Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. The purpose of this report is to set out the grant applications received from five Smarter Working Centre (SWC) operators:

_ Aldershot (Enterprise First) £6,918.28

_ Basingstoke (Worting Business Park) £5,988.50

_ Fareham (Fareham Enterprise Centre) £7,071.00

_ Gosport (Sanderson Centre) £9,000.00

_ Havant (Studio Seven/Harbour Graphics) £9,000.00

1.2. This paper seeks formal approval of the grant applications referred to above.

2. Contextual information

2.1. The SWC network forms part of the County Council's £0.425 million Local Authority Business Growth Incentive (LABGI) investment in `Recession Response' initiatives approved by the Executive Member for Policy and Resources on 9 April 2009.

2.2. The SWC network will be independently operated as a local agency-supported (eg Business Link/Job Centre Plus) business hub offering low-cost, bookable by the hour, internet-connected `pay-as-you-go' professional work, meeting and training space for businesses of all sizes. A purpose designed website will offer real-time booking, a secure payment facility and take-up reports.

2.3. The economic prosperity aim is that start-up businesses, existing home-based businesses, entrepreneurs and commuters will each consider use of an SWC. The availability of such centres is expected to encourage business start-ups, contribute to a reduction in micro-business failure rates and at the same time help reduce peak-time commuting and business travel.

2.4. The programme is being delivered by the eHampshire Partnership with the operational budget administered by the Economic Development Office.

2.5. A separate proposal within this agenda is to approve the grant criteria for the assessment of individual SWC Operator grant applications. The operational and financial criteria are described in detail in the separate `Grant Criteria report'. Each of the applications forming part of this decision report has been assessed and achieved the minimum score or better. (Please see Section 4, below, for individual applicant scores.)

3. Finance

3.1. LABGI funding of £100,000 was approved and allocated to the SWC initiative by the Executive Member for Policy and Resources on 9 April 2009.

3.2. The overall allocated budget above includes a provision for the website development (£8,000) and a further small sum (£2,000) set-aside for related marketing and PR activities. A £90,000 match-funding amount has been provided to contribute to operator set-up and year one core operational activities.

3.3. It is proposed that a maximum match-fund amount of £9,000 can be applied for and allocated per applicant - £4,500 for set up costs/£4.500 for year one operational support. The latter is claimable in month 6 and 12 against evidenced and agreed spend. The five grant applications received and included in this Decision Report each meet the main grant criteria and also comply with the grant limits.

3.4. Piloting of wireless access-control systems at two locations £14,000 will come from the separately approved - on 7 October - 2009/10 Capital Funding programme.

3.5. Approval of the five applications will leave an unallocated amount of £52,022.22 in the scheme.

4. Grant Application Summaries

4.1. Each applicant below has submitted an expression of interest (Proforma) and has subsequently - with guidance - completed the full Smarter Working Centre Grant Application. The detailed applications - that contain such as reference statements, the required quotes/estimates from prospective suppliers of set-up equipment, etc - have each been reviewed and assessed by i) Chair of the eHampshire Partnership and ii) the EDO Business Development Manager. Summaries of each application follow:

4.2. Aldershot SWC - Criteria Score 29. This application is from Enterprise First (Southern) Limited - a company limited by guarantee - which is a well-established and respected public/private partnership. It provides a range of advisory and business services to, mostly, SME organisations in the area. The proposed location, 11 Wellington Street, is leased to the applicants by Rushmoor Borough Council with which Enterprise First has a close and productive relationship. The applicant proposes initially to establish four internet connected work-spaces and, as part of the core SWC service provision, will also allow use of its ground floor meeting room by SWC members. All SWC core service delivery requirements will be provided, with the emphasis being the establishment of a local `Job Search' club for unemployed executives. This decision follows locally conducted research by Enterprise First which will work collaboratively with Rushmoor Borough Council to deliver the service. By the very nature of its core business, Enterprise First has an established local network and a skill-set that maps well to the remit of the SWC Service portfolio. Financial statements provided indicate a positive financial position with the entity firmly established for more than ten years. The proposed refurbishment and equipping of currently empty offices and upgrading of the meeting room facilities, supported by experienced local staff, should lead to an excellent customer experience for SWC members. The plan is for the centre to be open by the end of January 2010. There is good access to the centre from the surrounding area by public transport, and several `low-cost' car parks are situated within five minutes' walk of the building.

4.3. Basingstoke SWC (Worting House) - Criteria Score 27. This application comes from Worting Business Park Limited, a locally and privately owned business that has successfully operated a business centre in Worting (four miles west of Basingstoke town centre) for more than ten years. The 30 or so tenants who currently lease office units (mostly on monthly easy in/easy out terms) can also contract for additional secretarial and business support services. Expanding the Worting House service portfolio to include `shared, drop-in' office space is a natural progression for the organisation and one that fits in well with the existing staffing model and available skill-sets. The owner is a highly respected individual, well-known to the business community, who also chairs a `Leader Scheme' local action Group (Loddon & Eversley). The application form indicates that all core SWC services will be offered from the outset, with a number of optional services like secretarial support and courier organisation available to SWC members at additional cost. Worting House presents impressively to the business visitor, from the galleried entrance hall to the high quality décor and fit-out of each office unit. There are also two very well-equipped meeting-cum-training rooms which will also be available to/bookable via the SWC website for SWC members. The organisation has plans to expand its operation in the near future and has achieved an operating profit in each of the last five years. The SWC facility will initially comprise internet ready workspace, with at least two of the five desks initially allocated for SWC usage being PC equipped. There is adequate free, unlimited parking on-site with local bus services operating within a five minute walk of the centre. Reference statements from local Accountants Fox & Co, existing tenant SBT Limited, together with a positive endorsement from Basingstoke and Deane Borough Council complete the picture. The centre is likely to open during January 2010.

4.4. Fareham SWC (Fareham Enterprise Centre) - Criteria Score 31.This well-established business hub is operated as a Social Enterprise by the applicant, Fareham Enterprise Centre Limited (FEC), in partnership with Fareham Borough Council and Enterprise First. The centre comprises a mix of office and industrial units and is leased from Fareham Borough Council. The lease expires in 2014. There is a central continually manned reception, communal area, integral café area and free reserved parking on-site for tenants (spaces will be available to SWC members). The centre manager is a well-respected and highly experienced ex-financial sector professional who, with colleagues, also provides business advisory services. Excellent references and endorsements (from the Executive Leader of Fareham Borough Council) have been received. Detailed financial information has been provided that indicates the business is operating in a consistent way and upon a solid financial foundation. The proposed accommodation is on the first floor and, whilst it has no natural daylight, will be refurbished, attractively furnished and presented, appropriately lit and equipped with state of the art internet-ready IT facilities. (two PC equipped and two internet-ready workspaces). There will also be access for SWC members to meeting room facilities and likewise to the team of FEC business advisors. All the required SWC core services will be provided at the centre, either directly or via FEC partners. The centre is situated just off Newgate Lane, which is regularly served by Fareham/Gosport/Stubbington buses, approximately two minutes off the A32 and around ten minutes away form Junction 11 of the M27. The A32 is one of the most congested peak-time routes in the county and it is hoped that working from the centre will appeal to local residents currently commuting to other parts of south Hampshire. The centre is expected to open by the end of January 2010.

4.5. Gosport SWC (Sanderson Centre) - Criteria Score 29. This business and industrial centre is situated on Lees Lane near Gosport town centre. It is operated by System Solid but trades as the Sanderson Centre, the facility operating successfully and serving the local business community since the 1980s. The building fabric and entrance is probably best described as `functional' but highly appropriate to the broad mix of trades, professions and micro-SMEs that make up the 80 or so tenants at the centre. The centre and its management team are highly respected and valued in the community, sentiments that are echoed in the reference statements and within the endorsement received from Gosport Borough Council. Financially, the organisation, which operates as a private, limited business, appears to be in good shape. In addition to data received that indicates the organisation has been in profit over the past four trading years, System Solid also owns the freehold for the property. The accommodation that has been allocated for use as an SWC will be completely redecorated, carpeted and equipped and should offer an attractive, naturally lit, working environment. It is planned that four open-area internet-ready and/or PC equipped workspaces will be provided in addition to a small private office area. The centre also has a limited amount of on-site and nearby road-side free and unrestricted parking. The centre is within a few minutes walk of the A32 and its regular bus services and is right next to green cycleways. Being well-established and operating as a business centre means that Sanderson Centre staff are experienced and well-positioned to provide reception and support services to SWC members. In addition to confirming in its application that it will offer all core SWC services, the centre can also offer optional services including courier services and virtual reception services (call and post handling). The expectation is that the SWC will be ready by the end of January 2010.

4.6. Havant SWC (Studio Seven) - Criteria Score 27. The Studio Seven premises are well-situated (on the Ridgeway adjacent to the A27 Havant/Langstone/Hayling Island junction and within a ten minute walk of Havant station) and formerly operated as a print shop. There is limited on-site parking together with nearby roadside parking. However, with the move to digital printing, the owners of the premises, Harbour Graphics Limited, had been searching for other ways to utilise the empty building it owned. As a consequence, financial losses are shown in the trading accounts, but investigation and additional information provided by the applicant has shown loans amount to £5,000 only, with projections suggesting better than break-even for the new business centre in the second year of operation. The ideas to establish the business unit as a business centre were modified after learning about the Smarter Working proposition at a `Harbour Forum' (local Business Group) meeting. The outcome was the submission of the grant application in August with the aim to position the entire operation as `Havant's Smarter Working Centre'. Since then, the premises have been refurbished to a high level by the owners with an attractive entrance way, communal area, tea and coffee making area, ground floor meeting/training room and private office units. The shared office facility is situated on the first floor, where five workspaces have now been established and equipped (internet-ready) in time for the November SWC programme launch. The centre will also pilot `an access-control system' in the new year that will enable managed 24/7 secure access. Whilst the venture is new to the owners, they are enthusiastic, well-respected and well-known within the local business community. Good references were obtained, together with a letter of support from Havant Borough Council.

5. Performance

5.1. Each of the grant applications put forward and approved for funding from the SWC LABGI funds will be administered and delivered by the proposing party.

5.2. The County Council Economic Development Office will monitor the delivery of these projects by means of regular progress reports from the project administrator (every six months from the commencement date). After 12 months' operation, each SWC operator will be formally reviewed against the grant scheme operational criteria (Item 1 on the agenda). If successful, the SWC will retain its `accredited' status for a further period of 12 months. A fee of £150 will be levied to cover administration costs.

6. Risk Assessment

6.1. Risk One - SWC Operator goes out of business - the grant scheme requires the applicant to provide cash-flow information, provide two references and obtain a letter of endorsement from the Local (District) Authority.

6.2. Risk Two - Take-up is not achieved at the required (sustainable) level - the requirement for match-funding, designed in local agency partnering plus regular review and the proposed annual accreditation should help minimise this possibility.

6.3. Risk Three - Quality/Service Levels are not maintained - the selection criteria guard against this possibility as does the ongoing monitoring and annual accreditation. The website booking system also captures usage and member data and will be used as the basis for selective quality checks.

7. Recommendations

7.1. That the five Smarter Working Centre grant application amounts listed below (totalling £37,977.78) be approved as meeting the Smarter Working Centre Programme grant criteria with funding allocated as indicated below:

(i) Aldershot (Enterprise First) - £6,918.28 comprising a contribution of £2,418.28 towards qualifying set-up costs and £4,500 towards year one operational costs;

(ii) Basingstoke (Worting House) - £5,988.50 comprising a contribution of £1,588.50 towards qualifying set-up costs and £4,400 towards year one operational costs;

(iii) Fareham (Fareham Enterprise Centre) - £7,071 comprising a contribution of £2,571 towards qualifying set-up costs and £4,500 to year one operational costs;

(iv) Gosport (Sanderson Centre) - £9,000 comprising a contribution of £4,500 towards qualifying set up costs and £4,500 to year one operational costs; and

(v) Havant (Studio Seven) - £9,000 comprising a contribution of £4,500 towards qualifying set-up costs and £4,500 to year one operational costs.

7.2. That, in all cases, funding is approved subject to a requirement that the involvement of Hampshire County Council is acknowledged by the applicant in all publicity material.

2232Rpt/1097/TC

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. This has been completed and was reviewed on 11 September by our Departmental EIA representative for completeness.

2. Impact on Crime and Disorder:

2.1. Not directly - though may possibly make a small contribution by way of providing a local hub for those in and seeking work opportunities.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

When established, the SWC Network will provide additional opportunities to work and meet close to where individuals choose to live. The initiative encourages more sustainable working practices and should reduce peak-time commuting and to a lesser extent business travel (together accounting for 38% of transport initiated CO₂ emissions).

With the centres being established in existing buildings, this provides limited opportunity to influence building energy-efficiency. However, SWC IT guidelines do suggest low-energy `green' IT solutions.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

Not applicable.