Leicester Workshop 1 Integrated Capital Strategies Rod Norton

Integrated Capital Strategies

Crowden Outdoor Education Centre: A Case Study

The Financial ProblemCosts

Rebuild Cost £980,000

Income

Settlement Proposal £740,000

The Interested Parties

• Rotherham Metropolitan Borough Council

• Youth Hostel Association

• Peak Park Planning Authority

• United Utilities PLC

The Deal• YHA gave up sub-lease on their hostel• Peak Park gave up lease to freeholder• Peak Park gave United Utilities planning

permission for social housing• United Utilities gave RMBC £100,000 from sale• YHA and RMBC signed management agreement

for sharing and running new building

The Financial SolutionCosts Rebuild Cost £980,000

Income Settlement £740,000Connexions £70,000Access Fund £50,000Sale of Furniture £20,000United Utilities £100,000Total £980,000

The Management Agreement

• YHA responsible for managing the building

• RMBC responsible for managing activity

• Profit/loss sharing agreement

• Legally binding three year management agreement