save our newnham pub

72 Pages·2017·1.2 MB·English

From: Dale Ingram <[email protected]>
Sent: 17 June 2016 13:45
To: Brian Conlon
Cc: Clerk Newnham
Subject: Old House at Home: Objection Appendices 5 & 6
Attachments: OHAH Concept Business Plan 2016.pdf; OHAH Petition Submission.pdf
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Please find attached the Concept Business Plan and 'Save Our Pub' Petition from Change.org
This is the last of four emails, the others numbered.
Thank you for your assistance
Dale
Dale L Ingram MSc CHE FRSA Mobile: [phone]
Director, Planning for Pubs Ltd.
Historic buildings & planning consultants
Public houses & breweries specialists
We:
Procure:securing existing pub premises as pubs & conversion of other buildings to pub & brewery use
Protect:registration and defence of Assets of Community Value & applications for Article 4 Directions; Rule 6 and ThirdParty
Advocate;Expert Witness inplanning and court proceedings
Preserve:historic buildings conservation-informed repair & alteration
Promote:protection of pubs through planning reform locally and nationally; speaker at conferences & events
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1
Concept Business Plan
To be read in conjunction with the Viability
Study produced by Anthony Miller
D R A F T
The Old House at Home
Tylney Lane
Newnham
Hook
Hampshire
Draft at 12th June 2016
2. Old House at Home: Concept Business Plan
ExECuTivE SummARy
a. This Plan is a working document produced by the Parish Council to present
proposals for purchasing, refurbishing and reopening The Old House at Home
as a community and family pub with quality, locally-sourced food, real ales,
and a warm, traditional atmosphere.
b. The Plan describes the history and circumstances which led to the closure and
sale of the Old House at Home, its status as an Asset of Community Value and
the current threat of the application for Change of Use to housing.
c. Underpinning the plan is the community’s support for opposing the Change of
Use and for reopening as a Community Pub. The ‘Save our Newnham Pub’
petition – stating ‘The village is ready to buy and re-open as a great local pub
with good food, beers and wines’ – surpassed its target of 1,000 signatures
within a week. The public response to the planning application is 81 objections
to date with none in favour. A Community Pub Steering Group formed to take
the business venture forward.
d. The Parish Council and Community Pub Steering Group have been able to
demonstrate that the Old House at Home can be commercially successful.
The viability study by Anthony Miller, advisor to Pub is the Hub, supports this
position, as does the rateable value of £29,750 which indicates a good trading
position compared to other pubs in the area.
e. It has been agreed that a loan – available to the Parish Council via the Public
Works Loan Board – is the preferred and most efficient funding method. A
co-operative pub structure has also been considered which would enable
grants, plus additional funding from community share offers, and so reduce
the amount of loan required.
f. While investigating finance and business models it has become clear that the
costs of a Community Pub can be substantially lower than for a tied house as
the Old House at Home previously operated. Tenant managers will live in, so
the ancillary accommodation supplements required income. Rent to the Parish
Council will cover repayments to the PWLB, not provide profit for a brewery.
Any profit can be re-invested. Not being tied to a brewery gives the purchasing
freedom to choose quality local produce and beers, and to reduces costs.
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Old House at Home: Concept Business Plan 3
1. CuSTomER NEED
1.1 How have customer needs been met in the past?
1.1.i The Old House at Home can be traced back to 1725 as an operating pub, and
so is part of the historical and cultural fabric of Newnham Village.
1.1.ii Landlords over the last 25 years have operated a variety of models.
From c1990 the landlord expanded from a beer pub to a steak menu and then
a menu of locally produced sausages. In addition to locals, the cars
overflowing the car park and across the Green evidenced the high volume of
trade. The Old House at Home is still known from Hook to Basingstoke and
beyond as the ‘sausage pub’. The most recent tenants from c2005 operated as
a high-end ‘gastropub’.
1.1.iii Community – The Old House at Home is the only pub in Newnham village
Resident’s quote: ‘The pub has been a place of contact to meet and make
friends. It has allowed the elderly to meet locally, preventing loneliness. It is
where our children and others had their first jobs. It has been the centre of
community events: barbecues, village fêtes, the queen’s jubilee. We have used
it to raise money for local charities. We are a strong community, we voluntarily
maintain our Green and village ponds and organise litter picks. The pub is
where we meet and where we can replenish our spent energies after our
exertions. Visitors to our Nursing Home have been able to bring loved ones out
for a change of scene and to spend time with them.’
1.2 How are customer needs being met at present?
The Old House at Home has suffered from a high turnover of owners and lack
of investment. The most recent licensee made several attempts to buy the Old
House at Home but, being unsuccessful, left in February 2015. The pub has
been closed since then and was registered as an Asset of Community Value
(ACV) the following July – with reference to the Localism Act’s Community
Right to Bid. Then owners GRS were in receivership and the pub was sold
within a package of 146 others to Red Oak Taverns. ACV status can't influence
sale if debt is involved. A planning application for Change of Use to housing
was registered on 26th April with Basingstoke & Deane Borough Council
(BDBC). Red Oak Taverns has a sister company which converts pubs to
houses. The Local Community and Parish Council are opposing the change of
use and putting plans in place to purchase and re-open as a Community Pub.
1.3 How will customer needs been met in the future?
1.3.i The Old House at Home will reopen as a community and family pub with
quality, locally-sourced food and real ales, and a traditional, welcoming and
friendly atmosphere. The detail of an agreed vision will be endorsed by the
community and tenant managers. The Dolphin in Bishampton (Pershore) was
bought via the PWLB route intended here. Now cited as ‘excellent’ by Trip
Advisor for its food, warm atmosphere and friendly service this is the type of
model we wish to compare with.
https://www.tripadvisor.co.uk/Restaurant_Review-g677734-d4713089-Reviews-
The_Dolphin_Inn-Pershore_Worcestershire_England.html
1.3.ii The Old House at Home will facilitate community well-being, integration and
cohesion as 1.1.iii above. As a Community Pub, this community focus can be
central to its business model.
4. Old House at Home: Concept Business Plan
1.3.iii Given its quality and location, the Old House at Home will be an attractive
destination pub for the wider community. A rural walk away along Church
Path, a shorter cycle or even shorter car journey, Hook is an extensive
residential catchment area, with the large business parks providing a pool of
workforce and client lunch trade. The pub is also a venue for cycling and
walking groups. It was commented on the website for Hook Action against
Overdevelopment that: ‘Many Hook residents... have spent time in this pub,
often after walking or cycling to Newnham from Hook.’ The Old House at Home
is also cited as part of Tylney Hall Hotel’s marketing as a recommended venue
increasing the value of the local area to hotel customers.
2. ComPETiTioN
2.1 Where is our competition?
2.1.i The Old House at Home is Newnham’s only pub. We have a small village hall
(Newnham Clubroom) but this is not comparable and has no licence.
2.1.ii The closest pub is the Hogget, approximately a mile away on a major road
junction of the A30 / A289. The majority of surrounding Villages have one or
more pub, the closest comparable ‘local’ being the Coach & Horses in Rotherwick
approximately two miles away along country lanes or across the golf course.
2.2 Who is our competition?
In his Viability Study for the Old House at Home, Anthony Miller ‘accepts that
[surrounding area pubs] are to some degree competition’ – though not for
residents who want their ‘local’ within regular walking distance.
2.3 What opportunities and threats do they present for you?
2.3.i The ‘competition’ – neighbouring village pubs – have been supportive of the
Old House at Home reopening, their message being that every good local pub
is an asset to its community and the village pub culture.
2.3.ii Based on rateable values, Anthony Miller assesses in his Viability Study that
the Old House at Home (rateable values, £29,750) has held a good trading
position compared to other pubs in the area.
2.3.iii In reopening the Old House at Home as per 1.3 above, other local village pubs
while in some degree competition for the destination pub market, do not pose
a threat to a viable business model. Based on communication to date it is
likely their expertise and support will be valuable in sourcing suitable tenants
to manage the Old House at Home. Their operating models and performance
will also be useful information to draw on. Evidence of surrounding locals and
their car parks being full indicates demand.
Note: The Fox & Goose in Greywell is now successful following a change to its
business model in 2014... According to Greywell Parish Council: ‘The Fox &
Goose was having financial problems and Punch Taverns looked set to pull the
plug. We sought successfully to designate the pub as an “asset of community
value” under the Localism Act 2011. In practice this was not needed as a new
business partner has completely revitalised the pub and it is thriving again.’
3. WoRk DoNE To DATE
3.1 Countering the planning application registered by Red oak Taverns
16/01315/FUL Change of Use A4 Public House to C3 Residential
Dwellinghouse. The Old House at Home, Tylney Lane, Newnham RG27 9AH.
Old House at Home: Concept Business Plan 5
3.2 Commitment to acquisition and the Public Works Load Board
3.2.i This Plan assumes the Old House at Home will be placed on the open market
once planning for change of use is refused. It is assumed that the Parish
Council’s Community Right to Bid under the Localism Act will apply.
3.2.ii ‘An application to the Department for Communities and Local Government
(DCLG) for approval for a loan from the Public Works Loan Board (PWLB)’ –
this intention has been discussed, agreed and minuted by the Parish Council.
We have discussed with Hampshire Association of Local Councils (HALC). (The
application has to be submitted to DCLG via HALC). There is potential to
borrow a maximum £500,000 in one year over a maximum of 50 years. Costs
shown below are for the maximum amount and then for £300,000. It can be
seen that, for £300,00, the initial annual repayment figure over 50 years is
£15,300. The application will be prepared to cover purchase, refurbishment
and set-up costs, and later, the cost of an extension. As the purchase will not
utilise any Precept funds, the application will be judged on its business case.
Amount of Advance: 500,000.00 (from PWLB website 11th June 2016)
Annuity EIP
Period Half year initial half reduces by
Years % cost (£) Total cost (£) % yearly cost each half year Total cost
4½-5 1.46 52,029.41 520,294.10 1.46 53,650.00 365.00 520,075.00
9½-10 1.78 27,401.77 548,035.40 1.77 29,425.00 221.25 546,462.50
14½-15 2.11 19,530.11 585,903.30 2.08 21,866.67 173.33 580,600.00
19½-20 2.40 15,812.53 632,501.20 2.35 18,375.00 146.88 620,437.50
24½-25 2.66 13,754.81 687,740.50 2.59 16,475.00 129.50 665,112.50
29½-30 2.87 12,485.52 749,131.20 2.78 15,283.34 115.83 711,975.00
39½-40 3.08 10,913.64 873,091.20 3.03 13,825.00 94.69 806,787.50
49½-50 3.07 9,814.37 981,437.00 3.10 12,750.00 77.50 891,375.00
Amount of Advance: 300,000.00 (from PWLB website 11th June 2016)
4½-5 1.45 31,209.22 312,092.20 1.45 32,175.00 217.50 311,962.50
9½-10 1.76 16,424.44 328,488.80 1.75 17,625.00 131.25 327,562.50
14½-15 2.08 11,692.49 350,774.70 2.06 13,090.00 103.00 347,895.00
19½-20 2.38 9,469.79 378,791.60 2.33 10,995.00 87.38 371,647.50
24½-25 2.64 8,234.36 411,718.00 2.57 9,855.00 77.10 398,302.50
29½-30 2.86 7,481.61 448,896.60 2.77 9,155.00 69.25 426,727.50
39½-40 3.08 6,548.19 523,855.20 3.02 8,280.00 56.63 483,465.00
49½-50 3.07 5,888.62 588,862.00 3.10 7,650.00 46.50 534,825.00
http://www.dmo.gov.uk/rpt_parameters.aspx?rptCode=D9A&page=Lending
........................................................................................................................
3.3 Community Consultation
3.3.i Publicity and community engagement began with the petition ‘Save our
Newnham Pub’ and responding to the change of use planning consultation.
We publicised via facebook, twitter, email, articles in local newspapers and
leafleting door-to-door. We also engaged our local Ward Councillors, our MP,
and contacted the One Show, CAMRA and Pub is the Hub (PITH).
6 Old House at Home: Concept Business Plan
3.3.ii Community support
The petition had 1,200 signatures within a week of launch. There have been
81 public objections to the change of use application and no responses in
support. Regarding the Parish Council’s agreed and publicised intention to
purchase the Old House at Home as a Community Pub, the only questions and
expressions of concern have related to whether the Parish Council would be
committing Precept funding. This will not be the case (3.2.ii).
3.4 Additional fundraising
3.4.i The Plunkett Foundation has approved our request for support. This initially
involves a ‘pre-feasibly bursary award’ of £2,500 which will pay for expert
consultants to help oppose the change of use application.
3.4.ii The Plunkett Foundation Combined Loan & Grant Funding (up to £150,000 but
not exceeding £75,000 in grant contribution) has been discussed and will be
revisited. The grant contribution would substantially reduce the loan required.
3.4.iii The option of a Community Share Fund under the Enterprise Investment
Scheme (tax relief scheme) to raise part of the funding has been considered.
(Key features: EIS – tax relief amounts to 30% of the investment, SEIS – tax
relief amounts to 50% of the investment.)
Regarding 3.4.ii and 3.4.iii it has been agreed that the PWLB is the preferred
and most efficient funding method. However both 3.4.ii and iii should be
revisited later in the process. Both would be beneficial in reducing the amount
the Parish needs to borrow overall and give opportunity for increased
community involvement and benefits. Plunkett have provided advice on the
legal structures required.
3.4.iv Other options investigated so far are grant funding from the Big Lottery Fund
and from the Esmeé Fairbairn Foundation. Both would seem to offer funding
opportunities for specific elements of the refurbishment and reopening process
and again will be considered at later date.
4 PRoPoSED ENTERPRiSE SCHEmE
4.1 Legal structure of Community Enterprise
To be agreed. The support package agreed by Plunkett includes two days with
a specialist advisor which will be taken advantage of here. A co-operative pub
has been discussed which would involve incorporating as an Industrial and
Provident Society (IPS). IPS Societies for the Benefit of the Community aim to
benefit the wider community beyond and including their members. They allow
for additional funding to be raised from community share offers. This reduces
the amount of rent required to service the loan (see 3.4.iii); profit can be
reinvested for social or community benefit.
4.2 Building – refurbishment
4.2.i Refurbishment – overview In order to keep the process manageable it has
been agreed that essential refurbishment will be undertaken immediately
following purchase – and that wishes and plans to extend the premises will be
Phase 2 of the operation at a future date to be agreed.
Refurbishment works will include overhauling the roof, external maintenance
and redecoration plus landscaping, fencing & garden furniture; rewiring,
refitting and redecorating the public space, bar, commercial kitchen, public
toilet facilities, and the tenants’ ancillary living accommodation.
Old House at Home: Concept Business Plan 7
Necessary refurbishment costs will be accounted for in the agreed conditional
offer figure to Red Oak Taverns.
4.2.ii Refurbishment specification and estimates
(See document ‘160612 pub purchase and fixing costs’)
Summary estimates (subject to revision and revised quotes)
Ancillary accommodation £30,000
Bar and kitchen £13,200
Public bar areas £2,250
Barn restaurant £2,750
External £21,750
Total £69,950
4.2 Business model
4.2.i Community pub – see 1.3 above.
4.2.ii As a Community-owned pub the Old House at Home is much better placed to
succeed commercially compared to past models because:
a. The tenant managers will live in so the ancillary accommodation provided
materially supplements the income required.
b. The rent payable to the Parish Council will repay the loan from the PWLB,
not provide a profit for the brewery (3.2.ii). Any profit can be re-invested.
c. Not being tied to a brewery is a major benefit in terms of both price savings
and the ability to buy from local breweries, also popular with customers.
4.3 marketing
4.3.i Sustaining community commitment A benefit from the publicity campaign (see
3.3) and the Old House at Home being a Community Pub will be that levels of
local awareness and community commitment are already high. It will be vital
to sustain this commitment and build reputation by maintaining, reassessing
and seeking to improve quality customer experience and service (see 1.3).
4.3.i Further marketing strategy To be agreed in consultation. All available advice
and experience will be drawn on – from Plunkett advisor, Camra, Pub is the
Hub, other local pubs and enterprise groups.
4.4 opening hours To be agreed. Has been considered that it is important to
open on Sunday evenings which with previous licensees was not the case.
5 STAFFiNg
5.1 It has been agreed that experienced and committed professional live-in
tenants to manage the pub business is central to the business model. Finding
the find right tenants will be the priority – possibly a young couple – who buy
into the agreed business model of quality community pub – and have the
relevant qualifications, experience and track record. Again – all available
advice and experience will be drawn on – from Plunkett advisor, Camra, Pub is
the Hub, other local pubs and enterprise groups.
5.2 Live-in tenant is also the preferred model as accommodation costs are a
significant part of income for any prospective landlord. The upstairs ancillary
accommodation following refurbishment will comprise a kitchen / living area,
bedroom and bathroom. Included as part of the package for a tenant couple,
this will be of material value.
5.3 The Old House at Home has a history of providing part time employment to
the community, particularly the young people of the Village, see 1.1.iii above,
which we would aim to continue.
8 Old House at Home: Concept Business Plan
5.4 The Old House at Home in memorable history was let to amateurs, from which
the Community and Parish Council has learnt this is a model to be avoided. It
is also important for the business model to be capable of good commercial
success without relying on volunteer contribution.
6 PRoFiTABiLiTy oBjECTivES
The business model requires that the managing tenants pay a rent sufficient to
repay the Parish Council loan from the Public Works Loan Board (3.2.ii). Any
additional profit is reinvested in the pub or an associated community enterprise.
7 FiNANCiAL DATA
See Viability Report from Anthony Miller. Mr Miller advocates a robust set of
trading figures (though he does suggest lower rent in the first years). It should
be noted that the Parish Council and Community Pub Steering Group would be
looking to a more conservative approach requiring operating figures in the
region of two thirds those shown below: the emphasis will be on providing a
community local of excellent quality and value, not on profit (see 6 above).
However Mr Miller’s suggested figures are useful in demonstrating realistic
potential and viability.
Figures from Viability Report by Anthony Miller
‘13.5 FMT Turnover £375,000
Gross Profit at 67.5% £253,125
Less
Wages at 31% of T/O
Fixed and Variable Costs at 16% of T/O
Total costs £176,250
Net Profit £ 76,875
Less Interest on capital
Cash £ 8,000
Stock £15,000
FF&E £45,000
Total £68,000
Interest at 5% £ 3,400
Divisible Balance £73,475
Rental bid at 50%
Rent £ 36,737 say £36,500
‘This leaves the tenant with an adequate income of £36,500 in
addition to accommodation provided.
‘13.6 The rent over the initial five years of the term would be
discounted in Years 1 & 2 from £36,500 to – in Year 1 £25,000, rising
in Year 2 to £30,000 and in Year 3 to £36,500 until the first review.
This would give the business time to reach a maturity.
‘The rent paid to the Parish Council would be used to pay interest on
the PWLB loan. There would be no interest payable in Year 1.
‘13.7 I am aware this arrangement has worked successfully at the
Dolphin at Bishampton in Worcestershire and has been written up on
the Pub is The Hub website as an example of how communities can
approach the acquisition of their local pub.’
8 SET uP CoSTS AND FuNDiNg (SEE 3.2)
Old House at Home: Concept Business Plan 9
9 oTHER SCHEmES CoNSiDERED – AND WHy REjECTED
9.1 Former business models not to be taken up
9.1.i The ‘sausage pub’ had an amazing reputation and attracted volume
trade. However eating tastes change and the number of covers required is
considered too high for this model alone to be reasonably sustainable.
9.1.ii The most recent licensees had very high food standards, expectations
and quality. However it has been considered that this isn’t the model on its
own to best serve the needs of locals and families.
It is however considered that both these models could have more
commercially successful if not for the high costs and overheads of a tied
house; and particularly as the previous licensees maintained their own private
dwelling in addition to the pub’s ancillary accommodation.
9.1.iii See 5.4.
9.2 Alternative funding options See 3.4.
10 QuALiFiCATioNS oF THE mANAgEmENT TEAm
Christopher Bingham –Newnham resident since 2014, but in the local area since 2007, Chris has led the Campaign's engagement with local businesses
who thrive on the pub. Chris is an active contributor to the upkeep of the Green and communal land as well as the village ponds. He has a Bachelor of
Arts in Modern Languages and is a Vice President for a major international technology firm, leading the sales and marketing function.
Paul Gaskell –Newnham resident and Vice-chair of the Parish Council, Paul is a Chartered Engineer with a Post Graduate Certificate in Engineering
Management, BEng (Hons) Degree in Engineering Systems Computing and Control, BTEC HNC / ONC in Industrial Measurement and Control. He has
worked as an engineer for 30 years, from Technical Apprentice to Client Technical Representative on one of the largest projects in the world.
June James –Newnham resident and supporter of the Old House at Home for 22 years. Now Parish Council Chairman, June has professional experience
in team building. Originally an Intensive Care Sister in the NHS, she was then yacht skipper and manager of Global Yacht racing teams for the BT
Global Challenge. She has skippered and trained yacht racing teams to race the Atlantic and Sail Around the World and worked with Mission
Performance Ltd as Inspirational Leadership Coach. June has also worked locally for Heart Start, the resuscitation coaches, taking the message out to
schools and clubs, and has much fundraising experience –for the Royal Medical Benevolent Fund, various hospital scanner appeals, the Ark Medical
Centre and recently the local cancer treatment Centre Appeal. She also cooks, enjoys and understand food –has renovated three houses –and
currently works for Plant Heritage and sits on the RHS shows committee for the Hampton Court flower show.
Peter Lumley –Newnham resident of 25 years and recently retired Parish Councillor, Peter has 35 years’ business management experience including
eight years as Managing Director and now Executive Chairman of Windlesham Golf Club. Peter has successfully developed the Food & Beverage business
which offers a full range of services include a Spike Bar, Restaurant and Functions Rooms for Weddings, Parties etc following a full refurbishment of the
kitchens and dining room. He also holds a Personal Licence for selling alcohol and could be a Designated Premises Supervisor until a manager is
appointed. BDBC 08/01514/pers-n
Susan Turner –Newnham resident of 15 years, Publishing Editor, and Clerk to the Parish Council.
Gareth Wilson –Newnham resident of three years and recently-elected Parish Councilor. An IT consultant by day with 20 years’ experience, bringing the
skills to manage projects and budgets, manage people and negotiate with suppliers. Having worked on numerous Banking, Payment systems, Retail and
Website deliveries, Gareth is well placed to assist with similar systems needed for a pub. He is also hands on when it comes to property renovation and
landscaping and more than happy to roll up his sleeves and get a job done.
Richard Wilson –Newnham resident on and off for the last 27 years. Richard started his working life behind the bar in the Old House at Home,
eventually running the bar and being front of house manager for two years. He has spent the last 23 years in the city as a Commodities Broker and is
currently a member of the Parish Council.
Parish Councillor John Ashworth –A retired general practitioner with experience of formulating business plans when getting funding for building a new
surgery. John has been resident in the Parish of Newnham and Nately Scures for 36 years.
Parish Councillor Ann Blyth –A Parish Councillor for four years, living within the Parish at Waterend, Ann is retired after 50 years’ experience working
in a variety of businesses, too many to mention (though including behind a bar before her children started school). Ann notably worked in logistics for
16 years where she was single handedly responsible for a £5 million a year turnover and latterly as a Senior Move Adviser in the housing rental market.