Almost all experienced change, and the majority experienced it faster than they anticipated
Set out a clear business case
• define your goals:
- financial (revenue and profit margins)
- developmental (e.g. neighbourhood regeneration)
- skills development
- carbon emissions
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• follow the Treasury’s Five Cases model
• don’t forget the demand analysis
5 ways to maximise community
benefits through regeneration
How to structure regeneration partnerships to ensure residents and local businesses are key beneficiaries
Plan well for a streamlined,
achievable programme
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• Create a detailed plan
• Make sure all partners’ interests are aligned
• Set incentives for reaching key milestones to keep on track
• Make sure there are no conflicts of interest
Consider how to structure the partnership
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Either act as the primary sponsor
(securing funds and contracting a developer)
Or find a partner to take on the role of primary developer
Secure the right partner(s) to match risk and security needs
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Select partners who complement your appetite for risk in relation to:
Planning - considering whether to underwrite this and/or to agree an early completion reward
Construction - balance the need to underwrite this with the need for a decent return
Development finance – options for forward funding or delaying payment until a return is realised
Investment finance – does your partner have access to funds such as competitive rates on long-term debts?
Remember good value isn’t all about money
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To achieve all the desired outcomes, decision-making within the partnership needs to be a balance between:
Strictly managing costs to generate needed revenue
Achieving the
non-financial goals
e.g. creating jobs, providing homes,making neighbourhoods safer and greener
V
For: potentially reap more of the rewards
Against: you’ll have to carefully manage development risk
For: easier to de-risk the development
Against: your margins and outcomes may be affected