the black swan monxton - · pdf fileagenda –proposal for the community purchase and...
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The Black SwanMonxton
To Be or Not to Be a Community Pub?
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AGENDA – Proposal for the Community Purchase and ongoing Management of the Black Swan Pub
• Objectives of the meeting
• History of the Pub
• Survey results
• Recent activities by MPC with Enterprise Inns and TVBC
• Overview of current premises
• Proposed new layout
• Proposed Investment approach
• Proposed management strategy
• Summary - Next steps
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Objectives of the meeting
• To provide enough information to decide if the project looks viable enough at this stage to raise the money required
• To agree as a community we want to buy the pub as a community
• To confirm that local villagers are prepared to provide money to support the Fighting fund – target £20,000
• To ascertain who would be prepared to commit to buying shares in the new Community company which will purchase the pub
• To confirm who has the skills required for the first phase of the project to undertake Due Diligence and negotiations with Enterprise Inns
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Survey results to dateHow important is a pub in the village?
• 80% of respondents feel a pub is important or very important in the village
How often would you use the pub?
• 39% of respondents would use the pub at least weekly, & 58% at least fortnightly
What additional services would you like the pub to offer?
• Coffee/teas/cakes during the day, take-aways, private dining room, live music, kids’ meals, village shop, library, quiz nights
What type of catering would you like to see at the pub? (multi-choice)
• Small, quality menu with local/seasonal, simple pub food; kids’ menu; gluten free options; frequent menu changes
Would you be prepared to help in any way?
• Fund-raising, volunteer; buy shares, offer professional advice, join the steering group, donations or loans, etc. Only 3 people don’t want to help
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Key Issues To Consider Running A Community Pub
• Why did the existing pub fail and finally close?
• Can the community sustain and support the pub?
• A significant investment is required and need local investors?
• Are there needs for other local services which could be supported at the pub e.g. village shop?
• The role of the villagers and any volunteers to undertake any works FOC or serve on the steering group/board
• Investors and financial returns
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Parish Council & The Community Assets• Community Asset orders placed on the Car Park and Village Green - signed off by TVBC
• Community Asset orders placed on the Pub - now in process
• Monxton Parish Council have requested a moratorium on the sale of the pub (package), which allows time to raise funds, create a plan to acquire the assets, create a business plan, get restructuring costs, hire personnel, etc. etc
• All other buyers are effectively blocked until 5 January 2017
• Any change of use application would be likely to fail on several grounds• De-licencing pub against TVBC policy
• Pub is a listed building and any changes would be subject to stringent consents and unlikely to succeed
• There is a SSE sub-station at the rear of the car park which would cost thousands to relocate
• Permitted development rights are removed for Assets of Community Value
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Community Right To Bid – Village Assets
• Created in the Localism Act in September 2012
• Communities can ‘stop-the clock’ on the sale of valuable local assets and amenities
• Gives community time to put in a bid and protect it for the wider benefits of the
community.
• The owner is not bound to sell an ACV pub to a community group but must weigh that
against the risk of bad press and reputational damage.
• The owner is only bound to give time to the community group to bid for the pub. An
ACV will potentially have an impact on timing of a sale and at worst it will constrain
the ability to convert a pub to alternative use.
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Work To Date• Letters of confirmation from MPC issued to TVBC to put into effect the moratorium for six months to the
5th January 2017 on the sale to enable a Community Bid to be assembled
• Photo Survey undertaken and PowerPoint walkthrough created and used for discussion with potential
partners/suppliers and grant funders
• Discussions undertaken with Head of Planning TVBC of proposed Community pub and changes required
to the building
• Pre-App advice request obtained for submission following creation of outline drawings
• Architects contacted and site meetings were arranged on the 19/8/16
• Heritage specialist contacted for Impact Assessment required for TVBC Listed building planning
application and site meetings were arranged on the 19/8/16
• Professional Pub management contacted for input on the Business plan/cost estimates/overheads/cash
flow projections meeting week of 15/8/16
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The Future for the Pub
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Current Layout• Kitchen at front – small and unsuitable
• Cellar area to left is wasted space
• No kerb appeal from outside due to layout
• ‘Lower bar’ is thoroughfare to other areas
• Main bar is small and jostled
• Rear dining area is unwelcoming
• Distance from kitchen to dining areas via customers at bar problematic for waiters
• Garden is not ‘embraced’ by the building
• Courtyard currently unused
• Staff areas split up and not easy to access
• Staff accommodation has no kitchen and is in poor condition
Next
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Possible Future Layout• Enclose central courtyard for bar
• Bar area becomes ‘hub’ of pub
• Move kitchen to rear dining room
• Current kitchen becomes seating area around large inglenook fires
• Current cellar/store becomes small ‘snug’
• Increase dining areas to allow 60-70 covers
• Possible private dining area, if required
• Staff access is separate to customer access
• Refurbish staff flat and add kitchen
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New Orangery Bar - Enclosed Courtyard –
Example pictures from Prime Oak Buildings
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Black Swan – The Future• To have a pub that is the centre of the community – in every sense
• Provide a warm, welcoming and friendly atmosphere
• Serving quality, simple, seasonal food, locally-sourced where possible, at a reasonable price
• Well-kept cask & real ales, quality wines, interesting range of spirits and non-alcoholic drinks
• Different areas to sit, eat, drink, talk, socialise - in summer & winter
• To continue over 360 years trading as The Black Swan in Monxton
• To preserve and improve a historic building for future generations to enjoy
• Environmentally sustainable (e.g. solar PV panels, air source heat pump, LED bulbs etc)
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Options For Managing The New Pub?
•Volunteer staff and management• In-house professional management team •Tenancy: sub-let to a professional operator
• Steering group/board for strategic decisions with community input
• Day to day operational decisions undertaken by Tenant• Monthly income stream from lease of pub• Risk bourn by the tenant and repairs their responsibility
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Steering Group• Project-focussed initially and would then become the Management Board
once in business as usual mode
• Following skills required include:• Hospitality business experience (managing pubs and restaurants)
• Project management
• Digital Marketing
• Architects
• Commercial property
• Listed Building/design
• Financial
• Legal
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Management of the Pub: Options
Employ a Manager & Chef on a PAYE basis
• Pros• More control for the
community committee
• EIS tax refund available
• Cons • HR issues with tax/employment
laws/pensions
• Typical one month notice for staff
Appoint a Tenant/Landlord on a long term lease with break points
• Pros• Risk lies with the tenant to the
greater extent
• Steady lease income stream
• Minimal HR issues
• Cons• Less control of the business
• NO EIS available
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Other Services To Offer?
• Serve afternoon teas/morning coffees
• Library/book exchange
• Children’s Suppers (early evening)
• Creche evening – children to be looked after/entertained in snug whilst parents socialise in the pub
• Parcel delivery/collection point
• Village Shop – test concept in small front room, and if successful then dedicated building on car park/green
• Music/bands etc
• Take-Aways
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Marketing: actually doing some for the 1st time
•New Web site using new domain names already purchased
• Facebook, Twitter, TripAdvisor, Google
• Special lunchtime deals for the Army HQ & senior citizens
•Brown signs on the key roads at strategic points: A303, 100 Acre roundabout and Salisbury Road
• Emailers based on collection of addresses
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Fighting Fund – target £15k: pre-project costs
Based on the experience of others:
• Legal• Premises: surveys: historical assessments etc• Structural surveys• Detailed design docs to enable quotes to be obtained• CBS setup costs• Share issue• Loan applications• (Donations & grants)
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How do Community owned pubs suddenly become profitable?
• Ability to source own beers and wines• Current low costs of financing• Community share offerings• Community support as volunteers & customers
Characteristics of community pubs looked at so far:• Substantial discounts to advertised pub sale prices• Modest refurbishment costs < 25% • Low levels of competition• Ability to raise +/- £150,000 from local community
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Example Business model?
Example based on research to date:The Red DuckCOSTS: Finance Annual costsPurchase price: £300,000 Mortgage £200,000 £9,000 (Base +4%)Improvements: £50,000 Shares £150,000 £ 3,000 (2% interest)Total: £350,000 Total £350,000 say £15,000 Total
Pub operated by tenant:Rental paid usually pitched at +/- 12% of turnover
Annual Turnover: £100,000 Rental £12,000£150,000 Rental £18,000£200,000 Rental £24,000£250,000 Rental £30,000£300,000 Rental £36,000
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What next?Hopefully we will have 6 months from the date the pub is listed as an ACV in which to consider making an offer for the pub, car park & village green.
Based on our discussion with other community groups:• We need a community group to run the project• Skills/experience and time needed at the moment:
• Due diligence process• Business Plan and Co-ordination• Property development• Pub management• Legal• Finance• Raising funds
The important thing is to make the right decision for Monxton - both now & longer term
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How Can You Help?
• Funding – buy shares (minimum £50 – maximum £25,000)
• Funding – donations to the Community Benefit Society
• Assistance with obtaining grants
• Volunteers (specific skills required) – for the Steering Group
• Volunteers – to assist with renovations
• Community suggestions, enhancements, ideas
• Use your pub & encourage others to do the same!
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Thank for your time