PROPERTY LEASE BACK PROJECT
PROJECT INITIATION DOCUMENT
North Norfolk Pathfinder Programme
2010
CONTENTS
1.
Background
2.
Introduction
3.
Scope and overall approach
4.
Project organisation
5.
Project timescales
6.
Project constraints
7.
Project controls
8.
Quality plan
9.
Configuration
10. Reports to Defra
11. Appendices
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1.
Background
In late 2004 North Norfolk District Council (NNDC) published the draft Kelling to
Lowestoft Shoreline Management Plan. On much of the frontage it was proposed
that there would be a change from a policy of defence to one of retreat or doing
nothing. While in many respects this move reflected the reality that the North
Norfolk coastline has been eroding for thousands of years, it was nevertheless not
a change the Council and its communities found acceptable without there being
some recognition of the consequences of such a policy change and the need for
help in responding to the issues arising from coastal erosion.
In the period since 2004 the Council has, with others, lobbied strongly for changes
to the proposed arrangements. The outcome was the announcement by
Government as part of the Comprehensive Spending Review 2007 of a Coastal
Change (formerly Adaptation) Fund. This has been coupled with the publication in
June 2009 of a draft Coastal Change Policy.
At the same time as publishing this draft Coastal Change Policy the Government
invited local authorities in whose areas coastal change and management was a
significant issue to bid for funds to trial various approaches to coastal change.
North Norfolk District Council submitted a bid under the Coastal Pathfinder
Programme and was successful in securing £3 million to trial a number of projects.
This project forms part of NNDC’s trial Pathfinder projects.
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2.
Introduction
The eroding coast of North Norfolk has placed a number of communities at risk.
Beyond the imminently at risk properties (examples and associated Pathfinder
project for there acquisition, demolition and relocation) there are other properties
which will be threatened in the next 20 to 100 years.
The owners of these properties have difficulties in selling the property on the open
market at prices that are considered reasonable. It is also anticipated that as the
coastline erodes, there will be less incentive for property owners to continue
maintaining the properties and therefore the properties would begin to further blight
the community. Through purchasing these properties and leasing them back to
either the existing occupier of finding an alternative use, the authority could
through a suitable means, ensure the properties are maintained for the remainder
of their useful life. This would prevent the gradual disinvestment and decline or the
property and the associated blighting.
There are potentially complex issues around the legal aspects of this project and
the options which may be available will require carful investigation and
consideration prior to any implementation of an acquisition and lease back
scheme.
Following the options being appraised the Council will be required to take a view
as to which is the favoured approach and to what level they wish the initiative to be
implemented.
At the conclusion of the project a full report will be prepared detailing the
methodologies, lessons learned and make recommendations as to the suitability of
the approaches to enable the government to decide if the approach should be
taken forward for future policy.
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3.
Scope and Overall approach
2.1
Project Aims
•
Evaluate the options for purchasing properties that are at risk in the period
beyond the first SMP epoch and leasing them
•
Develop a method for evaluating the feasibility and the benefits of this approach
•
Identify a suitable organisation (e.g. a housing association) to work in
partnership with in implementing this approach
•
Identify the properties that present the most suitable opportunities, within the
available budget
•
Negotiate suitable terms for the purchase and lease of these properties and
implement as appropriate
2.2
Scope
The project will investigate the feasibility and delivery of a method of purchasing
properties on Beach Road Happisburgh for leasing to residents or finding new
uses between the 20-100 year erosion zones.
2.3
Approach
The project will be lead by the NNDC Coastal Management Team with Peter Frew,
Head of Coastal Management as Project Officer. The property advice and
negotiations will be provided by Bruton Knowles who will act independently, but on
behalf of NNDC.
The local community will be involved through the Happisburgh Project Liaison
Group. They will be updated on the projects approach and progress and are in a
position to feedback information from the community to the project team.
The initial stages of the project will focus around the internal policies and decision
making structures required for purchasing properties and investigations around the
setting up lease agreements or finding new uses.
2.4
Outcomes
The project will have the following outcomes:
•
•
•
•
Assist to enable the community of Happisburgh with its transition, from one
which is under stress and has lost its confidence to one which is resilient
and positive about its future.
Improve the vitality and viability of the whole community through the
removal of imminently at risk properties therefore reducing a blighting
influence.
Enable the residents included within this project to have the option to move
on in their lives without the threat that coastal change imposes.
Develop a methodology for valuing and negotiating purchase for properties
at medium risk and finding new uses.
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4.
Project Organisation
4.1
Project Structure
The Project will co-ordinated as part of the Pathfinder programme of projects and
will be structured as in figure 1.
Figure 1. Project structure
PATHFINDER PROJECT BOARD
(Programme management)
PROJECT MANAGEMENT TEAM
Peter Frew (Head of Coastal
Management)
Coastal Management Team
Ian Coupe (Legal Executive)
Karen Hill (Strategic Housing
Manager)
REFERENCE GROUP
(Overseeing Project
Development)
HAPPISBURGH LIASON GROUP
(Overseeing implementation of the
project)
PROPERTY ADVISOR
Bruton Knowles
4.2
Roles and Responsibilities
The programme Sponsor is Steve Blatch (Strategic Director, Community Services).
The Project Board will be responsible for the overall management of the demolition
and relocation of properties most imminently at risk project. It consists of officers
and councillors, augmented by the Chair of the North Norfolk Business Forum. The
Reference and Happisburgh Liaison Group will play key roles involving the
community and will feedback to the Project Board through the pathfinder project
team.
For information regarding the Project Board and Reference Group please view the
Programme Initiation Document.
The Property Acquisition, Demolition and Relocation Project team will be formed
consisting of Peter Frew (Head of Coastal Strategy) as Project Officer and will be
supported by the Coastal Management Team. Legal support will be provided by Ian
Coupe (Legal Executive) and Karen Hill (Strategic Housing Manager) will advise in
re-housing issues.
Bruton Knowles have been appointed to act as the Councils independent property
advisor and will lead in the development of the valuation of properties, negotiations
and advising and developing on other property matters.
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The function of the Project Team is to:
• oversee the delivery of the project and provide advice/ideas/input into the
project and identify any challenges, issues, risks, lessons learned and costs;
• ensure that the tasks identified within the project plan are carried out in
accordance with the timetable of the project plan;
• ensure the project communication is undertaken as identified in the
Programme Communications Matrix and that any further methods are
identified;
• report progress to the Project Board.
4.3
Interfaces & Community Engagement
All the North Norfolk pathfinder projects have been based on public engagement
and this will be maintained throughout their implementation. The Communications
and Community Engagement Strategy sets out how this will be achieved (see the
Programme Initiation Document). Key engagement of the projects in Happisburgh
will be public open days to be arranged at key points as the Happisburgh packages
of projects are implemented. The Happisburgh Liaison Group will help to share
information with residents to keep them updated.
It will be essential to ensure the owners of the properties are kept informed as the
project is developed and implemented and that a high degree of sensitivity,
particularly when negotiating with those at greatest risk is maintained.
The table below summarises the communications required for this project as
identified in the Pathfinder Programme communications matrix.
Who will be informed
NNDC Staff
Council Members
Project Board
Project Team (Internal)
Parish Council
Reference Group
Liaison Group
How
The Briefing
Newsletter
Members Bulletin
Coastal Management Board
Coastal issues Forum
Newsletter
Meetings
Meetings
Via the Happisburgh Liaison
Group and attending meeting
where required.
Meetings
Documents and updates from
the Project board
Meetings
6
How Often
Monthly
Monthly
At key stages
During scheduled meetings
Quarterly
Monthly
At scheduled meeting or if
required
Weekly
Throughout the project.
Minimum once per quarter
Ongoing
As often as required by the
project and the group
Who will be informed
Property owners
Public
How
Initial meeting introducing the
project stating that should they
have any queries or require
updates to contact the team
Open Day
Letters
One to one meetings
Outlook Articles
Pathfinder Newsletter
Press articles
Local newsletter articles
Website
Open days/Workshops
Quarterly Reports
Defra
External government
agencies, authorities, &
professionals
Final Report
Conferences/Events
Meetings
Workshops
Periodicals
Website
Final Report
How Often
At key stages
At key stages
During investigation and
one-to-one meetings.
Quarterly
Monthly
At key stages
When key information is
required to be disseminated
Updated Weekly
At key stages
April, July, October 2010,
January 2011
June 2011
As required
Ongoing
June 2011
4.4
Dependencies
The success of this project is dependent on:
•
•
•
•
the willingness of property owners to partake in the negotiations.
the project is able to meet the needs of the residents.
The levels of the valuation and the ability of the authority to enter into
agreements.
The ability for the Authority to enter into lease agreements or attract other
parties to service those lease agreements.
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5.
Project Plan
5.1 Project Timetable
The project will progress as outlined in the figure 2.
Figure 2 – Project timescales
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Task
Develop project approach
Advertise for an independent property advisor
Publicise the project at Open Day.
Appraise and select property advisor through
tendering system
Investigate initial legal issues and options for ‘buy
and lease back’
Identify and appraise options available
Present options to the Project Management Board
Further circulation of options to Officers
Preferred approach agreed by Project Board
Seek relevant authority to proceed
Promote scheme and seek interested property
owners
Property advisor to implement the agreed method
(detail to follow)
Report to Defra
Predicted timescale
January – March 2010
February – March
2010
April 2010
March – April 2010
May- July 2010
July – August 2010
September 2010
September 2010
October 2010
October - November
2010
December 2010
December – March
2010
April – June 2011
5.2
Project plan
The project plan will be created and updated using MS Project. The plan will detail
all the tasks required to complete the project and will be used to forecast estimated
timescales of project completion and aid in the allocation of resources.
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6.
Project Constraints
6.1
Time
This project has a defined timeframe and must be completed or have funds
committed by April 2011.
6.2
Personnel/contracts
Officer time is limited due to other commitments beyond the Pathfinder
programme.
Bruton Knowles, property advisor and negotiator for NNDC during the pathfinder
projects will be available to provide property advice and complete the tasks outlined
in the tender brief. Bruton Knowles will also be able to complete additional schemes
of work should the need arise, they accept and the funds are available.
It may be necessary to engage with external specialists to provide some of the skills
required to fulfil the project, this may include for example a planning agent.
It will be necessary for other internal departments to assist in the delivery in the
programme, particularly, Planning (including Planning Policy), Finance/Procurement,
and Communications. Additional internal assistance may be limited due to other
commitments.
6.3
Finance
The pathfinder projects have been allocated budgets to enable them to be planned
and proceed. These allocations may be amended as projects progress.
The Property Purchase for Lease Project has been allocated a project budget of
£350,000 capital with an addition of £14, 845.47 for project management costs,
totalling £364,845.47.
6.4
Legal
Procurement must follow the NNDC Procurement Strategy.
The project supports the corporate aims around coastal management as stated in
Changing Gear, the corporate plan (page 31).
Delegated authority has been granted by the cabinet of NNDC that the Chief
Executive or Strategic Director (Communities) is able to procure works and
services within the parameters set out in the Council’s Coastal Change Pathfinder
applications.
The Authority has the powers to acquire land for coastal protection works the
under the Coast Protection Act 1949. However for this project these powers are
not relevant. However under section 120 of the Local Government Act 1972
acquisition of land can be completed for the purposes of the benefit, improvement
or development of their area.
State aid rules are not relevant to private individuals. This would need to be
reassessed should it be discovered that any of the properties also include business
premises.
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It is necessary that all due processes within the council are followed, and should the
project deviate from existing policies or conventions it will be assessed and the
relevant action taken to ensure that there are no constitutional issues. One element
which has arisen is the need for a Corporate Acquisitions Policy.
6.5
Land Availability
Some property owners have expressed and interest in this project and would be
wish to be involved in any implementation of a scheme. There would be no
compulsion for owners to accept an offer should they choose at a later date not to
take part.
6.6
Assumptions
It is assumed that Defra wish NNDC to complete the projects as we see fit as
indicated by to the open nature of the funding offer. The Coastal Management
Team also assume the general support of the Authority and its departments as a
whole in the project delivery.
It assumed that property owners involved in this project will wish to partake and that
negotiations will be able to reach a mutually agreeable conclusion.
It is assumed that the Council will have the appetite to take forward any favoured
approach and the ownership/responsibility of the long term management of
properties.
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6.7
Risks
The following risks have been identified with the pathfinder project programme. The risk matrix can be viewed in Appendix C of the
Programme Initiation Document.
Ref
Date
Logged
Owner
Title
Likelihood
Impact
1
03.03.10
PF
Funds
2
4
Inherent
Risk
(Likelihood
x Impact)
8
2
03.03.10
PF
Availability
1
5
5
The property owners
do not wish to sell
their properties
3
16.04.10
PF
Legal
4
3
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Following initial
investigations buying
residential properties
and leasing back has
many potential
problems and is
likely to be a liability
for the authority.
1 = Low → 5 = High
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Description
Summary of Actions/Mitigation
Status
Subsequent
Likelihood
Impact
Residual
Risk
Following the
property advisors
valuations and
scoping of options,
the project may not
have sufficient funds
to purchase many
properties
The advisor knows the budget
and will present options to the
board, the board will need to
decide which is the most
equitable and achievable
option with regard to the
limitations and risks. If not
enough funds are available a
decision as to which properties
or options to pursue will be
required.
open
1
3
3
No property owners will be
made to sell a property and
this project will be targeted at
persons who wish to sell to
enable them to move
on/release funds.
Continue investigations into
head leases, and other
methods of delivery. The
board will need to assess the
options when available. If the
buy lease-back scheme as
envisaged is not suitable, this
is valid and useful to report
back to Defra.
open
1
5
5
open
3
2
6
7.
Project Controls
7.1
Management
The project will be documented with the following; project initiation document,
project plan, ongoing issues log, quality log, lessons learned log and change log as
required. The project initiation document will be agreed by the Project Board.
The board will be updated during each stage of the project and will make decisions
at key points and advise in the project direction. When ‘exceptions’ occur which
require a decision to be made urgently by the project board, information will be
circulated via email to members of the Board. The discussions and decision will
be recorded in the emails and resolution must be met in a maximum of 5 working
days.
The minutes of the Liaison Group will be assessed by the Programme Manager
and action taken as required. The minutes will be circulated prior to Board
meetings and made available to the Reference Group.
Bruton Knowles will meet with NNDC on a monthly basis whereby a monthly report
will be submitted identifying progress, issues and any other relevant information.
7.2 Financial
The project must not exceed the total budget of £364,845.47 unless further funds
are assigned to the budget by the project board and the capital and revenue split
must be maintained. The accounts will be monitored monthly following a report
from the Accounts Team by the Programme Manager and reported back to the
board.
Should the project have an expected under spend of 10% or if there is any
predicted overspend, it will be reported to the board.
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8.
Quality Plan
The quality log will include the meetings for the Liaison Group and reports public
open days and meetings with property owners. Where the quality check reveals
the project is off specification or feedback suggest the scope of the project may
need amending, the project team with the programme manager will investigate the
options and present to the Project Board agree the most appropriate action.
The monthly financial report/check and scheduled re assessment of risks and
issues logs will be completed prior to Project board meetings.
9.
Miscellaneous
9.1
Document Versions
Project documents will be saved in the pathfinder folders M:\File
System\Pathfinder Programme\Projects\Infrastructure Package\Trimingham village
hall of the coastal management section and documents will carry in their title the
creation/amendment date to enable current versions to be easily identified.
9.2
Meeting Minutes
Meetings will be concisely recorded with Actions, Decisions and Issues highlighted
where appropriate.
10.
Defra Reports
The project will be reported quarterly from April 2010 to Defra on the proforma
provided.
Report will be produced for the end of the month in:
•
•
•
•
•
April 2010
July 2010
October 2010
January 2011
April 2011
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