Delivering Urban Transformation Strategies: A Public Sector Led UDF Des Gardner Head of Regeneration (Legal) Des Gardner City Solicitors.
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Delivering Urban Transformation Strategies: A Public Sector Led UDF
Des Gardner
Head of Regeneration (Legal)
Des GardnerCity Solicitors
Overview
• The North West Evergreen Partnership• The Investment Strategy - UDF's role in promoting the urban
development strategy for the region• Governance - share of participation (and management of
interests) across municipal partners • Funding - structure and possible future private sector (pension
fund) leverage + incentives.• Investment Management - relationship/responsibilities of the
General Partner (fund manager)
The Northwest Evergreen Fund• NWDA - Holding Fund• EIB Holding Fund Manager• North West Operational Programme• Rest of North West
- 4 sub-regions: Cumbria, Lancashire, Greater Manchester, Cheshire
- 18 unitary or County local authorities
• Ring - fenced Funds – AGMA/County Areas
The Northwest JESSICA Fund Structure
NWUIF (Holding Fund)EIB HF Manager
Merseyside UDF £30m ERDF
£50m ERDF
£50m NWDA Match Funding
£10m in the IDUFSP
£10mRoNW
£10mSP Funds
£10mAGMA
Capital Returns & Interest
Projects
£50m Agency Land and Single Programme Funds released as Local Match Funding is secured
Projects
+£10m Match RoNW+£10m Match AGMA
+£10m Complementary Funding to Match £10m SP
funds
+£30m local
match
Process
STAGE 1(March 2010 –
April)
STAGE 2(May – June)
STAGE 3(July– July 2011)
Expression of Interest
-Establish consortium-Track record-Evidence of first negotiation partnership-Letters of support
The Bid
-Investment strategy-Project portfolio-Ownership and governance-Risk management and control procedures-Financial forecasting-Management fees
Operational Agreement
-Evidence of Stage 1 projects-Terms and Conditions-Investment Adviser Agreement-LP Agreement-Ancillary Documentation-Match Funding
The Northwest Evergreen Fund
Vision1. Create a high-employment region2. Invest in science, research and innovation3. Build on the region’s strengths in culture and
media4. Supporting strong and diverse town centres5. Promoting a wider, stronger and more sustainable
industrial base6. Ensuring sustainable sites are ready for
development
The Investment Strategy
• Strategic Framework - IPSUDs
• Project Selection Methodology
• Loan Pricing and Underwriting
• Monitoring
• Public/Private Partnership
Investment Strategy
The Greater Manchester View• Strategic Economic Context• Greater Manchester Strategy• Assessment framework• Project Pipeline – capacity building
GovernanceGreater Manchester•Bolton•Bury•Manchester•Oldham•Rochdale•Salford•Stockport•Tameside•Trafford•Wigan
County Areas•Blackburn with Darwen•Blackpool•Cheshire East•Cheshire West•Lancashire•Warrington•Cumbria (tbc)
Legal Structure
Governance• Limited Partnership Meetings
- Delegation to GP- Special Consent
• General Partner Board- Balanced AGMA/County Areas- Co-chairs- Reserved Matters
• Investment Adviser Appointment- Independence- Approval of recommendations
Funding
• ERDF/Single Programme • Public Sector match/complementary
investment – land/cash• Leverage public investment –
private investment finance• Other sources of finance – LGPF,
Senior Debt, Developer equity
Financial Structure
Investment Management
• General Partner Real Estate Adviser - CB Richard Ellis
• Investment Strategy
• Report to General Partner
• EIB Holding Fund monitoring and management
Project Selection Process
Next Steps
• Fund operational July 2011• Quick Win Projects• State aid framework• Wider Investment Fund
- Housing
- Low Carbon
- Infrastructure
Questions
Des Gardner
Head of Regeneration (Legal)
Manchester City Council
Des.gardner1@manchester.gov.uk
+ 44 161 234 3013
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