SOR comments on Environment Trust's Business Plan v.3 (summary) published October 2008 (These were included in verbal evidence given before Co-ordination, Finance and Performance Commission on 4 Nov 2008)
We have not been allowed to see the full Business Plan.
- The fit out costs in Table 2 (p.29) total £1,125,000. As there is “material non-charitable” use as well as charitable use in the building, all development and fitting out costs will suffer VAT at 17.5% which could add a further £200,000 to the bill. The building will include a café/restaurant, commercial boathouse, shop, commercial exhibitions and evening and weekend room hire. These are all non-charitable uses.
- Inflation is discounted in the report. If inflation continues to rise will all the funding be commensurately increased?
- The development phase of the project is expected to cost £257,000 . Only £102,000 has been found so far, leaving £155,000 still to be found , and we are told that two funding bids have not been successful. It is alarming to note that the shortfall is expected to be raised by fund-raising events, educational activities and volunteer support. So the biggest cost element is being raised on a wing and prayer. Not very sound business.
- The Richmond Adult Community College is expected to provide 32% of the income for the River Centre. Where is their Business Plan to support these figures? They are already saying that the River Centre may restrict their growth in services because of the lack of space in the education space of the building. Will their contract bind them to paying 32% of the necessary income? Who will be responsible if there is a shortfall? RACC have told us that they do not need the River Centre for their expanded programme
- The other major contributor to the income of the River Centre is the Restaurant, which is budgeted to produce 23%. In this recessionary climate this is extremely risky.
- The income from the learning space is budgeted at 19%. Where does this money come from? Is there any overlapping with the money being raised by the RACC?
- Why are the tenants of the office space paying service charges which are either equivalent or lower than the charges they are currently paying?
- The Environment Trust is being charged a peppercorn rent by the Council for the use of the building. How much could the Council receive if was a commercial enterprise? Does this represent best value for council tax payers?
- Has adequate funding been set aside to pay for the legal documentation which will be needed for the operation of the River Centre as well as the operations of the restaurant and boathouse?
- Grant funding is required for the fitting out of the building and one of the salaries, namely the community education manager. The community seems to be at the bottom of the list!
- This will do nothing to rejuvenate Twickenham, which is dying in front of our eyes. We already have a much loved playground and café, which are going to be destroyed and replaced elsewhere. We shall be left with private housing and an extension to the RACC, which was not envisaged when the original plan for a River Centre was mooted.
