Ian Rice – Architectural Heritage Fund – notes Restoring ‘problem’ buildings and innovative solutions Glossary AHF - Architectural Heritage Fund BPT - Building Preservation Trust EH - English Heritage HLF - Heritage Lottery Fund BARR - Buildings at risk register FFHB - Funds for Historic Buildings (www.ffhb.org.uk) GOWI - Get on with it… Themes Problem buildings Redundant buildings beyond a market solution Role of Building Preservation Trusts (‘BPTs’) Innovative solutions Finance – development and project funding Assembling a funding package Difficult times – or a period of opportunity? The AHF Aim: To bring redundant buildings back into viable re-use

• Buildings at risk • Little or no market value: ‘conservation deficit’ (i.e. the difference

between the commercial value of the building and the cost of restoration)

• Small grants for project development • Low-interest loans for working capital or acquisition • Advice & support, advocacy & education

Definition of a Building Preservation Trust (‘BPT’)

• An independent charity • Charitable objects: must include preservation of a building or buildings of

historic, architectural or constructional interest • Powers: to buy, sell, charge property and borrow money • Optional: Company limited by guarantee • Trustees/ members/ supporters/ paid staff • ‘A developer of last resort’ • Most trusts in UK run by volunteers

Value of BPTs in sourcing finance

• Charitable (see funders’ eligibility requirements) • Specialised • Low overheads • Not set up to make a profit • Can overcome ‘conservation deficit’ (i.e. the difference between the

commercial value of the building and the cost of restoration)

‘Problem’ buildings Restoring a building at risk Unlikely to be straightforward Beyond the reach of the market Too large/ small/ redundant/ poor condition/ bad location But many successful projects achieved, often by unusual means Case studies: Heritage of London Trust Operations (HoLT-OP)

• Locomotive Waterpoint • Grade II listed • Project cost £898K (2005) • AHF development funding: £12,600; loan £150,000 • Leased to British Waterways as reception/ exhibition area & viewing platform

Benington Community Heritage Trust All Saints Church, Benington, Lincs Renewable Heritage Trust Howsham Mill Cadw Sir Gaerfryddin Cyf Whitford Lighthouse, Gower Peninsula

Whitford Lighthouse, Gower Peninsula

• Grade II* listed • Offered to trust for £1 • AHF funding £9,515 • Options appraisal study found that project is viable • Proposed project cost: £566,730 • 30 project funders identified • Projected use: holiday accommodation •

End use options Tie in with funders’ requirements:

• Appropriate • Attractive • Fundable from multiple sources • Identify potential end users • Potential partnerships • Community support

Funding solutions Existing funders under pressure

Funding package may be difficult to assemble Innovative solutions may be required Development funding can help ‘buy in’ expertise Some funders may be under-subscribed Need to match project with funder’s aims or expectations AHF Funding Options Appraisal Grants

• Allows non-specialists to buy in professional expertise • Demonstrates viability of the preferred scheme • up to £10,000 available

Project Development Grants • Project organiser (up to £15,000) • Professional fees (business planning, RIBA Stage J) (£7,500) • Admin expenses (£1,000) • Post- options appraisal support (£5,000) • Mentoring (up to 10 days)

Low-interest loans for working capital Other ‘usual suspects’ funding

• English Heritage/ Historic Scotland/ Cadw/ NI Environment Agency • Heritage Lottery Fund (inc. THI schemes) • European Regional Development Fund • Local Authority (inc. Section 106) • Local Enterprise Partnership (replacing Regional Development Agency) • Independent charities (e.g. Garfield Weston Foundation, Manifold Trust) • Landfill Tax Credit scheme • AHF low-interest loan (for working capital or acquisition) • Other lenders – Charity Bank, Unity Trust Bank, Ecology Building Society • ‘Funds for Historic Buildings’ website: www.ffhb.org.uk

Heritage Lottery Fund

• Established over 16 years ago • £1 billion available for heritage projects over the next five years

(2010-11: £205M; 2011-12: £255M; 2012-13 anticipated £300M) • Application procedures simplified 2008 • Will now offer up to 90% match funding • Funding for many BPT projects • Townscape Heritage Initiative areas

(extra £11M available 2011-12) • Increased takeup despite recession

Alternative sources of funding: Training opportunities Job creation (finished project) Sponsorship Philanthropy Sale proceeds Mortgage against letting or other income Offset against other income generation Local or project-specific donors/ sponsors

Tie-in with local or central government objectives Case study: Richmondshire Building Preservation Trust Richmond Station Grade II* listed AHF development funding £25,125 AHF loan £700,000 Project cost: £2,75M (2008) Community/ commercial uses: cinema, brewery, honey & ice cream manufacture, restaurant, meeting spaces & conference facilities www.richmondstation.com Poltimore House Trust

• Grade II* listed • AHF development funding £27,500 • EH grant offer £500,000 • University of Exeter graduate placement scheme

New initiatives ‘Cold spots’

• Funded by J. Paul Getty Charitable Trust & Pilgrim Trust • 3-year pilot programme • To stimulate activity in under-represented areas

• East Midlands • South Wales • Industrial Buildings (EH Heritage at Risk campaign, 2011)

• Explore new partnerships & clients ‘Challenge Fund’

• Funded by Andrew Lloyd Webber Foundation & EH • Each organisation will contribute £1M • 5-year programme 2011-16 • Grade I or II* buildings, on EH BARR • Maximum grant £200K, although most will be far less • Available to BPTs or other independent charities

The Architectural Heritage Fund Alhambra House 27-31 Charing Cross Road London WC2H 0AU Tel: 020 7925 0199 www.ahfund.org.uk www.ffhb.org.uk ian.rice@ahfund.org.uk