Contents

Introduction

The Community Asset Transfer (CAT) Policy does not include Community Right to Chal-lenge (the right to express an interest in running a Local Authority service) or Community Right to Bid (maintaining a list of assets of community value). These are covered by sep-arate policies and more information can be found on the Council’s website.
The Local Government White Paper, ‘Strong and Prosperous Communities’ (2006), sets out the relationship between local government and its communities. The reforms con-tained in this paper gave greater say over local services to the people who rely on them. The primary purpose was to enlist communities in the drive to improve services, from waste to parks and libraries. Torbay Council has embraced this agenda by giving local people more say on how services are delivered through vehicles such as the Torbay Com-munity Development Trust and local community partnerships.

In the same spirit, the ‘Making Assets Work, Quirk Review’ (community management and ownership of public assets) sets out the clear benefits to local groups which own or man-age public assets – such as community centres, building preservation trusts and commu-nity interest companies. Fundamentally, the review talked about giving local people a bigger stake in the future of their area through this model. The then Department of Com-munities and Local Government, in its response to the recommendations of the review, supported the need to ‘monitor effectiveness of mechanisms in persuading local author-ities to consider transferring management or ownership of assets to communities’. There are already powers in place through the Public Request to Order Disposal (PROD), whereby communities can prompt a local authority to give serious consideration to the community management of assets. This was strengthened by the Community Call for Action which came into force in spring 2008.

Through the introduction of the Localism Act 2011, Government reignited local discussion about how Councils could make the most of assets to meet community needs in a chal-lenging financial climate. Torbay Council has responded to this by adopting this Policy which considers options for the transfer of asset through leases and operational manage-ment to the community, for purposes that benefit the communities they serve. This can range from small parks groups to established voluntary sector organisations. Community ‘benefit’ is seen as varied, with a range of activity from local meeting places, such as com-munity centres, to social enterprise businesses offering new employment or training op-portunities.
School disposals are covered by a legislative framework. Any disposal would first need approval under Section 77 of Schools Standards and Framework Act 1998. Therefore, school buildings and landholding will not be considered under this policy.

Given the ongoing financial constraints the need for the Council to dispose of underused or surplus assets remains. However the Council recognises there needs to be a balance of sales of assets to maximise investment, and to regenerate communities through alter-native uses.

This Community Asset Transfer Policy identifies a level of market value when a particular asset shall be considered for community transfer and how local communities could regis-ter an interest in taking over a Council owned property. This option would still need to be assessed against sale, or alternative disposal opportunities, in each case, and should be closely linked to the Community and Corporate Plan 2019 - 2023.

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Strategic Context

The Community and Corporate Plan 2019 - 2023 has identified four visions, thriving peo-ple, thriving economy, tackling climate change and ensuring the Council is fit for the fu-ture. This policy should reflect these visions as the main driver.

The delivery of the outcomes of this policy, therefore, need to be aligned with the seven targeted themes presented in the Community and Corporate Plan 2019 - 2023:

Targeted actions:

  • Turn the tide on poverty
  • Have high aspirations for all of our residents
  • Build safer communities
  • Create an environment in which businesses and jobs can grow and where we have a local economy which is successful and sustainable
  • Be the premier tourist resort in the UK
  • Become a Carbon Neutral Council and work with others to create a carbon neutral community
  • Create a culture of partnership between the Council and communities

The strategic fit of any asset transfer proposal would need to achieve one or more of these goals

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Rationalisation of Assets

The Council continues to undertake a review of its assets through an ongoing rationalisa-tion programme. This is being considered by the Council’s Senior Leadership Team (SLT) on how the Council will deliver its services in the future.

As part of this process, the Council, through the Corporate Asset Management Group (CAMG) and the Director of Place, will identify buildings and land holdings which are no longer required for the delivery of its services. In this instance, a building or land holding will then become ‘surplus’ and be put forward to the SLT or Council (as appropriate) for potential disposal. At this stage, assets with a market value below £25,000 will be given

an indication as to the likelihood that this could be considered for Community Asset Transfer. Assets of a market value above £25,000 can still be considered for Community Asset Transfer if it links with the Council’s targeted actions and principles, within the Com-munity and Corporate Plan 2019 – 2023 and is approved by the CAMG. Once on the dis-posal list, community, voluntary and other agency sectors could apply to the Council for transfer of these assets for alternative community uses. This would still be considered alongside the need to capitalise receipts of any assets to deliver the Council’s prioritised Capital Programme. The proposed criteria for transfer of an asset below the market value would need to be measured against the likely other uses if sold on the open market.

Under the current policy, assets or land holding are rarely sold as a freehold interest, and it is considered more appropriate that any transfer for community use should be on a leasehold basis. This would protect the future of these assets, and ensure that the Council can veto future changes in use and occupation of the facilities during the lifetime of the lease.

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Key Policy Criteria

There are two key factors to be considered within the policy criteria:

  • Benefits to the local community by transferring the asset
  • Ability of the voluntary or community organisation to sustain the use of the asset over the leased period.

Therefore, the Community Asset Transfer Policy would require all proposals to meet the following, before being considered against alternative disposal options:

  • The proposed use of an asset reflects the outcomes and objectives identified in the Community and Corporate Plan and other appropriate plans and strategies.
  • The proposed use of the asset is genuinely for the benefit of the community, and would offer real opportunities for successful and independent, community or third sector organisations to become more sustainable in the long term.
  • The asset would be made fully available for use by a range of local groups, espe-cially those working with, or in, disadvantaged communities, and should be com-pliant with the Disability Discrimination Act (DDA).
  • The use of the asset is environmentally sustainable. Any future refurbishment plans should consider energy efficiency as a priority, and use good quality, envi-ronmentally sustainable, materials and construction practices.
  • That the third sector organisation would have greater security and independence, and would be better able to meet the needs of the communities it serves.
  • That uses would enable communities to have more access to facilities and/or op-portunities that respond to their local needs.

Under the second key factor, the Council would need to analyse the risks carefully to en-sure that proposed organisations and future community management of the assets are appropriate, and sustainable, in the long term.

As it is likely that many of the community and voluntary groups, applying to the Council for the transfer of assets, would have limited financial history, or facilities management experience, it is important that a robust business case is put forward in support of any proposal/organisation. The policy, therefore, sets out the following requirements that need to be demonstrated by organisations for them to be able to be considered ‘fit for purpose’ to lease Council assets:

  • Financial viability of the transfer – the organisation would need to show at least a five year cash flow and budget forecast that demonstrated that the project is sus-tainable, and that the asset would be maintained adequately.
  • Experience of, and/or commitment to, partnership working – demonstrating that the asset would be put to a variety of uses to benefit the community.
  • Skills and experience - The organisation and key individuals, managing the asset and associated project, have appropriate skills, knowledge and expertise to sus-tain the project in the long term.
  • Clearly defined structures, roles and responsibilities within the organisation ap-propriate to deliver the project, whether voluntary and/or paid. It is recom-mended that a Council representative be included in any management commit-tees associated with the assets.
  • Clarity of decision making processes – adequate constitution, governance arrange-ments and management controls, are in place.
  • Clarity of aims and objectives, and that these meet the key Corporate Plan objec-tives.
  • All legislation and regulatory controls are in place – meeting equality standards, child protection, health and safety and licensing requirements.
  • The project has the support of the local community – can demonstrate local need, community support through consultation, and that the project is not aligned only with a single interest group.
  • Monitoring and evaluation processes are in place to demonstrate the successful delivery of objectives and targets over the life of the project.

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Process for Assessing Proposals

It is recommended that a Community Asset Transfer Panel be established to assess the proposals put forward. The panel would consist of the Director of Place, two Conservative Councillors, one Liberal Democrat Councillor and one Independent Councillor (to be nom-inated by the Group Leaders). The Council (proportional representation), who would ul-timately be responsible for the final decision, supported by voluntary sector representa-tion. This panel would also be supported by Council officers with the relevant expertise to advise on the key elements of the proposal, including planning, estates, property man-agement, legal, finance, housing, environmental policy and community engagement.

The Asset Transfer Panel and the Leader of the Council, or nominated individual or body (as an appeal process), would be the key decision making boards related to this policy.

The assessment of proposals put forward by the community and voluntary groups would fall into two stages:

Stage One:

Once an asset had been identified for potential disposal, community and voluntary groups could then apply for transfer of that asset for community use. It is proposed that the timeframe, for those wishing to register an interest, would be limited to three months. There would be an initial first stage, which will allow potential community or third sector organisations to detail their proposals in outline to be considered by the Community Asset Transfer Panel. This should be a simple initial process, where the organisation would have to demonstrate the following criteria:

Criteria
  • Strategic fit against the priorities in the Corporate Plan and other applicable plan strat-egies.
  • Support from the local community in the neighbourhood for the proposals – must in-clude support of 50 local people, and have consulted the specific community partner-ship. These people do not have to be active members of the group, but need to support proposal.
  • Who, and how local people, would benefit from the proposals.
  • Previous experience of the group, or evidence of supporting organisation.
  • Proposals are focused on needs of the community – demonstrating there is a gap in provision, e.g. providing job opportunities in deprived areas, or aimed at key target groups currently excluded from the community activity.
  • Implications for the asset or building in the long term – alternative use options.

The Community Asset Transfer Panel would either give its approval for the proposals to be taken forward to the second stage (this preparation period would be a maximum of three months), or advise the asset be put forward for alternative disposal. The organisa-tion involved would be advised in writing of the decision, giving reasons if the application were refused. They would be advised of their right of appeal which could only be consid-ered against the criteria.

The organisation’s right of appeal on whether the decision is fair would be undertaken by the Leader of the Council or nominated representative/body. If the proposal were not approved by the Panel, the organisation would have the right, within a set timescale, to appeal against the decision. The appeal would then be reviewed by the Leader of the Council, or nominated representative/body, who would either reject the appeal or rec-ommend further consideration at the second stage.

Stage 2:

The Asset Transfer Panel would invite successful organisations to progress to the second stage where a full business and delivery plan would need to be presented for the pro-ject/proposal. This submission would be assessed under the following criteria:

Documentary Evidence Required
  • Business Plan and Governance Documentation
Criteria
  • Outcomes, aims, objectives and targets the proposal would deliver, including how these would be monitored and assessed over the life of the project.
  • What type of organisation would be running the pro-ject.
  • The capacity of the organisation to deliver the project including :
    • Decision making structures
    • Management and staff structures, showing where these are paid or voluntary, whether these are experi-enced, and/or what training plans are in place.
    • Identifying whether the project would create new jobs, housing or learning opportunities, and how these linked to the Corporate Plan and other relevant strategies.
    • An indicative 5 year capital and revenue budget plan in-cluding all anticipated grant funding, identifying whether this had already been secured and any other income expected, sources etc.
  • Relationships with any other partners on the project.
  • Legislation and regulation considered within the pro-ject and how this would be addressed, e.g. Health and Safety regulations, Child Protection Policy, Equality regulations Licensing.
  • How the project would address: Inequalities Crime prevention Environmental issues.
  • The catchment area for the project.
  • Length of lease required to deliver the project.
  • Any development proposals relating to the buildings or land.
  • Risk Analysis of the proposals.
Project Plan
  • Indicative timescales on how the project would be de-livered from start up to fully operational.
  • Description of any proposed development.
  • Detailed breakdown of timings/costs for any proposed building works or refurbishment proposals, and how this would be funded.

Once a proposal had been successful at the second stage, this would be progressed through to the development of normal lease arrangements by TDA, instructed by Director of Place. This process would include advertising the ‘disposal of public open space’ which would have to be approved by the Leader of the Council. This process usually would take two/three months.

A summary of the timescales and decision-making process for both stages is detailed in the flow chart below:

Applicants will have a maximum of three months to apply at stage 1.

 

A guidance document and application forms will be provided to community and voluntary sector organisations to assist them in applying for Community Transfer of Assets.

Evaluation of benefits

The policy will be reviewed continually to ensure that it met the objectives set out in the Corpo-rate Plan and other key plans and strategies, and demonstrated real benefits to the community.