AGENDA ITEM NO. 16
REPORT TO: / Executive BoardREPORT NO: / CEDO/25/04
DATE: / 19 October 2004
REPORTING OFFICER: / Chief Economic Development Officer
CONTACT OFFICERS: / Sarah Salisbury
URBAN II Manager
(1978) 367934
SUBJECT: / URBAN II – Capital Strategy
WARD: / Coedpoeth, Brymbo, Gwersyllt East and South, Gwersyllt North, Gwersyllt West Gwenfro, Bryn Cefn, New Broughton, Llay
1.0PURPOSE OF THE REPORT
To update Members on the progress with the delivery of the capital strategy and the match funding position; to seek Member’s agreement to use the approved matched capital funding on a more flexible basis to support a broad range of projects in order to deliver the Programme; and to seek Members approval to retain monies claimed from the URBAN II programme retrospectively to re-invest into the programme area.
2.0INFORMATION
2.1Policy Framework
A key objective of The Council’s Economic Development Strategy 2004-2007 is to engage local people in the regeneration of their communities through the provision of appropriate support in order to overcome barriers to employment and to take advantage of economic opportunities. The URBAN II Programme is a key enabler in taking forward this objective in the communities of west Wrexham.
2.2Budget
The Executive Board has previously approved the use of £1 million from the capital programme to support the URBAN II Programme (CEDO 08/03). Approval to retain monies claimed from the URBAN II programme retrospectively for re-investment in the URBAN II programme is required.
2.3Consultation
The URBAN II Capital Strategy refers to the development of a network of community based learning/enterprise facilities, which will accommodate a range of activities ultimately supporting residents of West Wrexham into economic activity. This network of centres was identified within the West Wrexham URBAN II Action Plan; the Action Plan was informed by an audit of need that was carried out in West Wrexham in 2002 capturing the concerns of residents, employers and young people aged 11-16, largely relating to access to learning and employment.
The URBAN II Board/Programme Monitoring Committee (PMC) have prioritised the Capital Strategy as the main focus of the URBAN II Programme.
The Councils Executive Board have been given updates on the Capital Strategy and the URBAN II programme since the start of the Programme.
The URBAN II Board/PMC are regularly updated on the position of the Capital Strategy and the ongoing situation with match funding, and fully support the development of opportunities that will maximise access to URBAN II funding in delivery of the Programme.
2.4Further Information
The URBAN II Programme has identified and supported the delivery of a wide range of projects in West Wrexham. Appendix 1 provides a detailed update.
Currently, three of the six facilities forming the URBAN II Capital Strategy listed in Appendix 1 have received funds through the URBAN II Programme: The Brynteg Memorial Centre, the Llay Park Resource Centre and the School House Tanyfron. With the remaining three facilities scheduled for implementation as follows: Gwersyllt 2004, Brymbo 2005 and Coedpoeth 2006-2008.
The total value of the Capital Strategy is £7.6m approximately, including capital and revenue costs as follows:
Table 1
Year / Project Cost / Matchfunding from WAGBrynteg Lifelong Learning Centre & Llay Park Resource Centre / 2003-2004 / £2,421,323 / £ 59,860
School House, Tanyfron / 2004-2005 / £ 290,093 / £ 83,980
Gwersyllt Resource Centre / 2004-2007 / £1,200,200 / £ 436,432
Coedpoeth Business & Learning Centre / 2006-2008 / £1,757,000 / £ 878,500
Brymbo Enterprise Centre / 2005-2007 / £2,000,000 / £1,000,000
Totals / £7,668,616 / £2,458,772
Original indicative LRF allocations / £1,785,490
:- Increase in matchfunding / £ 673,282
The Welsh Assembly Government has now confirmed its intention to provide the required match funding to deliver the URBAN II Capital Strategy (from the ring fenced Local Regeneration Fund (LRF) Programme) on the basis of the current indicative costs, as detailed in Table 1 above, making an additional £673,282 available to the Programme. Increasing the allocation of ring-fenced LRF from just over £1.7 million to just under £2.4 million.
However, as indicated to Members previously (COLLC/19/04 & CEDO/08/04), the project costs and match funding required are indicative figures only at this stage and may be subject to change during the process of developing the detailed project and funding application. Although WAG has committed to providing the additional funds, in the event of building costs increasing, it is not guaranteed that WAG will increase its contribution to cover this.
The decision of WAG to increase the LRF contributions to the URBAN II Programme means that the £1 million commitment from the Council (which was approved to support the six main capital projects) can now be used more flexibly to ensure delivery of the entire URBAN II Programme.
In order to meet the grant spend targets in 2004 and avoid returning money to the European Commission, the Welsh European Funding Office has allowed retrospectivegrant applications for projects that had spent monies to the end of November 2004 but which had either not claimed the maximum ERDF grant or had not been considered for funding in the past but would have been eligible.
An application has therefore been submitted to WEFO for the Brynteg & Southsea Community House project which was approved at a project cost of £170,527. If the project is reimbursed half the costs by URBAN grant (£85,264), this will release the same amount of the original Communities First funding used for the project. This will be reimbursed to the project applicant (Council) on the condition that it is reinvested in the URBAN II Programme area and projects.
In addition, the Council, as the project applicant for the Brynteg and Llay Centre project, has also been advised that further grant can be claimed retrospectivelyagainst expenditure to date up to a 50% limit. So far only 42% has been claimed in grant. This will release approximately £181,000 of Local Regeneration Fund monies used for the Brynteg Centre element on condition that it be reinvested in the programme. This potentially means that, with these two projects, there may be £266,264 available to re-invest in the URBAN II Programme as match funding for future projects.
Overall, there remains approximately £1.2 million grant in the URBAN II Programme uncommitted. In order to draw down this funding a further £1.2 million must be found in match-funding. Failure to secure match funding will result in the funding being returned to the European Commission and failure to reach the targets for the programme.
By utilising the Council’s capital funding to match fund the unmatched element of the Programme in addition to the £266,264 gained through retrospective claims, sufficient match funding will be available to the Programme to effectively draw down all URBAN II funds from the European Commission. This will enable the URBAN II programme to cover eligible increases in the Capital Strategy costs and undertake a wide range of additional projects, aimed at reaching the approved programme targets. This is a significant achievement for the programme.
3.0RECOMMENDATION
Members are recommended to:
i)note the progress on implementing the URBAN II Programme;
ii)authorise the Chief Economic Development Officer to utilise the Council’s £1million match funding (already approved) to support a broader range of projects which meet the requirements of the URBAN II Programme; and
iii)authorise the Chief Economic Development Officer in consultation with the Chief Financial Services Officer to ring-fence monies received through the retrospective claims for reinvestment into the URBAN II Programme (as described in section 2.4 of the report).
4.0REASONS FOR RECOMMENDATION
i)to keep Members up to date with progress;
ii)to enable the Council’s match funding to be used flexibly, and
iii)to safeguard match funding to reduce the risk of the programme under performing and returning unspent funds to the European Commission.
5.0BACKGROUND PAPERS
West Wrexham URBAN II Action Plan
West Wrexham URBAN II Programme Complement
Both documents are available in the Members library
6.0WEBSITE INFORMATION
None
Appendix 1
1.The Brynteg Lifelong Learning Centre has been open since September 2002 and has already attracted thousands of users through its doors. The facilities include ICT facilities and training, crèche/playgroup area, meeting rooms and community hall facilities. The Centre celebrated its second birthday party with an Open Day in September 2004.
2.The Llay Park Resource Centre was completed in May 2004 with an informal Open Day for the local Community in June. An Advisory Group has been set up with its Inaugural Meeting 13th October 2004. This group is made up of representatives from WCBC, the local community and groups/organisations. The Llay Youth Club began operating straight away on a Monday, Tuesday and Wednesday evening and the Information Resource section opened in August ’04. Basic computer courses have started and a training programme is being developed. Facilities at this centre include a computer suite, Information & Resource Centre, Community Café, Crèche facilities and three business start-up units. An official opening ceremony is being organised for later this year.
3.The School House Tanyfron: Learning and Information Resource Centre has been completed and handover took place on 29th September 2004. The Centre has been designed to enable local people to develop their skills and confidence as well as receive practical support. The Centre is due to open fully within the next few weeks after the installation of furniture and IT equipment.
Both the Dragon Daycare centre (providing a wraparound daycare service for children aged 3 to 11) and the Adult Education & Opportunity Programme are already running based at the adjacent school until the centre is open.
4.The Gwersyllt Community Resource Centre has been submitted as an application in June ’04 and is in the final stages of appraisal by WEFO. The project applicant, The Gwersyllt Community Partnership (made up of the local URBAN II Committee and Partnership Board) has recently adopted company status and have submitted this bid to refurbish the Gwersyllt Partnership building on First Avenue, Gwersyllt. Facilities include: a youth area, playgroup facilities, ICT suite, community garden, and meeting rooms/office space. (Timescale 2004 – 2007). The total project cost is estimated at £1,200,200 with LRF match funding a minimum of £436,432.
5.The Brymbo and Tanyfron Community Committee is about to register as Brymbo and Tanyfron Regeneration Trust and has recently identified a suitable site on the former Steelworks site to take forward the development of a learning/enterprise facility in the community. The Trust anticipates submitting a bid for URBAN II funding to WEFO in May 2005 with works starting on site in Autumn 2005. The total project costs of the Brymbo Enterprise Centre (timescale 2005-2008) are estimated to be approximately £2,000,000, which will require match funding of £1,000,000.
6.The Coedpoeth Community Committee has identified the Penygelli Junior School as the proposed location to house a learning/enterprise facility. A business plan has been compiled and indicate facilities to include: nursery, ICT suite, business units, information resource centre, café, meeting rooms. Due to the timetable of the Penygelli School rebuild programme the current Penygelli Junior School will not be released until nearer the end of the URBAN II Programme For this reason the Coedpoeth facility is programmed to be developed 2006-2008. The total project costs are estimated to be approximately £1,757,000 which will require match funding of £878,500.
7.The Alyn Waters Environment Education Centre is on site and progressing to schedule. It is anticipated that the build will be completed in January 2005. The Project Manager is working with local organisations and partnerships to develop the activities and services that will be delivered by the Centre. These include facilities for use by Community groups, environmental activities, training, engaging local schools.
8.The West Wrexham Business Grants have proven to be very successful resulting in two new bids being submitted to WEFO recently with a view to providing a continuation of support to local businesses (2004 – 2007). Grants available will include capital, marketing and ICT grants to new and existing business in the West Wrexham area. The new bids build on the success of the pilot scheme ending 31.Oct.04
9.The Broughton Strategy Team continues to provide on-the-ground support to the Broughton Partnership Board and the Broughton area through capacity building work. Their role is to take forward initiatives in the area that fit with the Communities First Action Plan. Due to the success of the first bid (ending 31.Mar.04), a second bid to secure the team was approved to continue from April 2004 to March 2006.
10.The Coedpoeth Youth Project has begun by engaging youths across the area through outreach work and informal learning; working with them to develop activities and courses. Feedback from two courses already held has been positive. A fun day was held in June this year and activities will be linked to the new skate park facility.
11.The West Wrexham Key Fund was officially launched on 25th June 2004 with a presentation and unveiling of a plaque. The ethos of the Key Fund is to make URBAN II more easily accessible to local groups for community activities. The Management Committee assessed the first round of applications in September 2004, with two successful applications receiving grant assistance. The Key Fund has been widely publicised which has resulted in a large number of application packs being issued.
12.Wrexham Association of Seasonal Play schemes have appointed a Co-ordinator through this project to support the sustainability and establishment of scheme throughout the West Wrexham area. Part of the role is to identify and facilitate training and volunteers where possible. Take-up on the schemes has been excellent with a need to expand now into Coedpoeth as the Minera scheme is oversubscribed.
Summary
Overall Cost / URBAN II GrantProjects approved to date / £5,217,131 / £2,313,531
Potential projects submitted and awaiting approval (including Gwersyllt Resource Centre) / £2,761,193 / £1,380,596
Projects awaiting submission / £222,266 / £111,133
Future Capital projects (Brymbo and Coedpoeth) / £3,757,000 / £1,878,500
Remaining URBAN II grant as yet unallocated / £1,297,520 / As yet grant unallocated
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