchor tenants (such as East Street Arts), room hire, office
rental, and the café/bar lease.
Financial sustainability is a central aim. A realistic budget has been allocated to
ensure that the building’s fabric, services and finish can be maintained over a 30
year lifecycle. This will prevent the need for further public subsidy at a future date
and will remove the burden of maintenance responsibility from Leeds City
Council.
7.2 Income and expenditure summary for first 5 years
The table below summarises projections for the first 5 years following refurbishment.
The assumptions underpinning the income figures in this summary are set out in 7.3;
assumptions underpinning each line of expenditure are set out in Appendix 1.
Appendix 1 also contains an extended version of this Summary spreadsheet,
showing the income and expenditure projections over a 30 year lifecycle.
Otley Civic Centre Feasibility Study Page 35 of 45
Annual Income Year 1 Year 2 Year 3 Year 4 Year 5
The Auditorium 53,700 125,300 143,200 161,100 179,000
East Street Arts 4,875 9,750 9,750 9,750 9,750
Room Hire/Letting 6,883 16,061 18,355 20,650 22,944
Friends/Sponsorship 2,000 2,000 2,000 2,000 2,000
Café/Bar Lease 5,500 12,000 13,000 14,000 15,000
Annual Expenditure
Staffing
Business and Creative Director 30,252 30,252 30,252 30,252 30,252
Centre and Volunteer Coordinator 16,740 25,111 25,111 25,111 25,111
Front of House Staffing 5,385 12,565 14,360 16,155 17,950
Volunteer Expenses 500 1,200 1,300 1,400 1,500
Door Security 1,944 4,536 5,184 5,832 6,480
Technical Staff 2,520 5,880 6,720 7,560 8,400
Cleaners 5,824 13,104 14,560 16,016 17,472
Overheads
Utilities 14,000 28,000 28,000 28,000 28,000
Rates 2,000 4,000 4,000 4,000 4,000
Insurances 5,000 10,000 10,000 10,000 10,000
Licensing 1,000 2,000 2,000 2,000 2,000
Security/CCTV 1,250 2,500 2,500 2,500 2,500
Fire Equipment 1,500 3,000 3,000 3,000 3,000
Refuse Collection 2,500 5,000 5,000 5,000 5,000
Pest Control 175 350 350 350 350
Public Consumption Costs
Hygiene Consumables 1,000 2,500 3,000 3,500 4,000
Administration
Hospitality 2,000 1,500 1,000 1,000 1,000
Travel/Subsistence 750 1,500 1,500 1,500 1,500
Petty Cash/Incidentals 500 1,500 1,500 1,500 1,500
Training and Development 2,000 2,000 2,000 2,000 2,000
Annual Audit 1,750 1,750 1,750 1,750 1,750
Accountancy 1,000 2,000 2,000 2,000 2,000
Recruitment Costs 2,000 1,000 500 1,500 500
Marketing & Publicity 15,000 10,000 10,000 10,000 10,000
Ticketing 1,500 3,000 3,000 3,000 3,000
Telephone System & Costs 1,000 2,500 2,500 2,500 2,500
Printing, Postage and Stationary 700 3,000 3,000 3,000 3,000
Photocopier Lease 1,000 2,000 2,000 2,000 2,000
Office Equipment 5,000 1,500 1,500 1,500 1,500
Legal & Professional 750 1,500 1,500 1,500 1,500
Finance
Loan Repayment 15,507 31,014 31,014 31,014 31,014
Sinking Fund 0 0 0 18,815 18,705
Repairs & Renewals
Decorations 0 0 0 0 0
Fabric 0 4,839 9,239 9,679 11,879
Lift Maintenance 0 3,000 3,000 3,000 3,000
Cinema Maintenance 0 1,500 1,500 1,500 1,500
Financial Summary
Total Annual Income 72,958 165,111 186,305 207,500 228,694
Sinking Fund Withdrawal 0 0 0 0 0
Transfer from Otley Town Council 69,089 59,990 47,535 51,934 37,169
Total Annual Expenditure 142,047 225,101 233,840 259,434 265,863
Balance 0 0 0 0 0
Otley Civic Centre Feasibility Study Page 36 of 45
7.3 Income and expenditure assumptions
Income/Expenditure Timeline
The financial analysis assumes Otley Civic Centre will not reach its full revenue
generating potential until Year 5. As the venue builds a reputation over this period
and establishes regular audiences, both locally and regionally, it is expected that
occupancy rates for the building will reach approximately 72% in Year 5 (see
Appendix 1). Otley Town Council will play a key role in years 1-4 by providing the
necessary financial support required to make the Civic Centre viable on an ongoing
independent basis.
The proposed timeline assumes that Otley Civic Centre will not open or generate
revenue until the midpoint of Year 1. During the first six months of Year 1 – whilst the
renovation work is nearing completion – there will be costs associated with preparing
the building for opening. It is expected that the Business and Creative Director will be
in post for six months before the building opens, and during this period will develop a
programme of events; marketing strategy; marketing and publicity material (including
a website); and oversee other necessary arrangements for Otley Civic Centre to
successfully launch. The Centre and Volunteer Coordinator will be employed two
months before opening to build a pool of volunteers and provide more general
support before the official opening. The income and expenditure lines in Year 1
therefore both reflect the revenue/cost implications of a mid-year opening date.
Year 1 Year 2 Year 3 Year 4 Year 5
Additional Assumptions
The figures used in this financial summary do not account for inflation. It is
assumed that inflationary rises will have a proportionate impact on both income
and expenditure.
The preferred architectural design from the 2008 Pulse report is used to consider
the layout of the building and the use of specific rooms.
It is anticipated that Otley Town Council will provide an ongoing subsidy to Otley
Civic Centre. By Year 5, when the event hall reaches around 70% occupancy,
this subsidy will more or less equate to the repayment of interest and capital on
70% occupancy Centre launch
Revenue generation
Otley Civic Centre Feasibility Study Page 37 of 45
the Public Works Loan Board loan. Otley Town Council could, however, provide
ongoing support to account for any unexpected shortfall.
7.4 Annual revenue projections – summary
A full breakdown of annual revenue projections is set out in Appendix 1. By Year 5 it
is projected that total annual income will be £229,494 – this income will be
supplemented by a transfer from Otley Town Council to cover the Public Works Loan
Board loan repayments and a small amount of annual shortfall (between
approximately £2,000 and £5,000 per annum from Year 5). The following sections
provide the necessary context and overview for each revenue line in turn.
The Auditorium/Event Hall
To develop a broad revenue that will fit with the managing organisation’s charitable
aims and to enable it to maintain and repair the building, it is assumed the events
auditorium will offer a wide range of both commercial and community events and
activities. Diversity means the venue will not be dependent on any single income
stream and can refine its offer over time.
Initially, audiences for these diverse events and activities will need to be built, and
some commercial activities may prove more sustainable than others in the longer
term. Based on events offered in similar buildings (see 3.1), the following range of
events appears feasible by Year 5:
Group 1: Music
Group 2: Theatre, Performance & Cinema
Group 3: Speakers & Comedy
Group 4: Community Events
Group 5: Private Room Hire
Group 6: Sport & Leisure
Group 7: Weddings
Group 8: Markets & Fairs
A full Auditorium / Event Hall schedule and revenue generating outline for these
different types of use is set out in Appendix 1. These events and activities have been
scheduled after a realistic assessment based on local factors and review of event
Otley Civic Centre Feasibility Study Page 38 of 45
schedules at comparable venues (see 3.1). The detailed evidence in Appendix 1 is
central to the revenue projections produced by this study.
For Year 5 the occupancy rate for the event hall is estimated at 72%. We have
assumed that 100% occupancy would be use every morning, afternoon and evening
throughout the year excluding 60 days (52 Sundays and 8 bank holidays) which
equates to 305 days x 3 sessions per day. This would be a total of 915 sessions. We
have estimated 662 in Year 5 (or 72%).
This does not rule out events on Sundays and bank holidays, if there is demand for
events that can break even or generate income.
Not all of the programmed events and activities will cover an entire ‘session’ (i.e. a
full morning, afternoon or evening). Certain activities can be scheduled around one
another. For example, the auditorium might be used for an hour-long exercise class
on a Tuesday, between 6-7pm, before conversion into a cinema for a film screening
at 8pm.
Based on this schedule of events and details of revenue generating potential (see
Appendix 1), it is estimated that by Year 5 the auditorium will be generating a total of
income of £179,000. Assuming that it this occupancy and revenue figure will be
gradually built up over a period of five years, the Year 5 revenue projection and
occupancy rate has been decreased by 10% a year backwards to Year 1. Assuming
the Year 5 occupancy rate of 72%, this produces the following revenue and
occupancy projections for Years 1-5:
Occupancy Rate
Revenue Projection
Year 1* 21.60% £53,700
Year 2 50.40% £125,300
Year 3 57.60% £143,200
Year 4 64.80% £161,100
Year 5 72.00% £179,000
* Year 1 is reduced by an additional 50% to reflect that Otley Civic Centre will not be open for six months of the first budgeted year.
East Street Arts
After initial meetings and a site visit to Otley Civic Centre, East Street Arts have expressed
interest in a 5-10 year lease of rooms G3, G4A, G4B and the Consultation Room for studio
Otley Civic Centre Feasibility Study Page 39 of 45
spaces. An annual lease rate has been discussed at £6.50 per sqft plus a £0.32 per sqft
service charge. This represents a total annual income of £9,750 (see Appendix 1 for a
breakdown of this figure).
Another option the Working Group would be keen to explore is use of space in the building by
Otley Museum, if the Museum could afford a similar rent/ service charge. Their use of the
space would fit equally well with the aims of the building.
Room Hire/Letting
Rooms G1, G2, F1, F3A and F3B will be multi-use rooms, either to be hired out on
an hourly basis or on a more permanent letting basis. Potential uses include office
letting, community or commercial hire use (e.g., one-day conferences, training
events), or more imaginative ideas (including the hot desking business lounge).
Given the mixed use of these rooms, based on hourly hire and permanent leasing, it
is not feasible to estimate an occupancy rate for these spaces. Instead, the aim will
be to generate an income for these spaces comparable to a commercial lease rate,
estimated locally to be set at an annual rate of £12 per sqft (including all service
charges). This does not assume a 100% occupancy rate, but is based on the
principle of a mixture of both hourly hire and permanent leasing. This therefore
represents an annual income of £22,944 in Year 5. Assuming that this revenue figure
will be gradually built up over a period of five years, the Year 5 revenue projection
has been decreased by 10% a year backwards to Year 1. Assuming the Year 5
revenue rate of £12 per sqft, this produces the following revenue projections for
Years 1-5:
Revenue Projection
Year 1* £6,883
Year 2 £16,061
Year 3 £18,355
Year 4 £20,650
Year 5 £22,944
* Year 1 is reduced by an additional 50% to reflect that Otley Civic Centre will not be open for six months of the first budgeted year.
Friends/Sponsorship
A key responsibility of the Business and Creative Director will be fundraising, through
grants, sponsorship, donations and partnerships (see 4.2.7, and 8). Similar projects
elsewhere use many different ways to encourage sponsorship and donations from
Otley Civic Centre Feasibility Study Page 40 of 45
businesses, individual philanthropists and members of the community, including a
‘Friends of….’ subscription programme. A conservative figure of £2,000 generated
from Friends or sponsorship schemes has been used at this stage, but it is expected
that this figure will be higher in practice.
Café and Bar Lease
The Café and Bar lease would need to be negotiated and agreed with any potential
proprietor. It is hoped that the lease would be tendered first to existing Otley
businesses with a track record of offering a quality product and service, and on the
development (initially in competition) of a detailed proposal and Business Plan for
these services.
However, based on revenue projections for a Café and Bar (see Appendix 1)
providing a range of services, from cinema snacks, pre-theatre meals and lunches
through to a lucrative bar service during events, a lease figure of £15,000 has been
reached. This would cover full use of the kitchen, main café/bar area and the upstairs
relief bar. Business rates and insurances would be covered independently by the
proprietor, and terms of service would be drawn up to ensure the café/bar facility
properly supports the events programme during both quiet and busy periods.
Assuming that footfall for the Café and Bar would be steadily developed over years
1-5, the lease rate has been increased incrementally upwards from Year 1. Break
periods would be written into the lease so that the terms can be periodically
reviewed, to ensure the lease has been set at an appropriate rate and that
performance targets for service delivery against a number of quality indicators have
been met.
7.4 Annual expenditure projections – summary
Appendix 1 gives a full description and breakdown of individual expenditure lines for
Years 1 to 5 in the Summary table above. By Year 5 it is projected that annual
expenditure – including the Public Works Loan Board loan repayment – will be
£265,863.
Appendix 1 has an extended version of the Summary spreadsheet in 7.2, and sets
out the income and expenditure projections for a 30 year lifecycle.
Otley Civic Centre Feasibility Study Page 41 of 45
8. Funding opportunities and strategy
The feasibility study shows that the building will run at a deficit in the first few years,
but by around Year 5 and thereafter the deficit will equate to the repayment of the
Public Works Board loan.
Funding opportunities are scarce in the present economic climate but once the
business case is accepted, the second stage of the business plan should identify
sources of funding that will support specific aspects of the project’s development,
and help to reduce the revenue gap. This work will become the responsibility of
Trustees and the Business Director once in post. Funding is likely to be in form of
small grants, loans, donations or sponsorship from a range of sources such as:
National cultural and heritage funding bodies, e.g. Arts Council England, Heritage
Lottery Fund
Smaller charities that support arts, cultural and heritage projects, e.g. Esmee
Fairbairn
Programmes to raise funds from individual and corporate giving, e.g through
‘Friends of’ subscription schemes, donations and sponsorship.
9. Risk assessment
The most significant risk to the future of the building is that the refurbishment project
will fail to secure the required levels of capital funding. Capital funding is, however,
outside the remit of this revenue feasibility study and will be addressed separately.
This section considers the risks to successful income generation.
9.1 Public sector liability for cash flow difficulties
This feasibility study hopes to have demonstrated that Otley Civic Centre will require
minimal ongoing subsidy from an external source; however, it is highly likely that
small levels of support in the form of a subsidy or grant will always be required in
some form. It is proposed that Otley Town Council accept responsibility for the
building, including through provision of an ongoing or unexpected subsidy. Otley
Town Council has provided this level of support in previous years and will be able to
do so in future if necessary. This arrangement should be guaranteed through a
leasing contract whereby Otley Town Council commits to a fully maintaining lease
and then sublets Otley Civic Centre to a charitable trust that will run the building (see
5.4). Before committing to this agreement, as part of its own internal risk
Otley Civic Centre Feasibility Study Page 42 of 45
assessment, Otley Town Council would need any final business plan and leasing
contract to be reviewed by an external auditor.
Otley Town Council would also commit to the higher levels of support required by
Otley Civic Centre during Years 1-4. In preparation for this subsidy, Otley Town
Council is already in the process of building substantial capital reserves, which are
projected to be £38,000 by 2014/15 and rising significantly every subsequent year.
This will prevent the need for a precept rise to cover a subsidy to run the building
during Years 1-4.
9.2 Lack of capacity to take the project forward
Otley Town Council does not have the capacity in-house to promote, market and run
the building as a major events venue. The lack of capacity will be addressed by:
establishing a charitable company with an independent board of Trustees, so
there is a dedicated governance body
creating the posts of Business and Creative Director and Centre Manager, to
provide essential capacity in the short term, promote and market the venue, and
develop an infrastructure of technical, cleaning and other paid staff, and volunteer
team.
9.2 Lack of demand for proposed uses
There is a risk that there will be a lack of demand for some of the uses outlined for
the events hall. This risk will be reduced by:
adequate consultation to ensure local buy in
appointing the Business and Creative Director, answerable directly to the new
board, six months before the building opens, to research, plan and promote an
events programme from the first day of opening
allocating an adequate marketing budget, and developing a robust marketing
strategy, commissioning an audience building consultant if necessary as part of
the strategy.
creating a diverse programme of commercial and community events, so the
venue is not dependent on any single type of use. The diversity will enable the
management/marketing team to learn about demand for different events and
programme accordingly.
Otley Civic Centre Feasibility Study Page 43 of 45
9.5 Lack of car parking
A safe drop off area at the front of the building and signed, accessible car parking will
be essential. There are various public and private car park areas within the vicinity of
the Centre: at the Maypole area opposite the building (LCC), White Swan (private),
Otley Rugby Club (private), The Lix (LCC), Walkergate (LCC) and possibly (for larger
evening events) arrangements with Asda and Sainsbury’s. Part of the next stage of
the business plan should be development of a parking strategy and negotiation,
where possible, of mutually beneficial arrangements with owners of those parking
sites.
9.6 Failure to get local buy in
This risk will be reduced by a second round of more detailed consultation with the
local community, local businesses, and potential partners, users and supporters, as
flagged up in 0.3 and 2.4.
10. Action plan
Once the business case is accepted by Leeds City Council, the next tasks are likely
to be:
widen membership of the Working Group will if possible to access input from
other interested parties and areas of expertise
work with Leeds City Council and other stakeholders to refine the draft feasibility
study
carry out in-depth consultation with all stakeholders and potential users to inform
the final architectural brief. This will lead to an updated cost estimate. Further
iterations of brief and proposal may be required to achieve a final proposal within
agreed budget.
work with the City Council to finalise the capital costs and identify sources of
funding for the capital programme
produce a project timetable.
Otley Civic Centre Feasibility Study Page 44 of 45
11 Conclusion
Please be aware this is a FIRST DRAFT of the revenue feasibility study and is
presented for discussion. It will require further development and refining in the light of
ongoing research and feedback from ‘critical friends’ who have agreed to review it.
The Working Group is also making the draft public because we welcome discussion
and constructive critical comments from all interested parties. There are at this stage
quite a lot of unknowns, and some of those are, in the words of Donald Rumsfeld,
‘unknown unknowns – there are things we do not know that we don’t know.’ The
success of a project like this depends on public support, and that cannot happen
without offering access to all the information we DO have, and inviting open debate.
1J.M. Witherick Associates (Charatered Architects) (2005) Feasibility study for Otley Civic Centre.
2 Pulse Regeneration, (2008 )Otley Civic Centre Development Plan.
3 Data is taken from Leeds City Council/NHS Leeds, 2010 Population Acorn profiles for MSOAs
E02002333Otley and E02002332 Otley and Newalls/Weston Lane
http://westyorkshireobservatory.org
4 As above.
5 Leeds City Council/NHS Leeds, Area Profile, Outer North West Leeds, 2010 Population Acorn Profile,
p.13 http://westyorkshireobservatory.org
6 See http://gregmulholland.org/en/page/greg-mulholland-business-survey-2013
7 Pulse Regeneration, (2008 ) Otley Civic Centre Development Plan, 6.1 ‘Offices’, p.18
8 The history of the Hebden Bridge Town Hall development and the HBCA business plan is available at
www.hebdenbridgetownhall.org.uk
9 Centre for Economics and Business Research, The contribution of the arts and culture to the national
economy, May 2013, p.89.
www.artscouncil.org.uk/media/uploads/pdf/CEBR_economic_report_web_version_0513.pdf
10 See more at: http://www.artscouncil.org.uk/advice-and-guidance/browse-advice-and-
guidance/contribution-arts-and-culture-national-economy#sthash.dnQ9IjC9.dpuf
11 Local Government Association (2009) Investing in creative industries: a guide for local authorities,
p.1
12 Campaign to Protect Rural England, From food to fork: OTLEY, Mapping the local food web, p.3
available at http://www.cpre.org.uk/resources/farming-and-food/local-foods/item/download/2014
13 Section 5 updates suggestions in the Pulse Regeneration Report 2008.
14 See Pulse 2008, Section 13
15 See 1.