COMMUNITY COMMITTEE 25 January 2017
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1 COMMUNITY COMMITTEE 25 January 2017 Subject: Realising the potential of Canterbury s cultural and heritage assets a) Marlowe Theatre Governance b) Canterbury Heritage Museum - development proposals Director / Head of Service: Assistant Director Commissioning Decision Issues: These matters are within the authority of the Community Committee Classification: Open to the Public CCC Ward(s): All wards Summary This report considers two separate but related items that taken together offer an opportunity to enhance Canterbury s cultural and heritage services, increase community access to improved culture/heritage activities and create the best conditions for resilience, sustainability and growth for both the Marlowe Theatre and Canterbury City Museums. i) The report firstly considers future governance options for the Marlowe Theatre and establishes the case for creating a new independent Trust to manage the theatre. The report considers the financial implications to the council and to a Marlowe Theatre Trust, the implications for service delivery, potential risks and the opportunities for growth and development that trust management presents. The report recommendation reflects the outcome of the Marlowe Theatre s Commissioning
2 Review. An in principle decision is now sought to enable progress towards the creation of a new Marlowe Theatre Trust, including consultation with key stakeholders. Over the coming months there will be further decisions required including scope, terms, and governance which will require further committee approval before triggering any formal transfer to trust management. ii) Secondly, the report considers the future of the Canterbury Heritage Museum building in Stour Street following the City Museum Commissioning Review, and requests permission to consult on proposals for the museums service to consolidate in two buildings and to create an enhanced cultural space for the district at the CHM. To Resolve i) That the council agrees to the principle of establishing a new trust to manage the Marlowe Theatre and delegates authority to the Assistant Director, Commissioning to carry out the tasks required to inform the final decision to proceed with Trust status ii) That the council agrees to give permission to consult on options for the future use of the Canterbury Heritage Museum Next stages in process i) Based on the principles set out in this report, detailed work will be carried out on how the relationship between the council and a Marlowe Trust will most effectively work. In particular, there will be detailed consideration of the basis of the partnership, any financial relationship, property issues such as lease terms for buildings (which will remain council assets), the transfer of other assets, and the Trust s Business Plan. The detailed financial implications to the council will also be finalised. These matters, along with an implementation plan, to include the recruitment of a Board of Trustees, will then be considered by Policy & Resources Committee for final approval. ii) To undertake consultation with stakeholders on proposals for Canterbury Heritage Museum and to bring these findings back to Community Committee along with firm proposals for the future use of the Canterbury Heritage Museum building.
3 SUPPORTING INFORMATION 1. Introduction This report considers two separate issues - the future governance of the Marlowe Theatre and proposed changes to the museums service relating to the future use of the the Canterbury Heritage Museum building (the Poor Priests Hospital and adjoining buildings). Both are set out separately and separate decisions will be made on each proposal, but they are being brought together in one report so that the Community Committee can consider them at the same time because the items are, to some extent, interdependent and are related by the fact that, taken together, the proposals offer the council an opportunity to consider the best way to enhance and increase community access to Canterbury s culture/heritage services in the future. The recommendations in the report are based on outcomes of reviews undertaken by both services during the last year. The council is undertaking a comprehensive programme of commissioning reviews, designed to assess the relative contribution of all CCC services to the corporate plan and their value to local residents. Reviews consider a variety of factors including performance, customer feedback and the cost of current delivery, ultimately arriving at recommendations to improve services whilst making savings where possible and appropriate. 1.1 The Marlowe Theatre - in principle decision to establish an independent trust This report considers future governance options for the Marlowe Theatre and sets out the case for creating a new trust to manage the theatre. This recommendation is an outcome of the recent Marlowe Theatre Commissioning Review,completed in December All services are undergoing these reviews to determine the best way to ensure the delivery of excellent, cost efficient customer experiences. The report sets out the implications of establishing an independent trust in comparison to retaining the management of the Marlowe Theatre in-house, considering in particular the potential financial implications to both the council and an independent trust, operational impacts, impacts on the customer, the potential for growth and development and governance arrangements. Based on the information presented, Community Committee is being asked to agree to the principle of establishing a trust to manage the Marlowe Theatre and the activity necessary to enable a trust, with full consideration of the governance and operational issues that would arise.
4 When this work is complete a further report will be considered by Community Committee and the final decision on whether to proceed will be made by Policy and Resources Committee 1.2 Canterbury Heritage Museum - permission to consult on future options Canterbury Museums & Galleries also concluded a Commissioning Review in December 2016, which recommended a number of operational changes and savings that are currently being implemented. The review also considered how to safeguard the future success and sustainability of the service in relation to the high cost of operating from several city centre buildings. Data collected showed that Canterbury Heritage Museum (CHM) is the least popular of the three city museums (Beaney, Roman and CHM) with only 10,000 visits per year and a trend of falling performance over a number of years (taking seasonal opening into account). The low visitor numbers result in a high subsidy per visit, at per person, which is much greater than the cost per head for visits to the Beaney ( 2.88) and the Roman Museums ( 5.80). This is particularly stark when considering the quality of visitor experience across the three buildings. The Museums & Galleries Service, and subsequently the commissioning review, recommended that core museum activities should be consolidated in two buildings, the Beaney House of Art and Knowledge and the Roman Museum, on the basis that this would provide better access to collections, improve sustainability and create better conditions for the future development of the service. This proposal opens up a new opportunity to re-imagine and repurpose the CHM, creating a different type of offer for the district based on a broader range of activities that will enhance community access to heritage and the arts, create a sustainable community-focussed future for the building and ensure this important heritage asset can play a key role in Canterbury s cultural economy. This report sets out the rationale for Canterbury Museums & Galleries Service moving out of the CHM building and consolidating the museum s collections in the Beaney House of Art and Knowledge and Roman Museum, along with the potential move of the Invicta to Whitstable. It also sets the broad proposal for for re-purposing the CHM building, with the Marlowe Theatre occupying the building and taking the new project forward. Based on the information presented, Community Committee is being asked to grant officers permission to consult on future options for the Canterbury Heritage Museum building ( Poor Priests Hospital ). The timetable for the consultation is set out in the report and the results will then be brought back to Community Committee.
5 2. Detail - The Marlowe Theatre Governance Options 2.1 Background The Marlowe Theatre, in its current form, opened in 2011, following a 26.4m remodeling project to create a much larger, new venue on the site of the old theatre. During the capital development phase there was an understanding that once the theatre was established, most likely after two to three years, the council would assess its future sustainability and consider a range of alternative delivery models, noting that all but one of the country s comparable regional theatres are managed by independent trusts or private operators. The theatre has now been open for five years and during this period the business, particularly the main house programme, has stabilised and flourished. There is now a focus on developing the creative programme - some of which is delivered from the Marlowe Lab in Pound Lane, including new writing and producing, and working with young people key elements to the council s ambitions for the theatre. 2.2 Commissioning Review The Marlowe Theatre commissioning review identified operational savings of 160,000 to be made between 2016/17 and 2018/19 and these are being delivered irrespective of which future delivery model is adapted. These changes relate to service improvements and efficiencies and do not impact negatively on service quality or levels. The review identified further potential savings to both the council and the Marlowe Theatre that could be realised through the establishment of a new independent Trust. The theatre made a strong case regarding other strategic and operational benefits that trust management would bring. This conclusion was further validated by in-depth benchmarking with similar regional theatres from across the country (the Marlowe Theatre remains one of just two regional theatres of its size in the country still managed by a local authority and the only one unable to benefit from significant cultural exemption tax benefits). 2.3 Key Features of an Independent Trust Management by independent t rust is a common and very successful model in the theatre sector. This section of the report considers the key features of an independent trust and compares this option with the retention of the management of the theatre in the council. The commissioning review extensively researched and tested other models and discounted options to outsource the management of the theatre to a commercial operator or an established trust as not being viable. Establishing a broader cultural
6 trust encompassing the city museums was also looked at in detail but ruled out, as the loss of single focus could impact on the Marlowe Theatre s commercial operation. The Marlowe Theatre Development Trust expressed particular concern regarding the potential dilution of focus and the impact this would have on business stability and future growth. In addition, the inclusion of a subsidy-dependent, low income service impacted negatively on the trust s tax position, negating some of the key advantages of moving to this model. Taking everything into account,the evidence showed that a cultural trust model would not realise any significant savings over and above those to be achieved by a Marlowe Theatre Trust. Governance A new Marlowe Theatre Trust would be set up as a Company Limited by Guarantee and a registered charity as this model optimises both charitable and commercial benefits. The company model facilitates a dynamic, entrepreneurial approach to service delivery, while advantages of charitable status include maximising opportunities for tax benefits, gift aid, donations, grant funding and legacies. The Marlowe Theatre Trust, as a single purpose organisation with clear charitable objects, would benefit from all its energies, focus and resource being dedicated to achieving its objects. Trusts are able to be agile, flexible and opportunistic and - when well managed - can make and adjust decisions very quickly to meet business needs and maximise funding and other opportunities. Importantly, a charitable trust will be better able to attract charitable grant funding and the other funds limited to charities / independent organisations. Council Influence and Involvement In practice, the theatre s operational management and programming has been of an arms length nature for some time, but under new governance arrangements the trust will have the freedom to operate completely independently and the council will no longer have the ability to control the day to day management of the theatre nor the strategic decisions made by the trust. The building will remain a council asset and the agreements made between the council and the trust will enshrine key shared objectives. As such, the trust will be accountable to the council as well as its wider stakeholders. As the theatre will not require a subsidy from the council, any future funding from the council would be made on a commissioning basis ie, the council may from time to time, choose to commission projects from the Marlowe which would support the council s priorities as set out in the Corporate Plan. Within the contractual arrangements put in place between the council and the Trust, there will be a framework for performance monitoring with legal remedies for poor or under performance.
7 Trustees The Marlowe Theatre has a high reputation nationally as one of the country s best regional theatres, and this reputation continues to grow as home-made, small-scale productions tour to other theatres. This is a direct result of the investment in the new theatre in 2011, which enabled the team to programme high quality productions and to forge strong partnerships with major organisations such as the National Theatre and the Royal Shakespeare Company to support the delivery of a burgeoning creative programme for the local community. The recruitment of high calibre trustees will be a critical success factor for the establishment of an effective trust and it is expected that the theatre s reputation and future potential will encourage significant interest in becoming a trustee, not only locally but regionally and nationally. As with similarly established cultural trusts, a professional recruitment strategy and campaign will be required as a successful board must consist of trustees with appropriate skills and experience from the private sector, in corporate leadership, finance and legal and with an interest or experience in the performing arts. The Board size would be between 8 and 11. Creative Development One of the key benefits to be realised from the establishment of a Trust as opposed to retaining the service in-house will be the ability to attract and utilise funding to support the creative development work of the theatre. The current Marlowe Theatre budget for creative projects is 50,000. In Trust management, based on benchmarking with similar Theatre Trusts, this sum is projected to increase to a minimum of 330,000 per annum by year 5. This is one of the most significant benefits of a move to trust management. This funding will facilitate a step-change in the community and creative development work of the Marlowe Theatre. It will enable the theatre to build on the success of its creative development programme since re-opening in 2011 and allow the Marlowe to, for example: extend youth theatre provision; commission and produce more new writing work; support theatre making; work more with target groups such as older people and people with disabilities; further develop the community production; develop partnerships; and support local creative organisations and artists. A move from the Marlowe Lab to Canterbury Heritage Museum would create much needed space to support the development of these programmes and partnership working with other cultural heritage organisations. Staffing Existing Marlowe Theatre staff would transfer to the Trust under TUPE and retain existing terms and conditions; there would be no break to their continuous service. The Trust will be required to offer the Local Government Pension Scheme to transferring
8 staff, or a broadly comparable scheme, and it is anticipated that the Trust would be able to apply for Admitted Body Status to Kent County Council (the current pension provider). Consultation with staff and unions will be an essential part of the set-up process. Property and assets The council will lease both the theatre and the Marlowe Lab or Canterbury Heritage Museum to the new charity. It is recommended that the lease term is 25-years with break options to enable organisational stability, long-term planning and to ensure that the right conditions are in place to raise funds for both revenue activities and capital projects. There are no restrictions placed on previous/existing funding (from organisations such as SEEDA), who supported the capital redevelopment, that would prevent the council from entering into a lease with a new organisation provided it is delivering against the original purpose of the funds, which it would be. The Marlowe Theatre Development Trust have responsibility to ensure the funds they raised and donated continue to be used for their original purpose. Detailed consideration would need to be given to the transfer of other assets - ICT, supply contracts, databases as part of the implementation process, with the allocation of financial assets and liabilities between the Council and the trust transferring at the cut off date. Financial Savings to the council As identified in section 2.2, the Marlowe Theatre is delivering 160,000 of operational savings. These changes relate to service improvements and efficiencies and do not impact negatively on service quality or levels. The savings will eliminate the council s operating subsidy to the Marlowe Theatre. In addition to these operational savings, a further saving of approximately 172,000 will be made by the council in the first year if and when the management of the Marlowe Theatre is transferred to a new Trust. This saving will be the result of the Marlowe Theatre Trust directly purchasing support for ICT, payroll and Human Resources from East Kent Services (EKS), so the corresponding amount will be removed from the council s direct payment to EKS for support services. In order to facilitate a smooth transition, it is assumed that that this arrangement will be put in place for a minimum of two years, during which time contracts will be re-negotiated. Year 3 will see the saving reduce to a minimum of approximately 113,000 as a result of the Trust potentially exiting support services arrangements with East Kent Services. In the meantime, the council will be considering/negotiating these support service costs corporately. Detailed analysis of the financial implications to the council will be reported at the next stage. A summary of the savings to the council are as follows:
9 Baseline saving to the council from Year Saving to the council after Marlowe exits from East Kent Services Year East Kent Recharges Payroll Human Resources ICT Other recharges e.g: communications, post room, business support Total Financial Resilience for the Trust The Marlowe Theatre has developed a five-year business plan for the potential trust (Financial projections can be seen in Appendix 1 ). The detailed business plan will be reported to Policy & Resources Committee at the next stage. The business plan presumes additional income of nearly 200,000 available to the Trust by year 5. These savings would be made primarily from a combination of net VAT savings, including from Cultural Exemption and Business Rates Savings Marlowe Trust additional savings and costs Year 5 Projection 000 Net VAT via Cultural Exemption -224 Business Rates -129 Additional Friends, VAT and commercial income -56
10 Fundraising -155 Additional Costs Staffing and governance 139 ICT & HR (independent of EKS from Year 3) 70 Net savings -355 Restricted fundraising expenditure 155 Unrestricted net savings -200 The projections presume that the Trust would exit from arrangements with East Kent Services from year 3, unless an agreed arrangement can be reached between East Kent Services and the Trust for the continuation of support services. The business plan also makes provision for an annual contribution to the Trust s reserves ( 140,000 in year 5) to build up an investment fund for maintenance and / or development activity. Such a fund will also create some resilience for the new Trust in the unlikely event that financial targets aren t met. The business plan also factors in additional ring-fenced income from fundraising, which will allow the Marlowe Theatre to further develop their creative development programme to the benefit of the local community as set out in the creative development section above. Summary of In-house versus Trust options Advantages Trust Savings to the council Trust budget for creative development programme, youth theatre, productions and community work increases significantly at no cost to council Thriving, sustainable cultural business is good for district and the economy Managing impact of poor performance is primarily a Trust matter Disadvantages Reduction of council influence One - off cost of transfer (c. 75k) Marginal impact on council s VAT de minimis position
11 In House Council retains greater influence Potential for council to benefit from any financial successes of theatre BUT using surplus for other purposes is not current practice and would damage the business e.g. reduce sustainability, stop growth and severely hamper ability to fundraise Significantly less income generated by theatre (loss of tax advantages gained, reduced fundraising potential) Council fully responsible for any poor performance Out of line with local, national models Council decisions need to be taken in broader context and may not always be best for theatre Potential succession planning issues 3. Canterbury Heritage Museum 3.1 Background Canterbury Heritage Museum in Stour Street (the Poor Priest s Hospital and adjoining building) is one of three council-managed museums in the city. It is housed in a Grade 1 listed medieval building with oak framed roof, a spectacular great hall and a labyrinth of period rooms. It is now underused and, on a day to day basis, largely ignored by visitors to other city attractions, playing a diminishing role in the city s cultural life and its economy. Small improvements and concerted efforts to rebrand and better market the museum have made no difference, and it is now open only seasonally. The museum currently houses an eclectic mix of exhibits from Canterbury s collection, some important others less so. Over the years, considerable changes have been made to the internal layout and appearance of the medieval building in order to accommodate exhibits and related interpretation. Some of these changes are very dated and also disguise the building s internal assets and its significant heritage value. The current museum and the interpretive offer is tired, particularly compared to the flagship Beaney House of Art & Knowledge and the Roman Museum which has a very specific purpose and identity. This is reflected in low visitor numbers, which continue to decline. 3.2 City Museums Commissioning Review The Canterbury Museums & Galleries commissioning review identified total savings of 209,000. Some of these changes relate to operational service improvements and efficiencies and do not impact service quality or levels, while others relate to
12 changing operating hours and are subject to consultation through the budget-setting process. Commissioning reviews look at the best way of providing excellent, cost efficient customer experiences and consideration was also given to a) how to safeguard the future success and sustainability of the museums service in relation to the high and largely fixed cost of operating from several city centre buildings and b) how to improve access and quality of access to important parts of Canterbury s heritage collections that, because of their location, are rarely seen and enjoyed, particularly by local residents. On that basis, the museums service has proposed to withdraw from the Poor Priests Hospital and to consolidate much of the core museum activities and collections in two buildings, the Beaney House of Art and Knowledge and the Roman Museum. The Review also proposed that some items would remain and be used to inspire and support broader cultural and community activities in a repurposed Stour Street building and that the Invicta engine should, if possible, be relocated to Whitstable. This proposal would not only deliver savings, but would provide better (and free) access to relocated collections items, improve museums sustainability and create better conditions for the future development of the service. The review recognised that there was a compelling need to breathe new life into the Poor Priests Hospital, an important heritage building, enabling it to once again play a key role in the cultural, heritage and economic life of the city. Proposals outlined at 3.4 of this report will form the basis of a public consultation on future options for its use. A number of options were looked at for the building/s and discounted. These options will not form part of the consultation and included commercial use of the site (there is limited use for either retail or office space and a continued desire to use building for community/cultural/heritage activities), mothballing the building (this releases less than 5k saving per annum due to residual building costs) and continuing to operate the museums service from the Poor Priests Hospital. The rationale for continued operation as a traditional museum is weak given current demand and any further attempts to stem the this decline would require significant capital and revenue investment with no guarantee of generating sufficient income in return 3.3 Rationale for the proposed changes to the museums service The CHM attracts few visitors and and those numbers are declining year on year. Last year there were less than 11,000 visits compared to over 330,000 to the Beaney. Of particular concern is the fact that the local appeal of the CHM appears to be increasingly limited, with local residents accounting for only 1,778 visits. The figures for all the sites is in the below table..
13 The falling visitor numbers impact on revenue generated by ticket sales and retail so CHM income is also in decline, falling by over 50% since 2013 and resulting in a very high council subsidy per visitor of This compares to 2.88 subsidy per visit at the Beaney and a 5.80 subsidy at the Roman Museum. In terms of how the museums service is accessed and enjoyed by customers, around 91% of visitor and/or participants access the service at the Beaney, 6% at the Roman Museum and just 3% at the CHM. This suggests that access to key city heritage artefacts (Canterbury Cross, Rupert, Bagpuss, Becket tapestry) would be considerably improved by relocating them to The Beaney, with its free entrance and longer opening hours. The Beaney will celebrate its 5th anniversary in 2017 and this is an appropriate time to consider refreshing some of the permanent exhibitions. One plan is to create a new Family Gallery with Bagpuss, Rupert and the Becket tapestry as key focal points, improving access and encouraging/enabling repeat family visits, as the museum is free to enter. There has been significant interest in relocating the Invicta Engine (which is on loan from the Transport Trust) to Whitstable, and the council has already expressed a desire to do this. A repurposed Poor Priests Hospital building could ensure the wider access and better use of the remaining collections, sharing them in new ways with a much larger
14 and wider audience than at present, and providing creative activities. the basis for participatory and 3.4 Proposal The proposal is that the Poor Priest Hospital and adjoining buildings becomes the new home of the Marlowe Lab, whose activities include youth theatre, community engagement, writing and the creation of new work. This will enable the growth and development of the theatre s community and creative activities, and offer new opportunities for the theatre to work with local partners (cultural organisations, community, business) to use the city s rich heritage as the basis for new activities and to inspire new work. The theatre currently operates from a council-owned building in Pound Lane that is small and in poor condition. The Lab, always intended as a temporary solution, is no longer fit for purpose and cannot accommodate any growth or development. It suffers from considerable dilapidations and has poor disabled access. It is too small to meet current demand and there is no potential for expansion on the site limiting its ability to generate income and capping opportunities for local residents to get involved. Finding a new city centre space to enable the Marlowe to develop, to deliver its creative work and to nourish its growing partnerships is one of the theatre s highest priorities. Transferring this part of its operation to the CHM building (the Poor Priests Hospital) will enable these ambitions to be fulfilled. The proposal for the Poor Priests Hospital would create an open and welcoming cultural space bringing arts, heritage and creative production together for the benefit and enjoyment of the local community, visitors and those who support and work in the culture, heritage and visitor economy. Initially the building would house the Marlowe s expanded participation programme, (which alone engages with over 250 people each week), as well as a writer s centre, rehearsal space for Canterbury s growing creative community and offices. The additional funds generated by the Marlowe as an independent trust make these changes possible at no ongoing cost to the council (there will be some one-off museums costs related to moving and redisplaying collections). Further fundraising will be sought to enable the Marlowe Theatre to work with partners, including Canterbury Museums and Galleries, to integrate the city s literary heritage and contemporary cultural practice through live and digital arts, increasing access to arts and heritage and generating new audiences/visitors. There are ambitions, for example, to unlock stories relating to the collections by presenting them as an integral part of an immersive experience for audiences, enabling them to use the past to create something new, and to employ augmented reality experience (using geocache technology) combined with live performance and workshops. These innovative activities, which are dependant on external funding, would provide work
15 opportunities for local creative practitioners and pilot imaginative and dynamic models of engaging residents and visitors with heritage. These proposals could see the life and purpose of the Poor Priests building transformed and its doors opened to new audiences and participants who will draw inspiration from both the collections that remain, the building itself and the activities and experiences that take place inside it. 4. Relevant Council Policy Pledge 5 - Inspiring people through a wide range of cultural activities and opportunities 5. Consultation planned or undertaken Marlowe Theatre Consultation with stakeholders was undertaken to inform the commissioning review. Firstly, in July, a Cultural Conversations event brought together local cultural providers (including representatives from the Marlowe Theatre and the Museums Service) to test the top priorities and concerns of the local cultural sector. Secondly, in August consultation took place with a focus group of residents. As with a previous consultation undertaken in 2013, many residents were not aware that the council managed the Marlowe Theatre. The general consensus was that whilst it was not important that the council continued to directly manage the theatre, it is important that the council continues to play an influencing role, particularly given the significant public investment which has gone into the theatre. Canterbury Heritage Museum Preliminary conversations have taken place with key stakeholders/funders including the Arts Council of England, Heritage Lottery Fund, Transport Trust, Peter Firmin the creator of Bagpuss and the Marlowe Theatre Development Trust. These have been positive. It is proposed that public consultation on the proposals for Canterbury Heritage will start on Wednesday 1st February and continue until Wednesday 1st March. Consultation will include the following: Facilitated workshops bringing together key stakeholders from the cultural, heritage, community and education sectors to hear about and discuss the proposals, understand their responses and opinions and provide an opportunity to hear and consider their suggestions and ideas A survey made available online and at the museums, Marlowe Theatre and Marlowe Lab inviting comments on the proposals
16 Social media campaign FAQ on council and service websites with opportunities to comment One to one conversations with key partners 6. Options available with reasons for suitability Marlowe Theatre - Governance option a. Agree in principle to proceed with the establishment of an independent trust to manage the Marlowe Theatre. Recommended for reasons set out in the report b. Do not agree to proceed with the establishment of an independent trust to manage the Marlowe Theatre Not recommended Canterbury Heritage Museum - Option to consult a. Agree to consult on options for the future use of the Canterbury Heritage Museum. Recommended for reasons set out in the report b. Do not agree to consult on options for the future use of the Canterbury Heritage Museum. Not recommended 7. Reasons for supporting option recommended, with risk assessment Marlowe Theatre There are significant benefits to be realised from Trust status to both the council and the Marlowe Theatre. In addition to the financial benefits for both, the creation of a Trust will allow the Marlowe to build on the theatre s successes since it re-opened in In particular, the ability to attract additional funds to invest in its future and to support and grow the community and creative development work of the theatre will be a significant benefit. Like all other trusts running major regional theatres, the Marlowe will be a single focused, agile organisation supported by a high calibre Board of Trustees. The council will retain its influence over the management of the asset, which it will still own, through a Partnership Agreement and the leases. Establishing the partnership on the right basis and the failure to attract high-calibre trustees constitute the main risks to the proposal. Therefore, critical to the success of the Trust will be the set-up. Canterbury Heritage Museum Canterbury Heritage Museum is the least popular of the city s museums with only 10,000 visitors a year and a trend of falling performance over several years. Despite
17 a number of small improvements to the layout and presentation of the museum and concerted efforts to rebrand and better market it, there has been no positive impact on visitor numbers. Largely ignored by visitors to other city attractions the museum plays a diminishing role in the city s cultural life and its economy. The proposal to consolidate core museum activities into two buildings will provide better access to collections. Relocating the creative development work of the Marlowe Theatre to the current site of the CHM opens up a new opportunity to re-imagine and repurpose the Poor Priests Hospital, creating a different type of offer for the district based on a broader range of activities and ensuring this important heritage asset can play a key role in Canterbury s cultural economy. In shaping this proposal, the views of key stakeholders are important and feedback from the consultation will be considered when developing the final proposal. 8. Implications (a) Financial Implications Marlowe Theatre The financial implications to the council and a Trust are detailed in the report. In addition to the operational savings of 160,000, a further sum of approximately 172,000 has been identified in savings to be realised to the council through establishing a trust. There will be one-off set-up costs and benchmarking has identified a sum of 75,000 being required for this, which will be build into the 2017/18 budget, funded through a contribution from reserves. This will be paid back in less than a year through the savings being realised. A detailed financial analysis of the Marlowe Theatre Business Plan will form part of the decision making process at the next stage. Canterbury Heritage Museum At this stage, permission is sought to consult on the proposals. The consultation process will be resourced from existing budgets. Financial implications of the proposals will be considered should formal approval be sought for any repurposing of the museum. (b) Legal Implications Marlowe Theatre
18 The legal basis for the creation of a trust is established and set out in the report. Any future relationship with the trust will need to be underpinned by a lease and funding agreement. In negotiations, once set up, the shadow board will require its own independent legal advisors. Canterbury Heritage Museum The council has a duty to consult and the principles regarding the council s approach to consultation are set out in the Corporate Plan. Other implications: (c) (d) (e) (f) (g) (h) (i) Staffing/resource for the Marlowe Trust option, under the terms of the transfer, TUPE will apply and Marlowe staff will transfer to the new organisation. Property Portfolio for the Marlowe Trust option, the theatre would remain in council ownership and a lease would be in place between the council and the trust. As permission is being sought to consult on the Canterbury Heritage Museum proposals, there are no implications at this stage and these will be considered at the next stage. Environmental/Sustainability none Planning/Building Regulations none Human Rights issues - none Crime and Disorder - none Biodiversity none (j) Safeguarding Children for the Marlowe Trust option, council policy regarding Safeguarding would be adopted by the trust (k) Energy efficiency none 9.. Conclusions i) The Marlowe Theatre has been open for five years, during which time it has stabilised and flourished. This is an appropriate time to consider the future sustainability of the Marlowe and how best to enable the theatre to embark on the next stage of business growth and development. Trust management would create a single purpose organisation with clear charitable objects and clearly defined ambitions. All its energies, focus and resource would be dedicated to achieving these. Trust management would also deliver both considerable savings to the council and significant additional resource to the theatre via tax benefits
19 and increased external funding, enabling improved services to residents. The risks of moving to trust management are relatively low given the stability of the business and the evidence of many other similar theatres, while the benefits to be gained, both financial and strategic are considerable, and on that basis this proposition should be taken forward to the next stage, based on an in principle agreement to move to a trust model. ii) The recommendation to consolidate museum activities in two buildings, the Beaney House of Art and Knowledge and the Roman Museum (with the Invicta engine moved, if possible, to Whitstable) would provide greatly improved access to key objects in the council s collections, improve the financial position and sustainability of the council s museums service and create better conditions for the future development of the service and its activities. A further benefit of this proposal is that it opens up a new opportunity to work with the Marlowe Theatre to re-imagine and repurpose the Poor Priests Hospital and adjoining buildings, encouraging better appreciation and use of an important heritage asset by creating an innovative offer based on a broader range of activities that fuse arts, heritage and community activities. The potential to create a sustainable community-focussed future for the building while increasing access to and involvement in Canterbury s rich heritage and culture should be further explored and tested. Contact Officers: Janice McGuinness Assistant Director Commissioning David Ford Head of Commissioned Services Filename: Cultural and Heritage Assets Community Committee 25 January 2017 Version 1 9 January 2017 Appendix 1 - Marlowe Trust 5-year Business Plan
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