Investment criteria for Town Centre Regeneration Fund 20 05 25- AM reviewed
Renfrewshire Council · 20 May 2025
Back to Economy and Regeneration Policy Board — 20 May 2025 and its agenda
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___________________________________________________________________ To: Economy and Regeneration Policy Board On: 20 May 2025 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Investment criteria for Renfrewshire Town Centre Regeneration Fund ___________________________________________________________________ 1. Summary 1.1 The Renfrewshire Council budget for 2025/26 has allocated £0.5 million to help unlock further regeneration in town centres, specifically targeting projects where the redevelopment of significant local buildings or sites has stalled. 1.2 This report sets out the investment criteria for the fund and outlines the types of projects it is intended to support. ___________________________________________________________________ 2. Recommendations 2.1 It is recommended that the Board: (i) Approves the investment criteria for the £0.5m grant funding aimed at town centre regeneration. _________________________________________________________ 3. Background 3.1 At the Council meeting on 27th of February 2025, the Council committed £0.5m to unlock town centre regeneration proposals where market conditions and other circumstances are such that the redevelopment of significant buildings or sites are currently stalled; with the criteria for investment being the subject of a future report to the Economy and Regeneration Policy Board. This paper sets out the proposed criteria for funding bids.
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___________________________________________________________________ 4. Investment Criteria 4.1 The redevelopment of significant buildings or sites can stall for various reasons, often due to a combination of financial, planning, technical and social factors. These may include a lack of funding to secure necessary investment, cost overruns resulting from rising construction expenses, the complexities of working with older buildings and refurbishing them in accordance with current building regulations, and economic downturns or shifts in demand that impact a project’s viability. Regulatory challenges— such as obtaining planning consent, particularly whilst maintaining the integrity of historic or listed buildings—can also present significant barriers to development. 4.2 The £0.5 million Council fund will be used by officers as a catalyst to unlock regeneration activity that is currently stalled due to viability or investment gaps. The Council is seeking opportunities to work collaboratively with owners of vacant, underused or derelict properties across Renfrewshire’s town centres to bring them back into viable use. It is hoped that the grant funding will boost private sector confidence and leverage additional investment by demonstrating the Council’s proactive role. 4.3 The following set of key criteria for investment is being proposed to guide how the grant funding will be administered: Eligibility of Property • The property must be located within a town centre. • Eligible properties include those that are currently either vacant, underused, or derelict. • The property must be of strategic importance, the assessment of which will include heritage value, scale, visibility, or potential to stimulate wider regeneration and growth. Nature of the redevelopment proposal • Any proposal must aim to bring the property back into viable and productive use. • Acceptable end uses may include commercial, cultural, community, residential, or mixed-use developments, subject to compliance with planning policies. • Projects that preserve or sensitively adapt heritage or listed structures will be prioritised. Demonstratable Market Failure • Potential grant recipients must provide clear evidence of market failure which has prevented redevelopment to date. • Evidence should also be provided outlining the actions taken to date to try and bring the building back into reuse.
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• Owners should demonstrate that, without public sector intervention, the project would not proceed due to a funding gap or issues affecting commercial viability. Leverage and Additionality • Preference will be given to projects that can demonstrate: o Match funding or co-investment from the private sector or other public sources. o A clear ability to attract additional economic activity or investment as a result of the intervention. Eligible Costs • The grant funding can be used for a variety of costs, including: Capital works o Essential structural repairs to make the building safe or usable o Roof repairs or replacement o External fabric repairs, including windows, masonry, and façades o Internal adaptations or refurbishments to enable new use Heritage and Conservation Works o Restoration of historically significant architectural features o Works required to comply with conservation or listed building consent o Sensitive adaptations to allow modern use while retaining heritage value Enabling Works o Site clearance or demolition of non-heritage structures o Temporary works to stabilise or secure a building o Asbestos removal or remediation of contaminated land Accessibility and Compliance o Improvements to meet building regulations (e.g. fire safety, accessibility, energy efficiency) o Installation of ramps, lifts, or accessible toilets Project Management and Oversight o Reasonable project management or contract administration costs
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Ineligible Costs • Acquisition of land or property • Marketing and promotional costs • General maintenance not linked to redevelopment • VAT (unless it is non-recoverable) • Feasibility studies and option appraisals • Professional fees (e.g. architect, engineer, surveyor, planning consultant) • Planning application and other statutory consent fees • Building surveys and site investigations (e.g. structural, ecological, or contamination assessments) Deliverability and Readiness • Grant recipients must demonstrate that they have a deliverable project, including detailed designs which are fully costed. • A robust delivery plan and timeline must be provided which is realistic and capable of commencing within 12 months of grant award. • Grant recipients must demonstrate planning status (e.g., permission granted or initial discussions held with planning officers on acceptability of proposals). • Before any grant funding is released, a project delivery team must be in place including main contractor, project manager etc. Community and Economic Impact • Proposals should demonstrate how they will: o Contribute to local economic growth (e.g., job creation, increased footfall). o Enhance the vitality and attractiveness of the town centre or local area. o Align with local regeneration strategies and community priorities. Ownership and Legal Status • Grant recipients must have legal ownership of the property or site, or a long-term leasehold interest (minimum 10 years). • There must be no outstanding legal disputes or encumbrances that would delay redevelopment. Value for Money • Clear explanation of how the grant will be used, including a detailed breakdown of costs which will be covered by the grant
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• Evidence that the amount requested is proportionate to the overall costs and impact. • Grants will typically not exceed a certain percentage of the total project cost (e.g., 30–50%), match funding is expected. ___________________________________________________________________ 5. Next Steps 5.1 Officers will carry out a review of each town centre to produce a list of priority target buildings. They will then engage with property owners to discuss their regeneration plans and assess whether these align with the investment criteria of the fund. Where alignment is identified, officers will conduct further engagement to determine the level of grant funding required and assess whether it represents best value for money for the fund. 5.2 Progress on the grant will be reported back to the Board on a rolling basis, with an update on the projects which have been funded. ________________________________________________________________ Implications of the Report 1. Financial – £0.5m has been allocated as part of the approved budget motion at the Council meeting of 27 February 2025 2. HR & Organisational Development – None 3. Community/Council Planning – • Our Renfrewshire is thriving – The project supports development which will protect and enhance the built heritage of Renfrewshire’s town centres, contributing to the creation of thriving places which support individuals, communities, and businesses. • Reshaping our place, our economy and our future – The project will help support the restoration and productive re-use of landmark buildings in Renfrewshire’s town centres, improving the built environment, helping to create job opportunities and contribute to economic growth. 4. Legal – None 5. Property/Assets – None 6. Information Technology – None 7. Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the
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mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – None 9. Procurement – None 10. Risk – None 11. Privacy Impact – None 12. Climate Risk – Potential projects identified in this report will encourage sustainable neighbourhoods, sustainable links and enhancements to greenspace 13. Children’s Rights – None 14. Cosla Policy Position – None _______________________________________________________ List of Background Papers (a) Council Budget as agreed at Full Meeting of Renfrewshire Council; 27 February 2025 __________________________________________________________________ Author: Euan Shearer; Regeneration and Place Manager Email: euan.shearer@renfrewshire.gov.uk