To seek in principle approval for the following:

That the council act as the lead organisation for the improvement programme including bids for external funding.

The allocation of capital expenditure funded by prudential borrowing for a capital investment and improvement programme at the Courtyard Centre for the Arts.

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The council is looking to support the Courtyard in seeking external funding to develop the site.  This will enable the Courtyard to be more economically stable in the long term and support the economic development of the county through tourism and culture along with contributing to the social value of the county in attracting people to work and live in Herefordshire.

The council is being asked to underwrite this support in the context of a bid being made by the Courtyard for funding to the Arts Council of England.  The recommendations will show the commitment the council has to the development scheme with a further decision on the council’s financial support to be taken in the event that Arts Council funding is approved.

That:

(a)   approval in principle be given to The Courtyard Centre for the Arts plans to expand the Courtyard building subject to the preparation of a satisfactory full business case and planning permission being secured;

(b)   the application to be made by The Courtyard Centre for the Arts to the Arts Council of England for financial support for the capital expansion project be supported and in principle agreement be given to Herefordshire Council underwriting the match funding required for the expansion project up to a maximum sum of £800,000);

(c)   it be recommended to Council that suitable provision be made within the council’s capital programme to support implementation of the above recommendation; and

(d)    the council acts as lead body on the planning application, and, subject to satisfactory business case, grant approval and planning consent as lead body for  commissioning and project management of the works.

1.          Herefordshire Council do not give approval for expansion of the building in its ownership. This is not recommended because it would effectively block any plans for the expansion and limiting the Courtyard’s opportunities for growth both in terms of service delivery and income generation.

2.          The Courtyard fundraise for the full amount independently.  This is not recommended. The Courtyard are applying for funds of £400k from Arts Council England for the expansion project.  In order to secure this funding the Courtyard must be able to demonstrate that they are able to raise the match funding required.  To fundraise the amount required will take some time so Herefordshire Council is being asked to underwrite this amount in order for the project to be able to secure the funding from the Arts Council and allow time for further fundraising activities.

3.          The Courtyard lead on the capital expansion project.  This is not recommended as the building is owned by the council and retained as a council asset.  The council also has the expertise with a number of capital projects achieved in the cultural sector e.g. Herefordshire Archive and Records Centre (HARC); Master House in Ledbury; and the refurbishment of Ross and Hereford Libraries.

4.          The Courtyard secure loan finance through a commercial financial provider.  This is not recommended because it would not be a financially viable option for the Courtyard.