Rochford District Council
Partnership Panel - Community Centre Workstream
Position Paper
The Community Centre Workstream1 was set up in November 2021 to provide elected members of Rochford District Council with an opportunity to discuss options relating to the future development of the Mill Arts & Events Centre site in Rayleigh (“the Mill site”).
The Workstream was formed in response to feedback from residents and other stakeholders to the engagement on the Council’s initial proposals for the Mill site (Spring 2021). The purpose of the Workstream was to consider both the views expressed by members of the public and the ways in which the Council’s financial and social value priorities can best be met by either refurbishing the existing centre or replacing it with a new building. This paper reflects the wide range of views held by elected Members, detailing where the Workstream has built a consensus and highlighting where differing views have been articulated. The Workstream has delivered on its commitment to provide a base proposal for the size, scale and specification of a new community centre on the site. A new outline business case will compare the potential costs of providing this by either refurbishing the existing structure or building a new one. The Panel has also examined the funding options for such a centre.
1. Starting points
Members of the Community Centre Workstream acknowledged that:
- A new outline business case would need to be produced to support a future scheme.
- Existing contractual arrangements with the Council’s development partner would not allow other land and/or sites to be taken into consideration at this stage.
- The most recent proposal - developed after statutory consultation and community engagement - provided a framework within which to consider other options for the development of The Mill site.
- The most recent proposal was configured to meet the needs of over 95% of bookings of the existing Centre.
2. Residential development
Having listened to, and taken note of, comments from the public, Members expressed a strong view that any scheme put forward in response to the outcome of this Workstream will not include residential or commercial units, and parking capacity will remain as at present.
The Workstream noted that this would mean that the site would not generate any significant capital receipt to offset the costs of development and that alternative sources of funding would need to be explored (see section 6 below).
The Workstream noted that an application to designate the existing Centre as an Asset of Community Value has been made to the Council and that this will be subject to the established process for evaluating such submissions.
3. A New Community Centre
The Workstream emphasised the Council’s commitment to developing a flexible and cost-effective community centre on the Mill site. It was recognised that both the development cost and the future running costs would need to be affordable and reflect the Council’s duty to spend public money wisely.
The consensus view of Members was that, should a new community centre be developed, this should be situated within the ‘footprint’ and in the location of the existing building. Members acknowledged that the existing structure is unattractive and that a new community centre should strive to enhance the heritage ‘credentials’ of the site by creating a more cohesive and sympathetic setting alongside the windmill and Rayleigh Mount.
The majority view of the Workstream was that the community centre should focus on offering spaces suitable for use/hire by:
- Local activity groups (eg: exercise classes, University of the 3rd Age)
- Popular fairs (eg: craft fairs, Christmas fair)
- Locally based performance groups (eg: RODS)
- Partner agencies and voluntary organisations (eg: Citizens Advice, RRAVS)
In addition, the Workstream accepted that the centre should, if possible, retain the capacity to accommodate some ‘commercial’ events (eg: Lee Hurst Comedy Night, Rolling Stones Tribute band).
This understanding of what type of centre should be developed was supported by a high level review of the local community facilities, arts and entertainment market. This independent review highlighted that, whilst the Mill has been able to (and could continue to) offer space for some arts and entertainment events, it would not be reasonable to expect it to be able to compete effectively (or profitably) with dedicated arts venues such as the Cliff Pavilion, Palace Theatre and Basildon Theatre.
Members agreed that they shared an ambition to create a new community facility that met the needs of local communities and that made a positive impact on the public realm in Rayleigh.
4. Build type
The Workstream explored how it might be practical and financially supportable to either refurbish or remodel the existing community centre structure. Costings presented to the Panel by the Council’s professional advisors have initially indicated that the cost of bringing the existing 50 year-old building up to date might be prohibitive. The Workstream noted that updated cost comparisons would be produced by the Council’s advisors as part of the outline business case for a new scheme.
In addition, Members noted that, whilst it is clear that a new building could be designed to specifically support the Council’s environmental and sustainability commitments, it was less certain that this could be replicated by refurbishing the existing building. In addition, refurbishment would be likely to limit the potential to configure the building to provide flexible spaces to meet the needs of a wide range of user groups.
Members also noted that, if the development of the Mill site did not proceed at this time, the current building would continue to be ‘mothballed’ as its outdated configuration lacks flexibility and makes it financially unsustainable to operate.
It was, therefore, the consensus view of the Workstream that a new building was likely to offer the best value for money and result in a more flexible community centre that is financially and environmentally sustainable.
5. User requirements
The Workstream recognised that increasing the gross internal area (m2) of the community centre would result in increases to both capital (development) and ongoing running costs.
Members reviewed in detail the activities and events that took place at the Mill in the twelve months prior to the start of the pandemic. Although the most recent proposal was configured to meet the needs of 95% of these bookings, the Workstream closely examined the remaining 5% and carefully considered how these high attendance events at the Mill could be accommodated in a different space in the future.
Members recognised that some of the largest events could be delivered in different ways and this would make it practical for these to be accommodated in a centre providing a maximum capacity of 250 people – subject to further market analysis. The Workstream therefore concluded that a building of this capacity, which offered a series of flexible spaces, would be able to host every event that had been held in the sample year.
Members noted that, due to the pause in activities caused by the pandemic, it would be necessary to re-engage with user groups, and the wider community, to clarify and confirm their requirements for the future. This will be carried out, in person, via the existing Stakeholder Focus Groups and would take place before any formal decision on the future of the site is made by the Council.
It was also recognised that further analysis of the local arts and entertainment ‘market’ could be helpful in refining the centre’s proposition to the public.
6. Funding options
As noted in section 2 (above) Members appraised, in the context of the removal of residential units and the resulting loss of a capital receipt from sales, the following potential funding options:
- Reserves – these are mostly already earmarked for specific commitments/other Council spending priorities.
- Borrowing – this would spread the upfront capital costs but ultimately financing costs would have to have to be met from ongoing Council Tax unless other service reductions were agreed to offset this.
- Council Tax – there is no scope to increase this beyond the level currently assumed in the Medium-Term Financial Strategy without a referendum.
- Commercial Income – the proposed low running cost/low hire charge model proposed is designed to make the centre accessible and affordable for local community/voluntary groups but is unlikely to fully cover operating costs even before the ongoing cost of borrowing is added
- Grant funding – there are no readily identifiable funding ‘pots’ available for the development of this type of community centre. For example, core Arts Council funding is focussed on supporting over 800 National Portfolio Organisations, of which 47 are located in the East region (average grant in 21/22 is £406,000. The Partnership Panel will continue to look at the possibility of direct funding for, but not limited to, arts and culture in relation to the Mill Hall site.
- Other development opportunities – Members will continue to review other Council assets that may offer opportunities to generate a capital receipt, but as noted under (1), this falls outside the scope of the existing contract.
7. Funding gap
The Workstream recognised the challenge presented by the exclusion of residential units from the site, combined with the limited options for funding from other sources. Members carefully considered the fact that this would result in a significant ‘funding gap’ in the context of the restricted funding options set out above. It was also noted that there is likely to be abortive/compensation costs associated with varying the contract. The consensus view of the Workstream was that borrowing presents the only practical way of providing the necessary financing for a new community centre on the Mill site, given the rejection of any residential development.
8. Next steps
The Council is currently working with its development partner (GBP) to identify a mutually acceptable approach to the development of the site. Once this has been agreed the Partnership Panel will:
- Continue to play a significant role - via a dedicated Workstream - in the development of a new outline business case.
- Ensure that this Workstream provides a forum for communication and engagement between the Partnership Board and elected Members.
- Contribute to the production of a new outline business case, which will include a full options appraisal (including refurbishment/remodelling of the existing structure).
Council Statement
The Partnership Panel has provided elected Members with a robust process and transparent forum in which to discuss options for the future development of the Mill Arts & Entertainment Centre site, with a focus on the future of the community centre itself. The Panel has reflected on the Centre’s importance as a community facility for the whole district and on more specific local concerns relating to the site. The Panel’s work is an ongoing process that will support, and contribute to, the production of a fully costed business case for a new proposal for the Centre. Following further public engagement the business case will require formal Council approval before any development activity takes place.