Linlithgow heritage in transition
- 1. Linlithgow – Heritage in Transition Simply does it Chris Cook Linlithgow 28th May 2012
- 2. Community Partnership Enterprise Model Structure - Stakeholders - Custodian - User - Manager - Investor Legal framework – Nondominium Investment instrument - Stock
- 3. User Paymen t Custodian % % Investor Manager
- 4. Legal Framework – 'Nondominium' Two complementary agreements Collective agreement between stakeholders jointly Associative agreement between stakeholders individually or severally
- 5. Collective Agreement Custody – governs creation, issue and exchange of Stock, holds bank accounts and Stock register Stewardship – stakeholders have negative veto rights Corporate – company limited by guarantee, possibly community interest company (CIC) for asset lock
- 6. Associative Agreement User – pays for the use of productive asset (land, energy, IP) Manager – receives a proportional share in the flow of use value Investor – acquires Stock consisting of 'unitised' use value sold forward at a discount Complementary to the collective agreement – akin to a 'for profit' limited company's shareholder agreement
- 7. Nondominium - Outcomes A consensual non-statutory 'development corporation' Neutral – removes ego and politics Collaborative - stakeholder interests aligned – no principal/agent problem Social Business – shared surplus/ 'not for loss' - relationship-based not transaction-based Sustainable - everyone has an interest in minimising cost of use over time
- 8. Investment Instrument - Stock 1.0
- 9. Stock 2.0 – Back to the Future Stock - an undated credit returnable in payment for use value of productive asset Sold at a discount – eg £1.00 of Rental Stock sold for 80p gives an absolute return of 25% Rate of Return is literally the rate at which Stock may be returned to the issuer Rate is not fixed, but depends on whether there is a flow and what it is
- 10. Stock - Outcomes Competitive - no compound interest Secure – no default risk, and the more affordable the rental, the more secure the return Liquid – single asset class, not fragmented by date or interest rate Liquid – Manager will always buy Stock on behalf of Users for redemption at best offer < or = to £1.00
- 11. Financing and Funding Financing – development of new assets; short term; high risk – Stock issued at high discount Funding – operation of completed assets; long term; low risk; Stock at low discount Exit - community Financiers sell Stock to community Funders and Users who 'Pay it Forward'
- 12. Linlithgow Principles? Gothenburg Principles - Edwardian social enterprise - 5% fixed £ return; keeping workers (relatively) sober Linlithgow Principles - Sustainability - Equity - Open Access - Return in energy
- 13. My 2020 Vision – Heritage Town
- 14. Getting There from Here - Transition Prototyping - Property - Star & Garter & Clarendon - Energy – Avon hydro; anaerobic digestion; 'meso' level CHP Road Map - what are the issues? - what is the 'Critical Path'? - over to Jim Mather !