- The
acquisition and refurbishment of the building are funded
100% through capital grant sources.
- The
refurbishment is designed to minimise overheads.
- The
development and management body founded to lead the project
is relieved of the pressure to run the business to create
commercial profit.
- The
tenant selection process and mix is strictly adhered to.
- Any
further intervention to provide business support and education
services towards the creation and support of new talent
and business must receive separate revenue funding.
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Tenant
Mix
The existing tenant mix in Stag Works might at first appear
to be strange, but it derives from a strong will on the part
of the project champions and current building owner to honour
the long metal trades tradition and history of the property,
while focussing on the support and development of the more
recent ad hoc use of the premises by the music trades over
the past 20 years or more. There is the strong recognition,
however, that the key driving force behind the development
is in the music sector, and the majority of the premises are
proposed to support the music trades.
In
terms of the life and vibrancy of the building, there is confidence
that this mix can both work and also provide added value,
as evidenced by such trades living and working adjacent to
each other in an unorganised manner for many years to date.
It is to their credit that both sectors in the building seem
to have a respect for each other's practice, as wildly different
as they are, and the resulting mix of tradition, craft and
contemporary cultural production is rare and exciting.
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Tenant Zoning
The allocation of tenancies will need to be zoned throughout
the building to allow for factors such as: use of heavy machinery;
volume of deliveries; distribution of incubator units; amount
of noise generated and access to natural light, and the rents
set will vary slightly according to location.
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Business
Support and Development
The primary support for businesses will come through the provision
of purpose built, affordable workspace with a supportive Manager
working closely with the enterprises in the building. More
specialised business support (marketing, distribution, business
planning, production, contracts and employment) specific to
the music industry and metal trades will be identified by
the Manager but not (at least initially) funded from core
income. Agencies who can assist with support include Red Tape
Studios, Darnall Music Factory, Inspiral and Business Link
at the local level, and bodies such as AIM, the PRS Foundation
and the National Federation for Youth Music nationally. Where
possible, this support and training will be provided on-site
in the purpose built training facilities.
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Tenants
& The Internet
The building will be fully wired for broadband internet access.
The Electro Works web site will play a key role in business
development, connecting tenants, marketing their products
and promoting the project to the world. Broadband access,
web maintenance and running costs will be included in the
rent.
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Building
Design Proposals
A number of key business planning issues were addressed in
the design process, including physical access, maximising
lettable space and small units and controlling overheads.
A few unresolved issues remain, such as the possible isolation
of the receptionist, which is unsatisfactory in terms of personal
safety, but such details will be dealt with in the detailed
design stages.
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Cafe
Bar and Venue
There is a strong case for a Cafe Bar as social space for
tenants to meet and network and to entertain clients, partners
and colleagues. In a managed workspace environment this is
essential to provide a sense of ownership and focus. The venue
will act as a mini-showcase for tenants. There are also opportunities
for attracting the general public without saturating local
provision.
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Organisational
Options
It is advised that Electro Works be owned and managed by a
Development Trust. This would reflect the wider aim of Electro
Works to assist with the regeneration of the local area. it
would allow for the support of other developments and improvements
in the area as well as direct involvement in local training
and event promotion, whilst ensuring proper representation
for the local community on the Board. Board membership would
be specifically sought from: tenants and other users; the
local and sub-regional music sector; the local resident and
business community and the traditional metal trades.
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Staffing
and Management
The rental income will, after a period of three years, fund
a full-time Reception/Administrator and a Development Manager.
The Administrator will be stationed at the main entrance,
act as a focus for the building and a face for tenants and
visitors, and will deal with the day-to-day running of the
building. The principal responsibilities of the Development
Manager will be to attract and support tenants, develop business
support programmes and manage the building's events programme.
The production of Management accounts should be outsourced.
During the development phase of the building an additional
Project Manager would need to be employed. This should be
funded through the capital budget.
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Tenancy
and Licence Agreement
The use of a flexible license agreement is advised for enterprise
or incubator units. This protects the new enterprises from
initially entering into lengthy property agreements. More
established enterprises would enter term lease agreements
for periods of circa 3 years.
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Service
Charges
Charges to cover business rates, water rates, insurance, web
site and e-network maintenance, cleaning costs, heat and light
for common areas and building maintenance will be charged
on a square footage basis in addition to rent.
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Building
Acquisition and Status
The overall scheme is only viable if the project acquires
the building and this acquisition is totally funded through
the capital funding programme. Insufficient revenue is generated
from rental income to repay loans or service debts, especially
in the early growth years. The building should be valued considering
options of either outright freehold purchase or a long lease
for a one off premium payment and peppercorn rent. For current
business planning purposes a value of £450,000 has been
assumed. It is essential that licensing and tenancy agreements
are formalised for existing tenants prior to acquisition.
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This
can be achieved providing the following principles are adhered
to: