Agenda item

[Report of the Director for  Children’s Services. To be introduced by the Cabinet Member for Communities] The  report will seek approval  of a partnership between Haringey and OnSide . It will also seek  approval  for consultation  to be undertaken on development of youth facilities on a potential area of council owned land,  prior to a request for land transfer via a long-term lease, in order to secure inward investment in youth provision.

The Cabinet Member for Communities introduced the report which sought approval to the development of a partnership with the charity OnSide, to take forward their proposal to create a Youth Zone, providing facilities and programmed activities for young people in Haringey. The proposal contributed to the wider vision to improve youth outcomes through participation, health and wellbeing and encouraging greater use for formal and informal recreation. The partnership would bring forward use of capital, revenue and private sector funding to provide a fully accessible facility, meeting the particular needs of young people in the borough.

In response to questions from Councillor Morris, the following information was noted:

• A number of potential sites had been explored, in both the east and west of the borough but this paper was seeking approval to the agreement with OnSide. The Council would continue working with OnSide to identify the Youth Zone site and there was current consideration of the Chestnuts site.

·         The Cabinet Member for Communities referred to Onside’s good reputation and work with other boroughs which provided confidence that they would be able to work with the Council on specific needs of Haringey. A commitment to outreach  work from other sites in the  borough  including, importantly, Bruce Grove  had been made.

RESOLVED

1. To agree the development of a partnership with OnSide to take forward proposals for a Youth Zone in Haringey, subject to site identification agreeable to both the Council and OnSide and subject to planning approval and agreed heads of terms for a lease on a suitable Council site.

2. To give delegated authority to the Corporate Director of Children Services and Director Regeneration, Planning and Development after consultation with the Cabinet Member for Corporate Resources to approve the final details of the project and the terms in respect of the grant funding agreement, lease, facility mix, and connection to other site specific regeneration proposals and operational detail.
   
   
3. To note that there is a guaranteed revenue funding requirement of £250,000 pa for three years for the Youth Zone.

Reasons for decision

The proposed Youth Zone development will engage young people across the   Borough in the creation of a unique facility that genuinely responds to their views and provides sustainable, 21^st century youth provision significantly beyond the scale that the Council alone can deliver, which will make a positive difference to the experience of being a young person in Haringey. The proposed Council capital contribution of £3m towards the Youth Zone development will lever in a further £3m capital and ongoing revenue investment from the private sector of £750,000 per annum for the first three years of operation.

This project would also make a significant contribution to the Borough’s vision – to work with communities to make Haringey an even better place to live through encouraging investment and creating opportunities for all to share in - a reality. Additionally, it will contribute significantly to each of our five corporate objectives enabling our young people to achieve their aspirations and growing our community assets to further demonstrate our ambition, innovation and collaborative approach.

One of the fundamental principles and attractions of OnSide’s operation is the establishment of a standalone, locally reflective, charitable trust within the host borough, which is responsible for the operational delivery and financial viability of the venture. Under the guidance and direction of a high profile chair-person and private-sector, locally-led membership, these boards have the professional and financial connections to attract investment into the ‘not for profit’ operation and critically, the future of local young people. This model offers a sustainable, long-term funding model and a four-way partnership between the private sector, the authority, young people and the community – cementing             future youth provision at a time of diminishing authority resources.

OnSide can evidence clearly the significant social impact that Youth Zones have by addressing disengagement, reducing school exclusions and unhealthy lifestyles and also shows a positive economic benefit for local and national government. On average, Youth Zones generate £2.03 of social value for every £1 spent on running these facilities, or £6.66 for every £1 invested by the local authority. As Haringey has negotiated a lower revenue contribution than other authorities, this return on investment would be closer to £12 for every £1 of Local Authority money spent to achieve a similar level of outcomes.

The benefits of Youth Zone extend beyond the financial and impact positively on education and employment outcomes for young people and improving health and wellbeing. In 2015, 92% of young people who complete the Youth Zone     Get a Job programme, which focuses on giving young people the tools, motivation and aspiration to succeed in the future, progressed into paid employment or further study. 79% of parents surveyed reported that their child’s involvement in Youth Zone had made family life more positive and 89% of young people reported feeling more self confident as a result of their joining Youth Zones. Communities also benefit from the presence of Youth Zones, such as a reduction in anti-social behaviour since Youth Zones opened – in Manchester this dropped 13% in year 1 and 51% in year 2 of opening and in Oldham police reported a 40% reduction in anti-social behaviour involving young people.

Alternative Options

The options in this instance are limited. The Council had not considered developing a major purpose built youth facility in the borough before being approached by OnSide; therefore considering the proposal as presented, the options are limited as indicated below.

Option 1- Do nothing. Reject the proposal and do not offer Council support. The impact of this would result in OnSide withdrawing its £3m investment offer into the borough (Including £1m Queen’s Fund) and looking towards an alternative host authority. The opportunity to create sustainable youth provision in the borough would be lost.

This option is not recommended.

Option 2 - Support the proposal. Once a site has been identified and agreed by all parties, this would require the scheduled transfer of £3m capital grant from the Council to OnSide (50% of the capital build) as approved by Cabinet in June 2016. A further £250,000 per annum revenue contribution (25% of annual revenue costs) would be required from the Council for the first three         years of operation. OnSide have committed to deliver 50% of the capital cost and 75% of revenue costs for the first three years.

This option is recommended.

It should be noted that there are considered to be three key risks to the

recommended option:

(i)    OnSide decline any site offered and withdraw their capital funding offer to develop the project. This is considered to be a medium risk as OnSide    need to calculate that the site being offered represents a realistic opportunity for them to create and establish a sustainable operation within their forecast timescales; should this be realised the Council would withdraw its grant offer.

(ii)  Revenue shortfall in from Year 4. This is considered to be a moderate risk; however the Haringey Youth Zone Board would be charged with securing on-going revenue support exploiting its network of supporters and potential funders.

(iii) Project Failure. If the project failed at some point in the future and the local Trust dissolved the lease would be nullified and the building would become a Council asset/liability. The success of OnSide’s Youth Zones elsewhere in the country suggests this is a low risk.