Delivering Urban Transformation
Strategies: A Public Sector Led UDF
Des Gardner
Head of Regeneration (Legal)
Des Gardner
City Solicitors
Overview
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The North West Evergreen Partnership
The Investment Strategy - UDF's role in promoting the urban
development strategy for the region
Governance - share of participation (and management of
interests) across municipal partners
Funding - structure and possible future private sector (pension
fund) leverage + incentives.
Investment Management - relationship/responsibilities of the
General Partner (fund manager)
The Northwest Evergreen Fund
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NWDA - Holding Fund
EIB Holding Fund Manager
North West Operational Programme
Rest of North West
- 4 sub-regions: Cumbria, Lancashire, Greater
Manchester, Cheshire
- 18 unitary or County local authorities
• Ring - fenced Funds – AGMA/County Areas
The Northwest JESSICA Fund Structure
£50m Agency Land and Single
Programme Funds released as
Local Match Funding is secured
£50m NWDA Match
Funding
£50m
ERDF
NWUIF (Holding Fund)
EIB HF Manager
+£30m
local
match
Merseyside UDF
£30m ERDF
£10m
RoNW
+£10m Match RoNW
+£10m Match AGMA
+£10m Complementary
Funding to Match £10m SP
funds
£10m
£10m
£10m in the
SP Funds
AGMA
IDUFSP
Capital Returns
& Interest
Projects
Projects
Process
STAGE 1
(March 2010 –
April)
Expression of Interest
- Establish consortium
- Track record
- Evidence of first
negotiation partnership
- Letters of support
STAGE 2
(May – June)
STAGE 3
(July– July
2011)
The Bid
Operational Agreement
- Investment strategy
- Project portfolio
- Ownership and
governance
- Risk management and
control procedures
- Financial forecasting
- Management fees
-Evidence of Stage 1
projects
-Terms and Conditions
-Investment Adviser
Agreement
-LP Agreement
-Ancillary Documentation
-Match Funding
The Northwest Evergreen Fund
Vision
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Create a high-employment region
Invest in science, research and innovation
Build on the region’s strengths in culture and
media
Supporting strong and diverse town centres
Promoting a wider, stronger and more sustainable
industrial base
Ensuring sustainable sites are ready for
development
The Investment Strategy
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Strategic Framework - IPSUDs
Project Selection Methodology
Loan Pricing and Underwriting
Monitoring
Public/Private Partnership
Investment Strategy
The Greater Manchester View
• Strategic Economic Context
• Greater Manchester Strategy
• Assessment framework
• Project Pipeline – capacity building
Governance
Greater Manchester
•Bolton
•Bury
•Manchester
•Oldham
•Rochdale
•Salford
•Stockport
•Tameside
•Trafford
•Wigan
County Areas
•Blackburn with Darwen
•Blackpool
•Cheshire East
•Cheshire West
•Lancashire
•Warrington
•Cumbria (tbc)
Legal Structure
Governance
• Limited Partnership Meetings
- Delegation to GP
- Special Consent
• General Partner Board
- Balanced AGMA/County Areas
- Co-chairs
- Reserved Matters
• Investment Adviser Appointment
- Independence
- Approval of recommendations
Funding
• ERDF/Single Programme
• Public Sector match/complementary
investment – land/cash
• Leverage public investment –
private investment finance
• Other sources of finance – LGPF,
Senior Debt, Developer equity
Financial Structure
Investment Management
• General Partner Real Estate Adviser CB Richard Ellis
• Investment Strategy
• Report to General Partner
• EIB Holding Fund monitoring and
management
Project Selection Process
Next Steps
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Fund operational July 2011
Quick Win Projects
State aid framework
Wider Investment Fund
- Housing
- Low Carbon
- Infrastructure
Questions
Des Gardner
Head of Regeneration (Legal)
Manchester City Council
Des.gardner1@manchester.gov.uk
+ 44 161 234 3013