Delivering Urban Transformation Strategies: A Public Sector Led UDF Des Gardner Head of Regeneration (Legal) Des Gardner City Solicitors
Overview The North West Evergreen Partnership The Investment Strategy - UDF's role in promoting the urban development strategy for the region Governance - share of participation (and management of interests) across municipal partners Funding - structure and possible future private sector (pension fund) leverage + incentives. Investment Management - relationship/responsibilities of the General Partner (fund manager)
The Northwest Evergreen Fund NWDA - Holding Fund EIB Holding Fund Manager North West Operational Programme Rest of North West -4 sub-regions: Cumbria, Lancashire, Greater Manchester, Cheshire -18 unitary or County local authorities Ring - fenced Funds – AGMA/County Areas
The Northwest JESSICA Fund Structure NWUIF (Holding Fund) EIB HF Manager Merseyside UDF £30m ERDF £50m ERDF £50m NWDA Match Funding £10m in the IDUFSP £10m RoNW £10m SP Funds £10m AGMA Capital Returns & Interest Projects £50m Agency Land and Single Programme Funds released as Local Match Funding is secured Projects +£10m Match RoNW +£10m Match AGMA +£10m Complementary Funding to Match £10m SP funds +£30m local match
Process STAGE 1 (March 2010 – April) STAGE 2 (May – June) STAGE 3 (July– July 2011) Expression of Interest -Establish consortium -Track record -Evidence of first negotiation partnership -Letters of support The Bid -Investment strategy -Project portfolio -Ownership and governance -Risk management and control procedures -Financial forecasting -Management fees Operational Agreement -Evidence of Stage 1 projects -Terms and Conditions -Investment Adviser Agreement -LP Agreement -Ancillary Documentation -Match Funding
The Northwest Evergreen Fund Vision 1.Create a high-employment region 2.Invest in science, research and innovation 3.Build on the regions strengths in culture and media 4.Supporting strong and diverse town centres 5.Promoting a wider, stronger and more sustainable industrial base 6.Ensuring sustainable sites are ready for development
The Investment Strategy Strategic Framework - IPSUDs Project Selection Methodology Loan Pricing and Underwriting Monitoring Public/Private Partnership
Investment Strategy The Greater Manchester View Strategic Economic Context Greater Manchester Strategy Assessment framework Project Pipeline – capacity building
Governance Greater Manchester Bolton Bury Manchester Oldham Rochdale Salford Stockport Tameside Trafford Wigan County Areas Blackburn with Darwen Blackpool Cheshire East Cheshire West Lancashire Warrington Cumbria (tbc)
Legal Structure
Governance Limited Partnership Meetings -Delegation to GP -Special Consent General Partner Board -Balanced AGMA/County Areas -Co-chairs -Reserved Matters Investment Adviser Appointment -Independence -Approval of recommendations
Funding ERDF/Single Programme Public Sector match/complementary investment – land/cash Leverage public investment – private investment finance Other sources of finance – LGPF, Senior Debt, Developer equity
Financial Structure
Investment Management General Partner Real Estate Adviser - CB Richard Ellis Investment Strategy Report to General Partner EIB Holding Fund monitoring and management
Project Selection Process
Next Steps Fund operational July 2011 Quick Win Projects State aid framework Wider Investment Fund -Housing -Low Carbon -Infrastructure
Questions Des Gardner Head of Regeneration (Legal) Manchester City Council