Provide up to date evidence to demonstrate the scale and significance of local problems and issues

Vulnerable Visitor Economy:
In 2020 visitor spend fell by 65% (£297 million to £99 million). Staying trips fell by 65%, including a 83% reduction in overseas visitor trips. Day visitor spend fell from £31.57 to £14.57. Without the Government’s Job Retention Scheme this would have resulted in significant job losses. Even with Government support, the district lost 500 tourism jobs between 2018 and 2020.

This resulted in increases in unemployment: between April 2018 and April 2021, claimant count increased by 139% from 1,205 to 2,885 and unemployment amongst 16-24 year olds increased from 245 to 595 (Claimant count by age; Office for National Statistics; via NOMISWEB; May 2022).

Poor performing town centre:
Pre-Covid-19, Bexhill town centre was losing its position as an attractive retail centre. Its VenueScore rank fell from 483 in 2009 to 592 (2017), whereas its neighbours, Eastbourne and Hastings, maintained their rankings. VenueScore is an annual survey compiled by Javelin Group, which ranks the UK’s top 2,700+ retail venues including town centres, stand-alone malls, retail warehouse parks and factory outlet centres: A Retail Capacity Study for Bexhill-on-Sea; GVA 2018

Evidence supplied by Huq Industries found that when the De La Warr Pavilion (DLWP) was closed between March 2020 and May 2021 town centre footfall fell by 8% and has struggled to recover.

Few and Low Paying Local Jobs:
There are 35,000 jobs in Rother District – only Gosport and Adur have a lower number of jobs in the South-East (Job Density; ONS 2020) and the jobs that exist are low-paying. Only ten districts/boroughs in England have median full-time earnings lower than Rother (£25,005) (Annual Survey of Hours & Earnings, ONS, 2021). The lack of decent jobs contributes to the district’s unbalanced demographic structure. In 2020, only North Norfolk (34%) had a higher proportion of post working age adults than Rother (32%) (Population Estimates, Local Authority, ONS 2020) resulting in low productivity. Within the South-East, only Gosport (£11,892) has lower productivity per head than Rother (£13,886) (Population Estimates, Office for National Statistics, 2021).

High levels of localised deprivation
Six of the district’s Lower Super Output Areas (LSOAs) are in the 20% most deprived local areas in England and two (Central and Sidley) are in the 10% most deprived LSOAs. Three LSOAs are in the top 10% most deprived by the income and employment domains and four are in the top 10% most deprived by the education & skills domain (mainly within Sidley ward). The district has a high proportion of residents with no qualifications (31%).

Cultural Heritage Under Threat
DLWP attracts 420,000 visitors annually. It is the only large capacity (1500+) arts venue in Rother and operates within national and international touring routes, attracting high calibre artists. The auditorium has not been fully renovated since 1935. There are conservation issues, including dilapidation of the iconic south staircase and water ingress. DLWP book value was £9 million in 2009, but had fallen to £5 million by 2022, an annual depreciation of c4.4% per year.

Demonstrate the quality assurance of data analysis and evidence for explaining the scale and significance of local problems and issues

Data sources used include:

Visitor Economy – Economic Impact of Tourism – Rother (2020)
This is produced by Tourism South East Research, based on the Cambridge Model. It is up to date and widely recognised by local authorities and the industry. The data provides an economic assessment of the impact of the Covid-19 pandemic at district level. It is credible and comparable data to assess the economic and employment contribution of tourism to the local economy.

Claimant Count Unemployment
This data is produced by the ONS and accessed via Nomisweb. It measures the number of people claiming benefit principally because they are unemployed. Data is available monthly from 1986 to 2022 and it is available at spatial levels down to Lower Super Output Area level. It is the most up to date, comparable and credible unemployment data that is available.

Town Centre Performance
VenueScore is an annual survey compiled by Javelin Group, which ranks the UK’s top 2,700+ retail venues in the country. The score attached to each operator is weighted to reflect their overall impact on shopping patterns. The resulting aggregate score for each venue provides its VenueScore. This data shows Bexhill’s pre-pandemic retail position and highlights its declining market position. Although not up to date, it pre-dates pandemic distortions and it provides strong local (town centre) evidence of the Bexhill’s challenges.

Jobs, Earnings and Productivity
These data sets are from the Office National Statistics Job Density estimates and the Annual Survey of Hours & Earnings via Nomisweb. They are up to date, comparable with other areas and highly credible to assess relative performance. They are only available to district (rather than town) level and, arguably, productivity as measured by GVA per head, reflects the district’s demographic structure as much as its economic performance. Nevertheless, this is the best available comparative data for demonstrating local employment and economic conditions.

Demography
Demographic data is from the ONS population estimates (2020). They are credible and provide the best comparative data to demonstrate the Rother’s demographic structure compared with other local areas in England.

Deprivation
This comes from the Indices of Multiple Deprivation (IMD) 2019, produced by the Department for Levelling Up, Housing & Communities. It is the most detailed assessment of localised and thematic deprivation available, with data available to Lower Super Output level. It demonstrates the particular deprivation issues around learning and skills, particularly within Sidley ward.

Cultural Heritage
The evidence of dilapidations at the De La Warr Pavilion comes from site and conditions survey that have been undertaken to inform the works that are required to safeguard the building (DLWP Feasibility Studies, Purcell 2018 and 2020). Current and projected visitor numbers are from DLWP management information data and the book values are those assessed by Rother District Council’s insurers.

Demonstrate that the data and evidence supplied is appropriate to the area of influence of the interventions

The main focus of this project is Bexhill-on-Sea, the largest town in Rother district. Several national sources do not provide data at sub-district level. However, in many cases this spatial level is a reasonable proxy for the area of influence, particular as Bexhill is the main urban (and population) centre for the district.

Some datasets are available at smaller spatial levels, including claimant count unemployment and Indices of Multiple Deprivation. These highlight specific issues within localised areas, such as those within Sidley ward, which this project aims to address.

Specific management information and survey reports from the De La Warr Pavilion have been used to calculate the number of visits to Pavilion, future visitor number projections and to assess its physical condition. These are all specific to the location and, therefore appropriate to the area of influence. In reality the DLWP has a much wider sphere of influence than Bexhill town centre – it is a national heritage asset and its cultural significance stretches to regional and national levels. However, the focus of the Levelling Up Fund is local, so the evidence of issues that are being addressed has been confined to its local influence.

Provide analysis and evidence to demonstrate how the proposal will address existing or anticipated future problems

The first question in this section sets out the evidence of the challenges facing Bexhill.
The application of Theory of Change in the form of a logic chain describes how the bid interventions will address the challenges and barriers which are contributing to economic failure in the town. The package proposal will deliver cultural-led regeneration to improve the lives of the most vulnerable and disadvantaged people in Rother, capitalising on the iconic status and local significance of the De La Warr Pavilion and extending its reach into the district’s most deprived local communities. Building on its legacy of culture-led regeneration, DLWP will unlock tourism, develop new programmes to tackle regional inequality and promote renewed civic pride within its community. The realigned site will deliver a range of quantifiable impacts through securing an uplift in visitors of 55% on completion in 2023/24. In addition, the package will deliver the development of community facilities at Sidley Recreation Ground, based on community consultation and demand to provide much needed recreational facilities and provide wider routes to education and employment.

Securing the De La Warr Pavilion Heritage Asset
The focus is to secure and improve the De La Warr Pavilion (DLWP) as a heritage asset of national significance. This investment will address structural and conditions issues that have seen the book value of the DLWP fall from £9 million to £5 million since 2009 and will prevent further depreciation happening in the future.

The investment will retain its 2022 value against its future depreciation (gross +£2.3 million) and increase its value by the value of the financial investment (gross +£23.2 million).

Redeveloping the DLWP will also result in improving cultural value in the town to non-paying visitors and to non-users. The cultural value equates to £13 million (gross) for non-paying users and £1.6 million (gross) to non-user residents by 2036/37.

Improving the Visitor Economy and the Town Centre
Without intervention, the number of visits would continue to fall from 420,000 per year at the same rate as its depreciation (-4.4% per year). DLWP is expected to achieve 650,000 visits by 2028/29, up from 420,000 in 2022/23.

Most of these visitors will be local day visitors who do not provide an additional contribution to the visitor economy. The total net additional spend against the non-intervention option by between 2025/26 and 2036/37 is calculated at £24.2 million.

This improvements in the DLWP will also result in wider land value uplift (LVU) in town centre retail, food & drink and recreation businesses and to the value of residential properties within Bexhill, as a result of the retained and improved cultural assets and the attractiveness of the town. Net commercial LVU is calculated at £3.36 million and net residential LVU at £11.03 million.

Creating and Safeguarding Jobs
DLWP currently employs 69 FTE staff. These are assumed to be gradually lost without investment. There would be 37 FTE jobs by 2036/37 (based on a 4.4% annual reduction). This means that 32 jobs will be safeguarded at the Pavilion. In addition, the new investment is expected to create an additional 65 jobs by 2027/28. By 2036/37, 97 jobs are expected to be directly safeguarded and created by the DLWP investment. The additional spending will also generate jobs. It takes £51,903 of visitor spending to create one FTE tourism job in Rother. Based on net spending of £3.5m in 2036/37, this would mean creating a further 53 net additional jobs in the local tourism economy. We would expect most of the direct and indirect jobs to be filled by local residents.

Addressing Skills Deprivation
DLWP already has an impressive outreach education programme. This investment is expected to result in an additional 20,000 learning interactions and an additional 10,000 learning interactions at the Sidley Community Centre, as well as working with partners to deliver the East Sussex Talent Accelerator in the Creative and Digital sector. The community activity in Sidley will be particularly important in developing the cultural skills amongst residents from disadvantaged groups.

Improving Health and Well-Being
The Sidley Recreation Ground – Community Hub is expected to achieve 54,750 recreational visits per year, 12,319 of which are expected to be additional – i.e: by people who would not otherwise be physically active. In addition, a high proportion of learning interactions at the Community Hub are expected to be by local people within Sidley ward.

Describe the robustness of the analysis and evidence supplied such as the forecasting assumptions, methodology and model outputs

Safeguarded Value – De La Warr Pavilion (DLWP) and Sidley Community Hub (SCH)
Without investment, the economic model (attached) assumes DLWP will depreciated by 4.42% annually. This is a prudent, but conservative assumption. The safeguarded value assumes the 2022 value is retained by the intervention. 62% Additionality has been assumed. For SCH, the book value is zero, so there is no depreciation and no safeguarded value.

Created Direct Land Value Uplift – DWLP and SCH
It’s assumed the uplift in value at both sites would be at least the equivalent of the value of the investment. In the absence of an estimate of future value, this is a conservative assumption. It includes 62% Additionality, based on the same assumptions as the safeguarded value.

Wider Commercial LVU – DWLP
Investment in DWLP will lead to an uplift in commercial values. The rateable value of all food & drink, recreation and retail properties in the town centre * has been aggregated with a 6% yield applied to calculate EUV. The gross GDV is calculated by reducing the yield by 0.5% in 2026/27. The value of the hotel is assumed to increase by 25%. The EUV is subtracted from the GDV to calculate the Gross LVU with 62% Additionality assumed.

Wider Residential LVU – DWLP
The economic model assumes that the DWLP will have a positive impact on residential property prices, given its relatively significance and cultural importance. The EUV of properties is calculated by multiplying the total number of households (by household type) from Census 2011 by the median residential property price (Zoopla, 2020). This is split into two Zones: MSOA 011 (Town Centre) and MSOA 007-010 (remainder of Bexhill). For MSOA 011 a 0.5% attributable uplift is assumed in 2026/27; for MSOA 007-010 a 0.25% uplift is assumed. 62% Additionality has been assumed.

Additional Visitor Spend – DLWP
The model estimates 230,000 more visits than in 2022 (420,000). 95% are day visitors; most visits are by non-paying visitors. 50% of these are assumed to spend in the wider economy. Its assumed half daily visitor spend (£12.83) is spent in the wider economy and half at DLWP. A high level of displacement is assumed. Staying visitors are assumed to account for 5% of visits. The average stay per visit is £207.20 and we assume £25 is spent at DLWP and all staying visitors spend in the wider economy. However, a high level of leakage and additionality (27%) is assumed.

Cultural Value – Contingent Valuation – DLWP
Cultural value is based on value per visit (£4.00) from the Local Museum Transfer Report. This is multiplied by the additional non-paying visitors (84% of all visitors assumed), based on DWLP evidence . 46% additionality, including 50% displacement and 9% leakage (assuming 91% of visits are by local people). Cultural value has been applied to resident non-visitors. This assumes an annual value of £3.12 per household and 25% additionality assumed.

Welfare Recreation Benefits – Sidley Community Hub
Additional number of visits assumes maximum use of ten hours per day with 75% capacity and 20 users per hour – 54,750 visits annually. This is multiplied by the recreational value per visit to Sidley (ORVal toolkit (£2.74) for the gross impact. A low (23%) additionality is used as most users will already be active.

Employment/GVA – DLWP
Safeguarded jobs are based on the current number of FTE jobs that would be lost over the appraisal period at 4.42% annually. The GVA of each job is assumed at £35,871 (SIC 90 – Creative, Arts & Entertainment). 30% additionality applied. The same approach has been used for created jobs (27% additionality).

Amenity Values – Improved Open Space SCH
Amenity Values are based on the value improved Open Space (CLG Economics Paper 7: Valuing the Benefits of Regeneration – 2010) – £1.80 per household (uprated to £2.29 in 2022/23). This has been applied to all households in Sidley (2,399 – 2011 Census). 100% additionality has been applied.

Learning Impacts – DLWP and SCH
Investment will increase learning interactions by 30,000 by 2028/29. The gross value is the additional learning interactions by the unit value (£6). BIS/CEA guidance recommends Additionality of 92% for people and skills projects at sub-regional level.

*Streets: Sackville Road, Western Road, Albert Road, Devonshire Road, Channel View East, St Leonards Road, Eversley Road, Wilton Road, Albany Road, Marina and Marina Court, Endwell Road, Sea Road, Parkhurst Road

Explain how the economic costs of the bid have been calculated, including the whole life costs

The economic costs of the two inter-connected projects have been taken from the Financial Case.

Optimism Bias
For both projects, Optimism Bias has been applied to the financial costs.

DLWP
The DLWP is a non-standard building, so an upper bound limit of 51% has been applied to the costs. However, much of this can be mitigated away for the following reasons:

• Considerable amount of preliminary works has already been undertaken to assess and cost the works that need to be undertaken
• There is strong local political support for the project
• There are no complicated ownership issues
• Specialist contractors have already been identified who can deliver the project within the timeframe require
• There are sound management and reporting structures in place with personnel who are experienced in managing complex capital projects
• BCIS inflation forecasts have been included in the costs, alongside a £1.78 million contingency allowance

However, outstanding dependencies and risks remain. The key financial risks are set out further, with proposed mitigation measures, in Section 8. They include:

• Consultancy and construction tenders exceed scheme budgets due to price volatility in the construction sector and the wider economy
• The construction market is currently (June 2022) buoyant with high level of activity resulting in labour / material shortages and increased costs.
• Regulatory requirements, including the need to secure planning and Historic England Listed Building consents; and
• Additional condition survey works that could result in additional costs.

Based on these factors, Optimism Bias has been assessed at 20% of the financial costs.

Sidley Recreation Ground Community Hub
This has been assessed as a standard building with an upper bound Optimism Bias limit of 24%. Some of this can be mitigated away for the following reasons:

• There is strong local political support for the project
• There are no complex ownership issues
• BCIS inflation forecasts and a 7.5% contingency allowance have been included in the financial costs
• Robust cost estimates have been developed.

Nevertheless, there are outstanding dependencies and uncertainties. The key financial risks are set out further, with proposed mitigation measures, in Section 8. They include:

• Build cost inflation and price volatility in the construction sector and the wider economy
• Unforeseen underground obstructions and/or ground contamination.
• Regulatory requirements, including the need to secure planning consent; and

Inflation
The financial cases for both projects include an inflation allowance that reflects the BCIS five year construction inflation forecasts, as shown below.

BCIS Inflation 2022-23 2023-24 2024-25 2025-26
Annual 4.40% 3.90% 4.00% 3.90%
Cumulative 4.40% 8.30% 12.30% 16.20%

These inflation costs have been retained in the economic costs, but taken into account when assessing Optimism Bias for the projects. This avoids the need to apply real terms inflation figures (over and above general inflation) to the benefits in Section A1.

Discounting
All costs are shown in the year in which they are scheduled to occur. A 3.5% annual discount rate has then been applied to all cost to calculate the Present Value of costs with a 2022/23 base year.

Describe how the economic benefits have been estimated

Economic Benefit: Safeguarded LVU – DLWP
Assumptions:
• Book value depreciates 4.42% annually, based on decline between 2009 (£9 million) and 2022 (£5 million).
• Value by 2036/37 without intervention – £2,645,980.
• Gross LVU – £2,345,020.
62% (*1) additionality.
Net Nominal Benefit: £1,449,785 Occurs – 2026/27.

Economic Benefit: Created LVU – DLWP, Sidley Recreation Ground & Community Hub (SRGCH)
Assumptions:
• All construction costs are assessed as the gross LVU achieved.
• 62% (*2) additionality.
Net Nominal Benefit: £14,345,114 (DLWP) £1,664,302 (Sidley) Occurs -2026/27.

Economic Benefit: Wider LVU – Commercial (DLWP)
Assumptions:
• Aggregate rateable value of food & drink/recreation/retail premises in Bexhill town centre (*3).
• Calculated from Valuation Office Agency data.
• 6% yield.
• EUV = £47,755,336.
• GDV – calculated by reducing the yield by 0.5% in 2026/27 (£53,194,457).
• Gross LVU = GDV – EUV (£5,439,121).
• 62% (*4) additionality.
Net Nominal Benefit: £3,362,682 Occurs – 2026/27.

Economic Benefit: Cultural Value – non-paying visitors (DLWP)
Assumptions:
• DLWP forecasts additional 230,000 more visits above the 2022 numbers (420,000).
• By 2036/37, 455,177 additional visitors above future baseline.
• 84% non-paying visitors (based on DWLP MI).
• Value of £4.00 per visit (*5) applied to additional non-paying visits.
• Gross additional value = £13,405,227 by 2036/37.
Net Nominal Benefit: £5,026,960 (*6) 2025/26 – 2036/37.

Economic Benefit: Cultural Value – non visiting residents (DLWP):
Assumptions:
• Unit value of a museum/cultural venue to non-users is £3.12 per household annually (*7).
• Applied to 20,461 households in Bexhill MSOAs 070-011.
• Gross value by 2036/37 = £824,379.
• 25% additionality.
Net Nominal Benefit: £238,064 by 2036/37.

Economic Benefit: Additional Visitor Spend – Day Visitors (DLWP)
Assumptions:
• Increases additional spend by day visitors.
• Supports 8 net tourism jobs (in 2026/27), rising to 29 (by 2036/37).
• 95% of visits by day visitors (including non-paying visitors).
• Day visitor spend £34.46 (*8).
• Half of this (£17.18) is spent at the venue and half in the wider economy.
• Gross impact £65,043,155 by 2036/37.
• High levels of deadweight (spend by local people).
• Additionality = 20% (including 1.21 local multiplier).
Net Nominal Benefit: £13,280,999 by 2036/37

Economic Benefit: Additional Visitor Spend – Staying Visitors (DLWP)
Assumptions:
• 5% of visits are by staying visitors.
• All spend in the wider economy.
• Staying visitors spend £236.81 (*9) per trip.
• £35.00 is spent at the venue, the remainder in the wider economy.
• Provides a gross impact of £40,208,078 (by 2036/37).
• Much of the spending will leak and some would have visited Bexhill anyway (deadweight).
• 27% Additionality, including 1.21 multiplier.
Net Nominal Benefit: £10,946,649 by 2036/37

Economic Benefit: Labour Market/GVA Benefits – DLWP
Assumptions:
• Investment safeguards 32 existing jobs (by 2036/37), and creates a further 65 direct jobs
• Each have a GVA value of £35,871.
• Gross annual value – multiplied by safeguarded jobs.
• 30% additionality (safeguarded) and 27% (created) jobs.
Net Nominal Benefit: Safeguarded: £2,856,857 /Created: £2,856,857 by 2036/37

Economic Benefit: Learning Benefits – DLWP & SRGCH
Assumptions:
• 30,000 additional learning interactions annually.
• Improving cultural, creative and life skills of local people.
• Current budget £60,000 supports 10,000 interactions = £6.00 per interaction.
• Multiplied by the additional learning interactions.
• Additionality at DLWP (76%) and Sidley (92%) (*10).
Net Nominal Benefit: DLWP = £953,751
Sidley = £633,714 by 2036/37

Economic Benefit: Recreation Welfare Benefits – SRGCH)
Assumptions:
• Value per visit to Sidley (C2/DE – NS-SEC) is £2.74.
• Facility usable for 10 hours per day.
• Utilisation rate – 75%.
• 20 users per hour.
• Annual visits = 54.750.
• Gross value multiplied by £2.74.
• Additionality = 23%.
• Some leakage, but a high level of displacement.
Net Nominal Benefit: £1,212,999 (Sidley) by 2036/37
Economic Benefit: Amenity Value: Improved Open Space – SRGCH
Assumptions:
• Value of 1.0 (*11) hectare of improved open space.
• £2.29 per household is multiplied by households in Sidley (2,399 – 2011 Census)
• 100% additionality.
Net Nominal Benefit: £77,006 by 2036/37

*Footnotes:
(*1) BIS/CEA Occasional Paper 1: Research to Improve the Assessment of Additionality (2009): Deadweight = 0%; Displacement = 48.8%; Leakage = 12.5%; Multiplier = 1.38 – Capital Projects at Sub-Regional Level
(*2)Ibid
(*3) Streets included: Sackville Road, Western Road, Albert Road, Devonshire Road, Channel View East, St Leonard’s Road, Eversley Road, Wilton Road, Albany Road., Marina & Marina Court, Endwell Road, Sea Road, Parkhurst Road
(*4) ibid
(*5) Local Museums Benefit Transfer Report, 2022)
(*6) Displacement (50%) as visitors choose to visit DWLP rather than somewhere else locally. An assessment of 25% has been applied, to reflect the estimated proportion of visits from people outside the local area. No local multiplier has been applied
(*7) Local Museums Benefit Transfer Report, 2022
(*8) Economic Impact of Tourism – Rother, TSE Research (2019), uprated to 2022
(*9)Economic Impact of Tourism – Rother, TSE Research (2019), uprated to 2022
(*10) BIS/CEA Occasional Paper 1: Research to Improve the Assessment of Additionality (2009): Deadweight = 19%; Displacement = 11%; Leakage = 9%; Multiplier = 1.40 – People & Skills at Sub-Regional Level. Leakage (25%) assumed to be higher at DLWP
(*11) Uprated to 2022 prices from £1.80 in 2010: Economics Paper 7: Valuing the Benefits of Regeneration, Department of Communities & Local Government, 2010

The information here can be found in table form at Appendix 10.

Provide a summary of the overall Value for Money of the proposal

The Benefit Cost Ratio has been calculated by dividing the Present Value of the Benefits by the Present Value of the Public Sector Costs. The Present Values are based on a 15 year appraisal period to 2036/37 with an annual 3.5% discount rate applied.

Optimism Bias factors have been applied to the projects, as follows:

• De La Warr Pavilion – 20%
• Sidley Recreation Ground Community Hub – 15%

General inflation is assumed to be 0% for all benefits and the prices are shown in net nominal terms, after additionality has been applied.

Benefit Cost Ratio Initial Adjusted
De La Warr Pavilion 1.02 3.18
Sidley Recreation Ground Community Hub 1.07 1.53
All projects 1.03 3.00

Initial BCR
The Initial BCR for the who project is 1.06. The Initial BCR for the De La Warr Pavilion is 1.02; the initial BCR for Sidley Recreation Ground Community Hub is 1.34.

The Benefits included in the Initial BCR are:
• Safeguarded Direct Land Value Uplift – De La Warr Pavilion
• Created Direct Land Value Uplift – De La Warr Pavilion
• Created Direct Land Value Uplift – Sidley Recreation Ground Community Hub
• Amenity Benefits – Improved Open Spaces (Contingent Valuation) – Sidley Recreation Ground Community Hub

Adjusted BCR
The Adjusted BCR for the who project is 3.03. The Adjusted BCR for the De La Warr Pavilion is 3.18; the Adjusted BCR for Sidley Recreation Ground Community Hub is 1.80.

The Benefits included in the Adjusted BCR are:
• Wider Commercial Land Value Uplift – De La Warr Pavilion
• Wider Residential Land Value Uplift – Sidley Recreation Ground Community Hub
• Cultural Value to Non-Paying Visitors – De La Warr Pavilion
• Cultural Value to Non-Visiting Residents – Sidley Recreation Ground Community Hub
• Additional Day & Staying Visitor Spending – De La Warr Pavilion
• Additional Learning benefits – De La Warr Pavilion and Sidley Recreation Ground Community Hub
• Outdoor Recreation Benefits – Sidley Recreation Ground Community Hub
• Safeguarded and created Employment/GVA benefits – De La Warr Pavilion

Overall, the whole project is within the ‘good’ value for money category. It does not include several non-monetised impacts, including

• Employment, education & training benefits during the construction phase
• Additional skills impacts through the Cultural Accelerator programme
• Promoting sustainable tourism
• Contributing to net zero by improving the energy efficiency of the De La Warr Pavilion
• Providing job and cultural opportunities that will make the area more attractive to younger people
• Building social capital and reducing social isolation by making the De La Warr Pavilion more accessible and providing a new community hub at Sidley.

A more detailed explanatory note on the BCR calculations is attached.

Have you estimated a Benefit Cost Ratio (BCR)?
Yes

Estimated Benefit Cost Ratios (Initial BCR)

1.03

Estimated Benefit Cost Ratios (Adjusted BCR)

3.00

Describe the non-monetised impacts the bid will have and provide a summary of how these have been assessed

The following non-monetised impacts have been identified:

Construction phase:

The following construction employment and training impacts are expected to be delivered in line with the CITB Client Based Approach to Developing & Implementing an Employment & Skills Strategy (2017).

Retail, Sports, Leisure & De La Warr Sidley TOTAL
Entertainment Projects

Work Placements 9 2 11
Jobs Created 9 0 9
Careers Information Advice & Guidance Events 5 1 6
Training weeks 492 44 536
Qualifications Gained (NVQ level 2) 6 1 7
Industry Certification 13 4 17
Training Plans 4 2 6

Operational Phase

Employment Impacts
• 32 jobs will be safeguarded and an additional 69 jobs will be created at the De La Warr Pavilion.
• Visitor spending will create 67 gross and 15 net jobs in 2026/27. This will steadily increase and by 2036/37, visitor spending will create 227 gross and 53 net jobs in the wider economy.
Net Zero
• Improvements in the energy systems at the De La Warr Pavilion will make the building more energy efficient, contributing to Government Net Zero goals.
Demographics
• Providing more and better jobs and improving the cultural and recreational facilities in Bexhill will help to retain and attract younger residents, helping to address the demographic imbalance in Rother District.
Reputation and Brand Value
• De La Warr has a much wider influence than Bexhill – it has cultural influence regionally, nationally and internationally. Safeguarding and improving the building will safeguard and improve one of the UK’s iconic cultural venues.
Crime & Anti-Social Behaviour
• Improvements in recreational and cultural facilities, particularly in Sidley, are likely have a positive impact on crime and anti-social behaviour.

Health & Well-Being
• Better community facilities at Sidley Recreation Ground Community Hub and at the De La Warr Pavilion, provide more opportunities to build social capital and reduce social isolation amongst older people
Skills
• The additional learning facilities will enable the De La War Pavilion to participate in a wider number of skills programmes, including the Cultural Industries Talent Accelerator.

The scale of these impacts is difficult to quantify and monetise and some may be subject to a wider range of external socio-economic influences. Nevertheless, it is reasonable to assume that the new Community Hub, located in the heart of Sidley and the improved facilities in the De La Warr Pavilion will enable the existing outreach and support work that is already undertaken to be significantly extended to where it is most needed.

Provide an assessment of the risks and uncertainties that could affect the overall Value for Money of the bid

The main risks and uncertainties that could affect the value for money calculations can be divided into three categories

• Capital Cost Risks
• Regulatory and Political and Other Funding Risks
• Benefit Realisation Risks

Capital Cost Risks
The current economic climate is volatile. This impacts on construction materials and labour costs. There are still site surveys to be carried out at the De La Warr Pavilion, which could result in additional costs. Contingency allowance in the financial cases and optimism bias have considered in assessing the economic costs.

Regulatory and Political Risks
Both projects will require planning consent and De La Warr Pavilion will be also require Historic England Listed Building Consent. The full implementation of the project depends on securing funding from other sources, although most of the works can proceed independent of this. This is, therefore more a scope and scheduling risk than a risk to the project as a whole. £4.4 million of additional public sector funding has not yet been secured and a further £1.4 million of private sector contributions will be sought from trustees and private donors.

Benefit Realisation Risks
The claimed benefits may not be met due to factors beyond the control of the project sponsors. A key aim is to attract more visitors and great footfall in the town centre. However, external factors, including the state of the economy will impact on people’s disposable incomes, which will make them price sensitive to their non-essential expenditure. This could act as a benefit or a risk, but it remains an uncertainty.

Full risk registers are attached to this application as separate appendices.

Confirm the total value of your bid

Total value of bid
£25892000

Confirm the value of the capital grant you are requesting from LUF

Value of capital grant
£19192000

Confirm the value of match funding secured
£1000000

Where match funding is still to be secured please set out details below

The total value of the LUF match funding is £6.703milli on (26%) as follows:

DWLP

£6.203 million match comprising:

• £0.400 million confirmed match funding from Arts Council England Capital Fund.

• £0.1000 million in confirmed match funding from the DLWP Restoration Levy.

• £1.000 million in sought after match funding from a Community Interest Levy application made to Rother District Council in June 2022.

•£4.703 million in sought after match funding from the National Heritage lottery Fund.

In addition, DLWP will be approaching the following organisations to raise any additional funded needed:

• £0.700 million = from the South East Local Partnership underspend programme in the summer of 2022
• £1.000 million in Trusts and Foundation applications in 2022/23
• £0,400 million in private donations

Sidley Recreation Ground

• £500,000 Big Lottery Fund secured matched funding.

Land contribution

If you are intending to make a land contribution (via the use of existing owned land), provide further details below
There are no land contributions associated with this LUF bid.

Confirm if your budget includes unrecoverable VAT costs and describe what these are, providing further details below

The Council can recover the VAT as the following conditions will be met:
• The Council places the order for the goods/services
• The Council receives the goods/services
• The Council pays using funding that it owns (including funding awarded to it)
• The Council receives a VAT invoice addressed to it
For the DLWP project, as the project expenditure relates to a non-opted building that is currently being managed/occupied by a charity. Providing the Council receives no consideration at all for this use, the supply will be outside the scope of VAT and non-business. Therefore, that would allow full VAT recovery of the VAT incurred by the Council for any works it does to the building.
For Sidley as the supply is truly non-business and with the above four conditions met – there will not be any VAT issues.

Describe what benchmarking or research activity you have undertaken to help you determine the costs you have proposed in your budget

De La Warr Pavilion:

Cost Consultants Huntley Cartwright are quantity surveyors with a broad portfolio of experience across a range of sectors, with heritage projects forming a significant proportion. They were the Quantity Surveyors for the £44m refurbishment of Devonshire Park on Eastbourne’s Seafront.

The capital cost includes sensible allowances for risks and contingencies, alongside an allowance for construction cost inflation. The rates contained within the estimate are current as of the 2nd Quarter 2022. An adjustment has been made for tender price inflation and construction inflation over the estimated works period using the BCIS tender price index and general building cost index forecasts update published 31st March 2022.

The estimated costs have been derived from a variety of sources (in-house data bases and published price information). These sources include main contractor’s overheads and profit (margin) at varying rates. To have a consistent approach, construction costs have been complied using rates without any contractor’s margin. The margin being applied in accordance with RICS new rules of measurement 1 (order of cost estimating and cost planning for capital building works) as a defined element. The rates have been derived by analysing the margins in tenders received over the past 24 months for works of a similar value.

The construction cost includes a contingency for risk (design development, construction, employer change). These risks have been evaluated in the risk register. A cost impact and probability percentage for each risk has been determined to arrive at a risk contingency for each risk. These have then been added together to form the contingency for these risks.

The Basis Of The Estimate:

1.1 The estimate has been based on the following Information
Purcell LUF Report June 21 draft v03

1.2 References
The information is at feasibility stage. Measurements stated in the estimate are derived from small scale drawings and those stated in the masterplan. They should be considered indicative at this stage and subject to verification once more accurate information becomes available.

1.3 Inflation
The rates contained within the estimate are current as of the 2nd Quarter 2022. An adjustment has been made for tender price inflation and construction inflation over the estimated works period using the BCIS tender price index and general building cost index forecasts update published 31st March 2022.

1.4 Exclusions
The following has been excluded from the Estimate at this time;
Temporary facilities during refurbishment eg shop, café/restaurant
Temporary services to enable areas to function during the works
Upgrading of incoming services Broadband, satellite, telecom and other media connections Fittings and equipment – accept as allowed in the estimate
Loose furniture and tableware
External furniture
The trust’s ‘in house’ costs
Archaeology and ecology
Finance charges and legal fees
Building insurance

Sidley Recreation Ground Community Hub:

In June 2022, RLF, the appointed cost consultants for the Sidley project feasibility study benchmarked the football pitches against a number of previous projects which RLF have recently completed. RLF are on the AGP Framework and complete many of these types of projects every year. RLF have completed an elemental breakdown for the clubhouse which utilise benchmarked rates from internal cost data. All data has been rebased in regard to time and location.

The rates and prices used in this estimate have been obtained from a number of sources including market testing, historical information and analyses for works of a similar nature both from in house sources and that published by the Building Cost Information Service (BCIS).

The following assumptions have been made:

• All measures taken from proposed options drawings dated 30.05.2022.
• The GIFA of each proposed building has been measured off plan.
• A traditional build utilising blockwork cavity walls with timber cladding externally.
• T he internal fitout will be similar to the clubhouse design example included in Appendix A of the feasibility report.
• An allowance for inflation to Q2 2023 based on BCIS predictions. This is a risk in the current market climate.
• Allowed for a 5% OHP.
• A provisional allowance for cut and fill levelling of the site but with no topographical data this is a risk allowance rather than a measured quantity.
• Existing local power provision will be sufficient and have not made allowance for a new substation.
• There will be no gas connections or pipework to the site.
• Allowance for new trenches and ducting to provide services connections routes including electrical sub-main, water and foul pipework but have made no provision for utility companies connection

Provide information on margins and contingencies that have been allowed for and the rationale behind them

The margins and contingencies that have been allowed for each project is set out below:

De La Warr Pavilion:

The schedules and programme show the milestones, interdependencies and interfaces and task durations. Programme contingency is achieved by adopting a phased approach to the project. Investigation works will be undertaken during the design stage to limit the impact of ‘unknowns’. A detailed construction programme will be prepared by the appointed contractor which will be used to monitor progress. Phase 1 work is external to the building with most of the work taking place offsite in factory conditions. This will limit any delays resulting from inclement weather. The Pavilion will be closed during phase 2 to enable the contractor to work in several areas of the site at once. This flexibility will help mitigate delays. The overall project completion has been set with a ‘buffer’ towards the end of the programme to ensure that any delays encountered do not jeopardies the ultimate completion and opening dates.

Sidley Recreation Ground:

The RLF 2022 Sidley project feasibility study concluded that due to the early nature of the design, a 7.5% risk allowance has been included. RLF would note that as the design is at a very early stage the costs could change considerably following further design development.
The nature of the project, with the demolishing and rebuilding of the Pavilion and the separate 3G pitch installation allows for the work to happen in stages which can be worked seasonally to mitigate delays.

Describe the main financial risks and how they will be mitigated

A risk register for each of the two projects in this LUF submission are included as an appendix to this LUF submission. The main financial risks for both projects, mitigation measures and responsibility for cost overruns are set out in the table below. Many of the risks apply to both projects.

Main Financial Risk: DLWP project budget not achieved
Mitigation Measure: A comprehensive fundraising effort guided by DLWP’s Capital Fundraising Strategy, compiled by consultants Counterculture LLP and Carla Pannett considers methods for reaching the fundraising target across a number of funding sources (public, lottery, Trusts & Foundations, corporates and individuals). It examines the key risks and opportunities, assesses current capacity, and provides a number of resources to support this work.
Contingencies in the event that mitigations are unsuccessful: Rework elements of the scheme to allow greater time for fundraising.
Cost Overruns To be Managed and Met By: RDC

Main Financial Risk: Consultancy tenders exceed scheme budgets
Mitigation Measure: Ensure development appraisals are carried out using industry standards for professional fees, consider fluctuations in the market and build in a contingency. Identify all necessary professional requirements from the outset.
Contingencies in the event that mitigations are unsuccessful: Scale back project scheme.
Cost Overruns To be Managed and Met By: n/a

Main Financial Risk: Construction tenders exceed scheme budgets
Mitigation Measure: Ensure site viability and development appraisals are carried out using industry standards for construction costs, consider fluctuations in the market and build in a contingency.
Contingencies in the event that mitigations are unsuccessful: Review materials in scheme.
Cost Overruns To be Managed and Met By: RDC

Main Financial Risk: The construction market is currently (June 2022) buoyant with high level of activity resulting in labour / material shortages and increased costs.
Mitigation Measure: Sensible approach needs to be made about contract terms, risk and procurement method necessary to interest specialists in the project and secure reasonably priced offers.
Contingencies in the event that mitigations are unsuccessful: Rescoping of tender doc.
Cost Overruns To be Managed and Met By: RDC

Main Financial Risk: Ability to draw down funding causing the project to stall on both project components
Mitigation Measure: RDC can support continuing payments with the agreed project plan and agreed parameters.
Contingencies in the event that mitigations are unsuccessful: n/a
Cost Overruns To be Managed and Met By: RDC

Main Financial Risk: Incomplete design leading to post contract changes on both project components.
Mitigation Measure: Coordinated RIBA Stage 3 pack to be issued to tendering Contractors via a JCT Design and Build Contract. Detailed site investigations/surveys to be undertaken to minimise any risk allowances.
Contingencies in the event that mitigations are unsuccessful:
Cost Overruns To be Managed and Met By: RDC

Main Financial Risk: Cost overruns exceeding scheme budgets caused by construction delays & change in specification on both project components
Mitigation Measure: Ensure the construction contracts are robustly prepared and monitored by the
QS. Project Manager to log significant changes requested and proactively manage the cost of any changes throughout the design process to ensure any cost uplifts are highlighted and instructed.
Work the project in stages.
Contingencies in the event that mitigations are unsuccessful:
Cost Overruns To be Managed and Met By: RDC

Main Financial Risk: Cost Inflation
Mitigation Measure: QS to monitor market data and key indices. Adequate allowances for inflation will be included within the Cost Estimate on both project components
Contingencies in the event that mitigations are unsuccessful:
Cost Overruns To be Managed and Met By: RDC

Main Financial Risk: Loss of earnings for DLWP
Mitigation Measure: Figure worked into the business plan for the time activity is off site.
Contingencies in the event that mitigations are unsuccessful: Work in stages to allow parts of the building to have public access.
Cost Overruns To be Managed and Met By: DLWP

Main Financial Risk: Inadequate contingency to complete the works
Mitigation Measure: QS to manage the holistic budget including client held contingency allowances. QS to agree all change control items with RDC prior to instruction.
Contingencies in the event that mitigations are unsuccessful:
Cost Overruns To be Managed and Met By: RDC

Full risk register for each component project attached here.

If you are intending to award a share of your LUF grant to a partner via a contract or sub-grant, please advise below

N/A

What legal / governance structure do you intend to put in place with any bid partners who have a financial interest in the project?

In setting up the De La Warr Pavilion as a Charitable Trust in 2003 Rother District Council defined how the Pavilion would run and its core purpose through the Articles of Association. The Charity is established for the public benefit for the following objects:

• to promote, maintain, improve and advance education nationally for the public benefit
• to promote the benefit of the inhabitants of the district of Rother, East Sussex and the surrounding area by the provisions of facilities in the interest of social welfare for recreation and leisure-time occupation with the object of improving the conditions of life for the said inhabitants by providing, maintaining and making available a theatre, art gallery, public hall, recreation centre and other facilities for recreation and leisure time occupation.
• to preserve and maintain for the public benefit the De La Warr Pavilion in Bexhill and such other features associated with the Pavilion as are of special historical or architectural interest.
In additional to the Articles of Association RDC has a 99-year lease with dlwp running from 2004 and 6 yearly funding agreements which allocate grant funding towards the running of the building.

The Sidley Recreation Ground Community Hub sits on land owned by RDC. Rother will grant a long-term (70 years) full repair and maintenance lease with the Heart of Sidley Association for the pavilion and sports pitch at Sidley Recreation Ground. This will allow the Heart of Sidley organisation to have ownership of the site and to be able to manage it in accordance with the needs of the local community. In order for this to happen the land on which the building will stand would, in accordance with Section 123(2A) of the Local Government Act 1972 (as amended), need to be advertised as a disposal of public open space and any objections received reported to Cabinet for further consideration.

The Heart of Sidley was formed under the stewardship of Optivo Housing Association and has since been utilising its funding on the community’s priorities. As part of this project Heart of Sidley will become a constituted Charitable Incorporated Organisation (CIO) in its own right and has already started to progress this transition.

Summarise your commercial structure, risk allocation and procurement strategy which sets out the rationale for the strategy selected and other options considered and discounted

 
The Project Officer responsible for the purchase may consult potential suppliers prior to the issue of the Invitation to Tender in general terms about the nature, level and standard of the supply, contract packaging and other relevant matters, provided this does not prejudice any potential candidate, but the Officer must not seek or accept technical advice on the preparation of an Invitation to Tender or quotation from anyone who may have a commercial interest in the tender, as this may prejudice the equal treatment of all potential candidates or distort competition. The Project Officer will seek advice from East Sussex Procurement Hub in all instances prior to carrying out a Market Engagement and Consultation exercise 
 
In both the LUF component projects we do not expect to have any Type A contracts which apply to purchases valued below £5,000. Contract Type B applies to purchases values between £5,000 and £49,999 and require a minimum of 3 written quotes. If it is not possible to get 3 written quotes the procurement hub will help to get these. Officers are required to use their purchasing power to work with local businesses wherever possible and where the rules allow. Therefore, Officers are required to source a minimum of one of the three quotes from a local supplier. If only two suitable suppliers can be found, both must be invited and an exemption to the Rules will need to be sought. 
 
Contract Type C is what we most expect to use for the LUF component projects and applies to all purchases valued between £50,000 and the EU threshold for supplies and services, regardless of whether the contract is for supplies, services or works. An open tender exercise is required. The Project Officer will first consider if any current corporate contracts should be used for the purchase. 
 
Contract Type D applies to all purchases valued at, or above the EU threshold for supplies and services, regardless of whether the contract is for supplies, services or works. All Contracts classified as Type D must be undertaken by the Procurement Hub unless otherwise agreed by the Chief Finance Officer. All Contract Type D procurements must be conducted in accordance with the Public Contract Regulations 2015. These regulations set out the types of procurement procedures allowed. 
 
Role of RDC Cabinet: 
Cabinet may vire to other purposes amounts provided within the approved annual revenue estimates, except that where the amount of any single diversion exceeds £250,000, the approval of Council is required. 
Before procuring a service contract which is estimated to exceed £500,000 per annum in value or amount, to firstly report to Cabinet the draft specification, likely cost and form of tendering; Cabinet will then ask Overview and Scrutiny Committee to review and comment on the draft specification to be recommended to Cabinet for final approval; and to ensure that the proposal is included on the Council’s Forward Plan of Key Decisions, if appropriate. 

Who will lead on the procurement and contractor management on this bid and explain what expertise and skills do they have in managing procurements and contracts of this nature? 

The procurement will be led by the East Sussex Procurement Hub (the Hub), a dedicated shared procurement service hosted by Wealden District Council and working for Wealden, Rother and Hastings Councils. Formed in 2010 the Hub are responsible for an annual procurement programme in excess of £60 million in goods, works and services. 
 
The procurement will be led internally by Cathy Nelson, Procurement Partnership Business Manager, and Stephen Bottomley, Procurement Business Partner. Both officers are qualified to MCIPS Chartered Status and have significant experience in managing large scale and complex procurements. These include procurement exercises conducted as Competitive Dialogue and Competitive Process with Negotiation. 
 
Cathy Nelson is currently managing an open procurement for the appointment of a main contractor for the construction of a new Premier Inn in Hastings (£5.2M). Previously she has led a Competitive Dialogue for an innovative new Asset Management contract for Wealden District Council (£100M) and a Competitive Process with Negotiation for the completion of a new spine road (£5M) 
Stephen Bottomley has recently led on the open procurement of a concession contract for the development of electric vehicle infrastructure within Wealden and Rother districts. His previous work has included the procurement of a main contractor for the construction of Wealden Crematorium (£6M) and collaboratively working with external support in the procurement of a new joint waste contract on behalf of Rother, Wealden and Hastings (£225M). 
 
Procurement exercises are run in compliance with the Public Contract Regulations 2015 and the Council’s own internal Contract Procedure Rules. 
Should external procurement support be necessary this will be procured using a compliant procurement route, such support would be led by the Hub and the officers identified above for the duration of the procurement. 
Contract management would be led by the Council’s Special Projects Team and supported by the Hub. 

Are you intending to outsource or sub-contract any other work on this bid to third parties? 

Ongoing contract management includes the use of Key Performance Indicators (KPIs) for the continual monitoring of suppliers and mitigation of risks. Where applicable the KPIs on any contract may include indicators on quality, timeliness, performance, reliability, environmental, and cost. Reporting on the KPIs may occur on either a monthly, quarterly or annual basis. Corrective measures permitted in the contract may be taken on any area where performance is sub optimal. Such measures would be proportional to the drop in performance and may include increased monitoring to retention of fees. Incentive payments may be included in a contract where applicable for exceptional performance in relation to KPIs. 
 
Contract management is the responsibility of named contract managers and supported by the Hub. This depends on frequent and open communication with regular meetings as required, traditionally either monthly or quarterly dependent on the contract. 

How will you engage with key suppliers to effectively manage their contracts so that they deliver your desired outcomes 

All Hub procurement exercises to appoint a supplier include a proportionate due diligence process. For tenders above the procurement thresholds this is a comprehensive due diligence process to assess: financial standing, minimum insurance requirements, technical and professional ability, compliance under the Modern Slavery Act 2015, Health and Safety requirements, and Equality and Diversity compliance. Financial standing, including turnover, and the minimum insurance requirements are set on a proportional basis to the procurement. Additional requirements are included on a case by case basis dependent on project specifics. 
 
Where appropriate the assessment of information provided during due diligence may also include site visits to verify statements on any business area including past experience, organisation capacity, quality management processes etc. 
During due diligence any prospective supplier is financially assessed. Initially this is via a third-party and the Hub currently use the Dun and Bradstreet service. In addition to this assessment an in house evaluation of a suppliers accounts is undertaken by the Council’s accountancy team to examine profit and loss, balance sheet ratios for working capital and liquidity and gearing of external debt, adverse auditor comments, and turnover requirements. 
 
Should any concerns be raised during due diligence, whether financial or otherwise, the Council reserves the right to require further assurances from the supplier in terms of bonds and guarantees. Where a supplier essentially fails any element of the due diligence assessment the Council reserves the right not to award the contract to a supplier and exclude them from further participation in the process. 
Our appointed suppliers are also tracked on an ongoing basis with Dun and Bradstreet so if there is any deterioration in the financial health of a supplier this is flagged to the Hub the next day. Should this occur it provides an opportunity to reassess the financial health of the supplier in detail and, if necessary, take actions to secure the future of the service. If not already done so this may involve requiring suppliers to acquire parent company guarantees or performance bonds, in extreme circumstances it may include contingency planning for the rapid appointment of another supplier. 
 
Within contracts the payment structures are tailored to match each contract being procured. Where appropriate this may be stage or phased payments with the option to include upfront payments (for example on materials and labour in construction contracts). The majority of contracts let for the Council are invoiced monthly in arrears and payment within 30 days of invoice. The contract terms ensure that subcontractors are given equal terms or better. 
 
Contract terms are predominately drafted by the Council’s in house, dedicated contract lawyers. Designed to mitigate risk these contractual clauses include, but are not limited to: liability and insurance, data protection, mediation and termination, intellectual property rights, audit rights, variation and rejection of services, and dispute resolution. 

Set out how you plan to deliver the bid 

Each of the project components has prepared detailed Delivery Plans, including the identification of Key Milestones, which relate to capital build and construction phases for the two LUF funded component projects. These are set out in Tabs D1 and 2 of the appended excel spreadsheet. 
 
The preparation studies that have been undertaken for each project component indicates that further design work will be started prior to Autumn 2022 to enable spend in year 2022/ 23 and programme completion by March 2025. 
 
As Rother District Council owns both project sites, there are no major dependencies. Key dependencies and interfaces, resource requirements, task durations and contingencies are identified in the submitted Delivery Plan schedules and Risk Registers. 
 
Planning consents: 
De La Warr Pavilion is a Grade I listed building and an iconic example of the International Modernist style. As such, planning permission and Listed Building Consent will be sought by the RDC / DLWP partnership for the proposals. Pre-application for planning has already been submitted. The building has been well researched and the planning strategy determined, with initial enquiries held with local authority conservation officers, Historic England and amenity societies. 
 
Roles and responsibilities: 
Rother approach to large scale infrastructure projects has been developed to ensure a process driven approach with clear lines of management, and clearly defined roles and responsibilities to ensure a robust and transparent process. The Special Projects Management Office sits under the leadership of the Project Executive who is Director of Place and Climate Control who is also the Senior Responsible Officer on the LUF project. 
 
When selected the Project Manager will also have a range of officers to provide expert advice for legal, finance, procurement, planning and regeneration issues. The Project Manager will also be expected to bring the two external partners from the component projects into the project team. 
 
The Project Manager will oversee the management of the project and will have overall oversight of activities such as: 
• Undertake necessary due diligence 
• Prepare and submit claims/reports to UK Government 
• Ensure the programme contributes to the wider UK Government area and promote success 
• Ensure the project supports other strategic priorities in Rother. 
• Manage overarching performance of the entirety of the LUF projects 
 
More specifically, the Council’s methodology involves PRINCE 2 project management which will be utilised to ensure that the project is delivered effectively including: 
 
• A named and experienced project manager 
• Expert property consultants 
• Formation of Project Steering Groups 
• Publication of a risk and mitigation register, regularly monitored throughout each phase of the project 
• Named and responsible Project Executive Officer for major developments 
• Commissioning contractors and consultants with experience and track-record of delivery 
 
To ensure the correct oversight and scrutiny, the Council will monitor progress and apply appropriate financial controls and checks to ensure efficient delivery and drawdown of funds. 
 
Officers will report progress, funding profiles, risks and deliverability to the Special Projects Management Office who will in turn report progress to the Programme Board. 
 
Progress will also be reported to the UK Government where appropriate. 
 
The key organisations that will contribute to the projects are as follows: 
 
Rother District Council: 
The Special Projects Teams will appoint a Project Manager to oversee each component of the project. The Council will use officers from within the organisation in the delivery of the projects including finance, regeneration, estates and leisure. The Project Manager also has access to shared services in legal, procurement and communications all of which will become key project partners. 
 
De La Warr Pavilion Board of Trustees: 
The De La Warr Pavilion is a Charitable Trust and Arts Council England National Portfolio Organisation. The Board of Trustees oversees the running and development of the Charity and will oversee their component of the LUF bid. The Capital Appeals Committee supports the Board of Trustees with strategy and fundraising activity with regards to capital investment project for the building. 
 
Heart of Sidley: 
Heart of Sidley is the delivery arm for Sidley’s Big Local grant, a National Lottery Community Fund-funded programme which committed £1m each to 150 neighborhoods across England. Heart of Sidley is about delivering long term, unconditional, resident-led funding supporting local communities to make their areas better places to live. 
 
Council Members and Senior Officers: 
Regular reports are provided to elected Members and senior officers Projects Board meetings attended by the following: 
• Member for Regeneration 
• Member for Sidley Ward 
• Member for Central Ward 
• Chief Executive of Rother District Council 
• Chief Finance Officer 
And where necessary upwards to Sponsor Group which is the RDC Cabinet. 
 
Managing stakeholders: 
The appointed Project Manager for each of the LUF funding schemes will take responsibility for developing and implementing a stakeholder engagement and consultation plan. The engagement will being early in the design and consultation process to ensure that stakeholder views are taken on board in the development of the planning applications for the De La Warr Pavilion capital scheme. In Sidley the Council will engage with local schools, community groups and colleges to develop a programme of engagement and co-design in line with its aspirations around community participation. 
 
Benefits realisation plan: 
A benefits realisation plan will be produced. The Council is committed to Sustainable Development and a focus on delivery will be to ensure that the development projects build stronger communities, reduce social exclusion and encourage the development of the economy. 

Demonstrate that some bid activity can be delivered in 2022-23 

Milestones of the De La Warr project show Phase 1 – South Lawns would start immediately with final development: final designs, planning permissions and procurement: design, contractors, taking place in 2022-23. 
 
Phase 1: 
• Condition survey works £192,750 – 01.11.2022 
• External areas south lawn £ 404,045 – 01.11.2022 
• Main contractor’s preliminaries £ 165,000 
• Main contractor’s overheads and profit £ 76,200 
• Fees £ 132,500 
 
South Lawns: 
• Stage 3 – Concept Design: 01-Nov-22 
• Consult Statutory authorities: 01-Nov-22 
• Design: 01-Nov-22 
• Planning / LBC: 01-Jan-23 
• Technical Design: 01-Jan-23 
• Working Drawings: 01-Jan-23 
• Tender: 01-Mar-23 
 
Milestones in the Sidley Recreation Ground Community Hub project clearly show that in the current financial year – 2022-23 the following stages will be achieved: 
 
• MC Preliminaries: £20,000 
• Construction Design: £161,469 
• Professional Fees: £81,983 
 
Appointment of PM/QS: 05-Sep-22 
Agree design team scope and develop ITT: 19-Sep-22 
Appoint architect via framework: 03-Oct-22 
Appoint design team consultants: 03-Oct-22 
Scoping of surveys / investigations requires: 19-Sep-22 
Obtain quotes for surveys/ investigations: 10-Oct-22 
Undertake site surveys / investigations: 31-Oct-22 
Review project brief and RDC requirements: 14-Nov-22 
RIBA Stage 2 concept design: 28-Nov-22 
Cost estimate: 09-Jan-23 
RDC review and approval of Stage 2 proposals: 23-Jan-23 
RIBA Stage 3 design: 06-Feb-23 
RDC design review and approval: 20-Mar-23 

Risk Management: Set out your detailed risk assessment 

DLWP: 
 
Key Risk: Failure to get Listed Buildings consent to undertake changes to the building. 
Mitigation Measure: Initial feasibility estimate has been undertaken which will be reviewed and approved by RDC prior to submitting funding application. QS to update the Cost Estimate at the end of each RIBA Stages and chair ‘Value Engineering’ meetings as necessary to ensure the scheme is delivered within the allocated budget. 
Contingencies in the event that mitigations are unsuccessful: There would need to be further fundraising and HoS have a fundraising officer who could work with RDC to do this. 
Cost Overruns To be Managed and Met By: Project Manager and DLWP trustees 
 
Key Risk: Failure to get planning permission for new build in Phase 2. 
Mitigation Measure: Conversations with RDC Conservation Officer have already been had and agreement on approach reached. The project is seen as a priority for RDC and has received full endorsement. Pre-planning application submitted. 
Contingencies in the event that mitigations are unsuccessful: 
Cost Overruns To be Managed and Met By: RDC Project Manager 
 
Sidley Recreation Community Hub: 
 
Key Risk: Project does not accurately capture HoS requirements leading to large changes post contract. 
Mitigation Measure: Detailed external and internal stakeholder engagement sessions to be undertaken to capture detailed brief. Update project stakeholders as the design progresses. Contingencies in the event that mitigations are unsuccessful. 
Cost Overruns To be Managed and Met By: RDC 
 
Key Risk: Sports England Compliance 
Mitigation Measure: Design team to develop design in line with sports England design guidelines and issue designs to their design reviewers to ensure the design complies. 
Cost Overruns To be Managed and Met By: RDC Project Manager 
 
Key Risk: Internal governance approvals 
Mitigation Measure: PM to develop a programme with key milestones for each governance approval process and ensure this aligns with the targeted planning submission deadline. 
Cost Overruns To be Managed and Met By: RDC Project Manager 
 
Key Risk: Planning approval 
Mitigation Measure: Pre-application meetings to be arranged with the RDC planners to obtain feedback on the scheme. Timeline for planning application to be agreed. 
Cost Overruns To be Managed and Met By: RDC 
 
Please see full risk assessments for each component project attached within this section. 

Provide details of your core project team and provide evidence of their track record and experience of delivering schemes of this nature 

RDC Special Projects Team: 
 
3 x project manager specialising in commercial development and construction 
1 x developments manager specialising in housing development 
1x programme and projects officer 
1 x projects officer (environmental) 
1 x projects officer (income generation) 
1 x project support (current vacancy) 
 
Capital Investment Projects delivered or delivering by RDC Special Projects Team: 
 
Beeching Road Creative Workspace Project: 
£960,000 of Local Growth Fund investment was received to develop low cost creative workspace in a former food production facility located on the Beeching Road industrial estate in Bexhill. Largely unused and currently empty RDC’s plan was to use the footprint and shell of the existing buildings, focussing redevelopment to the interiors and accesses, to create 6 light industrial units specifically for purpose of attracting new creative industries in to the town. 
 
Barnhorn Green: 
Barnhorn Green is a sensitively planned expansion to the existing community of Little Common in Bexhill, East Sussex, where 342 new homes have been created, 72 of which are spread across three blocks of flats. There is also a £10m development of employment land which will see the delivery of a GP Surgery and light industrial units delivered by RDC. 
 
Blackfriars Battle: 
Blackfriars in Battle, a £70m initiative led by Rother District Council’s housing company, Alliance Homes, is to provide 200 new homes in the area. The construction project is underway and includes the provision of 42 affordable rented homes and 28 homes for shared ownership. Blackfriars was named best housing development in the UK (suburban and rural category) at the Inside Housing Development Awards thanks to the scheme’s dedication to a sustainable and innovative design whilst ensuring people’s wellbeing is at its heart. 
 
Bexhill Town Hall: 
The £15m redevelopment of the Town Hall and construction of a new Civic Centre will have huge benefits to Bexhill, its core community and wider interests. It will enhance the local area by creating a new demand for local businesses, becoming more community-focused and looking to realise the full potential of Bexhill as a lively, attractive focal point where people want to live, work and visit. 
The refurbishment to the Town Hall will be light touch, maintaining its historic beauty whilst enhancing its overall energy performance. The civic centre extension to the Town Hall will have space for new business tenants, public café, efficient meeting areas and improved pedestrian access. On a wider scale, the project has the potential and ambition to become an exemplar building for a sustainable Town Centre redevelopment, reinvigorating existing building stock, and reducing carbon use in the fight against climate change. All aligning closely with local and national government policies and helping to address RDC Climate Emergency Declaration. 

Set out what governance procedures will be put in place to manage the grant and project 

The following gives the detailed governance structure for the Council’s corporate projects which provides a filtering process that allows for the escalation of issues to appropriate levels. This allows decisions to be taken at the lowest appropriate level (principle of subsidiarity), reserving the upper echelons for Council level decisions in accordance with the Council’s Constitution and Scheme of Delegation. 
 
Governance Arrangements: 
 
Sponsoring Group: Cabinet 
Programme Board: Chief Executive, S151 Officer, 3 x Cllrs as appointed by the Leader 
Programme Management Office: Corporate Programme and Projects Officer and 
Major Projects Manager, Development Projects Manager 
Project Executives: Identified Head of Service 
Project Champions: Identified partners including comms team 
Identified Members (lead member/portfolio holder) 
Project Managers: Identified officers 
 
The Sponsoring Group will be responsible for agreement to the project as proposed by the Programme Board. The prime purpose of the Sponsoring Group will be to champion and drive the programme forward. 
 
The Programme Board (PB) is responsible for the timely delivery of projects prioritised by the Sponsoring Group (Rother District Council Cabinet) on the grounds that they are able to make a significant contribution to the delivery of the Council’s strategic priorities as set out in its Corporate Plan 2020-2027 and to coordinate and govern the equitable use of resources across the programme. 
 
The Chief Financial Officer (CFO) ensures that the financial affairs for which the Council has responsibility are managed in a secure and effective manner in accordance with the Council’s financial and procurement regulations and related policies and procedures. All financial transactions of the council are maintained on the Council’s Financial Management System unless otherwise agreed by the CFO. Transactions are recorded accurately, promptly and fully, and as soon as reasonably practicable. The project will be subject to the Council’s robust financial and legal due diligence procedures to ensure risks are identified, managed and mitigated. The appointment of contractors will follow the Council’s Contract Procedure Rules to ensure compliance with procurement legislation and its Best Value obligations. Financial monitoring will be carried out at least monthly to ensure budgets are managed and correct action taken [where necessary]. All financial reporting will comply with appropriate accounting standards. 
 
The role of the Programme Management Office (PMO) will be to support all levels of the governance structure. The PMO will co-ordinate the management, monitoring and reporting arrangement for the corporate programme. 
 
The Project Champion role is to support and direct the project particularly through the planned communication and reporting activities. This will include engaging stakeholders and managing multi-agency relationships in championing the project and its objectives. This is where the external project partners will come in from dlwp and Heart of Sidley and the RDC Communications Team. 
 
The Project Executive is accountable for the project business case and in this project will be the Director for Place and Climate Ben Hook. 
 
Project Managers, through Programme Board direction and Programme Management Office assistance, will create delivery plans in the form of a project scope and form project teams responsible for delivery to agreed timeframes, costs and quality. 
 
Reporting: 
Programme Management Office will submit a quarterly progress report to the Programme Board. This will include: 
 
• Update on actions from previous meeting 
• Key achievements 
• Key issues and opportunities 
• Programme Board decisions required 
• Programme and Project risks (high) 
• Change requests 
• Close-out /termination requests 
• New project scope requests 
• Programme financial overview 
• Key milestones for following quarter 
 
Project Managers will be required to liaise with the Programme Management Office as soon as any risk, issue or opportunity presents itself which could have an impact on the timescales, budget, scope or quality of the project. Programme Management Office will assess the impact of the change and the potential effect on the overall Programme and act accordingly. 
 
A data sharing agreement will be put in place between RDC and the project partners: dlwp and Heart of Sidley. The project will be subject to the Council’s data protection policy. 
 
All partners will be expected to work in line with RDC’s anti-fraud and corruption strategy. Rother District Council operates within a statutory framework which governs the behaviour of elected Members and officers, in addition to which, it has a well-established framework of guidance on best practice which is laid down in its Financial Procedure Rules, Procurement Procedure Rules, Delegations to Officers, staff Conditions of Service and the Members’ Code of Conduct. 

If applicable, explain how you will cover the operational costs for the day-to-day management of the new asset / facility once it is complete to ensure project benefits are realised 

DLWP is a flagship centre for the arts and a vibrant cultural hub for the south-east, owned by our communities and known for our programme nationally and internationally. Responding to our world class architecture and living heritage, to allow greater access to creativity and cultural experiences, and to ensure culture-led regeneration for the region into the next decade and beyond. The Pavilion’s mission statement is: 
To be a flagship centre for the arts and a vibrant cultural hub for the south-east, owned by our communities; known for our programme nationally and internationally. 
Responding to our world class architecture and living heritage, to allow greater access to cultural experiences, and to ensure culture-led regeneration for the region has sustained momentum into the next decade and beyond 
 
The DLWP Charitable Trust has managed the site since 2005, responsible for developing the original business model (from launch), with a stable base of core revenue funding from RDC (under SLA) and ACE to the value of £1.1m per annum, generating an additional £3m+ in turnover through trading and fundraising. DLWP runs its own operations, fundraising and commercial arm; it has 17 years trading knowledge of the site. 
 
The DLWP proposal is based on long term research and development that it will increase the viability of the organisation, whilst also significantly increasing the impact on the community. The Trust is chaired by Julian Bird (Society of London Theatres), with trustees from Heritage Lottery, Deloitte, Lend Lease, National Portrait Gallery and Unilever. 
 
The financial model is based on two key factors, growth in daytime visitor numbers to 650,000 and in evening event ticket buyers to 85,000. This capital investment unlocks a detailed commercial income plan based on (conservative) average secondary spends. For example, in just one aspect of the model, we can expect ticket sale turnover to rise from £1.2m to £1.53m, restoration levy income to rise from £63k to £85k, secondary wet sales to rise from £250k to £382k etc. Overall, we forecast turnover to rise by c.£1.75m. 
 
DLWP has established its live music programme from a position where it was deemed unviable, to a nationally significant music venue turning over £1.2m in ticket sales alone. Significant gains can be made by investing in ancillary functions to improve the customer experience and increase revenue – these are currently missing in the model. 
 
DLWP has detailed Audience Development and EDI plans, that are monitored by our board and ACE on a quarterly basis. We have completed a detailed analysis of the opportunities to grow audiences, responding to current community need and to new home building and new business development in north Bexhill. DLWP has strong relationships with organisations like Heart of Sidley, Rother Voluntary Action, Refugee Buddy Project to engage their communities. We have also delivered over £1m in SELEP funding for tourism initiatives during the last year. 
 
Costs are built into commercial and operational models as a scalable percentage, to allow for sustained growth with operations to full capacity. Investment to date (Historic England, NHLF) has already placed the building in a strong environmental position given the age of the building, with a C rating Display Energy Certificate. Our costs are c.30% of comparable gallery / venues. We will further improve this to deliver only a small increase in running costs (c.10%) through investment in solar and ground source heat pumps. The reconfiguration of expensive gallery environmental plant will also present efficiencies in the long term. 
 
The new model forecasts surplus £250k in running costs to allow for contingencies, whereby any remaining surplus would be reinvested in the charity. 
 
The Heart of Sidley has sought a commitment from the Council to enter into a lease subject to the necessary approvals being secured and processes being followed including planning and Fields in Trust consent and the disposal of public open space for the land on which the pavilion will be situated. The lease would confer all maintenance, repair and management obligations to the HoS which at the time of the funding’s expiration will become a constituted Association enabling it to fundraise and deliver the project. 
 
A minimum term of fifty years and up to a maximum of seventy years has been planned. It is anticipated that the maintenance and booking arrangements for the football pitch would continue under the Council’s management whilst all responsibilities for the changing rooms will lie with the HoS Association. A system will therefore be required to ensure this is can be effectively managed. 
 
HoS is an elected partnership made up of 10 residents and those with business in Sidley and Chaired by Jay Carroll who runs the local Greengrocers. The partnership is supported by a Big Local representative and by two locally trusted organisations; Rother Voluntary Action and Optivo. The partnership meet monthly and this structure will be used to oversee the running to the community hub. 

Set out proportionate plans for monitoring and evaluation 

Aims of the Rother LUF package bid: 
 
Objective 1: Increase the value of tourism to the Bexhill economy 
Objective 2: Protect, enhance and safeguard an important heritage asset 
Objective 3: Create and safeguard jobs and improve skills amongst disadvantaged local residents 
Objective 4: Improve health and well-being through culture and recreation 
 
To be achieved through the following outputs:: 
 
Dlwp: 
4,382m2 heritage building renovated 
2,659m2 cultural space improved 
670 m2 new public amenities and facilities created 
585m2 new educational space created 
430 m2 enhanced commercial space improved 
 
Sidley: 
1.53 hectares of land rehabilitated 
338 m2 new community centre space created 
7,490 m2 new sports facility created 
 
The ambition being the physical building developments to lead to the anticipated outcomes: 
• Re-modelling of key Grade 1 Listed asset as a viable cultural venue 
• 650,000 visits pa to DLWP, an uplift of 230,000 on 2022 baseline 
• Uplift of £5.4m in commercial land value in the town centre 
• 32 safeguarded jobs and 65 (net) new jobs by 2036/37 
• 53 net tourism jobs in the wider economy 
• 30,000 new learning interactions per annum 
• And in Sidley: 
• Additional 12,319 people per annum engaged in physical and cultural activity 
 
To ascertain the impact of the projects we address each desired impact in turn: 
 
• Bexhill becomes a nationally and internationally recognised cultural and visitor destination: Evidence of impact on tourism jobs in the wider economy is monitored with annual surveys by our DMO 1066Country Marketing, with Sussex Modern and through annual Economic Impact studies commissioned through Tourism South East. 
 
• Bexhill has a vibrant town centre with thriving businesses, underpinned by Bexhill’s cultural offer: footfall – all evidence of impact on the Pavilion is already monitored by the dlwp Charitable Trust through its longstanding operational management role, this is evidenced through footfall counters data / bookings / and Huq data analysis. Huq Industries provides RDC with regular updates on footfall, dwell time, density in the area, drive time and flow of people to allow us to clearly see how resident and visitors use the town and what events have most impact on footfall. 
 
• The town secures new investment and an increase in land and property values in the town centre: through the Estates team the impact on business demand can be measured. Working with the Bexhill Chamber of Commerce to understand the impact of the project on local businesses. Council monitoring of town centre occupancy rates and other vitality measure is also a matter of course and this evidence will be gathered and assessed annually as required. For other proxy indictors (house prices, labour market performance) a mix of publicly available ONS data will be used and it is expected that this data will be collated by the longstanding East Sussex in Figures (ESiF) data team. 
 
• Residents are healthier in the town’s most deprived ward and are accessing cultural opportunities: pitch bookings, number of events held and audience data from the Sidley Recreation Ground Community Hub will be held and analysed. 
 
• Business investment creates new jobs accessed by local people: direct jobs will be monitored through 6 monthly reporting to RDC by both projects. This is already in place for dlwp and it is the Regeneration Officers responsibility to report back to SMT and further the duty of the CEO of dlwp to report to Cabinet ever September. The same structure will be put in place for reporting on Sidley Rec by HoS. Further we will work with local colleges to understand where local students move on to and through the employer engagement work being driven by the Rother UK Shared Prosperity Funding we can monitor pathways into work by those furthest from the workplace. 
 
• Improved confidence and optimism for the residents of Sidley : Heart of Sidley to go back to the community for feedback and future developments. Dlwp to engage directly with HoS on development of programme which will be fed back in annual reports. 
 
• Bexhill attracts and retains younger residents, helping to rebalance its demographic profile: East Sussex in Figure demographic data. 
 
The evaluation of the success of the project will be through day-to-day monitoring post construction, annual accounts and operational and business plans. Annual accounts of dlwp are shared with RDC Full Council for scrutiny and comment. We also work with Skills East Sussex, a county wide skills partnership which is attended by the RDC Regeneration Officer, on their 2021-2023 Strategic Priorities which focuses on understanding of impact of skill development on job vacancies. 
 
When both projects are nearing completion the Project Managers and Programme Management Office will prepare and submit a project close-out /termination report. This will include a summary of the projects delivered, comparison to the project scope in terms of performance, project cost and project outcomes, lessons learned, and feedback from stakeholders. These documents will also include any outstanding issues, project handover documentation and project information storage. This is part of the process adopted by the Special Projects Team and learning from previous projects will have been fed into the development of these projects. The Programme Board will assess the close-out /termination report and provide direction as to whether the project can be closed. 
 
A full process and impact evaluation, as determined by funders, post-completion will be undertaken by a suitable independent consultant procured through existing frameworks.