CLTs and economic development

1. CLTs and economic development 29th June 2010 Tony Rich Rich Regeneration

2. CLT practitioner’s guide publication “CLTs exist to sustain community ownership, lock in land value and support community based housing and enterprise” “CLTs can provide job opportunities and support the development of community owned land and property assets” Rich Regeneration

3. How can CLTs generate economic activity? • Providing jobs –in construction and operation phases • Providing workspace space and other support for businesses • Generating income e.g. housing rents • Through value of on site energy generation • Through spend in the local economy e.g. through using local suppliers and employing local people • Generating Council Tax revenue through new residents Rich Regeneration

4. Isle of Gigha Heritage Trust • 3400 acre island bought for £3.85m. • £1.0m repaid to SLF/CLU. • Windpower • Continued milk collection. • £3.0m for improving existing Trust homes. • 16 new housing association homes. • New businesses and jobs. • Population has increased from 98 to 121; school roll from 6 to 13. Rich Regeneration

5. High Bickington Community Property Trust, Devon • HBCPT was set up in July 2004 and holds the freehold and equity of land on behalf of the community • It is a not-for-profit, exempt charity, set up under Industrial and Provident Society Rules. • Devon CC and the Parish Council are corporate members, plus 200+ shareholders • Objects include the provision of workspace to meet training and employment needs • Vfm assessment carried out by DTA Pool Rich Regeneration

6. Site of High Bickington CPT • High Bickington comprises 20 acres of redundant farmland on the edge of a village, which was owned by the County Council Rich Regeneration

7. HBCPT scheme elements Rich Regeneration

8. Recurring income from scheme *NB figures need to be qualified Rich Regeneration

9. Approach to measuring economic impact • Two usual approaches are used: input/output model and Local Multiplier 3 (LM3) • Former requires a mass of data so latter used • See http://www.lm3online.org/ • Economic impact is in two forms: • capital input (e.g. labour and materials) and • recurring income (e.g. rent, energy produced) • Key element measured was local nature of economic activity Rich Regeneration l

10. LM3 calculation Assessment of capital impact: • LM3= £10.33 initial spend • LM2= £5.9m • LM3= £3.36m LM3 indicative is 1.89 or £19.58m Assessment of continuing income: • LM1=£0.64m • LM3=£0.40m • LM3=£0.25m LM3 for recurring income is 1.96 or £1.29m Rich Regeneration

11. Employment support *Barker Review concludes the 1.5 workers engage per dwelling, including office staff and wider professional support Rich Regeneration

12. Economic impacts of HBCPT £19.58m income into local economy £1.29m continuing income 5.5 new jobs created £16.77m recurring income into local economy £71,840 council tax generated 98.5 construction jobs supported £37,075 carbon off-setting equivalent £152,000 enterprise turnover created Rich Regeneration

13. Conclusions • Although the main aim for CLTs is ensuring affordable homes in perpetuity they can have major economic benefits • There are no satisfactory approaches for measuring economic impact – however, LM3 is one of the best • The full LM3 analysis needs to be transparent and credible e.g. what is ‘local’? • Questions or points welcome Rich Regeneration

14. Contact details Tony Rich Rich Regeneration E: tony@richregeneration.com Tel. 07905 264 705 Rich Regeneration