Promoting high quality employment projects. Accelerated Appraisal Process. Supporting private sector delivery.

Frequently Asked Questions and Answers

 

1. Has any research been undertaken on the City centre office market in Derby recently?

Yes, please see the Supporting Information Page on this website.

 

2. What is the Regeneration Fund?

Derby City Council have allocated capital and secured prudential borrowing facilities to create a 10 million Investment Fund to support regeneration projects for high quality employment floorspace which will directly benefit Derby City centre. The Fund has been created to support the ongoing regeneration of the City following the withdrawal of other public sector funding sources which would otherwise threaten the delivery of new projects.

 

3. What is the City Centre Living Initiative?

The City Centre Living Initiative is an Investment Fund to develop a distinct lifestyle and housing offer in Derby city centre through a loan based fund of 6.5m made available to owners of vacant/under occupied commercial properties in the City Centre for conversion to residential accommodation. There will also be a sum of 250k grant fund to support projects where there are specific viability issues including additional cost due to conservation, design, sustainability and other issues related to viability for new build schemes on brownfield sites.

The Fund has been created to support the ongoing regeneration of the City following the withdrawal of other public sector funding sources which would otherwise threaten the delivery of new projects.

 

4. For Whom is the Regeneration Fund Available and Where?

Both funds are targeted at supporting the private sector in project delivery and therefore generating private sector investment in to projects. The Fund is targeted on supporting the Derby City centre area and it is envisaged that most investments will be within this area, although other projects within the City will be considered where it can be demonstrated that they provide economic benefit to the City centre area.

 

5. In What Form is Funding Support Available?

The Derby Regeneration Fund will be flexible in terms of funding support which will be in the most appropriate form available and represents the minimum to secure the delivery of identified projects. This will include equity investment, debt financing, rental guarantees or in some circumstances gap funding.

The City Centre Living Initiative is primarily a recoverable investment fund which will aim to provide funding support for the delivery of residential conversion schemes within Derby City Centre. A small amount of grant funding will be available to support projects where there are specific viability issues including additional cost due to conservation, design, sustainability and other issues related to viability for new build schemes on brownfield sites.

Derby City Council will seek to maximise "value for money" and will seek a return on investment made where appropriate to do so with a view to recycling receipts in the medium and longer term.

 

6. How Much Funding is Available?

The Regeneration Fund has access to resources up to 10 million; however it is envisaged that this will need to fund a number of projects in order to deliver the overall target outputs for the Fund which are set out within the Investment Strategy which is available on this website.

The City Centre Living Initiative has access to resources up to 6.5 million; it is envisaged that this will need to fund a number of projects in order to deliver the overall target outputs for the Fund which are set out within the City Centre Living Prospectus which is available on this website.

 

7. How are Interest Rates Calculated?

Interest Rates for both funds are calculated based upon the creditworthiness of the applicant set against the level of collateral available to Derby City Council. As an example a satisfactory creditworthiness level and a normal level of collateral secured will result in an interest rate applied in the region of 6.5%. Further information on Interest Rate Calculations is available on this website.

 

8. On What Criteria Are the Schemes Appraised?

Projects are assessed against a number of criteria which includes the deliverability of individual projects against criteria such as ownership, planning, funding, the value for money of the funding request against identified outputs for the respective fund. Depending on the fund applied for these outputs will relate to new floorspace, private sector leverage, jobs created/safeguarded and floorspace enhanced as well as residential units created. Issues will also be considered in relation to design and sustainability standards and the track record of the proposed project developer.

 

9. How Do I Apply for Funding?

This website contains significant information regarding the objectives of both Funds and the appraisal process. The first stage of the appraisal process is to contact Thomas Lister Limited who would request project information to enable the completion of a Preliminary Project Assessment for consideration by Derby City Council to decide whether an Outline Application for funding is to be invited. Outline Applications will not be entertained from any party unless the Preliminary Project Assessment process has been undertaken and an Outline Application has been invited.

 

10. How Quickly Will I Receive a Response?

It is intended to provide responses as quickly as possible to provide certainty to interested parties. A response will be provided in relation to whether an Outline Application is to be invited within 2 weeks of all relevant project information being provided. Similarly, a response will be provided to the Outline Application within 2 weeks of receipt of the completed and signed application form together with all necessary supporting information.

The response to Detailed Application where invited will be within 6-8 weeks of receipt of the completed application and full supporting information with the extended period as a result of a requirement to receive Council Cabinet approval to any proposed investment. All applications will be dealt with as soon as possible.

 

11. What Do I Do Next?

In the event that the proposed project meets identified criteria set out within the Investment Strategy then contact Chris Thomas or Rachel Lister at Thomas Lister on 01527 871 640.

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