1. business and industrial
2. company
3. joint venture

Community Enterprise
Title:
Feasibility Study for
Social Enterprise and
Ethical Traders Hub
Client Name: East Linton Saleground
Date:
October 2014
Contents
Page
EXECUTIVE SUMMARY ............................................................................................ 4
Background and Vision ................................................................................................................... 4
Methodology .................................................................................................................................. 4
Findings .......................................................................................................................................... 5
Recommendations .......................................................................................................................... 7
Vision and Ethos ............................................................................................................................. 9
Estimated Cost .............................................................................................................................. 10
Sustainability ................................................................................................................................. 11
Action Plan ................................................................................................................................... 12
01 INTRODUCTION AND BACKGROUND................................................................... 14
Immediate Context........................................................................................................................ 14
Purpose of this report ................................................................................................................... 14
Methodology ................................................................................................................................ 15
02 DEVELOPMENT CONTEXT ................................................................................ 16
The Organisation .......................................................................................................................... 16
The Development ......................................................................................................................... 16
Desired Outcomes ........................................................................................................................ 16
Benefits from Community Asset Ownership ................................................................................... 16
03 PROFILING, POLICY AND DEMOGRAPHICS ........................................................... 18
Demographics .............................................................................................................................. 18
Policy – National ........................................................................................................................... 21
Policy – Local ................................................................................................................................ 27
Local Resilience Action Plan........................................................................................................... 30
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04 CONSULTATION PROGRAMME AND MARKET RESEARCH......................................... 32
Competition / Case Studies ........................................................................................................... 32
Stakeholder Interviews .................................................................................................................. 39
Surveys ......................................................................................................................................... 41
Vendor/Tenant Survey Results ....................................................................................................... 42
Commercial Rental Opportunities Survey....................................................................................... 47
Customers’ Survey ........................................................................................................................ 50
Open Day ..................................................................................................................................... 54
State Aid Test................................................................................................................................ 54
05 POTENTIAL FUNDING ...................................................................................... 56
06 FINANCIAL MODELLING ................................................................................... 60
Risks and Mitigation ...................................................................................................................... 67
07 FINDINGS AND RECOMMENDATIONS.................................................................. 69
Findings ........................................................................................................................................ 69
Recommendations ........................................................................................................................ 72
08 ACCOMMODATION MATRIX ............................................................................. 78
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Executive Summary
Background and Vision
The project aims to create a sustainable Business Park to accommodate and encourage a mix of
commercial and community focussed enterprises, providing an economic and social boost to a
rural and growing population in East Linton.
The Vision is to create a “local and sustainable economy” through a mix of small businesses
including artisans, ethical traders and social enterprises.
There is not currently a constituted organisation. Rather, this Project is being foster-parented by
Sustaining Dunbar. Sustaining Dunbar has a strong ethical fit with the initiative as it aims to
bring people together to inspire and support new initiatives which create local jobs, help people
cut their fuel bills, grow more food and spend more time locally. They run events such as
Gathering In, community garden projects and the Canny Household Challenge, working with
schools to reduce CO2 emissions.
This report will examine the feasibility of this idea, gathering local opinion as well as identifying
funding opportunities to make this vision a reality.
Methodology1
A range of qualitative and quantitative methods were used including the following:
o
Stakeholder Interviews with a range of organisations investigating commercial
partnerships as well as East Lothian Council and national organisations
o
Survey in East Linton gathering a snapshot of views from potential customers
o
User Survey speaking to potential tenants and vendors
o
Strategic Review of national and local policy
o
Funding search identifying warm funders focussed on match funding for Scottish
Land Fund and future capital funding for long term development
o
5 year cashflow projections based on different business models to arrive at most
sustainable model
o
Competitive analysis to investigate ideas that could generate income for Partners
and identify what is currently offered in the area
o
Investigation and work-up of design options
o
Creation of outline accommodation matrix identifying space and services
1
It should be noted that the views expressed by the contributors are set down here as expressed. They are not necessarily correct
or the views of the writer or client.
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Findings
This section summarises the full findings and recommendations set out in section Five.
The Need in the Area
1. Four datazones in the Dunbar and East Linton ward are among the 10% most accessdeprived datazones across Scotland.
2. Most people who responded to the outcomes question in the local resident survey agreed
with the statements provided, with more agreeing that the Project will “bring the
community together” and “help people to learn new skills”.
3. Local people felt they could benefit most from social outcomes (75%)
4. A number of stall holders and local people at the open day voiced clear support for the
idea and latent demand for a place that has a mix of retail, café and culture.
5. There is a strong policy fit with a variety of national and local strategic directions, including
community empowerment, asset transfer, social enterprise, localism and sustainable
economic development.
6. The East Linton Saleground development is part of this strategic momentum in East Lothian
towards a low carbon local economy which has been spearheaded for some time by
Sustaining Dunbar and also fits closely with the Enterprise and Skills strand of the Local
Resilience Action Plan.
Funding
7. A funding analysis was undertaken and there are potential funds in principle to fund the
revenue and capital elements of this enterprise.
Organisational Capacity
8. The steering group is currently un-constituted. The action plan shows that there is a
significant amount of work to be done to implement this; securing further staffing or
volunteer capacity will be helpful.
Commercial Demand – Potential Customers and Small Businesses
9. When asked about the challenges in making a living from their business, overwhelmingly,
89% of respondents to the supplier’s survey say they struggle with marketing. 56%
struggle with production.
10. Competitors are offering training days charging from £65 p/p to £95 p/p for activities such
as drawing and art workshops – some offer 1 to 1 for a higher fee
11. Commercial organisations responding to the Surveys stated they would pay from £10 to
£20 per sq m for rent and would prefer to rent space of up to 20 sq m.
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12. There appears to be strong demand for renting space from this sector, with 81% saying
they would be interested as well as 90% being interested in shared sales facilities.
13. A significant volume of interested individuals operate as very new social enterprises and
sole traders so there is potential for this to operate as an incubator unit particularly when
set along with the business support that can be made available.
14. This sector would benefit from being able to market their work, as well as access to
superfast business broadband at The Saleground.
15. Vendors would prefer to pay under £50 per month for additional services.
16. Customers would prefer services including a café, gallery, retail space, market space and
“makers’ workshops” to see the artwork and creativity in action.
17. Customers support the idea of training in craft and design and basic, practical skills –
around 70% - and training in furniture recycling and food growing at around 65%.
18. Similar initiatives, such as Why Not? in North Berwick show that the model of collaborative
local enterprise can work.
19. Crucial learning from case studies is: to ensure close financial management, market cleverly
and if possible ensure there is a café on site.
20. The cash flow shows sustainability reached in year 4, but we are of the opinion that this can
be reached much sooner and probably in year 2.
Suppliers/Vendors
21. 34 Artists/Makers/Food/Social Enterprise vendors were interested or very interested in
renting space. 80% would be interested or very interested in renting a unit; 82% interested
in holding a weekly or monthly market stall; 90% interested in supplying work to a shared
retail facility (eg farmshop or gallery) and 92% interested in taking part in events.
22. 11 private businesses would be interested in renting space.
23. Vendors currently struggle to pay rent with 75% working from home for this reason. The
average amount being paid for rent ranges from £9 to £11.50 per sq m
24. 55% of vendors said they would be “very interested or interested” in renting space. There
was significant demand from artists, food enterprises and social enterprises who would
provide a better fit than purely private sector businesses.
25. When asked about renting space, 48% of vendors said they would need a space under 10
sq m and 40% up to 20 sq m.
26. Artists, makers, food businesses and social enterprises particularly saw benefit from
collaboration including joint marketing, centralised admin/finance and cross-selling.
27. Vendors strongly buy into the overall social and environmental ethos.
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Recommendations
Products and Services and the site
We recommend that the organisation should:
1. Proceed with the development of the East Linton Salesground as there is clear social
impact and financial viability.
2. Create a mix of Tourist Attraction, Business Centre, Artisan Hub, Community Market and
Cultural centre.
3. Let space principally to artists, makers, small locally sourced food businesses and social
enterprises.
4. Complement the offering with centralised activity space principally around learning, food
and well-being with courses and initiatives delivered, artists and other vendors on site as
well as off-site specialists and partners.
5. Hold quarterly seasonal events eg a Halloween party, gathering-in, apple-juicing days
etc., should be run as well as a monthly market. The site can also be hired for events.
6. Secure funding to commission an architect-led design team to present options for the
design of the site and Auction Mart.
7. Start to populate a business plan that will change as the concept develops.
8. The site infrastructure should be developed from a sustainable green perspective
including use of recycled materials and locally sourced trades etc, to fit with the broader
ethos.
Finance and funding
9. Apply for development funding to bring in additional capacity.
10. Consider various income streams around a mix of space let, markets, letting the café
space and a modest number of cultural events. These will be principally:
a. Let of units to core traders.
b. Let of the Auction Mart to individual for café.
c. Use of cultural activities including film shows, and concerts.
d. Market Stall once a week/month generating a commission on sales made by
vendors at the Market Stall.
e. Holiday Craft/Arts Activity Days for kids and adults (charged per day) and Holiday
Clubs for children (for a week) during school holidays (charged either per day or
full week). Research could be done to decide fees and what arts/crafts would be
offered including ceramics, clay creations, jewellery making, drawing and
painting.
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f.
Birthday Parties. 2 hour Craft Parties for up to 10 children can be charged per
head as well as providing catering.
g. Solar panels on roofs and other renewables throughout the site can bring in
Renewable Heat Incentives.
Outcomes
11. Relate outcomes to:
o The broader vision, across East Lothian (and Scotland) and stimulated by Sustaining
Dunbar, of a low carbon, locally based economy within the transitions concept.
o The benefits of asset ownership, particularly in relation to the community coming
together to own that asset.
o Opportunities for local employment, training, education and volunteering.
o Facilities and infrastructure that will attract small commercial businesses (related to arts,
crafts, local food and social enterprise) and encourage start-up ventures to promote rural
sustainable economic development.
o A mutually supportive environment for a diverse range of community focussed
enterprises.
o Heritage outcomes in relation to the B listed Auction Mart building.
Management, Governance
12. Work towards being set up as an independent organisation following a legal structure
options appraisal.
Staffing
13. Employ a member of staff to manage the Project, working with the Committee and
reporting to the Director responsible for staff management.
14. Bring in on-site business support, for example through business gateway.
enhance the offering to new entrepreneurs.
This will
Partnerships
15. Establish key partnerships from the school to the private sector.
Marketing
16. Establish a clear brand and marketing strategy aimed at local people and external users.
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Vision and Ethos
The East Linton Saleground initiative aims to create a sustainable social enterprise out of a
derelict building with historical significance and a relatively vacant lot in the semi-rural village of
East Linton. It will combine a variety of cross-fertilising business units, entirely based around art
and crafts, locally sourced food and social enterprises.
It will be both a destination site for visitors, and a vital facility for local people. It will be based
on the widest understanding of sustainability including economic, environmental and social, and
will bring people together to create a vibrant place to live, work and visit. As well as taking
established creative enterprises to the next level, we want to inspire and support new initiatives
which will create local jobs.
Outcomes are as follows:
o
1500 local people will come together to help develop and benefit from community
ownership of this local asset.
o
250 local people disengaged from the job market will benefit from local employment,
training, education and volunteering.
o
New facilities and an innovative infrastructure that will attract small social businesses
(related to arts, crafts, local food and social enterprise) and encourage start-up ventures
to promote rural sustainable economic development.
o
20 local agencies will come together in a mutually supportive environment.
o
500 people per year will enjoy their own local heritage through the development of the
auction mart.
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Estimated Cost2
Item
Amount
Site Acquisition (currently valued at £207,350, though the owner wants
£210,000
£210,000)
Capital Build - renovation of Auction Mart (this needs technical detail before a
realistic estimate can be provided)
£500,000
Simple wood clad constructions (300m2) each x £1500.
Food Enterprise
£450,000
Well-being hub and Learning Hub combined
£450,000
Suite of 20 x 20 foot shipping containers. £2500 each including delivery plus
£1500 for utilities connection.
£80,000
Landscaping and ground works
£100,000
Professional fees
£180,000
Planning fee
£5,000
Building Warrant fee
£5,000
Site Investigation and topographical surveys etc
£3,000
Legal fees (for site acquisition or lease arrangements)
£5,000
Total
£1,988,000
With 10% for contingency and inflation
VAT (where applicable). Should be reclaimable
£2,186,800.0
£353,600
2
This is a very basic ball park figure to help guide funding strategy. An architect led technical study will
be required to finalise the costed preferred option.
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Sustainability
The financial modelling can be seen in the cash flow showing sustainability by year 3 with
relatively modest growth. The following are the key assumptions:
o
To reduce risk some revenue grant funding has been factored in. £180,000 over the first
three years.
o
It is estimated that there will be 20 units (shipping containers) to let, charged at £80 per
month. Let of space is very conservative, starting at 10% in year one and rising to 50%
occupancy by the end of the first year. Year 2 rises to 70%, then 80%, levelling off at
90% where it remains. Demand is such that we are confident that occupancy should be
much higher much quicker (in fact likely to be 100% with a waiting list considering
current evidence of demand), which means that less grant would actually be needed.
o
The café will be let to a private individual who will pay a lease to the community-owned
company who will run the site. That has been estimated here at 20% of profit, but this is
to be negotiated.
o
Sales of events include concerts, on-site events, learning workshops etc. These are
modest, starting with 40 customers per month paying an average of £5. There is a
customer growth of 5% month on month and a spend growth of 3% month on month.
This growth figure reduces with each year.
o
There are year on year increases in staffing and running costs.
o
In year one, with £100,000 revenue grants there is a surplus of £9408. In year two, with
grants of £50,000 there is a surplus of £8995. Year three has £30,000 of grants and
surplus of £1509. Years 4 and 5 have no grants and show surpluses of £9922 then
£28,696 which is trading at optimum levels.
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Action Plan
‘14
Task
Oct
‘15
Nov
Dec
Jan
Feb
Mar
Apr
May
Consider Feasibility Study
Submit Scottish Land
Fund application to
secure the site
More detailed customer,
tenant and vendor
research?
Marketing Workshop
Agree Business Model
Funding Plan agreed
Write Business Plan and
Cashflow Forecast
Site Development Plan –
secure QS and Architect
Site investigations
conducted
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Jun
Jul
Aug
Sep
Oct
Surveys completed
Use of Space confirmed
Site Plans agreed and
approved
Confirm Funders to
approach – capital and
revenue funding options
Final Business Plan agreed
and written
Planning Permission
submitted
Legal and management
structure options
Complete Funding
Application
Submit Application
Funding secured – move
to Phase 2 – process may
be longer dependent on
Funder(s)
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01 Introduction and Background
Immediate Context
The aim of the project is to create a community owned business park on the existing site known
as the Old Salesground, East Linton which includes an octagonal, timber ‘B’ listed Auction Mart
building. The business park will cater for local businesses and create opportunities for start-ups,
employment, skills training, education and volunteering. Activities on the site could include
light industrial units, commercial kitchen, office space, market, café, recycling & upcycling, food
growing & horticulture, practical skills training, gallery & exhibition space, artist & makers
studio space with retail, classrooms, auction, car boot sales, communal workshops, an acoustic
music venue, pop-up shops, self-catering accommodation etc.
The project fits within the ethical parameters of the Sustaining Dunbar Action Plan, which aims
to bring local people together within a community to achieve locally agreed and designed social
and environmental outcomes. Essentially the East Linton initiative will fit with the ethos of
sustainability, carbon reduction, locality and community enterprise.
Purpose of this report
A funding bid will be prepared to the Scottish Land Fund and this Report aims to present
evidence of need and ideas for use of the space to support this funding application.
The objectives of this study are to:
1. Identify if there is any appetite for the use of the space from local ethical traders and
social enterprises
2. Evaluate the demand from local residents
3. Evaluate potential funders to match fund the application to the Scottish Land Fund
4. Evaluate the best use of space and whether there are enough suppliers in the local area
5. Evaluate the best mix of traders and ethical businesses, matching this to demand
6. Assess how the service should be designed
7. Research similar initiatives
This feasibility study sets out the findings of the research programme which was undertaken in
September 2014. It identifies potential opportunities for development and sets out
recommendations for taking the project forward.
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Methodology3
The feasibility study has been undertaken through a highly participative process as follows:
o
Stage 1 – Induction and Familiarisation – An initial meeting was held with the
community steering group to discuss expectations from the assignment, to agree the
approach to the work, and to gather detailed background information and contact
details.
o
Stage 2 – Information Gathering and Analysis – This involved a review of the
background material and desktop research, focussing on the following:
 Research the local community, in particular any indicators of deprivation
according to SIMD
 A review of the economic and social profile of the area
 Profile of customer behaviour in this market
 A review of the policy context at the national and local level that underpins the
objectives of the project
o Stage 3 – Case studies and market trends – Desktop research and competitive
analysis of:
 Other similar services and facilities within a reasonable travel distance of East
Linton
 Business Centres, Community Art Galleries, Cafés, up-cycling initiatives, and
training initiatives in Scotland which are examples of good practice and may
provide ideas for best use of space or mix of vendors
 The market trends and buying patterns in the local area
o Stage 4 – Consultation Programme – A consultation programme has been
undertaken involving local people, potential customers and key stakeholders:
 Potential customer survey
 Vendor/Tenant survey
 A series of interviews held with key partners and stakeholders
o
Stage 5 – Report Writing – The final stages of the assignment involved drawing
together the findings of the research and preparing this feasibility study.
3
It should be noted that that the views set down in the research section of this report (section 4) are the
recorded views of participants and not necessarily the views of the writer or the client.
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02 Development Context
The Organisation
A group of local residents has formed a Steering Committee to research and apply for funding
for this Project. At the moment they have no independent legal status, and have applied for
funding under the auspices of Sustaining Dunbar. It is expected that, in time, the group is
likely to require its own legal structure.
The Development
The aim of the project is to create a sustainable business park which will be developed to
accommodate and encourage a mix of commercial businesses and community focussed
enterprises that will deliver an economic and social boost to this rural and rapidly expanding
population. By attracting small companies to the area, as well as contributing to the rural
economy, there will be local opportunities for business start-ups, employment, training and
work experience for youngsters reducing the need to travel.
Desired Outcomes
The site known as The Saleground, East Linton will be purchased to be held in Trust for
the purpose of community development.
Opportunities for local employment, training, education and volunteering will be
increased.
Facilities and infrastructure will attract small commercial businesses and encourage startup ventures.
A mutually supportive environment for a diverse range of community focussed
enterprises will be created.
The B listed Auction Mart building will be preserved, restored and its space/purpose will
be re-designed to meet the needs of the Project.





Benefits from Community Asset Ownership
Outcomes and Community Change
A study undertaken by SQW commissioned by the Big Lottery in 2012 sought to summarise the
challenges, learning and positive outcomes of communities owning land and buildings. The
following are the key findings:
o
Two thirds of users of community owned facilities said the project had made a ‘big
difference’ to their quality of life and 89% said it had made a ‘big difference’ to the
quality of life of the community as a whole. We also asked people to comment on the
impact that the project had had in helping to bring the community together; on
average, 80% of people thought this had happened.
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o
At one project, 42% of those interviewed felt that it had increased the ambition and
confidence of the community to take on other activities.
o
Across the projects that are now up and running, one third aim to improve existing
services, a further third aim to provide new services, and 19% represent an increase in
capacity to deliver services.
o
An average of two thirds of users said that they would not have been able to access
similar services locally, and 85% said that the GCA-funded facilities were ‘much better’
than any alternatives that they could otherwise have used.
o
“Social contacts” and “making new friends” are amongst the most important social
outcomes.
o
Many projects aim to generate income on a sufficiently large scale to help the
community as a whole become financially self-sustaining and this is having some
success.
o
Among the community owned assets projects that are now fully operational, 93
businesses have been accommodated (half of which are associated with a single
project) and 17 new businesses have started.
o
Some projects have a direct focus on environmental concerns, for example, reducing
the amount of waste going to landfill, while others participate in environmental
initiatives
Key success points:
o
Research early and in detail
o
Secure an experienced project manager
o
Utilise external advice
o
Learn from peers and from other projects
o
Ensure on-going community engagement
o
Be in it for the long haul as asset based projects take time to develop
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03 Profiling, Policy and Demographics
Demographics
East Linton sits within the Dunbar ward of East Lothian, which has a total population of 13,337
(at 2014) with around 13% living in the East Linton area. For the purposes of this demographic
profile statistics are being used for the area of East Linton and Dunbar. 4
Since 2001 the population of this area has grown twice as fast as other areas in East Lothian.
81% describe themselves as “white Scottish”, with 4% using English as a second language.
Analysing the demographics, East Linton and Dunbar is becoming more ethnically diverse and
15% of the local population was born outside Scotland, elsewhere in the UK. 52% of the
population is female with the split of age-groups being:

Children and young people – 20%

Working age adults – 62%

Retired adults – 18%
57% of the population have lived in the area for more than 20 years and 31% of households in
East Linton are made up of people over retirement age (which is higher than the East Lothian
figures).
SIMD
The Scottish Index of Multiple Deprivation (SIMD) measures the level of deprivation at the local
‘data zone’ level in Scotland. It identifies small area concentrations of multiple deprivation.
There are 6,505 data zones in Scotland, and each data zone usually represents a small
geographical area, such as a street / small level neighbourhood. Each datazone in SIMD 2009
has a median population size of 767. The data zones are ranked from one (most deprived) to
6,505 (least deprived) using 38 indicators of deprivation across seven categories or “domains‟,
namely: Income; Employment; Health; Education; Geographic Access to Services; Housing and
Crime.
1 datazone within the East Linton area is identified as being within the 20% least deprived
according to SIMD. No datazones in this area are ranked as being within the top 20% most
deprived areas.
SIMD looks at various indices when identifying deprivation, including education, health,
employment, poverty and also access to services. Access to services is the main area that is
relevant to look into for the purposes of this Report.
4
Data from 2011 Census and East Lothian Customer Survey 2009
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Access to Services Indicator

Four datazones in the Dunbar and East Linton ward are among the 10% most access
deprived datazones across Scotland.

In just over half of the working households in the ward, the chief earner commutes to
work outside East Lothian. 88% of these commute to work by car.

Residents across the ward appear less likely to use a car to access a range of local
services than others across East Lothian as a whole.

Children at Dunbar Primary and East Linton Primary are more likely to use active forms
of travel (including walking, cycling, skating or Park and Stride facilities) to get to school
than average across East Lothian.

Only 43% of people in the Dunbar and East Linton Ward agreed that public transport in
East Lothian is easy to access.
Local Facilities and Services
The information below shows that local people do feel that East Linton and Dunbar does suffer
from the issue of poor access to services, in particular to sports and leisure services and to
culture or recreational facilities. 5
% reporting it was easy (or very easy) to East Lothian
access…
Dunbar & East Linton
Local Shop
95%
93%
Shopping Centre or Supermarket
87%
85%
Post Office
94%
89%
Sports or Leisure Centre
81%
77%
Cultural or recreational Facility
63%
30%
Bank / Cashpoint
91%
87%
Council or Neighbourhood Office
83%
81%
The map below shows the spread and location of community amenities and services in the area
at 2012.
5
East Lothian Customer Survey 2009
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Volunteering and Participation
From East Lothian’s Residents Survey in 2011, East Linton and Dunbar reported that there is a
strong tradition of community activity and involvement within the Dunbar area through
community volunteering.

35% of people in the ward reported that they had volunteered within their communities
over the past 12 months. This is 21% higher than the average across East Lothian.
The most popular types of volunteering included:
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
Church or religious groups (25%)

Hobbies, recreation, arts, social clubs (8%)
Health & Social Care
Perhaps not surprisingly, Dunbar and East Linton is not an area that ranks highly within SIMD
deprived datazones when considering health and social care indices. Some of the headline
statistics which may be relevant within this subject, include:

86% of residents in the ward described their own health as “good” or “very good” in the
2011 Census.

There are approximately 2391 people aged 65 years and over living in the Dunbar and
East Linton ward, however this is projected to rise by 60% over the next 20 years to an
estimated 3836 people (618 of them are likely to be aged 85 years or older)
Policy – National
The Scottish Government’s overarching aim is to increase sustainable economic growth. Five
strategic objectives underpin this purpose:
1. Wealthier and Fairer
2. Smarter
3. Safer and Stronger
4. Healthier
5. Greener
The Scottish Government Economic Strategy
The purpose of the Scottish Government is to make Scotland a more successful country, with
opportunities for all to flourish through increasing sustainable economic growth. In 2011 an
update to the economic strategy was published which gives clear priority to accelerating
economic recovery, with a range of measures to tackle unemployment and promote
employability. There are six strategic priorities to drive sustainable economic growth and
develop a more resilient and adaptable economy:

Supportive Business Environment

Transition to a Low Carbon Economy

Learning, Skills and Wellbeing

Infrastructure Development and Place

Effective Government
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
Equity
Scottish Government Rural Strategy
The Scottish Government states that it is committed to supporting rural life, rural communities
and the rural economy and to do so it has “mainstreamed” the needs of rural Scotland within
all of its policies.
The Rural Development Council
The Rural Development Council was set up to consider how best rural Scotland can contribute
to the creation of a more successful country, through increasing sustainable economic growth.
It helps identify any obstacles to achieving this goal, considers possible solutions and offers
advice to Scottish Ministers, including identifying priorities for action.
Rural Scotland covers 95% of the land and 18% of the population in Scotland and the Scottish
Government aims to promote development in rural areas and empower communities. Our
Rural Future, published in March 2011, is the Scottish Government’s response to the Speak up
for Rural Scotland Consultation. Speak Up for Rural Scotland set out the Rural Development
Council's views on what mattered for the rural economy. Our Rural Future identifies the key
priorities arising from the Council's advice and the views of consultees, highlighting where
action needs to be taken and commitments shared.
“The Scottish Government wants to see a rural Scotland that is outward looking and dynamic
- with a diverse economy and active communities.
We want to see our rural communities grow in confidence and diversity, supported by high
quality public services. We want our young people to have the opportunity to build careers
and prosperous futures in the area where they grew up. We want to see rural Scotland
participating fully in the global exchange of ideas and culture, with the right connections to
make this happen, including high speed broadband and appropriate transport infrastructure.
We want rural businesses to make best use of local assets and talent to become even
more competitive and enterprising.
However, one organisation or individual alone cannot make the difference that is needed. We
must all work together for the future of rural Scotland - central government; local authorities
and agencies; the private and voluntary sectors; and individuals themselves. We have a
common ambition and everyone has a part to play.”
Infrastructure Priorities
1. Higher speed broadband
2. An improved supply of affordable housing in the places where it is needed, using designs
which are appropriate and sustainable
3. Affordable motor fuel and the effective use of public transport
4. Improving rural healthcare services
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Land Use Priorities
1. Better partnership working to co-ordinate and agree on land use purpose and priorities
Community Participation Priorities
1. Renewable energy developments with shared benefits for communities, commercial
developers and land managers
2. A more effective partnership between communities and Community Planning
Partnerships/Local Authorities
3. Capacity and skills development for communities
The Scottish Government is funding the Development Trust Association Scotland to take
forward the first phase of the “Support for Communities to Own Assets” action point
from the “Scottish Community Empowerment Action Plan” - looking at asset transfer
from local authorities to community groups. The work will raise awareness of the
benefits, identify and disseminate lessons from effective practice, provide training and
toolkits, and develop networks.
4. Promotion of Development Trusts and Social Enterprises
The Scottish Government has provided funding for a Knowledge and Skills Exchange
Fund and for a Development Trust Resource pack on how to create a successful
Development Trust.
Business and skills priorities
1. Local business growth, making best use of local resources
The paper recognises that “The growth of the business community is fundamental to
boosting sustainable economic growth in the rural economy. Without jobs and successful
enterprises, rural Scotland cannot prosper.”
2. Skills training based on the needs of the local economy
“A key priority theme of our refreshed skills strategy “Skills for Scotland: Accelerating the
Recovery and Increasing Sustainable Economic Growth” published in October 2010 was to
strengthen engagement between learning providers, Sector Skills Councils, employers
and learning providers to respond more effectively to them. The aim is to improve the
match between skills and job opportunities to increase employability.”
3. Public procurement opportunities for local businesses
The paper states that the Scottish Government is “taking action to level the playing field
for Small Medium-sized Enterprises (SMEs), social enterprises, supported businesses and
other third sector organisations in securing access to the public sector market.” In July
2008, the Scottish Government launched Public Contracts Scotland to provide businesses
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with easy access to contract opportunities and since the launch 49,449 suppliers have
registered, 84% of which are SMEs.
The East Linton project fits well with many of these priorities.
An element of the work will be based on local food production, so we have considered the
strategic context of this.
Recipe for Success – Scotland’s National Food and Drink Strategy
The food and drink industry is a key sector of Scotland’s economy. It generates over £9.5 billion
per year for Scotland and employs over 360,000 people, from farmers and fishermen to shop
assistants and waiters.
The food and drink strategy sets out how the Scottish Government will:
o
Support the growth of the food and drink industry
o
Build on Scotland’s reputation as a land of food and drink
o
Ensure we make healthy and sustainable choices
o
Ensure food supplies are secure and resilient to change
o
Make food available and affordable to all
o
Ensure people understand more about the food they eat
The strategy states that “thriving and successful food and drink businesses are essential to
Scotland’s economic prosperity and are a key sector of Scotland’s economy.”6
Supporting the growth of the food and drink industry
Scotland Food and Drink has put in place a target of £10 billion sales by 2017 from £7.5 billion
in 2007 for the whole food and drink industry in Scotland. Therefore, the Scottish Government
and partners are going to be working hard over the next five years to increase these sales and
this will include supporting the start-up of new food and drink outlets.
The strategy states that the Scottish Government will provide advice and funding to local
producers to help them develop markets for their products and encourage growth of farmers
markets, farm shops and local food initiatives.7
Making food available and affordable to all
The strategy praises the social enterprise sector stating that “Scotland has both a remarkable
legacy as well as an admirable current resource in its social enterprises, community and
voluntary sector.” The Government commits to identifying how community food groups and
6
7
Page 5, Recipe for Success – Scotland’s National Food and Drink Policy
Page 8, Recipe for Success – Scotland’s National Food and Drink Policy
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social enterprises can be supported to deliver a long-term strategic programme for a stronger
community food and health sector.
Access to and affordability of healthy food
It is acknowledged that access to and affordability of healthy food is an issue, particularly in
times when food prices have increased during the economic downturn. The Government
commits to supporting vulnerable groups, including those living in rural areas and the elderly
living in the community, by evaluating the evidence and potential actions around access to
affordable healthy food. East Linton Salesground could feed into this research.
Food education: Learning about our food from plough to plate
The strategy states that “some of our children do not understand how their food is produced,
how it is cooked, what is healthy and how it affects their long-term health and wider
environment. An increasing proportion of our children are of an unhealthy weight which in
many circumstances is related to poor diet and will lead to future health problems.” East
Linton Sales ground, through their learning hub would like to address these issues. The Scottish
Government are going to explore with relevant stakeholders the potential for partnership
opportunities to support cookery skills education in schools and for adults using healthy
sustainable food and it is suggested that this is something which the East Linton Salesground
project could feed into.
Community Food and Health Scotland
Community Food and Health Scotland (CFHS) aims to ensure that everyone in Scotland has the
opportunity, ability and confidence to access a healthy and acceptable diet for themselves,
their families and their communities. They do this through working with low-income
communities to address health inequalities and the barriers to healthy and affordable food.
The barriers addressed by community-based initiatives are:
o
Availability – increasing access to fruit and vegetables of an acceptable quality and cost
o
Affordability – tackling not only the cost of shopping but also of getting to the shops
o
Skills – improving confidence and skills in cooking and shopping
o
Culture – overcoming ingrained habits
CFHS has compiled a report “Not only…but also” which shows the contribution to outcomes
which community food initiatives are making.
The report states that “community food initiatives are very much part of the network of
activities and organisations that, taken together, play an important role in making communities
more resilient and supportive.”
Outcomes contributed to through community food projects:
Food availability, affordability, and quality
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This is of course the main purpose of most community food initiatives: the outcome is that
people have access to good quality, healthy and affordable food, and are more skilled and
confident if cooking classes, recipe sharing or food-growing initiatives are part of the mix.
Volunteering, mobilising, and community capability
Most community food initiatives depend on voluntary work for their continued activity –
indeed, having good volunteering policy and practice in place is seen as critical by most. Over
time, such community activity can reach into other local issues and interests so that a local
community can become stronger – ensuring a better quality of life.
Inequality and exclusion
Initiatives tend to be found where they are most needed: where people would otherwise have
difficulty in affording and sourcing the foods they need. So they can be seen as playing their
part in combating inequality, and seeking to include people who might otherwise be left out:
eg. They often include people with learning difficulties or mobility problems.
Mental health
Several mental health projects today see growing and preparing food as an important part of
rebuilding confidence and engagement for people recovering from mental health problems.
Initiatives that are community based and provide opportunities for volunteering, employment,
meeting others and building links within the wider community are particularly successful at
supporting recovery.
Community economy, local sourcing, environmental and ecological issues
A further dimension is the move towards more sustainable, resilient communities based on
making the most of the assets they have, and emphasising the value of locally grown and
locally sourced foodstuffs. This is seen as having environmental benefits by reducing ‘food
miles’, as well as encouraging local economic activity to counterbalance the ever-increasing
influence of the hypermarket culture.
Community and social enterprise
Community food initiatives may be set up as community or social enterprises. This means that
they develop as a business that trades or contracts to provide services, and uses the income
generated to subsidise activities that would otherwise lose money and therefore be vulnerable.
This route also contributes to the local economy while also encouraging employability or
creating local jobs.
Community networking and social interaction
Some initiatives, especially those based around cafés or skills, have an invaluable role in
bringing people together. Meals and food are often the glue that brings families together: the
same can be said of their role in bringing people together in communities, combating isolation,
encouraging contact and providing mutual care and support.
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CHFS state that “food is a particularly good issue to mobilise communities around; it is
practical, tangible, visible, cross-generational, appeals to almost everyone, and has been the
catalyst for initiation and development of more formal community health projects”.
Policy – Local
In 2007, national and local government signed a concordat which committed both to moving
towards Single Outcome Agreements for all thirty two local authorities and extending Single
Outcome Agreements to Community Planning Partnerships. Single Outcome Agreements set
out how the Scottish Government and Community Planning Partnerships will “work towards
improving outcomes for the local people in a way that reflects local circumstances and
priorities”8. Each Single Outcome Agreement is tailored to the local area and reflects the needs
and circumstances of that region.
East Lothian’s Priorities
The vision of East Lothian’s Single Outcome Agreement 2013/23 outlines opportunities and
challenges that East Lothian faces. Key messages from this document that are relevant to the
Project are:

Tourism, food and drink, new sectors (e.g. renewables, life sciences, creative industries
and re-locations from Edinburgh), and better promotion of East Lothian’s assets
East Lothian has 10 Local Outcomes:

East Lothian has a growing sustainable economy (delivered through East Lothian’s
Economic Development Strategy 2012/22)

The cycle of poverty is broken for individuals and families in East Lothian

Communities in East Lothian able to adapt to climate change and reduced finite natural
resources (delivered through East Lothian Environmental Strategy 2010/15)

All of East Lothian’s young people are successful learners, confident individuals,
effective contributors and responsible citizens (delivered through East Lothian Learning
Partnership Community Learning and Development (CLD) Strategy 2011-16)

East Lothian’s children have the best start in life and are ready to succeed

In East Lothian, we live healthier, more active and independent lives
(delivered through East Lothian Older People’s Strategy 2011/20; A Sense of Belonging,
a Joint Strategy for improving the mental health and wellbeing of Lothians Population,
2011/16;

East Lothian is an even safer place
8
Scottish Government website http://www.scotland.gov.uk/Topics/Government/localgovernment/delperf/SOA
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
East Lothian has high quality natural environments (delivered through East Lothian’s
Environmental Strategy 2010/15)

Everyone in East Lothian has access to high quality sustainable housing

East Lothian has stronger, more resilient, supportive, influential and inclusive
communities (delivered through East Lothian Learning Partnership Community Learning
and Development Strategy 2011/16)
In East Lothian, local Partnerships have been established to deal with the three overarching
objectives as outlined below. Consultation with the community is key to delivering services
and to this end a Consultation Hub was established in 2012 (papers from Consultations are
available on-line).
“A key feature of the Partnership’s approach is that services should be built around
people and communities; not professions and organisations. The Partnership is
committed to, and has been developing, a range of ways to engage effectively with local
people and communities, to better develop services around their needs.”
East Lothian is also dedicated to building services that build in prevention and early
intervention:
Prevention is the action of stopping something from
happening or arising. It may also include activities that promote
a positive action or behaviour.
Early intervention is the action of identifying at the earliest
possible opportunity those people – children, young people,
adults and families – or aspects of the environment, that are
likely to experience difficulty and to intervene to help.
Overarching objectives of the East Lothian Council are to create, support and maintain:


Sustainable Economy, contributing to Local Outcomes:
o
People not in employment have opportunities to develop work-ready skills,
including school leavers moving into positive destinations
o
A higher proportion of our residents are working in and contributing to East
Lothian’s economy
Resilient People:
o

People are enabled to live at home and to access opportunities in their
communities for as long as possible
Safe and vibrant Communities
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East Lothian Economic Development Strategy 2012/22
The five strategic objectives of this document are:

to be the best place in Scotland to set up and grow a business

to be Scotland’s leading coastal, leisure and food and drink destination

to build on our proximity to Edinburgh to encourage study, work and spending
time in East Lothian

to provide high quality employment pathways for East Lothian’s workforce

to become Scotland’s most sustainable local economy.
East Lothian Environmental Strategy 2010/15
The Vision of this Strategy is “East Lothian will be a place of opportunity for all, with a thriving
low carbon economy, high quality environment and healthy communities that are prepared for
the challenges of climate change”.
This will be achieved by: moving to a low carbon and more localised economy; reducing
dependence on finite resources; recognising the importance of a well-looked after natural
environment to the health and well-being of East Lothian’s communities; encouraging more
sustainable land use patterns; connecting communities and increasing use of sustainable
forms of transport; developing and nurturing environmental education, responsibility and
action; preparing for and managing the impacts of climate change.
East Lothian Learning Partnership Community Learning and Development (CLD) Strategy 201116)
The vision is for “an East Lothian where, through learning together, everyone can fulfil
their potential, enrich their personal lives and participate in and benefit from a healthy
community and economy”.
The Strategy focuses on:

Through youth work it can support all our young people (and in particular those who
need more choices and chances to achieve their full potential) to become confident
individuals, effective contributors, responsible citizens and successful learners.

Adult learning can offer routes into and through lifelong learning in communities,
enabling the development of skills (including, for example, literacy and numeracy) that
people can use in employment, their community, further learning or as parents and
family members to support their children in their important early years

By building community capacity it can contribute to community empowerment
through people working together to achieve lasting change in their communities, for
example by further strengthening and improving local public services.
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A Sense of Belonging, a Joint Strategy for improving the mental health and wellbeing of
Lothians Population, 2011/16
Aspirations of this Strategy which are relevant to this Project include:

Promoting mentally healthy communities should be at the heart of community
planning and renewal

Programmes to reduce crime or regenerate physical environments should consider
mental and emotional wellbeing as a fundamental part of this work

Early interventions, particularly with vulnerable children and young people, which can
improve lifetime health and wellbeing, prevent mental illness and reduce costs
incurred by ill health, unemployment and break perpetuating cycles of inequality
through generations will be supported

Children and young people should have early access to services that address social,
emotional and behavioural needs, and services should focus on the mental wellbeing of
all children and young people to increase confidence and resilience.
Local Resilience Action Plan
The East Linton Salesground project references and works to the outcomes set on in this
document which is a draft vision and action plan for starting to build a resilient low carbon
community in Dunbar and District over the coming years to 2025.
Local surveys undertaken over recent years have highlighted a strong desire to “be able to
source more locally produced food, live in more comfortable and energy efficient homes in
neighbourhoods which are safe and attractive to walk and cycle around, for increased
opportunities for local employment….and much more”.
The action points (from the Enterprise/Skills strand that this initiative will help fulfil are;
o
Identify the essential enterprises that will create and form a locally resilient economy.
o
Ensure provision of flexible workspace, starter units and workshops
o
Identify the skills that will be required in a re-localised economy
o
Establish practical skills for resilience training courses and facilities
The action points from the Food Strand:
o Develop local Food Hub/Produce Markets
o Encourage skills sharing and learning circles
Job Creation Opportunities in a Low Carbon Economy
This was a workshop which ran alongside East Lothian Council and explored
1. What will a local, low-carbon economy would look like.
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2. What opportunities, particularly for local jobs and local wealth creation in East Lothian,
will arise from the move to a local, low-carbon economy.
3. What measures are needed to ensure that we take full advantage of these opportunities.
The East Linton Saleground development is part of this strategic momentum in East Lothian
towards a low carbon local economy that has been spearheaded for some time by Sustaining
Dunbar.
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04 Consultation Programme and
Market Research
Competition / Case Studies
Analysis of similar projects and initiatives in East Lothian highlighted some which may be quite
similar to that proposed by the East Linton Saleground. However no projects offer exactly the
same services or mix of vendors. It is clear that there is no immediate competition, though
there may be future collaborative opportunities.
Those deemed to be most relevant have been extracted below.
NB : These can be viewed as case studies as well as local competition.
Why Not?
Contact: Jenny Potter
T: 07701 097817
E: info@whynotnorthberwick.com
W: www.whynotnorthberwick.com
Location: North Berwick
Risk: Low
Overview: Why Not is situated in a disused supermarket premises on the High Street in North
Berwick, home to a business community of producers and a café. Enables customers to buy
locally sourced products that are not available on the high street.
Selling high-end products but sourced locally, space is hired out either per day, or for 3
consecutive days. Vendors are encouraged to bring items to sell but are allowed to be
“creative” on site also.
Retailers at Why Not?:
Retailers including Craft Enamellers, Soap shop, Fish Merchant, Artist, Jewellery, Photographer,
Holistic Massage Therapist, hand-made Accessories such as handbags, Bakery, Plant Nursery,
Pie Maker, Interior Designer, Furniture/Upholstery, Knitting, Fresh Fruit & Veg, Sportswear,
Antiques, and Gifts.
There is also a Café.
Rates:
Small Unit £20 – Sun, Mon, Tue, Wed, Thur, Fri; £40 – Saturday; 3 consecutive days - £100
Medium Unit £30 – Sun, Mon, Tue, Wed, Thur, Fri; £50 – Saturday; 3 consecutive days - £150
Large Unit £40 – Sun, Mon, Tue, Wed, Thur, Fri; £65 – Saturday; 3 consecutive days - £200
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What they offer Tenants:
Access to shop front premises, for small business start-ups unable to commit to long term
leases. Retailers get access to space, wifi, open during normal shopping hours, delivery space
and parking. No charges for Rates, electricity or water/waste. They quote a market price of
£30 per day for renting a “shop”, compared to their equivalent rate of £21.85/day.
Art Space
Elaine Gale from East Lothian Social Enterprise Network said East Lothian has a lot of
independent artists who would be willing to work together if the opportunity arose.
Tantallon Arts & Crafts Studios
Contact:
T: 0131 258 1246
Location: North Berwick
E: info@tantallonstudios.com
Risk: Low
Overview: Tantallon Arts & Crafts Studios was opened in 1975 and originally called The
Studios. It is a family run business and there is a showroom where people can buy work
produced at the studios. There are four resident artists: David Cohen – Ceramic artist and
potter; Ronnie Fulton – Ceramic artist and potter; Esther Cohen – Visual and teaching artist;
Kirstie Cohen – Scottish landscape painter.
Services and Activities: The key services Tantallon Studios provide are workshops, tours, and
holiday accommodation.
Half-day Craft Activity: 3hrs: Cost £65 per person . Includes all material, firing and postage
costs. Min 2 persons – Max 12 persons per activity. The 3 hour activity includes tour of studios;
meeting the resident artists; demonstration; coffee and cake; and the craft activity.
Craft activities include:

Ceramic tile painting using clay slip featuring the Bass Rock

Craft creations in clay
Full-day Craft Activity: 10-4pm. Cost: £85 per person. As above that includes extended activity
with a bowl of home-made soup for lunch. Min 2 persons – Max 12 persons per activity.
Studio Tours, Demonstrations and Talks: 30 min with throwing demonstration is £15 per person
with a minimum of 4 people. A 1 hour tour with a talk and throwing demonstration is £25 per
person with a minimum of 2 people.
Painting and Drawing Classes: Draw for the Day - £65 for minimum 2 people and £75 for one
to one; Principles of Drawing - £115 for minimum 2 people; iPad landscapes - £65 for minimum
2 people and £75 for one to one; How to build a sketchbook – £65 for minimum 2 people, £75
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for one to one; Landscape Composition – A 2 day workshop - £125
Artist Retreat & Studio Hire:
They offer a holiday accommodation at the studios where a fully equipped artist studio can be
booked. Classes and individual tuition sessions can also be provided during the stay.
The artist studio can also be hired for people to deliver their own workshops.
Self-Catering Accommodation: The Cabin and and Tantallon View Cottage can also be let as
non-art related holiday accommodation.
Artroot Open Studios
Contact: Anna Davis, Dunbar Arts Trust, Development Worker – anna.davis11@btinternet.com
Tracy Morgan, Programme Coordinator T: 01620 824 025 E: eastlothianartroot@gmail.com
Location: Dunbar
Risk: Low
Overview: Artroot Open Studios is a network of artists across Dunbar. An open studios event is
run over 2 days each year and workshops are held on these days across a variety of venues. A
wide variety of workshops take place and the venues for this year included: Tyningehame Hall;
West Barns Hall; West Barns Studios; The Shed, Beltonford; Tantallon Studios; Dunbar Harbour;
Auldhame Farm/Seacliff ; McArthur’s Store, The Granary; Peter Potter Gallery.
Cockenzie House and Gardens Studios
Contact:
T: 01875 819456
E: info@cockenziehouseandgardens.co.uk
Overview: space is available to be rented out by the hour, day, week or month. Wifi included
in price. They run Events such as Book and Arts Festivals, and benefit from being connected
with the space in the main House, being able to draw customers in.
Training Events: they offer training events for upholstery (£95 per session)
West Barns Studios
Contact : E: westbarnsstudios@gmail.com
Overview : This is shared space for artists based in Dunbar. They are a busy local studio which
offers both space for rent to artists and classes/workshops in a number of different areas.
Studios to rent at West Barns Studios
There are two studios available to rent, one at £85 and one for £42.50 monthly. The centre is
busy and has a vibrant timetable of activity.
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Business Centres
Elvingston Science Centre
Contact: Janice Simpson
T: 01875 408020
E: enquiries@elvingston.com
Location: Haddington, East Lothian Risk: Low
Overview: Elvingston Science Centre is supported by Scottish Enterprise, East Lothian Council,
and Edinburgh Napier University. It was established in 1997 with the objective to provide a
unique, innovative business environment, supporting a growing nucleus of high-tech,
knowledge-based companies. The first 10,000 sq ft. unit was established by Scottish Enterprise,
East Lothian Council, and Simpson Research Ltd. and a second unit will also be built. Simpson
Research Ltd. is the site owner and manager of the premises. Simpson Research Limited is a
high-tech consultancy that advises companies on business strategy and takes equity positions
in start-ups. Simpson Research Limited is also involved in several “virtual” incubation
companies in different locations. The centre has generated more than 150 technology-based
jobs and continues to grow.
Premises and Facilities: The centre is located on the grounds of the Elvingston House Estate,
which is owned by Dr and Mrs Simpson. Unit one occupies approximately one acre, with scope
for a total of 60,000 square feet development in the future. The unit sizes offered range from
350 sq ft. to 1,540 sq ft. and fully managed reception facilities and office services are also
provided. The Centre offers flexible tenancy arrangements, furnished accommodation,
infrastructure with power, data, voice main communications and integral conference facilities.
There is a 24 hour, tenant-controlled alarm system with CCTV. There are a range of tenant
support services, telephone answering, with digital and analogue telephones with
DDI/voicemail facilities, broadband access, word processing, photocopying, report binding,
confidential document destruction, facsimile and postal services, use of conference and
meeting rooms with audio-visual and presentation equipment, fully equipped kitchen/snack
room with coffee machine and tenant tuck shop. In-house catering for special meetings/
conferences can also be arranged. In addition, all tenants are entitled to free consultation on
business practice, international marketing. Elvingston Science Centre also provides cleaning of
common areas and individual units, building maintenance, refuse disposal, landscaping, toilet
facilities with separate shower, on-site car parking. Lastly, the town of Haddington is an
accessible five minutes’ drive away.
Current Company Tenants: AAT Research Limited; Almac Sciences (Scotland) Ltd; Elvingston
Stud; My Power World Ltd.; PlasPac Ltd.; PolyPak Limited; MacGregor Healthcare Limited;
Saltire Audio Media Ltd/Elvingston Radio;
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Cockenzie Business Centre
Contact: T: 0141 237 5007
Location: Presonpans, North Berwick
Risk: Medium
Overview: Cockenzie Business Centre offers office space, studio space, and storage space for
rental. It offers space to artists, but according to Elaine Gale from the East Lothian Social
Enterprise Network they are leaning towards offering space more for the business community.
The space is advertised on numerous websites, including bizspace.co.uk, newofficeeurope.com,
offices.org.uk, rightmove.co.uk, etc.
Premises: The business centre covers 6,995 square feet (649.84 square metres), with
commercial units ranging from 150 - 1,300 square feet (13.94 - 120.77 square metres) in size.
Up-Cycling
REdesign Network
Contact: T: 01620 861040
E: Redesignnetwork@outlook.com
Location: Cockenzie House, North Berwick
Risk: Low
Overview: REdesign Network is a Community Interest Company and is an up-cycling network
that specialises in converting old or discarded materials into something useful. The run summer
workshops at the Cockenzie House, which include:

Furniture Painting Techniques

Furniture Up-cycling project

Make a Lampshade
*Elaine Gale from the East Lothian Social Enterprise Network said that REdesign Network are
interested in working with East Linton.
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UP Recycling
Contact: T: 01620 880278
Location: North Berwick
E: stuff@up-recycling.co.uk
Risk:
Overview: UP Recycling has recently joined up with and relocated to the Merryhatton Garden
Centre. The organisation fixes up and reuses unwanted items. They sell things from home
decorations to home furniture. They have a toy swap corner for children and help sell items
cluttering up garages and attics, and also offer to hunt for particular pieces for clients, whether
it’s a gypsy caravan or croquet set. UP Recycling is also home to other up-cyclers who sell their
goods at the store. These other up-cyclers and their products include:

So Vintique- which sells unique, vintage and handcrafted homeware and gifts.

Tinkers and Tailors - a company that transforms old household objects and sources
vintage linens and housewares many from France and Switzerland.

Quality Shoe Repairs - footwear repair every Wednesday.
Café and Garden Centre
Merryhatton Garden Centre and Café
Contact: 01620 880278
Location: North Berwick
Risk: Medium
Overview: Merryhatton Garden Centre is a local family garden centre. First established in 1997,
the centre sells plants, seeds, outdoor furniture etc., but they also sell indoor goods including
home décor, cookware, clothing, accessories, cards, books, toys etc. They have a community
café that is considered a visitor attraction in East Lothian. UP recycling is also located at
Merryhatton centre in The Old Shop (See above).
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37
Training
The Ridge
Contact: info@the-ridge.org.uk
Location: Dunbar
Risk: Low
Overview: The Ridge is an SQA and REHIS accredited centre and a skills based academy for the
Jobcentre Plus. They offer training in horticulture, rural skills, hospitality, catering, enterprise
and employability. They aim to promote knowledge around food production and improve
access to locally produced food. The Ridge has five components: The Ridge Café, The Ridge
Training, The Ridge Deliveries, The Ridge Markets and The Ridge Gardening.
The Ridge Café: The café is located at Bleachingfield Community Centre and is run in
partnership with East Lothian Council. It offers opportunities in training and volunteering
including helping in the kitchen, helping cook for a dinner, and assisting with children’s events.
They also offer outside catering and put on a range of community events throughout the year
including: cookery demonstrations; themed meals; children’s story-telling/baking; quiz nights;
game nights; tea dances etc.
The Ridge Training: They work with East Lothian Council, Dunbar Grammar School and the
Jobcentre Plus to develop and deliver high quality, tailored training packages, as well as
professional skills qualifications such as First Aid, Fire Safety, REHIS and Manual Handling, in
support of local businesses and individuals’ CPD requirements. They offer both accredited and
non-accredited training courses across areas of Horticulture, Rural Skills, Hospitality, Catering,
Enterprise and Employability. Non-formal training is also offered to community groups
including: Cooking on a Budget; Healthy Cooking for the Elderly; Children’s Cooking Classes;
Dry Stone Walling; Willow Weaving; Growing Your Own Veg; Pruning Fruit Trees.
The Ridge Gardening: Land based training offered to people interested in a career in
horticulture/rural skills. Accredited training and Modern Apprenticeships are offered an, there is
also the option to learn about running a business.
The Ridge Deliveries: They have received the Coastal Community Fund to allow them to
purchase a van and hire a driver with the aim to alleviate the problem of the local producers
getting their products out to the market as well as aiding people in outlying villages to access
local produce. This micro-business is still in development.
The Ridge Markets: The Ridge is working with local producers and traders to bring a monthly
local food and produce market to Dunbar. They are currently carrying out a consultation, to
establish the most effective site, timing, layout and other elements, to ensure these markets
enhance existing High Street trade, as well as optimising new opportunities for local producers.
Part of the Coastal Communities Fund will support this.
There was some concern from the Ridge about displacement as they undertake horticulture
learning sessions and expressed an ability to be the provider of training on the site. The
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growing project at the Saleground will be delivered by Growing Forth which has been
operating for a number of years but there may be opportunities for the Ridge in the future.
The Chippendale International School of Furniture
Contact: T: 01620 810680
Location: Haddington
Risk: Low
E: info@chippendale.co.uk
Overview: The Chippendale School was founded in 1985 and is now a leading independent
furniture making and furniture design school. They have up to 22 students a year and run
intensive furniture making and woodwork courses over a period of 9 months. They use locally
sourced wood and also run short courses as ‘taster’ courses.
Course fees: The course fees for the year 2014-15 are £17,000, which includes tuition, materials,
use of hand and machine tools, and entrance fees to museums and private houses.
Stakeholder Interviews
Interviews were held with key stakeholders including local Councillors, officials from Dunpender
Community Council, key staff at the local school, East Lothian Social Enterprise Network and an
Official from Economic Development of East Lothian Council.
The following feedback to the study9:
Veitch, Michael
East Lothian Councillor Ward 7- Scottish Conservative
Paul Mclennan
East Lothian Councillor Ward 7 - Scottish National Party
Judith Priest
Chair - Dunpender Community Council
Catherine Francis
Advisor - Scottish Land Fund
East Linton Primary
School
Headteacher - Gill Gardner
Elaine Gaile
Manger SEEL (East Lothian Social Enterprise Network)
Richard Baty
Economic Development Manager, East Lothian Council
9
It should be noted that other individuals and agencies were approached, but did not respond at this stage.
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Paul McGuire
Business Adviser, Economic Dev, EL Works, Haddington
Findings are summarised as follows:
Challenges:

Sustainability of the project – managing to fill the office and workspaces was viewed by
some as stressful. [in fact demand is very high, all units are likely to be full].

Impact on local traders and businesses was noted as a concern. [In fact displacement
has been a key consideration in the research and we have ensured that no offering is
likely to replicate one available in the village].

Impact on regular events held in the area – Antique Fair in the Community Hall –
impacting on the event as well as use of the Community Hall (thereby reducing income
to the Community Council). The interview with the Community Council and chair of
the Hall in fact recorded strong support for the idea and no fear of duplication. There
were in fact benefits from joint initiatives including joint marketing.

Other developments which were planned but haven’t gone ahead such as Phantassie
Steading. Planning permission was granted in 2010, private funding secured, but this
remains a “building at risk” and hasn’t been developed and some participant wondered
why. In fact this has been due to the death of the main investor which has severely
delated the project.

It was noted that he project should be aware of potential competition though noting
that there are a few other locations in East Lothian offering similar space. Why Not? in
North Berwick was noted as a potential competitor. [In fact we have spoken to this
organisation who operate differently and do not view this as competition].

Fluctuating occupancy may be difficult to provide a long-term sustainable income
stream.

Rates will have to compete fairly with other offers in the area (such as Why Not? and
Cockenzie House and Gardens).

Risk if this Project relies on Volunteers – there appears to be a large demand for
volunteers in the area, but events such as Christmas Fayres have stopped due to falling
numbers of volunteers. [NB, this project will not rely on volunteers].

Location may be an issue with the bypass and no access to the A1.

Challenges generally faced by retail initiatives such as growth on on-line shopping.
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Opportunities:

East Linton Railway Station may be re-opening which will open the area up to better
transport links.

Demand for initiatives that will contribute to economic growth in East Lothian.

Creating a “buzz”.

Fits with the culture of the area and could work with organisations such as Arts of
Dunbar (60 members). Also to work with other Festivals in the area for promotion
opportunities, such as the 3 Harbours Festival (June annually).

Venue for small functions.

Café.

Venue should remain open in the evenings to maximise use of space and increase
income.

Everyone spoken to is fully in support of the idea.

Partnership working, particularly with community organisations such as Dunpender
Community Council involved in making improvements to the local area, Creative East
Lothian, Redesign Network and East Lothian Adult Network.

Events involving Children would be an opportunity; local school wouldn’t be able to pay
a rent for space but could pay for resources to be used in any activity.

PV (solar) panels on roofs might bring in additional income.

Links with the Sustaining Dunbar Initiative .

Need for business units.

Suggestion that a “phased approach” would enable the Project to test the waters before
committing to a long-term plan/funding plan.
Surveys
Three individual surveys were conducted, with the aim to gather opinion and levels of interest
from individuals and organisations from the following groups:

Artists, makers, and Potential Vendors.

Commercial Opportunity.

Local Community (individuals) .
A high level of responses was received from all three Surveys, which shows the level of interest
in this Project.
We have summarised below, the key findings from these Surveys.
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Vendor/Tenant Survey Results
Survey 1: Artists, Makers and Potential Vendors and food enterprises
The Survey was designed to look at how these individuals and organisations are currently
working, and the level of interest in becoming involved in the East Linton Saleground Project
A total of 61 responses was received, 62% of respondents described themselves as “makers”.
The age group of respondents ranged from 19 to 65+ but around 62% of respondents were in
the 35 to 55 age group, with 75% currently working or delivering their services from home,
mainly due to the cost of rent. The location of these businesses in post code ranged from
EH40 to EH42. When asked the cost of rent being paid, only 10 responses were received,
perhaps reflecting those that work from home and have no rent to pay; some people didn’t
know the cost per square metre, but monthly costs ranged from £60 to £197 and from £9 to
£11.50 per square metre.
Figure 1 above illustrates the main issues respondents have in making a living from their
businesses/work, and this could be seen as an opportunity for The Saleground to provide
trading mechanisms to market and sell work for tenants.
Figure 2 below shows what prospective tenants would look for if renting a unit at the
Saleground. This shows a high level of interest in all facilities, other than a telephone line and
informs the planning and design process in this Project.
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If you were to rent a creative space or a business unit at the East Linton Saleground which would of the
following would be of most benefit to you?
Answer Options
Very
interested
Interested
Not
Interested
Not sure
Response
Count
Shared card facilities
12
16
7
4
39
In studio retail facilities
15
19
1
4
39
Help with marketing and promoting your individual
businesses
23
15
2
0
40
Telephone line
4
10
12
12
38
Super fast business broadband
20
8
6
6
40
Mini site within East Linton Saleground website
18
16
4
4
42
On-site Gallery/ retail space
24
15
5
0
44
On site Business Support
9
13
11
6
39
Teaching opportunities/ facilities
13
18
6
4
41
However, when asked how much they would be prepared to pay, 50% of respondents said they
would be willing to pay either £50 or under £50 per month, in addition to rent, for the above
services. It is worth noting that 33% of respondents answered “unsure” to this question
showing a need for discussion and negotiation on this issue.
When asked about size of workshop, 48% would require up to 10 sq m and 40% up to 20 sq
metres. Other respondents asked for 20 sq m up to over 30 sq m.
Figure 3 below shows the level of interest in the “social” and “ethical” partnership working
potential.
Our ethos is to run a sustainable business socially, ethically and environmentally.
Would you be prepared to "buy in" to the following
Answer Options
Response Percent
Recycling
100.0%
Using sustainable methods of production where possible
89.5%
Involvement in the overall community
86.8%
Re-investment of Saleground profits into our social aims
84.2%
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Which of the following activities might you be interested in pursuing at the East Linton Saleground?
Answer Options
Very
Interested
Interested
Not
Interested
at all
Not sure
Renting a unit (with retail facilities)
17
17
2
7
Private or community tuition/ classes
12
15
9
3
Being a visiting teacher
11
15
9
2
Sharing facilities (e.g. renting bench space/
polytunnels)
7
11
11
3
Volunteering to share your skills
6
16
12
4
Holding a weekly/monthly market stall
22
10
4
3
Supplying work/ produce to shared retail facilities
(gallery/ farmshop)
24
13
2
2
Taking part in Saleground events
18
18
3
0
Figure 4 above shows that 80% of respondents would be interested or very interested in renting
a unit; 82% interested in holding a weekly or monthly market stall; 90% interested in supplying
work to a shared retail facility such as a farmshop or gallery and 92% interested in taking part in
Saleground events. One comment was made saying “they would be willing to pay a shop 20%
commission on sales of their goods” – a commission on sales may be a good opportunity to
raise income from the shop space for “indirect” sales for vendors/tenants or other partners.
Figure 5 below shows that there is not much interest in assisting with training in areas other
than perhaps Craft Skills (i.e. jewellery, ceramics and textiles) and also a small level of interest in
up-cycling/sustainable living.
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When asked a question “We are aware that this project could have a significant impact on East
Linton. Would you see these as being positive or negative?”, 27 comments were received; some
of the comments received are given below:

“I think small businesses with overlapping interests can gain a great deal from working
together”

“I think it will have a very positive impact and help keep a community together. I am
sure there are lots of folk with all sort of craft skills and it is great to share these with
other like minded craft folk”

“There is a need for this type of facility in the local area particularly with a rail link and it
would tidy up a run down area if the village, boost visitors/trade for the whole village
and allow local businesses to stay local”

“Any initiative to encourage creative business can only strengthen/ create further
opportunities for all - social, economic and creative”

“Anything that helps the local community, economy and small businesses is positive.
However, should local residents feel differently, it's important to hear their views and
find a compromise”
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
“Anything that can and hopefully will bring any community together into a creative,
artistic and productive collective where people are free to express and create, prosper
and grow is a fantastic benefit not just to those who partake but the greater community
as a whole”
The benefits that respondents feel would come from this idea, are shown in the table below.
Very few respondents either disagree or strongly disagree with any of the statements. The
weighted averages heavily support the project will bring the community together, encourage a
social, economic and environmental future and help people to learn new skills. (see full
answers given in Figure 6 below).
Given the brief overview at the introduction, do you agree or disagree with the following
statements? "Developing the Old Saleground and Auction Mart will..."
Answer Options
Strongly
Agree
Agree
Disagree
Strongly
Disagree
Bring the community together
17
24
1
0
Give East Linton a better, social economic and
environmental future
17
25
1
0
Help local people learn new skills
15
25
2
0
Help overcome disadvantage and inequality
10
23
2
3
Make people less isolated
18
21
1
1
Get people more active
14
23
2
2
Give young people positive activities
17
21
1
2
Improve job opportunities
18
17
4
1
Other (please specify)
The above question also prompted a comment saying “this would help to build a unique identify
for East Linton”. Branding will be an important element of making this idea a success, and
linking to the East Linton brand or local identity will be key to ensuring support from locals as
customers as well as vendors/tenants. Ensuring this Project encourages visitors, will also provide
an opportunity to work with Visit Scotland to ensure that this is included in local tourism
initiatives.
The final question asked respondents to leave their contact details if they were interested in
receiving more information and 26 contact details were left. This will be provided separately.
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Commercial Rental Opportunities Survey
Note: this second group of respondents were asked the same questions as Survey 1 above.
The 17 respondents to this survey were in the following business categories: Trades,
Architecture, Horticulture (22%), Catering, Forestry, Tourism (22%), and Social Enterprises (33%)
and the age groups of respondents showed that 57% were aged from 45 to 55, with other ages
from 19 to 64 also responding. 54% worked from home and 23% worked from “shared offices”.
With this group of respondents, 91% stated that they worked from home due to convenience,
and 73% for cost considerations and they work from premises in Haddington, and from
postcodes including EH39 to EH41.
Only 4 responded with information on how much rent they pay, paying from £10, £12 or £20 per
sq m.
When asked about the challenges in making a living from their business, overwhelmingly, 89%
say they struggle with marketing, with 56% with producing their work.
When asked about what would be important if they rented space at East Linton Saleground,
Figure 1 below shows responses.
If you were to rent a commercial space at the East Linton Saleground which of the following would be of
most benefit to you?
Answer Options
Very
interested
Interested
Not
Interested
Not sure
Card payment facilities
7
1
2
0
in workshop retail facilities
7
0
1
0
Help with marketing and promoting your individual
businesses
5
6
0
0
Telephone line
3
7
0
0
Super fast business broadband
7
5
0
0
Mini site within East Linton Saleground website
6
3
0
0
Visiting public
7
2
0
0
As with the first group, the option of a telephone line doesn’t seem to be a priority for
respondents looking instead for visitors, website, retail facilities and card payment facilities, all
tools to help them sell their various services.
36% of respondents said they would be prepared to pay under £50 and 27% would be prepared
to pay £50 for services over and above rent; 18% were unsure.
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When asked about the size of workshop they would require, 60% would require a space of 10 to
20 sq m, with 20% requiring under 10 sq m, 20% requiring 20 to 30 sq m and 20% requiring 30
sq m plus. It would appear that some respondents have ticked more than 1 box.
Within this group 82% stated they would not be interested in a “hot desking” option.
Looking at what respondents would be prepared to “buy into”, 100% stated they would be
interested in being involved in the overall community and recycling. However responses were
also in support of using sustainable methods of production and reinvesting profits into social
aims.
Figure 3 on the next page, shows what activities businesses are interested in from The
Saleground.
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This shows interest in all areas and provides a very positive level of potential demand for space
and facilities that could be offered and as only 4 people skipped this answer, this does provide a
representative sample.
When asked to give comments about the Project presenting either a positive or negative impact
on East Linton, everyone who responded answered “positive”. One provided more detail saying

“there is a clear commercial need and a clear opportunity to use this to facilitate the
repair and repurposing of the site into community use - and where better with a more
community spirit than Easy Linton”
The final question asked them about what the Project will bring to the area. No on-one
disagreed with any of the statements, but those with the strongest support included “social,
economic and environmental future”, “bringing the community together” and “helping people
to learn new skills”, and “making people less isolated”.
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Given the brief overview at the introduction, do you agree or disagree with the following statements?
"Developing the Old Saleground and Auction Mart will..."
Answer Options
Strongly
Agree
Agree
Disagree
Strongly
Disagree
Bring the community together
9
3
0
0
Give East Linton a better, social economic and
environmental future
10
2
0
0
Help local people learn new skills
8
4
0
0
Help overcome disadvantage and inequality
6
4
0
0
Make people less isolated
8
3
0
0
Get people more active
6
5
0
0
Give young people positive activities
9
2
0
0
Improve job opportunities
7
4
0
0
Contact details were left by 7 respondents; details will be sent separately.
Customers’ Survey
161 responses were received from residents from the areas of Gullane (1), North Berwick (5),
East Linton (135), Haddington (16) and Dunbar (5).
The demographic profile of the respondents showed that 56% were aged 51 to 65; and 44%
were aged 66+. 23% were aged 35 to 50. 62% were married or living together and 47% are
retired, with 46% of respondents working either in or from the East Linton area.
53% of respondents say they socialise in East Linton once or twice a week, with 23% saying
they socialise 3 or 4 times in a week.
31% shop once or twice a week and 65% shop in East Linton 2 to 3 times a week, with only 4%
saying they never shop in this area, showing that being able to shop locally is important to
respondents.
When asked about the development of the Saleground idea, the answers show clear support
for most of the activities suggested but do favour the ideas of market space, café, gallery, retail
space and an Artists’ and Makers’ Workshop. It is worth noting that all 161 respondents
answered this question.
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157 respondents answered the question about the type of skills they would be interested in
from the training ideas. Again, as with the previous question, people are interested in all
activities, with interest in Craft and Design, and Basic Practical Skills being slightly more popular
than Furniture Recycling and Food growing.
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The next question tackled their interest in the community services which could be offered at
the Saleground, with everyone responding to this question.
The following is a list of proposed community activities. Please indicate your level of
interest in each of these.
Answer Options
Yes
No
Not Sure
Cafe/Supper Club/Food Hub
114
18
26
Primary School Classroom
93
28
35
Community Space
103
21
34
Flexible events space
115
18
27
Auction Mart
125
13
22
Age specific activities
118
17
23
The answers to this question again show interest in everything offered, but with more support
for an Auction Mart and flexible events space.
Which of these additional facilities and opportunities do you feel
would benefit you personally in the village?
Answer Options
Response
Percent
Employment
27.1%
Business
14.6%
Training
34.7%
Shops
67.4%
Social
75.0%
The answers given above show that most people who responded would benefit from the more
social or shopping opportunities in the village. This level of interest offers East Linton
Saleground as a huge marketing opportunity to convert into demand and good loyalty from
the local population who clearly say there is need for something like this in East Linton.
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When asked about the impact people feel this will have, 95% said “positive”. Some comments
do point out some concerns that are worth pointing out. This Project will rely on local
customers and working with other local businesses already in place, so it is vital to consider the
opinions of potential customers to encourage loyalty and ensure that this will not impact
adversely on the services already offered in the village:

“I see it as having a positive impact as 1 The community hall is heavily booked at specific
times and dates - The Auction Mart may be able to complement the community hall. 2.
Attractive exhibition space necessary. 3. Good parking facilities at Auction Mart if you
had to come by car”

“As long as this doesn't impact on existing shops in East Linton it will be great for the
village”

“Would cafe impact on 2 currently on the high street? Would you take much needed
revenue away from the community hall?”

“positive-employment, training to make East Linton more sustainable. Restoration of a
beautiful historic landmark. only negatives-competition with local businesses(pubs) potential noise in a quiet residential area”
The answer to the next question also supports the comments made above, with 52% of
respondents saying they think that the Project will have the most impact on local shops and
68% saying it will most impact locals.
More people responding to the next question agreed rather than strongly agreed to the
statements provided, with more agreeing that the Project will “bring the community together”
and “help people to learn new skills”. The only statement that didn’t show heavy agreement in
either way was that it will “help overcome disadvantage and inequality” but this is not
surprising when you consider the demographic make-up in the East Linton area, and that it is
not in an area of deprivation.
Do you agree with the following statements. Developing the Old Saleground and Auction Mart will...
Answer Options
Strongly
agree
Agree
Disagree
Strongly
disagree
Give young people positive activities
51
87
10
4
Bring the community together
39
96
12
4
Give East Linton a better social, economic and
environmental future
52
85
9
4
Help local people learn new skills
49
93
6
5
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Help overcome disadvantage and inequality
28
69
41
9
Make people less isolated
39
82
21
5
Get people more active
39
89
17
5
Improve job opportunities
48
85
12
4
The final question asking whether the Project being “environmentally sustainable” was
important to respondents, found that 86% agreed with this statement.
Some final comments have been left by a small number of respondents. It is worth noting
again that one comment highlighted the concern for local businesses ensuring the impact on
them is minimal. Other comments include:

“The Auction Mart building is your biggest asset. Restore it well and let it still be seen
from the road. Providing jobs and training will be good for the village and much better
than building houses! Small concern over potential competition with community hall
and perhaps pubs. And please no noisy band practices. Keep quality high in the whole
venture”

“how about music teachers giving lessons in various instruments”

“employment and skills for young people cake decorating/ baking classes important for
social space/ cafe/ social events/ networking”
Open Day
An open day was held on a Sunday afternoon. A number of stall holders and local people were
engaged with as well as some who had come from outwith the area. There was clear support
for the idea and latent demand for a place that has a mix of retail, café and culture.
State Aid Test10
Some public funders are becoming aware of State Aid as an issue, though most do not mention
it. State Aid is a European Commission term which refers to forms of public assistance (usually
grant funding from public bodies), given to enterprises (theoretically including social
enterprises) on a discretionary basis, which has the potential to distort competition and affect
trade between Member States of the European Union. Thus theoretically grant funding given to
establish and develop the East Linton Salesground could be seen to be giving a competitive
10
It should be noted that this is an initial view based on a generic understanding of Sate Aid, and before establishing the
enterprise and securing significant funding, a state aid lawyer or expert should be consulted to give a definitive view.
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advantage to the saleground and disadvantaging other developments (say like Why Not? in
North Berwick).
The State aid rules are set by the European Commission and comprise various articles of the
Treaty on the Functioning of the European Union (TFEU), Regulations, Frameworks and
Guidelines - which set out what aid can be given and under which circumstances. The EC
governs Member States' compliance with these rules and many aid measures must be notified
to the Commission for approval. These are largely related to much bigger interventions.
To keep it simple there is a 200,000 Euro de minimus celling over a rolling three year period.
Clearly East Linton Salesground project will require more than this.
There are four key tests or questions which need to be considered in order to establish whether
a measure constitutes State aid. These tests are cumulative and all four must be met for State
aid to be present. The State Aid Unit can be consulted with for support. Before the State aid
tests can be applied it is necessary to determine whether the following two aspects are present:
1. Is the beneficiary an 'undertaking'? An undertaking is defined as any entity, regardless of
its legal status, which is engaged in economic (commercial/competitive) activity and
where there is a market in comparable goods or services.
2. Is that undertaking engaged in economic activity? This is defined as offering goods
and/or services on a given market and which could, at least in principle, be carried out by
a private operator for remuneration in order to make profits.
If these two initial assumptions are correct (which we would suggest they are in this case), the
four tests must then be applied to determine the possible presence of State aid. The tests are:
Test 1 : There has been an intervention by the State or through State resources which can take a
variety of forms (e.g. grants, interest and tax reliefs, guarantees, government holdings of all or
part of a company, or providing goods and services on preferential terms, etc)
Test 2 : The intervention gives the recipient an advantage on a selective basis, for example to
specific companies or industry sectors, or to companies located in specific regions.
Test 3 : Competition has been or may be distorted.
Test 4 : The intervention is likely to affect trade between Member States.
Crucially any funding would be for the site to facilitate community benefit. Each of the vendors
on site would be paying commercial rates and therefore would have no or very limited
competitive advantage. As noted all four tests must be met for state aid to be eligible. On an
initial assessment it would appear that test 1 would be met, but that Test 2 and 3 are not likely
to be met (this is clearly a matter of interpretation and depends on local circumstances at any
one time). It is not likely that test 4 would be met.
On balance, and with the proviso that a state aid expert should be consulted, this would not
appear to be a major issue, though should be monitored on an on-going basis.
Community Enterprise
Feasibility Study, East Linton Saleground
55
05 Potential Funding
A fundability test was undertaken and the following are viewed as potential funding for the
project. In summary there are sufficient potential funds, challenging though this is, to achieve
this project.
Funder
Comment
Target Amount
Stage One : start up grants for development costs
Comic Relief
Funding focus on areas of disadvantage could
present a difficulty. Rural isolation should be
used.
£10,000
Voluntary Action
Fund
Initiatives to involve new volunteers
£10,000
Postcode Lottery
Supports community based projects
£5,000
Big Lottery
development grant
This is funding that offered to projects that are
successful with a stage one Growing Community
Assets application, to help them prepare the
ground for a successful stage two bid.
£50,000
(see below for outcomes)
Stage Two : bigger development – capital and revenue
Esmee Fairbairn
Likely to be part of main grants as there are a
variety of outcomes relevant
Likely to be revenue only
Tudor Trust
Some of the characteristics they look for include:
Organisations which are embedded in, and have
developed out of, their communities
Organisations providing
marginalised people
direct
services
Up to around
£120,000 over
three years
Average grant is
around £50,000
but can be higher.
to
Work which addresses complex and multistranded, often difficult, problems in unusual or
imaginative ways
Community Enterprise
Feasibility Study, East Linton Saleground
56
Scottish Land Fund
The Scottish Land Fund will support rural
communities to become more resilient and
sustainable through the ownership and
management of land and land assets. It will
provide practical support and funding to enable
local people to work together to develop their
ideas and aspirations and plan and complete
viable land and land assets acquisition projects.
Can fund land
purchase from
£10,000 up to
£750,000.
It is funded by the Scottish Government and
delivered in partnership by the Big Lottery Fund
and Highlands and Islands Enterprise.
Grants will be made to projects in rural
communities in Scotland (settlements with a
population of less than 10,000). These are
geographic community, not a community of
interest. To receive a grant the organisation must
be community-led and community controlled.
Big Lottery
GCA would be the strongest fit although this may
not fit with the vision of the group. GCA involves
local people coming together to secure an asset
that will benefit the community.
Max £1m, though
average is around
£450,000
Outcomes need to be related all of the following;

Community coming together

Learning

Enterprise and sustainability

Addressing disadvantage.
Other strands may fund the revenue element
Creative Scotland
Open project Funding
Up to £100,000
Creative Place - currently closed but may re-open
as the Auction Mart develops
Cashback for Creativity
£10,000
See also
http://www.creativescotland.com/funding/fundingprogrammes/funds-delivered-by-partners
Community Enterprise
Feasibility Study, East Linton Saleground
57
Foyle Foundation
Funds core work in the areas of learning and arts
but is not keen on craft or community arts.
Potentially
significant sums
but not strong fit
here
Paul Hamlyn
Foundation
Open grants scheme
Circa £50,000 (their
average grant is
around £70,000
Heritage Lottery
Buildings and Monuments Fund states
Circa £100,000
“Conserving historic buildings helps to save the
places people value and provides communities
with much-needed facilities.” It aims to repair and
transform historic buildings and give them a use.
Historic Scotland
Various grant strands
The “Historic Building Repair Grants Scheme”
seems the best fit where financial help is available
to owners including organisations, to meet the
cost of high-quality repairs using traditional
materials and specialist craftsman to conserve
original features in buildings of special
architectural or historic interest.
Maximum grant is
£500,000, though
this is unusual.
Criteria for awarding grants
1. The building must be of sufficient outstanding
architectural or historic interest.
2. The building must be at serious risk from
neglect or repair.
3. A need for grant for repairs to be undertaken
must be demonstrated.
WREN
Landfill grants that can fund heritage. Need to be
within 10 miles of a landfill site.
Circa £50,000
Greenspace
Scotland
Grants from £500 to £10,000 to communities
across Scotland to come together to hold arts,
heritage, sports
£10,000
Community Enterprise
Feasibility Study, East Linton Saleground
58
People and
Communities Fund
(PCF)
£6m available for allocation in each of the three
years from 2012/13 to 2014/15. This funding is
available to organisations to allow them to deliver
the services and/or projects that have been
identified by the community as helping it achieve
its outcomes. There are two main priorities:
Employability and Preventative action
£250,000 max over
three years
The PCF is aimed at registered social landlords and
other community anchor organisations, such as
community development trusts that are
community controlled but work in partnership
across a wider sector.
This particular strand may be closed by the time
the group can apply, but it is likely to be relaunched.
Henry Smith
Charitable Trust
Funds Health projects and generic community
development
£25,000
Robertson Trust
The four main priorities areas are:
£45,000 over three
years




Care
Health
Education and Training
Community Art and Sport
Other trusts active
in Scotland
eg: Weir Trust, Volant Trust, Wolfson Trust
Not known
Loan Funding
There are potential soft loans and part loan/part
grant suppliers including Social Investment
Scotland, Scottish Investment Fund, Start and
Grow (Resilient Scotland), Big Issue Invest, Triodos
etc.
Circa £500,000
Innovative
mechanisms
Crowd funding, community share issues, bonds.
Up to £50,000
The ability to do this will also inform the legal
structure
Community Enterprise
Feasibility Study, East Linton Saleground
59
06 Financial modelling
There are a number of variables but financial modelling has been done to show how the site can
be sustainable in general terms. The 5 year cash flows are shown below with the following key
assumptions:
o
To reduce risk some revenue grant funding has been factored in. £180,000 over the first
three years.
o
It is estimated that there will be 20 units (shipping containers) to let charged at £80 per
month. Let of space is very conservative, starting at 10% in year one and rising to 50%
occupancy by the end of the first year. Year 2 rises to 70%, then 80% levelling off at 90%
where it remains. Demand is such that we are confident that occupancy should be much
higher much quicker (in fact likely to be 100% with a waiting list considering current
evidence of demand), which means that less grant would actually be needed.
o
The café will be let to a private individual who will pay a lease to the community owned
company who will run the site. That has been estimated here at 20% of profit, but this is
to be negotiated.
o
Sales of event include concerts, on-site events, learning workshops etc. These are
modest starting with 40 customers per month paying an average of £5. There is a
customer growth of 5% month on month and a spend growth of 3% month on month.
This growth figure reduces with each year.
o
There are year on year increases in staffing and running costs.
o
In year one, with £100,000 revenue grants there is a surplus of £9408. In year two, with
grants of £50,000 there is a surplus of £8995. Year three has £30,000 of grants and
surplus of £1509. Years 4 and 5 have no grants and show surpluses of £9922 then
£28,696 which is trading at optimum levels.
Community Enterprise
Feasibility Study, East Linton Saleground
60
Core Staffing costs
Notes
Salary
NI
Pension Expenses total
Development Manager
£28,000
£2,484
£1,400
£1,200
£33,084
Admin/Finance
£20,000
£1,380
£1,000
£200
£22,580
Retail and Marketing Manager
£24,000
£1,932
£1,200
£600
£27,732
Total
£83,396
FT
FT
FT
East Linton Salesground - Pre-Year preparation phase
Mnth 7
Income
Grant
Mnth 8
Mnth 9
Mnth 10 Mnth 11 Mnth 12 Total
30000
Expenditure
Manager Salary
Expenses
Admin / stationary
Marketing
Laptop, printer and other IT
Rent of room
volunteer and other exp
Total
2757
150
50
5000
1000
150
250
9357
30000
2757
150
50
2757
150
50
1000
2757
150
50
2757
150
50
1000
2757
150
50
150
250
3357
150
250
4357
150
250
3357
150
250
4357
150
250
3357
Surplus/Deficit
16542
900
300
7000
1000
900
1500
28142
1858
Community Enterprise
Feasibility Study, East Linton Saleground
61
East Linton Salesground - Year 1
Month1
Weeks per month
Events customers/week
Avg event spend
Café customers/week
Avg cafe spend
Average space let per week
Total potential units available
Sales
Event Sales
Cafe Franchise fee
Space Hire
Let of community space
Occupancy levels
Total Sales
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Totals
Notes
5
40
£5.00
80
£3.50
£80.00
20
4
42
£5.15
84
£3.61
£80.00
20
4
44
£5.30
88
£3.71
£80.00
20
5
46
£5.46
93
£3.82
£80.00
20
4
49
£5.63
97
£3.94
£80.00
20
4
51
£5.80
102
£4.06
£80.00
20
5
54
£5.97
107
£4.18
£80.00
20
4
56
£6.15
113
£4.30
£80.00
20
5
59
£6.33
118
£4.43
£80.00
20
4
62
£6.52
124
£4.57
£80.00
20
4
65
£6.72
130
£4.70
£80.00
20
4
68
£6.92
137
£4.84
£80.00
20
£1,000
£280
£865
£242
£936
£262
£1,265
£354
£1,094
£306
£1,184
£331
£1,600
£448
£1,384
£388
£1,872
£524
£1,619
£453
£1,751
£490
£1,894
£530
£800.00
£800.00
£1,600.00
£1,600.00
£1,600.00
£4,000.00
£4,000.00
£4,000.00
£4,000.00
£4,000.00
£4,000.00
£4,000.00
£2,080
£1,907
£2,798
£3,219
£3,001
£5,515
£6,048
£5,772
£6,396
£6,073
£6,242
£6,424
55,475
£650
£562
£608
£822
£711
£769
£1,040
£900
£1,217
£1,053
£1,138
£1,231
10,702
£650
£562
£608
£822
£711
£769
£1,040
£900
£1,217
£1,053
£1,138
£1,231
10,702
£500
£1,000
£1,500
£300
£31
£10
£6,950
£695
£400
£800
£1,200
£240
£29
£10
£6,950
£695
£500
£1,000
£1,500
£300
£48
£16
£6,950
£695
£400
£800
£1,200
£240
£45
£15
£6,950
£695
£400
£800
£1,200
£240
£87
£29
£6,950
£695
£400
£800
£1,200
£240
£94
£31
£6,950
£695
£100
£250
£100
£250
£100
£250
£100
£250
£500
£1,000
£1,500
£300
£96
£32
£6,950
£695
£1,000
£100
£250
£400
£800
£1,200
£240
£91
£30
£6,950
£695
£100
£250
£400
£800
£1,200
£240
£83
£28
£6,950
£695
£1,000
£100
£250
£500
£1,000
£1,500
£300
£91
£30
£6,950
£695
£100
£250
£400
£800
£1,200
£240
£42
£14
£6,950
£695
£1,000
£100
£250
£100
£250
£100
£250
£400
£800
£1,200
£240
£96
£32
£6,950
£695
£1,000
£100
£250
5,200
10,400 Estimate
15,600
3,120
832
277
83,396
8,340
4,000
1,200
3,000
Assume 5% growth / month
Assume 3% growth / month
Assume double number of shop customers
Assume 3% growth / month
Includes additional support like broadband, joint marketing etc
16,465
4,610 20% of income
34,400 Starts at 10% and rises to 50%. Actual demand is higher
Direct Costs
Event Expenses
65% of sales
Total Product Cost
Overhead Expenses
Advertising
Rates (per week)
Gas / Electric (per week)
Insurance (per week)
Misc
Stationery & Admin
Staff costs
Holiday and sick cover
Professional fees
Repairs & Maintenance
Vehicle Costs
£100 per week
£200
£300
£60
1.50%
0.50%
10% of staffing cost
£11,336
£10,673
£11,691
£11,359
£10,695
£11,745
£11,416
£10,750
£12,423
£10,756
£10,759
£11,763
135,365
Operating Profit
Total
-£9,906
-£9,328
-£9,501
-£8,962
-£8,405
-£6,999
-£6,408
-£5,878
-£7,243
-£5,736
-£5,656
-£6,570
-90,592
Operating Cash Flow
-£9,906
-£19,234
-£28,735
-£37,697
-£46,102
-£53,101
-£59,509
-£65,387
-£72,630
-£78,366
-£84,022
-£90,592
£2,080
£50,000
£1,907
£2,798
£3,219
£3,001
£5,515
£6,048
£50,000
£5,772
£6,396
£6,073
£6,242
£6,424
55,475
100,000
Total Income
£52,080
£1,907
£2,798
£3,219
£3,001
£5,515
£56,048
£5,772
£6,396
£6,073
£6,242
£6,424
155,475
Direct Costs
Overhead Costs
£650
£11,336
£562
£10,673
£608
£11,691
£822
£11,359
£711
£10,695
£769
£11,745
£1,040
£11,416
£900
£10,750
£1,217
£12,423
£1,053
£10,756
£1,138
£10,759
£1,231
£11,763
10,702
£135,365
Total Costs
£11,986
£11,235
£12,299
£12,181
£11,406
£12,514
£12,456
£11,650
£13,639
£11,809
£11,898
£12,994
£146,067
Gross Operating Profit
£40,094
-£9,328
-£9,501
-£8,962
-£8,405
-£6,999
£43,592
-£5,878
-£7,243
-£5,736
-£5,656
-£6,570
£9,408
Cash Flow
Grant
Sales
Revenue start up grant
To support staff costs
Cash Flow
Community Enterprise
Feasibility Study, East Linton Saleground
62
East Linton Salesground - Year 2
Month1
Weeks per month
Events customers/week
Avg event spend
Café customers/week
Avg cafe spend
AverageSpace per week
Total potential units available
Sales
Events Sales
Cafe Francchise fee
Space Hire
Let of community space
Occupancy levels
Total Sales
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Totals
Notes
5
68
£6.92
136
£4.89
£80.00
20
4
70
£7.06
140
£4.94
£80.00
20
4
72
£7.20
144
£4.99
£80.00
20
5
74
£7.34
149
£5.04
£80.00
20
4
77
£7.49
153
£5.09
£80.00
20
4
79
£7.64
158
£5.14
£80.00
20
5
81
£7.79
162
£5.19
£80.00
20
4
84
£7.95
167
£5.25
£80.00
20
5
86
£8.11
172
£5.30
£80.00
20
4
89
£8.27
177
£5.35
£80.00
20
4
91
£8.44
183
£5.41
£80.00
20
4
94
£8.60
188
£5.46
£80.00
20
£2,353
£665
£1,977
£554
£2,078
£576
£2,728
£749
£2,293
£624
£2,409
£649
£3,164
£844
£2,659
£702
£3,492
£913
£2,935
£760
£3,084
£790
£3,240
£822
£5,600.00
£5,600.00
£5,600.00
£6,400.00
£6,400.00
£6,400.00
£6,400.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£8,618
£8,131
£8,254
£9,878
£9,317
£9,458
£10,407
£10,561
£11,605
£10,895
£11,074
£11,262
119,459
£1,529
£1,285
£1,350
£1,773
£1,491
£1,566
£2,056
£1,728
£2,270
£1,908
£2,004
£2,106
21,067
0
£1,529
£1,285
£1,350
£1,773
£1,491
£1,566
£2,056
£1,728
£2,270
£1,908
£2,004
£2,106
21,067
£500
£1,000
£1,500
£300
£129
£43
£7,158
£716
£400
£800
£1,200
£240
£122
£41
£7,158
£716
£500
£1,000
£1,500
£300
£148
£49
£7,158
£716
£400
£800
£1,200
£240
£140
£47
£7,158
£716
£400
£800
£1,200
£240
£158
£53
£7,158
£716
£400
£800
£1,200
£240
£166
£55
£7,158
£716
£100
£250
£100
£250
£100
£250
£100
£250
£500
£1,000
£1,500
£300
£174
£58
£7,158
£716
£1,000
£100
£250
£400
£800
£1,200
£240
£163
£54
£7,158
£716
£100
£250
£400
£800
£1,200
£240
£142
£47
£7,158
£716
£1,000
£100
£250
£500
£1,000
£1,500
£300
£156
£52
£7,158
£716
£100
£250
£400
£800
£1,200
£240
£124
£41
£7,158
£716
£1,000
£100
£250
£100
£250
£100
£250
£400
£800
£1,200
£240
£169
£56
£7,158
£716
£1,000
£100
£250
5,200 Slight increases each year
10,400
15,600
3,120
1,792
597
85,898 cost of living rise each year plus additional staff
8,590
4,000
1,200
3,000
Assume 3% growth / month
Assume 2% growth / month
Assume double number of shop customers
Assume 2% growth / month
32,412
8,648
78,400 End of year 2 target of 90% occupancy
Direct Costs
Event Expenses
65% of sales
Total Product Cost
Overhead Expenses
Advertising
Rates (per week)
Gas / Electric (per week)
Insurance (per week)
Misc
Stationery & Admin
Staff costs
Holiday and sick cover
Professional fees
Repairs & Maintenance
Vehicle Costs
£100 per week
£200
£300
£60
1.50%
0.50%
plus 3%
10% of staffing cost
£11,696
£11,027
£12,029
£11,722
£11,050
£12,053
£11,732
£11,075
£12,756
£11,082
£11,085
£12,089
139,397
Operating Profit
Total
-£4,607
-£4,181
-£5,126
-£3,617
-£3,224
-£4,161
-£3,381
-£2,243
-£3,421
-£2,095
-£2,016
-£2,933
-41,005
Operating Cash Flow
-£4,607
-£8,788
-£13,914
-£17,531
-£20,755
-£24,917
-£28,298
-£30,540
-£33,961
-£36,056
-£38,072
-£41,005
£8,618
£25,000
£8,131
£8,254
£9,878
£9,317
£9,458
£10,407
£25,000
£10,561
£11,605
£10,895
£11,074
£11,262
119,459
50,000 Reduction of grant as trading increases
Total Income
£33,618
£8,131
£8,254
£9,878
£9,317
£9,458
£35,407
£10,561
£11,605
£10,895
£11,074
£11,262
169,459
Direct Costs
Overhead Costs
£1,529
£11,696
£1,285
£11,027
£1,350
£12,029
£1,773
£11,722
£1,491
£11,050
£1,566
£12,053
£2,056
£11,732
£1,728
£11,075
£2,270
£12,756
£1,908
£11,082
£2,004
£11,085
£2,106
£12,089
21,067
£139,397
Total Costs
£13,226
£12,312
£13,379
£13,495
£12,541
£13,619
£13,789
£12,804
£15,026
£12,990
£13,090
£14,195
£160,464
Gross Operating Profit
£20,393
-£4,181
-£5,126
-£3,617
-£3,224
-£4,161
£21,619
-£2,243
-£3,421
-£2,095
-£2,016
-£2,933
£8,995
Cash Flow
Grant
Sales
Revenue start up grant
To support staff costs
Cash Flow
Community Enterprise
Feasibility Study, East Linton Saleground
63
East Linton Salesground - Year 3
Month1
Weeks per month
Events customers/week
Avg event spend
Café customers/week
Avg cafe spend
AverageSpace let per week
Total potential units available
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Totals
5
94
£8.60
260
£5.49
£90.00
20
4
95
£8.69
260
£5.51
£90.00
20
4
97
£8.77
260
£5.54
£90.00
20
5
98
£8.86
260
£5.57
£90.00
20
4
100
£8.95
260
£5.60
£90.00
20
4
101
£9.04
260
£5.63
£90.00
20
5
103
£9.13
260
£5.65
£90.00
20
4
104
£9.22
260
£5.68
£90.00
20
5
106
£9.31
260
£5.71
£90.00
20
4
107
£9.41
260
£5.74
£90.00
20
4
109
£9.50
260
£5.77
£90.00
20
4
111
£9.59
260
£5.80
£90.00
20
£4,042
£1,427
£3,315
£1,147
£3,398
£1,153
£4,355
£1,448
£3,571
£1,164
£3,661
£1,170
£4,692
£1,470
£3,848
£1,182
£4,931
£1,485
£4,044
£1,194
£4,145
£1,200
£4,250
£1,206
£6,300.00
£6,300.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£7,200.00
£11,769
£10,762
£11,751
£13,003
£11,936
£12,031
£13,361
£12,229
£13,615
£12,437
£12,545
£12,655
148,094
£2,627
£2,155
£2,209
£2,831
£2,321
£2,380
£3,050
£2,501
£3,205
£2,628
£2,694
£2,762
31,363
0
£2,627
£2,155
£2,209
£2,831
£2,321
£2,380
£3,050
£2,501
£3,205
£2,628
£2,694
£2,762
31,363
£600
£1,000
£1,500
£325
£177
£59
£7,367
£737
£480
£800
£1,200
£260
£161
£54
£7,367
£737
£600
£1,000
£1,500
£325
£195
£65
£7,367
£737
£480
£800
£1,200
£260
£179
£60
£7,367
£737
£480
£800
£1,200
£260
£183
£61
£7,367
£737
£480
£800
£1,200
£260
£188
£63
£7,367
£737
£150
£300
£150
£300
£150
£300
£150
£300
£600
£1,000
£1,500
£325
£204
£68
£7,367
£737
£1,000
£150
£300
£480
£800
£1,200
£260
£187
£62
£7,367
£737
£150
£300
£480
£800
£1,200
£260
£180
£60
£7,367
£737
£1,000
£150
£300
£600
£1,000
£1,500
£325
£200
£67
£7,367
£737
£150
£300
£480
£800
£1,200
£260
£176
£59
£7,367
£737
£1,000
£150
£300
£150
£300
£150
£300
£480
£800
£1,200
£260
£190
£63
£7,367
£737
£1,000
£150
£300
6,240
10,400
15,600
3,380
2,221
740
88,400
8,840
4,000
1,800
3,600
£12,214
£11,509
£12,528
£12,238
£11,532
£12,534
£12,246
£11,538
£13,251
£11,542
£11,544
£12,546
145,222
Operating Profit
-£3,072
-£2,901
-£2,986
-£2,066
-£1,918
-£2,882
-£1,934
-£1,809
-£2,840
-£1,733
-£1,694
-£2,653
-28,491
Operating Cash Flow
-£3,072
-£5,974
-£8,960
-£11,026
-£12,944
-£15,827
-£17,760
-£19,570
-£22,410
-£24,143
-£25,837
-£28,491
£11,769
£15,000
£10,762
£11,751
£13,003
£11,936
£12,031
£13,361
£15,000
£12,229
£13,615
£12,437
£12,545
£12,655
148,094
30,000
Total Income
£26,769
£10,762
£11,751
£13,003
£11,936
£12,031
£28,361
£12,229
£13,615
£12,437
£12,545
£12,655
178,094
Direct Costs
Overhead Costs
£2,627
£12,214
£2,155
£11,509
£2,209
£12,528
£2,831
£12,238
£2,321
£11,532
£2,380
£12,534
£3,050
£12,246
£2,501
£11,538
£3,205
£13,251
£2,628
£11,542
£2,694
£11,544
£2,762
£12,546
31,363
£145,222
Total Costs
£14,841
£13,663
£14,737
£15,069
£13,853
£14,914
£15,295
£14,039
£16,455
£14,170
£14,239
£15,309
£176,585
Gross Operating Profit
£11,928
-£2,901
-£2,986
-£2,066
-£1,918
-£2,882
£13,066
-£1,809
-£2,840
-£1,733
-£1,694
-£2,653
£1,509
Sales
Event Sales
Cafe Sales
Space Hire
Let of community space
Occupancy levels
Total Sales
Increase
48,251
15,243
84,600 Increase to level of 80% occupancy
Direct Costs
Event Expenses
65% of sales
Total Product Cost
Overhead Expenses
Advertising
Rates (per week)
Gas / Electric (per week)
Insurance (per week)
Misc
Stationery & Admin
Staff costs
Holiday and sick cover
Professional fees
Repairs & Maintenance
Vehicle Costs
£120 per week
£200
£300
£65
1.50%
0.50%
plus 3%
10% of staffing cost
Total
Cash Flow
Grant
Sales
Revenue start up grant
To support staff costs
Cash Flow
Community Enterprise
Feasibility Study, East Linton Saleground
64
Notes
Assume 1.5% growth / month
Assume 2% growth / month
Assume leveling off
Assume 0.5% growth / month
East Linton Salesground - Year 4
Month1
Weeks per month
Film and Concert customers/week
Avg event spend
Café customers/week
Avg cafe spend
AverageSpace let per week
Total potential hours available per week
Sales
Events Sales
Cafe Franchise fee
Space Hire
Let of community space
Occupancy levels
Total Sales
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Totals
Notes
5
120
£10.00
300
£6.50
£100.00
20
4
120
£10.00
300
£6.50
£100.00
20
4
120
£10.00
300
£6.50
£100.00
20
5
120
£10.00
300
£6.50
£100.00
20
4
120
£10.00
300
£6.50
£100.00
20
4
120
£10.00
300
£6.50
£100.00
20
5
120
£10.00
300
£6.50
£100.00
20
4
120
£10.00
300
£6.50
£100.00
20
5
120
£10.00
300
£6.50
£100.00
20
4
120
£10.00
300
£6.50
£100.00
20
4
120
£10.00
300
£6.50
£100.00
20
4
120
£10.00
300
£6.50
£100.00
20
£6,000
£1,950
£4,800
£1,560
£4,800
£1,560
£6,000
£1,950
£4,800
£1,560
£4,800
£1,560
£6,000
£1,950
£4,800
£1,560
£6,000
£1,950
£4,800
£1,560
£4,800
£1,560
£4,800
£1,560
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£16,950
£15,360
£15,360
£16,950
£15,360
£15,360
£16,950
£15,360
£16,950
£15,360
£15,360
£15,360
190,680
£3,900
£3,120
£3,120
£3,900
£3,120
£3,120
£3,900
£3,120
£3,900
£3,120
£3,120
£3,120
40,560
0
£3,900
£3,120
£3,120
£3,900
£3,120
£3,120
£3,900
£3,120
£3,900
£3,120
£3,120
£3,120
40,560
£250
£1,000
£1,500
£325
£254
£85
£7,588
£379
£200
£800
£1,200
£260
£230
£77
£7,588
£379
£250
£1,000
£1,500
£325
£254
£85
£7,588
£379
£200
£800
£1,200
£260
£230
£77
£7,588
£379
£200
£800
£1,200
£260
£230
£77
£7,588
£379
£200
£800
£1,200
£260
£230
£77
£7,588
£379
£100
£300
£100
£300
£100
£300
£100
£300
£250
£1,000
£1,500
£325
£254
£85
£7,588
£379
£1,000
£100
£300
£200
£800
£1,200
£260
£230
£77
£7,588
£379
£100
£300
£200
£800
£1,200
£260
£230
£77
£7,588
£379
£1,000
£100
£300
£250
£1,000
£1,500
£325
£254
£85
£7,588
£379
£100
£300
£200
£800
£1,200
£260
£230
£77
£7,588
£379
£1,000
£100
£300
£100
£300
£100
£300
£200
£800
£1,200
£260
£230
£77
£7,588
£379
£1,000
£100
£300
2,600 Reduction as marketing now based on word of mouth and reputation
10,400
15,600
3,380
2,860
953
91,052
4,553
4,000
1,200
3,600
levels off at 120
levels off at £10
levels off
levels off
62,400
20,280
108,000 Rises to 90%
Direct Costs
Events Expenses
65% of sales
Total Product Cost
Overhead Expenses
Advertising
Rates (per week)
Gas / Electric (per week)
Insurance (per week)
Misc
Stationery & Admin
Staff costs
Holiday and sick cover
Professional fees
Repairs & Maintenance
Vehicle Costs
£50 per week
£200
£300
£65
1.50%
0.50%
As year 3 plus 3%
5% of staffing cost
£11,781
£11,134
£12,134
£11,781
£11,134
£12,134
£11,781
£11,134
£12,781
£11,134
£11,134
£12,134
140,198
Operating Profit
Total
£1,269
£1,106
£106
£1,269
£1,106
£106
£1,269
£1,106
£269
£1,106
£1,106
£106
9,922
Operating Cash Flow
£1,269
£2,375
£2,481
£3,749
£4,855
£4,961
£6,230
£7,336
£7,605
£8,711
£9,816
£9,922
£16,950
£15,360
£15,360
£16,950
£15,360
£15,360
£16,950
£15,360
£16,950
£15,360
£15,360
£15,360
190,680
0
Total Income
£16,950
£15,360
£15,360
£16,950
£15,360
£15,360
£16,950
£15,360
£16,950
£15,360
£15,360
£15,360
190,680
Direct Costs
Overhead Costs
£3,900
£11,781
£3,120
£11,134
£3,120
£12,134
£3,900
£11,781
£3,120
£11,134
£3,120
£12,134
£3,900
£11,781
£3,120
£11,134
£3,900
£12,781
£3,120
£11,134
£3,120
£11,134
£3,120
£12,134
40,560
£140,198
Total Costs
£15,681
£14,254
£15,254
£15,681
£14,254
£15,254
£15,681
£14,254
£16,681
£14,254
£14,254
£15,254
£180,758
£1,269
£1,106
£106
£1,269
£1,106
£106
£1,269
£1,106
£269
£1,106
£1,106
£106
£9,922
Cash Flow
Grant
Sales
Revenue start up grant
To support staff costs
Cash Flow
Gross Operating Profit
Community Enterprise
Feasibility Study, East Linton Saleground
65
East Linton Salesground - Year 5
Month1
Weeks per month
Film and Concert customers/week
Avg event spend
Café customers/week
Avg cafe spend
AverageSpace let per week
Total potential hours available per week
Sales
Events Sales
Cafe Franchise fee
Space Hire
Let of community space
Occupancy levels
Total Sales
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Totals
Notes
5
40
£10.00
300
£6.50
£100.00
20
4
40
£10.00
300
£6.50
£100.00
20
4
40
£10.00
300
£6.50
£100.00
20
5
40
£10.00
300
£6.50
£100.00
20
4
40
£10.00
300
£6.50
£100.00
20
4
40
£10.00
300
£6.50
£100.00
20
5
40
£10.00
300
£6.50
£100.00
20
4
40
£10.00
300
£6.50
£100.00
20
5
40
£10.00
300
£6.50
£100.00
20
4
40
£10.00
300
£6.50
£100.00
20
4
40
£10.00
300
£6.50
£100.00
20
4
40
£10.00
300
£6.50
£100.00
20
£2,000
£1,950
£1,600
£7,800
£1,600
£7,800
£2,000
£9,750
£1,600
£7,800
£1,600
£7,800
£2,000
£9,750
£1,600
£7,800
£2,000
£9,750
£1,600
£7,800
£1,600
£7,800
£1,600
£7,800
20,800
93,600
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
£9,000.00
108,000
£12,950
£18,400
£18,400
£20,750
£18,400
£18,400
£20,750
£18,400
£20,750
£18,400
£18,400
£18,400
222,400
£1,300
£780
£1,040
£3,120
£1,040
£3,120
£1,300
£3,900
£1,040
£3,120
£1,040
£3,120
£1,300
£3,900
£1,040
£3,120
£1,300
£3,900
£1,040
£3,120
£1,040
£3,120
£1,040
£3,120
13,520
37,440
0
£2,080
£4,160
£4,160
£5,200
£4,160
£4,160
£5,200
£4,160
£5,200
£4,160
£4,160
£4,160
50,960
£250
£1,000
£1,500
£325
£194
£65
£7,739
£387
£200
£800
£1,200
£260
£276
£92
£7,739
£387
£250
£1,000
£1,500
£325
£311
£104
£7,739
£387
£200
£800
£1,200
£260
£276
£92
£7,739
£387
£200
£800
£1,200
£260
£276
£92
£7,739
£387
£200
£800
£1,200
£260
£276
£92
£7,739
£387
£100
£300
£100
£300
£100
£300
£100
£300
£250
£1,000
£1,500
£325
£311
£104
£7,739
£387
£1,000
£100
£300
£200
£800
£1,200
£260
£276
£92
£7,739
£387
£100
£300
£200
£800
£1,200
£260
£276
£92
£7,739
£387
£1,000
£100
£300
£250
£1,000
£1,500
£325
£311
£104
£7,739
£387
£100
£300
£200
£800
£1,200
£260
£276
£92
£7,739
£387
£1,000
£100
£300
£100
£300
£100
£300
£200
£800
£1,200
£260
£276
£92
£7,739
£387
£1,000
£100
£300
2,600
10,400
15,600
3,380
3,336
1,112
92,873 2% cost of living rise
4,644
4,000
1,200
3,600
As per year 4
Direct Costs
Events Expenses
Cafe Purchases
65% of sales
40% of sales
Total Product Cost
Overhead Expenses
Advertising
Rates (per week)
Gas / Electric (per week)
Insurance (per week)
Misc
Stationery & Admin
Staff costs
Holiday and sick cover
Professional fees
Repairs & Maintenance
Vehicle Costs
£50 per week
£200
£300
£65
1.50%
0.50%
As year 3 plus 3%
5% of staffing cost
£11,860
£11,354
£12,354
£12,016
£11,354
£12,354
£12,016
£11,354
£13,016
£11,354
£11,354
£12,354
142,744
Operating Profit
Total
-£990
£2,886
£1,886
£3,534
£2,886
£1,886
£3,534
£2,886
£2,534
£2,886
£2,886
£1,886
28,696
Operating Cash Flow
-£990
£1,895
£3,781
£7,315
£10,200
£12,086
£15,619
£18,505
£21,039
£23,924
£26,810
£28,696
£12,950
£18,400
£18,400
£20,750
£18,400
£18,400
£20,750
£18,400
£20,750
£18,400
£18,400
£18,400
222,400
0
Total Income
£12,950
£18,400
£18,400
£20,750
£18,400
£18,400
£20,750
£18,400
£20,750
£18,400
£18,400
£18,400
222,400
Direct Costs
Overhead Costs
£2,080
£11,860
£4,160
£11,354
£4,160
£12,354
£5,200
£12,016
£4,160
£11,354
£4,160
£12,354
£5,200
£12,016
£4,160
£11,354
£5,200
£13,016
£4,160
£11,354
£4,160
£11,354
£4,160
£12,354
50,960
£142,744
Total Costs
£13,940
£15,514
£16,514
£17,216
£15,514
£16,514
£17,216
£15,514
£18,216
£15,514
£15,514
£16,514
£193,704
-£990
£2,886
£1,886
£3,534
£2,886
£1,886
£3,534
£2,886
£2,534
£2,886
£2,886
£1,886
£28,696
Cash Flow
Grant
Sales
Revenue start up grant
To support staff costs
Cash Flow
Gross Operating Profit
Community Enterprise
Feasibility Study, East Linton Saleground
66
Risks and Mitigation
Risk
Impact
Probability
Existing Controls
Action
Required
Lead
Responsibility
Failure to
secure capital
funding
High
Low
Building a
strong
relationship with
range of funders
Build
relationship
with larger
diverse
funders
Board
Clear costings
and
sustainability
plan
Strong business
plan and good
research
Failure to
secure
revenue
funding
Medium
Demand
lower than
expected
after building
the
infrastructure
High
Low
Low
Consider
innovative
funding,
bonds, loans,
share issues
and crowdfunding
Strong
relationship with
range of funders
Consider
back up
funders
Focus on
enterprise and
income
generation
Increase
trading
Marketing and
Communication
strategy being
developed
Enhanced
promotion
and specific
marketing
materials.
Existing client
demand with
waiting list
Board
Future
Manager
Joint
initiatives
with other
facilities.
Shipping
containers
can be
removed
Community Enterprise
Feasibility Study, East Linton Saleground
67
Risk
Impact
Probability
Existing Controls
Action
Required
Lead
Responsibility
Loss of Key
Personnel,
Volunteers
and Board
Members
(threat of
burn out)
High
Medium
Strong ethos
and sense of
commitment
Good terms
and
conditions
for
volunteers
and staff and
clear CPD
Board
Mutual support
and sharing
tasks
Write an
accession
plan for
Organiser
Good terms
and
conditions
for future
staff
Costs higher
Medium
than expected
Medium
Cash flow
projection and
business plan
Support from
a good
design team
Board
Further
fundraising
Savings
Competition
from other
providers
such as
Village Hall
Medium
Medium
Strong sense of
partnership and
relationship
building
Formal
partnerships
e.g. with
suppliers
Board /
Future
Manager
Joint
marketing
and other
collaborative
projects
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07 Findings and Recommendations
This section draws together the key findings of the research undertaken and concludes
with recommendations for future action.
Findings
The Need in the area
1. East Linton and Dunbar is not an area facing deprivation according to SIMD rankings, in
fact some datazones fall within the top 20% in Scotland, showing a fairly affluent local
community, representing a potentially strong local consumer market.
2. However it is in the highest 20% areas of relative deprivation when geographical access to
services is considered, showing that individuals locally have a dearth of key services and
facilities. Four datazones in the Dunbar and East Linton ward are among the 10% most
access deprived datazones across Scotland
3. Most people who responded to the outcomes question in the resident’s survey agreed to
the statements provided, with more agreeing that the Project will “bring the community
together” and “help people to learn new skills”.
4. Local people felt they could benefit from the following outcomes:
o
Social outcomes
75.0%
o
Shops
67.4%
o
Training
34.7%
o
Employment
27.1%
o
Business
14.6%
5. A number of stall holders and local people at the open day voiced clear support for the
idea and latent demand for a place that has a mix of retail, café and culture.
6. Population growth since 2001 in East Linton and Dunbar has been twice the rate of East
Lothian as a whole. There is therefore a need to develop new sustainable services and
facilities to ensure this is a vibrant rural community rather than an attractive dormitory
town.
7. The population in this area is expected to age, increasing the number of people aged 65+
by around 60% over the next 10 years. This represents a market for this Project and could
be reflected in the mix of vendors and activities available on site.
8. The main challenge will be one of access to the site for vendors and customers. However it
is noted that public transport may not be a key requirement for the target group of
customers. In addition, it is noted that the East Linton Railway Station may be re-opening
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which will provide a vital transport link for people from outwith the locality to get to The
Saleground.
9. There is a strong policy fit with a variety of national and local strategic directions, including
community empowerment, asset transfer, social enterprise, localism and sustainable
economic development.
10. East Lothian Council is keen to support activities and initiatives that will encourage
economic growth to fit with its Single Outcome Agreement.
11. The East Linton Saleground development is part of the strategic momentum in East Lothian
towards a low carbon local economy which has been spearheaded for some time by
Sustaining Dunbar and dovetails with the Local Resilience Action Plan.
Funding
12. A funding analysis was undertaken and there are potential funds in principle to fund the
revenue and capital elements of this enterprise.
Organisational Capacity
13. The steering group is currently un-constituted and volunteer run. The action plan shows
that there is a significant amount of work to develop this idea and staffing or increased
volunteer capacity will be required.
14. The board is passionate and committed and has put a significant amount of time and effort
into this work.
15. All the stakeholders spoken to were fully in support of the idea and will provide strong
strategic support in a variety of areas.
Commercial Demand – Potential Customers and Small Businesses
16. When asked about the challenges in making a living from their business, overwhelmingly,
89% of respondents to the vendor survey say they struggle with marketing, 56% with
producing their work, though demand from private sector suppliers was less warm than
from others.
17. Competitors are offering training days charging from £65 p/p to £95 p/p for activities such
as drawing and art workshops – some offer 1 to 1 for a higher fee.
18. Commercial organisations responding to the Surveys stated they would pay from £10 to
£20 per sq m for rent and would prefer to rent space of up to 20 sq m.
19. There appears to be strong demand for renting space from this sector, with 81% saying
they would be interested as well as 90% being interested in shared sales facilities.
20. This sector would benefit from being able to market their work, as well as access to
superfast business broadband at The Saleground.
21. Vendors would prefer to pay under £50 per month for additional services.
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22. Potential customers shop locally in East Linton and tend to shop 2 to 3 times a week shopping locally is important to locals.
23. Customers would prefer services including a café, gallery, retail space, market space and
“makers’ workshops” to see the artwork and creativity in action.
24. Customers support the idea of training in craft and design and basic practical skills –
around 70% - and training in furniture recycling and food growing at around 65%.
25. There is real support from customers for the Auction Mart and flexible events space.
26. A significant volume of interested individuals operate as very new social enterprises and
sole traders so there is potential for this to operate as an incubator unit particularly when
set along with the business support that can be made available.
27. Personally for customers, they see the benefits as shopping and socialising but 34% also
said they would benefit from the training offered. This social impact would have a
commercial impact when developed.
28. There is obviously strong support for local shops and a concern that The Saleground
Project does not impact on their existing business. Several comments were made on this
subject suggesting it would be an opportunity to ensure that the Project works with local
retailers already established in the area, rather than competing against them.
29. Similar initiatives, such as Why Not? in North Berwick show that the model of collaborative
local enterprise can work.
30. There is a growth of successful art spaces that show the momentum is in this direction.
31. Crucial learning from case studies is to ensure close financial management, market cleverly
and if possible ensure there is a café on site.
32. There is some fear that local traders will be concerned with displacement.
33. Fluctuating occupancy may make it difficult to provide a long-term sustainable income
stream.
34. The cash flow shows sustainability reached in year 4, but we are of the opinion that this can
be reached much sooner and probably in year 2.
Suppliers/Vendors
35. 34 Artists/Makers/Food/Social Enterprise vendors were interested or very interested in
renting space. 80% of respondents would be interested or very interested in renting a unit;
82% interested in holding a weekly or monthly market stall ; 90% interested in supplying
work to a shared retail facility such as a farmshop or gallery and 92% interested in taking
part in Saleground events.
36. 11 private businesses would be interested in renting space.
37. One individual is interested in leasing the café space.
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38. Vendors currently struggle to pay rent with 75% working from home for this reason. When
asked the average amount being paid for rent ranges from £9 to £11.50 per sq m
39. 55% of vendors said they would be “very interested or interested” in renting space. There
was significant demand from artists, food enterprises and social enterprises that would
provide a better fit than purely private sector businesses.
40. When asked about renting space, 48% of vendors said they would need a space under 10
sq m and 40% up to 20 sq m.
41. In addition to the rental on space, respondents would be prepared to pay up to £50 per
month for additional services such as facilities/assistance with bringing their products “to
market”.
42. Artists, makers, food businesses and social enterprises particularly saw benefit from
collaboration including joint marketing, centralised admin and finance functions and crossselling.
43. Delivery space and space for parking would be required.
44. Vendors don’t seem to be keen to assist with training, other than in the areas of craft skills
such as jewellery or ceramics. There is little interest in assisting with food preparation,
woodwork or rural skills. NB this does conflict with the level of demand noted from
Customers’ Surveys.
45. There is demand for training and learning but this should be delivered by both on-site and
off-site specialists.
46. Vendors strongly buy into the overall social and environmental ethos at the following
levels:
Recycling - 100.0%
Using sustainable methods of production where possible - 89.5%
Involvement in the overall community
- 86.8%
Re-investment of Saleground profits into our social aims - 84.2%
47. When asked about size of workshop, 48% would require up to 10 sq m and 40% up to 20
sq metres. Other respondents asked for 20 sq m up to over 30 sq m.
48. Vendors were also interested in business support.
Recommendations
Products and Services and the site
We recommend that the organisation should:
1. Proceed with the development of the East Linton Salesground as there is clear social impact
and financial viability.
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2. Discuss and decide specifically what The Saleground will be, or will offer. It needs a strong
hook for marketing and business purposes and need to consider the mix of Tourist
Attraction, Business Centre, Artisan Hub, Community Market and Cultural centre and how
would this combination work?
3. Visit other Centres in the area such as Merryhatton Garden Centre and Café which describe
themselves as a visitor attraction as well as being a Garden Centre.
4. Let space principally to artists, makers, small locally sourced food businesses and social
enterprises. Though there is some demand from private sector (largely sole traders),
demand is big enough from this market to make the site exclusive. This ensures full ethical
buy in and strengthens the USP of the site.
5. Complement the offering of tenants with centralised activity space principally around
learning, food and well-being with courses and initiatives partly delivered by artists and
other vendors on site.
6. Aim for training and learning to be delivered by both on-site and off-site specialists.
7. Run a monthly market as well as a car boot sale.
8. Hold quarterly seasonal events eg a Halloween party, gathering in, apple Juicing days etc,
should be run. The site can also be hired for events.
9. Instal polytunnels which can be used by the community, schools and local groups.
10. Involve the local school – this will be vital to the outcomes.
11. Secure funding to commission an architect led design team to present options for the
design of the site.
12. Start to populate a business plan that will change as the concept develops.
13. Develop the site infrastructure from a sustainable green perspective including use of
recycled materials and locally sourced trades etc to fit with the broader ethos.
Finance and funding
14. Start to secure early development funding as outlined in the Potential Funding section.
15. Consider the following income streams to be fleshed out in the business plan:
o
Let of units by core traders
o
Let of the Auction Mart for café and cultural activities including film shows, and acoustic
concerts.
o
Market Stall once a week/month generating a commission on sales made by vendors at
the Market Stall
o
Holiday Craft/Arts Activity Days for kids and adults (charged per day) and Holiday Clubs
for children (for a week) during school holidays (charged either per day or full week).
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Research could be done to decide fees and what arts/crafts would be offered including
ceramics, clay creations, jewellery making, drawing and painting.
o
Birthday Parties. 2 hour Craft Parties for up to 10 children can be charged per head as
well as providing catering.
o
Solar panels on roofs and other renewables throughout the site can bring in in
Renewable Heat Incentives.
Consider (where vendors or tenants pay a rental charge):
o Charging a daily, weekly or monthly rate? Pricing should reflect different levels of rent.
o What would be covered by the rent – electricity, water/waste, wifi.
o What would be offered in addition to the Rent including marketing assistance, a
common website and broadband connection, sales space, centralised
reception/telephone answering service and so on.
16. Decide opening hours. This will not be clear in the short term, but consideration will be
needed on whether to open in the evenings and at weekends. This has an impact on staff
and volunteers but can lead to increased income and may be expected by Tenants and
Vendors.
17. Consider impact of on-line shopping on developing a retail experience in East Linton.
Making this a “destination” site will be vital rather than just a business or leisure/craft
centre. This should be dealt with as part of the Marketing Strategy.
Balancing social and financial outcomes
18. Consider how to link the commercial activity with the social outcomes and what
opportunities exist. Opportunities could be:
o
Work with volunteers passing on work-based skills to improve their chances of
gaining employment
o
Work with initiatives such as Community Jobs Fund to access young staff – this is a
commitment to train and staff may require a bit of support (cost/resource impact)
o
Work with volunteers encouraging social inclusion, and enabling them to grow
confidence in preparation for gaining employment
Outcomes
19. Consider clear outcomes for the development as long term community change will be vital
to secure significant grant investment in the site.
Outcomes should be related to:
o
The broader vision across East Lothian (and Scotland), and stimulated by Sustaining
Dunbar, of a low carbon, locally based economy within the transitions concept.
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o
The benefits of asset ownership, particularly in relation to the community coming
together to own that asset.
o
Opportunities for local employment, training, education and volunteering.
o
Facilities and infrastructure that will attract small commercial businesses (related to
arts, crafts, local food and social enterprise) and encourage start-up ventures to
promote rural sustainable economic development.
o
A mutually supportive environment for a diverse range of community focussed
enterprises.
o
Heritage outcomes in relation to the B listed Auction Mart building
Management, Governance
The steering group is operating under the auspices of Sustaining Dunbar. It should:
20. Work towards being set up as an independent organisation. Though a co-operative model
might be attractive ethically and to raise community shares, a simpler model in the short
term should be a company ltd by guarantee with charitable status, or Community Interest
Company (CIC), with named Committee members responsible for staffing, finance,
compliance, health and safety, insurance, property maintenance and development.
21. Ensure that Memorandum and Articles clearly state the objects of the Charity and detail the
minimum number of Committee members required, and Rules on Committee meetings and
AGMs.
22. Possibly establish a trading arm of the Charity to manage the running of The Saleground,
and employ staff associated with the Project. This can potentially be a Community Benefit
Company or Company ltd by shares.
23. Document clear role descriptions, outlining the role and responsibilities of all key
Committee Members or the Management Committee. Regular monthly Committee
meetings should be held with clear Agendas and Minutes, particularly to ensure the Project
is managed through the Funding and Site Development stages.
24. Note that the structure and governance of the Committee is a vital part of the Funding
process to ensure the funder is convinced of the stability of the Committee and its ability to
deliver and manage a successful Project.
25. Meet local traders to break down barriers re displacement worries and to build
collaborative partnerships.
Staffing
26. It is recommended that a member of staff is employed to manage the Project, working with
the Committee and reporting to the Director responsible for staff management.
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27. The Committee may choose to be responsible for all dealings in respect of developing the
Site, liaising with the Architect and Building Contractors, ensuring that at the appropriate
time in the Project, a member of staff will be employed to be responsible for filling the
workspaces and encouraging local people to visit The Saleground.
28. A Development Manager could be responsible for marketing and sales, managing the
rentals, organising monthly/regular Markets, dealing with Health & Safety and building
maintenance, developing partnership opportunities within the local community and
maintaining clear records of all income and expenditure.
Partnerships
29. As with most social enterprises, partnership working will be a strong part of the marketing
mix to ensure that people know about The Saleground and to encourage local artisans to
become part of the Project, thereby attracting local customers in to buy from this Hub.
For example, during the research some existing organisations such as Redesign Network
stated they would be interested in working with The Saleground. This allows for “warm
leads” and also fits well with the social values of working with local community and Arts
organisations and social enterprises.
30. On-site business support will be brought in for example through business gateway. This
will particularly support new entrepreneurs.
Marketing
31. Once the steering group have clearly identified what The Saleground is and what it will
offer to its customers, a full marketing strategic plan will be required to outline key
marketing objectives and to document the services and products that will be offered at The
Saleground.
32. Consideration and discussion will be needed, perhaps through a Marketing Workshop, to
agree:
o
What services will be offered.
o
What type of vendors need to be attracted to rent space.
o
Who the target “customer” is and understand what they want from The Saleground.
o
Branding - The brand should be clear and local. Loyalty and identity will be the key to
making this a sustainable venture.
o
Promotions mix – consider direct marketing, advertising, PR, social media and website
development.
o
Partnership working opportunities to both bring customers to the site and bring
artisans in to rent space.
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o
Competitive advantage - consider what will make this different from the competition.
Although there is no Centre in East Lothian that offers all the services, there are those
that offer some of the services.
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08 Accommodation Matrix
Based on the evidence of need and the development issues above, the following accommodation matrix recommends which services /
facilities should be included in the new development, and ranks / scores each on:

Priority – either strong, medium or low priority in relation to local needs.

Evidenced Demand – scores from 1 (low) to 3 (high) on demand and the level of evidence that has been gathered to support this.

Social Impact – scores 1 (low) to 3 (high) on the social outcomes the service / facility will deliver to the community, and the extent to
which it will meet funding outcomes.

Viability Impact – scores 1 (low) to 3 (high) on income generation potential
Plans will be drawn up in the next stage of the Project, involving an Architect and QS.
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Service / Facility
Evidenced
Demand
Social Impact
(meeting
Funders and
SOA outcomes)
Viability impact
(ability to
generate
income)
Comments
Space Requirements
Office space
3
3
3
Artisan workshops
3
2
2
Flexible rental packages to ensure takeup
Demand is high so
maximise units on site – 20
if possible
Flexible community
spaces used for
learning, well-being
and food
2
3
1
Work with local community to decide
on best use. Consider impact on
Community Hall – compliment don’t
compete
Splittable with acoustic
partitions
Cafe
2
2
2
Local produce; rent out to local
enterprise offering employability
opportunities in the rural area.
Outside seating area linked
to play area
Shared Sales space –
Market Stalls at
Auction Mart
2
1
2
This space should be big enough to
grow into the future and contain
destination attraction.
Space for up to 20 vendors
at any one time
Training Space
2
2
2
Flexible space able to offer different
activities. Could use Community Space
for this use?
Space for up to 15 people
Priority Space
More commercial rates with short term
leases available (minimum 6 months)
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Broadband
Additional Shared Space
Toilets
Storage
Reception area – open with room for small exhibitions, marketing for Vendors and circulation space leading onto café
Parking and area for Deliveries for Vendors and Tenants
Space for an additional attraction, eg outdoor play or outdoor seating area in landscaped gardens
Break-out space for staff, vendors – kitchen and sitting area
Shared meeting rooms – bookable for Vendors, Commercial Tenants and local Community Groups
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