Living Villages 2 - Community Pubs
- 1. Mark Haslam Herefordshire CAMRA Living Villages Friday 2 nd December 2011
- 2. Community ownership? In the past it was always the option of last resort – to be used if the only alternative was the loss of a valued pub. This is now changing, as community ownership can be seen to bring benefits over and above conventional commercial ownership and operation.
- 3. Community ownership: Why should a community buy its pub? To secure the future of a valued asset To be able to influence the direction of the business: delivering the needs of a local community To put a pub on a sustainable footing To remove the threat from alternative use Options to further diversify Ensures financial and emotional buy-in
- 4. Live & Let Live, Bringsty Common
- 5. Live & Let Live “Dream On” said CAMRA HQ! Herefordshire CAMRA helped raise £158K in just six weeks in 1997 Put together a legal vehicle and signed-up shareholders Ultimately the co-op wasn’t necessary, when it was sold to a private buyer in 2002 Pub is thriving today – objective achieved
- 6. First of the many Old Crown Inn, Hesket Newmarket, Cumbria
- 8. Old Crown Inn Bought by the village in August 2003 58 investors invested £1,500 each Secured the future of the pub Village co-operative put together with help of Co-operative & Mutual Solutions Run as an Industrial Provident Society Established as a template model for community ownership
- 10. What is required? Money – raise through share subscription, grants, loans and donations Business plan – will it work as a business? Share prospectus – selling the vision (and the shares) to the community Finding someone to run the business Putting in place robust and appropriate processes
- 11. Buying the Pub Ensuring a market price sale Raising the capital – what if you fail? The owner doesn’t have to sell, even with the Localism Act and ‘Right to Buy’ Consider refurbishment costs Consider running costs However, it DOES happen!
- 12. Another closed pub for sale in Cumbria in 2009
- 13. Butchers Arms, Crosby Ravensworth Idea of community purchase conceived in October 2009 as no buyers for pub Community sounded out – were they interested? Similar pubs visited elsewhere – what could be learnt from their experience? Share prospectus and business plan issued early 2011: shares from £250
- 14. Butchers Arms Crosby Ravensworth
- 15. Butchers Arms – the plan Over £300K raised from grants and loans, but over 90% share subscription Shares pay a dividend of 3% from Year 2 Tenant’s rent pays dividends Local community maintains pub – the equity is their ultimate guarantee Tenant given contract to run business Pub opened in August 2011
- 16. CAMRA – how we can help We can give advice and technical support We will also get others involved (CMS etc) Help with business plans and other documentation Help with marketing, publicity and strategy CAMRA members will buy shares If we don’t know something, we will know some-one who does
- 17. Herefordshire’s first community-owned pub CAMRA is currently working with two local communities looking to develop community buy-outs for their local pub. One is shortly to issue a Share Prospectus and Business Plan.