Agenda item

This report provides an update on the the strategic options for addressing the current challenges and improving the Barham Park Estate to better deliver the Trust's charitable purposes.

RESOLVED:

(1)        In relation to the Strategic Property Review options outlined within the report, to adopt development option 1 (bronze) with redevelopment and strategic investment beginning in 2031.

(2)         To authorise officers to develop proposals for expanding the Trust's charitable purposes to be submitted for approval to the Charity Commission to allow broader uses of the buildings and bring a report on the proposals to a future Trust Committee meeting.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Tuesday 17 September 2024

Tanveer Ghani, Director Property and Assets introduced a report updating the Trust on the strategic options identified for addressing current challenges in relation to the Barham Park Estate in order to enhance and support delivery of the Trust's charitable purposes on a sustainable long term basis.

In recognising the operational and financial challenges identified in terms of the ongoing management and viability of the Estate, members were reminded that the Trust Committee had authorised the appointment of an architect in January 2022 to comprehensively review the Estate.  The goal was to develop options that would meet the needs of current and future occupants while creating a more welcoming, safe, accessible and functional building and park.  Following presentation of the original feasibility study to the Trust Committee in September 2023 three options had been identified as a means of revisioning the Estate and providing a balance between potential commercial, retail and community use going forward.  These had been detailed in section 3 of the report based on:

·             Bronze – minimum interventions to optimise space;

·             Silver – more significant internal interventions and additional space; and

·             Gold – significant interventions, including external building extensions.

The Trust Committee were advised of the supporting options appraisal undertaken in terms of developing a recommended way forward, which had been designed to take account of the Estate’s current usage and financial efficiency of each option in terms of level of investment required.  Having assessed the options identified, the preferred option recommended to the Trust had been the Bronze proposal.  This had been on the basis of its assessed financial efficiency and also focus on quality of space and more flexible and sustainable use of units that would be provided including the provision of community space.

The Trust Committee were advised that the report also outlined the key risks needing to be considered in terms of the approach adopted moving forward, which included not only the revenue position of the Trust but also need to identify the necessary investment in terms of development costs and also need to secure consent from the Charity Commission to amend the Trust’s charitable purpose.  This would be required in order for the Trust to engage in activities outside their existing objectives that would support an expansion in permitted uses for the Barham Estate building in order to attract a broader range of tenants (including commercial) enabling its use to be optimised in support of the Trust’s objectives.

In terms of provisional costs relating to delivery of the bronze option, the Trust Committee noted these would involve interventions, such as refurbishing and removing partition walls, to improve the space's attractiveness, accessibility, and functionality with the estimated cost identified as £1.7m requiring income generation of £160,707 per annum.  When assessed against the Silver and Gold options this had been identified as providing the most prudent and sustainable choice given the level of investment and supporting income required as well as the ability to achieve a more balanced use between commercial and the protection of community space.

In terms of wider engagement and consultation, the Trust Committee was advised that subject to approval of the development option, the process moving forward would involve engagement and focussed consultation with tenants and users of the building on the bronze option based on the further details provided within section 3.24 – 3.27 of the report.

In thanking Tanveer Ghani for presenting the report, Councillor Muhammed Butt (as Chair of the Trust) also took the opportunity to acknowledge the various correspondence received in relation to the review process and thanked those who submitted them for their representations.

In terms of comments raised by the Trust Committee clarification was sought on the proposed level of income identified as required to support delivery of the bronze option, which it was confirmed would be required to cover repayment of the initial capital investment to deliver the proposed redevelopment works as well as to cover the costs for ongoing maintenance and improvement of the building and Estate.  In support of this approach, it was proposed that implementation would be undertaken on a phased basis beginning with decisions being sought on a number of operational property related matters (dealt with under item 8 on the agenda) in terms of regularising leases, carrying out urgent repairs and, subject to Charity Commission approval, expanding the permitted uses to attract a broader range of tenants to improve cash flow. This phased and incremental investment approach had been designed to addresses immediate concerns whilst providing the basis to support sustainable long-term growth and was felt to present the most responsible, pragmatic and strategic path forward for the future vision of Barham Park.

In supporting the approach identified, the Trust Committee RESOLVED:

(1)        In relation to the Strategic Property Review options outlined within the report, to adopt development option 1 (bronze) with redevelopment and strategic investment beginning in 2031.

(2)        To authorise officers to develop proposals for expanding the Trust's charitable purposes to be submitted for approval to the Charity Commission to allow broader uses of the buildings and bring a report on the proposals to a future Trust Committee meeting.