2. Community Asset Transfer (CAT)
Al Bell

3. What is CAT?
Asset transfer is a shift in management and/or ownership of land or buildings, from public bodies to communities
Most often, but not solely, from local authorities to community and voluntary sector groups, community enterprises, social enterprises, etc.

4. Types of transfer
Rental or management agreement Licence Lease Long term lease c25 years Full repairing lease Freehold

5. History of CAT Many authorities were doing AT pre-Quirk
The 2006 White Paper, Strong and Prosperous Communities
2007 Quirk Review “Making assets work”
2007 government response to Quirk “Opening the transfer window”
2007 Empowerment Action Plan
2007 Community Assets Programme OCS/BLF
2007 – 11 Advancing Assets (AA) programme
2008 'Communities in Control: Real People, Real Power
2009 Asset Transfer Unit

6. And that the undervalue does not exceed £2m
Myth busters
Disposal at an undervalue
General Disposal Consent 2003 allows transfer without permission from Sec State as long as the land disposal contributes to the “promotion or improvement” of the economic, social or environmental well being of the area
And that the undervalue does not exceed £2m

7. Myth busters State Aid requires all 4 of following in order to apply:
Aid granted by a Member State or through State resources
Favours certain undertakings or the production of certain goods
A distortion (or threat of distortion) of competition and
An effect on trade between member states.
Also
de-minimis current limit is 200,000 Euros over a 3 year rolling period.
generally accepted that there is not a competitive market across Europe for bodies providing “not for profit” services to meet the needs of their local communities

8. Current context
Decentralisation, localism and big society Localism Act; community right to buy and challenge, local referendums, reclaim unused land and buildings. Deficit reduction plans likely increase number and speed of transfers but with a reduction in support Modernising Commissioning; mutuals, cooperatives, charities and social enterprises to play bigger part in running public services Waiving of government ‘clawback rights’ More transparency in public data Social value Public services bill; social value in all procurement

9. the over-riding goal is community empowerment.”
CAT drivers
“The starting point is the recognition that optimising the use of public assets is not the primary objective:
the over-riding goal is community empowerment.”
Making Assets Work, the Government’s Efficiency Champion, Barry Quirk

10. The opportunity
Deliver better services to meet, and continually respond to, the needs of the community
Improved value-for-money
Income generation and reduced grant dependency
Secure external funding and loan finance
Increased independence
Co-production

11. Do you REALLY want a building?
Success factors
Do you REALLY want a building?

12. Success factors
Asset or liability?
Age and condition of the building
Listed building?
Location – safety, convenience, footfall, local transport, infrastructure
Plans for the redevelopment of the area
Proximity to local housing (noise nuisance)

13. Success factors
Organisation
Strong board and good governance
Ability to hold an asset CC33
- Legal identity, Ltd Co, CIC etc
Pre-visible visiblecommunities.org.uk
Business plan
Building costs and likely incomes
Maintenance costs, conditions survey
Community need and benefit
Relationships
Good relationships with officers and elected members

14. Examples
Stourport – total assets pilot Wolverhampton – assets info pack Sandwell – 5 lease year to freehold Worcester– SPV of merged com orgs Camden – bulk transfer to CVS Multiple asset pilots – Torbay and South Tyneside

15. Further information Community Matters Free Advice Service
or phone Monday, Wednesday and Friday mornings and
Asset Transfer Unit (ATU)
Richard Bridge, Head of Consultancy, Training and Quality,
or phone