Oct 282011
 

Old Susannah reflects on what’s been going on, who’s got designs on our City, who’s doing what out of the goodness of their heart, and wonders if there’s enough ‘connectivity’ yet.  By Suzanne Kelly.

It was another busy week in the Granite City. Have been busy decorating cupcakes with Sweet Lily Adams (it’s a hard life), and trying out new Jo Malone perfumes (I love their Gardenia cologne, and the orange blossom candle is my favourite).

NB: Jo Malone has absolutely nothing to do with Ho Malone, although the idea of Aileen and I having champagne and canapés together of an evening is an enticing prospect.
She is meant to email me back about the financials for the deer cull (we might not have enough money to kill stuff you see– or it could be a bluff).

Once she does write back, I’ll suggest that the two of us go out for drinks and dinner. Watch this space.

I actually went to some shopping malls without being accosted by guards, and I tried to avoid looking at the six design finalists more than was absolutely necessary. It was truly a car crash of an exhibition:  I had to force myself to look, and then in horror could not look away again.  Whatever the organisers say, not everyone at the show is convinced by the scheme or any of the designs by a long way.

The show has had a profound impact on me as has the TIF application – I think of these things and unavoidably burst out laughing.  You have to hand it to these people  – the emperor has no clothes on, but thinks it all looks fantastic.  If you are free on 1st November, The Moorings is hosting its own alternative design competition – details on Facebook, where the alternatives are far more popular than the official site.

For some reason when I was back at the Academy shopping centre for the first time since my last little visit, my mind turned to the old Benny Hill show.

The other week when the guards were chasing me round the Academy and St Nicks (for taking photos), I could practically hear the Benny Hill theme tune in my head.  If you remember, the wealthy, ageing Benny Hill surrounded himself with pretty blondes, and promised everyone that they would be generously remembered in his will. In the end, almost no one inherited a cent.

What on earth made me think of a rich, older man making promises to leave money to lots of people (including blonde actresses) I couldn’t tell you. The mind works in funny ways.  I must have got something stuck in my craw.

Obviously it was not as vibrant as being in a shopping mall, but I took my turn on Tullos Hill Monday night (yes, we are keeping a watch on the hill – if you want to get involved, get in touch) and saw a solitary deer on two occasions. 

It was obviously vermin, as it was peacefully doing nothing.  I am sure this little vegetarian would have eaten thousands of trees of a single evening.  A well-meaning man had a dog off a lead – the dog chased said deer away.  The man saw nothing wrong with this, saying his (fairly small) dog would not be able to catch the deer.  True, but not quite the point though is it?

Please let your dog run free if it will respond when you call it back.  If not, well, then don’t.  Wild creatures can be petrified in these circumstances.  In the past week and a bit we’ve a child badly bitten by a dog, a dog attacking another dog, and a charming man using his dog to attack police.  It’s just as well we got rid of dog licensing, isn’t it?

But onwards with a few definitions.

Charitable:

(adjective) generous, unselfish, giving behaviour.

Many of us here at Aberdeen Voice help out our favourite charities and causes when we can. But our efforts are quite second rate when compared to the heroic, unselfish, self-sacrifice practiced by some of the City Council’s officers. Step forward Mr Gerry Brough and Ms Jan Falconer.

These two have been working in part on a voluntary basis to make sure that we get something built in boring old UTG.  It is very generous of their employer, Aberdeen City Council to allow them to toil away on the garden project.

It was Jan who spoke to the Torry Community Council about UTG some months ago (Gordon MacIntosh had a dinner to go to instead of seeing Torry), and she promised everything would be spelled out and transparent.

I am convinced she is right – everyone on the City Gardens Project and associated companies has everything perfectly clear. And once the diggers move in, the rest of us will see what’s happening too.  Here is a statement from a report, spelling out how she works:-

 “I have only recently started in this project and the work I have undertaken other than attending meetings is administrative. My hourly rate exclusive of on-costs is £26. I work an average of 50 hours per week making an average of 200 per 4 weeks I work while I am contracted to 148 hours (37 hrs per week). I regard all other administrative and desk-based tasks as taking place during this 11  additional unpaid weekly hours (52 hours per 4 weeks less 8 hours for a flexi-day leaving 11 hrs per week)–which represents a cost saving of £2288 since working on this project from 2 February 2011. (i.e. 11 hours x 8 weeks @ 26 per hour = £3,120). Outwith this is Community Meetings to which I attended the Torry Community Council Meeting for 3 hours in my own time representing an additional saving of £78. This is my choice as I wish the project to be a success whilst following the Council’s instruction”.

Again, the real philanthropist is Sir Ian Wood, without whose promise of putting something into his will, we would not be where we are today.  (Hmm – who’s supplying the office space, light/heat, printers, consumables for all these extra hours?  What is the EU working time directive?  Just curious.)

Mr Brough has occasionally become a wee bit heated when discussing the whole situation, and has written to some local opponents of the new gardens that they are just jealous of Ian.   Here is an example of Gerry’s unselfish nature, hidden behind the sometimes less-than-genteel facade:-

“My hourly rate, excluding on-costs, is £46. However, I work an average of 55 hours per week. Therefore, I would regard all other administrative and desk-based tasks relating to the City garden project as taking place during the 17.5 additional unpaid weekly hours that I work for the council – which represents a cost saving of £20,125 since 6 October 2010 (i.e. 17.5 hours x 25 weeks @ £46 per hour = . £20,125). Indeed, it would be possible to claim that all City Garden work is effectively more than made up for by this additional no-cost time input. Consequently, it can be argued that any input to the City Garden Project is effectively on a voluntary basis, at no cost to the council”.

Bargain!  Only £46  per hour, and he’s willing to work extra at that rate!  I am impressed!  In fact, the amazing report that these quotes come from can be found at:

…. it has some real gems – like the fact they see no legal problems with getting the land and only 10 Freedom of Information Requests had to be dealt with.  You will be amazed as you read this; please be my guest.

While you and I could never hope to equal these giants of giving, who expect nothing in return for their efforts (not even a private sector job or promotion of some kind I am sure), I will take a moment to say that many local charities for people and animals need your help now.  Check out Voluntary Services, Contact the Elderly, Willows, New Arc  just for starters.

They are all in need of money, goods and if you’ve none of those to spare, they need your time.  Obviously you won’t get a carpark named after you, but you might wind up chatting to great people on a Contact the Elderly event, help out with animals, or do one of a hundred other things worth doing.  If you can, then please do get in touch.

Neutrality:

(adjective) impartiality, indifference,

Aberdeen City will not – so some claim – spend a single penny on anything to do with the City Garden Project.  Its officers might be volunteering their time and sitting on boards, companies and committees about changing our dreary Union Terrace Gardens from something Victorian to something 1950s – but it won’t cost us.

The people in Aberdeen who brought us the BiD funding are completely neutral and indifferent to whether or not the City Gardens Project borrows 70 million (probably a wee bit more – say 100 million) through TIF Funding.

This is proved by the BiD people sending out a very smart draft letter for businesses to send.  Here are some extracts from the text that an Aberdeen City employee is sending to local businesses (text in blue is mine):

“I have been asked by ACSEF (to) highlight [sic] that additional support is also required from local businesses to ensure that Aberdeen City can access TIF funding”. 

Well, that’s neutral enough for me.

“We would be grateful if you could consider writing to Barry White, Chief Executive, Scottish Futures Trust, 11-15 Thistle Street, Edinburgh EH2 1DF in support of Aberdeen City Council’s TIF (Tax Incremental Financing) submission” 

Aberdeen City is only asking businesses to write to the Scottish Futures people; it’s not biased at all.

“The TIF being proposed by Aberdeen City Council would unlock up to £80 million to deliver a range of city centre improvements as part of the city centre masterplan. At the heart of the city centre regeneration is the City Garden Project, which has already secured a commitment of £55 million of private sector investment with a further £15 million planned.”

Nothing wrong with a little unlocking, I say.  Who can argue with this factual paragraph?  Yes, sounds quite impartial to me.

“TIF is an invaluable and innovative tool for stimulating greater investment and regeneration, achieving major city centre transformation, and retaining and attracting existing and new business investment. It is therefore vital for Aberdeen to be selected as one of Scotland’s six remaining TIF pilot projects” 

Yes, they are saying TIF is great and it is vital for Aberdeen to get TIF, but I’m sure they really are as neutral as they first claimed.

“We hope that you will demonstrate your support for the Aberdeen TIF submission by making it clear that the Scottish Government needs to demonstrate its support for Aberdeen City and Shire by investing in the regeneration of Aberdeen city centre which, unlike Scotland’s other major cities, has received little or no public infrastructure investment over the last fifty years.”  

Yes, it is only fair that Aberdeen gets its own tram fiasco by having a big infrastructure project.  I do seem to remember that Audit Scotland thought things were so messed up here that we weren’t supposed to do anything big for a while.  But you can’t fault the City’s claim of neutrality just because they are asking businesses to beg for TIF.

Some of you out there might be starting to doubt whether or not the Aberdeen City BiD people are neutral when it comes to the City Garden Project getting TIF funding.  This excerpt from a letter from a Bid Bod should end any doubt:

 “Aberdeen BID is entirely neutral with regard to the City Garden project …”

So yes, Aberdeen City Council and its BiD people are neutral, they are just keeping businesses in the loop, and giving them a letter of support to sign so we can borrow somewhere between 70 million and 100 million (depends who you ask, really) for your great-grandchildren to pay off for building Teletubbyland. Neutrality to match the volunteer work, you might think.

It might sound like it’s asking for help from businesses getting TIF, but they have said they are  impartial so that’s that.

One tiny part of this impartial letter requires a little more study:

I draw your attention to what might be a typo (or a Freudian slip) in this letter which I found amusing (underlining is mine)

“ACSEF is a public private sector partnership that seeks to grow the economy and enhance its quality of life through a joined-up approach. With the private sector standing shoulder to shoulder with the private sector, ACSEF has facilitated, influenced and delivered a variety of major projects that are helping the region and Scotland to meet its growth targets”

Is the private sector going to stand shoulder to shoulder with itself – or is that exactly what the creation of ACSEF with taxpayer money has created and what we should be grateful for?  Answers on a form letter, please.

Just to show that I too understand neutrality, here is a link to a letter you can send to Barry White.

Tell him you don’t want a giant worm or a monolith that will cost someone, somewhere down the line tens of millions – if not one hundred million pounds.  Tell Barry the designs are awful, and the city needs to attract people with excellent schools, great medical facilities, safe, clean streets, and support services for those who need them.

No one is going to live in our city because it has more parking, more offices or a few giant concrete ramps where once 400 year-old trees once stood.  Use this letter as it is; customise it, or send your own to :  Barry.White@scottishfuturestrust.org.uk

Next week:

The  mystery of the uncomprehending Chief Executive, and the Case of the Missing Postcards in which Valerie Watts only receives 35 of the hundreds of anti-cull postcards created – over 60 of which were hand delivered by Old Susannah to a security guard who commented ‘loads came in’ that week – and the week before.  Where are the missing postcards?  Did deer eat them?  Answers on a postcard please – or get one of the remaining postcards and send it to the City – pop into Lush for your card – and some very nice ‘candy cane’ soap.

 

Sep 062011
 

By Mike Shepherd.

Aberdeen Council have recently noted an interest in applying for Tax Incremental Funding (TIF) from Scottish Government funds. The idea is that the Council would underwrite a loan of possibly £80M or more, £70M of which would be used to help pay for the City Square Project. The final application for funding will not be made until December, by which time a business case for TIF will have been completed.

Earlier this year, the then Council leader John Stewart, extended the remit of TIF to include city centre projects other than the city square. These are:

The City Circle Project: A walkway connecting Union Square and the railway station in a circuit from Guild Street, along Market Street through the St Nicholas Centre, down Schoolhill through the City Garden down Bridge Street and rejoining Guild Street to complete the circuit. Basically, it’s a walkway whereby shoppers in Union Square will be heavily prompted to visit the rest of the city by signs and possibly colour coding.

St Nicholas House Redevelopment: A recent council document stated this:

“In the current property market, however, the Council is concerned that developers will be unwilling to take the risk of demolishing redundant parts of the site, delaying any sale and redevelopment and resulting in a vacant city centre eyesore for a number of years. The council therefore wishes to pre-clear the site, to prepare it for sale, and bring forward development.

“The aspiration is that the tower, if not demolished, would be stripped back to its’ skeleton ready for redevelopment, and recladding and put to new uses either as a hotel, apartments or offices, and a new public square would be created to improve the setting of Marischal College and establish a focal point for a new ‘civic quarter’.”

Of interest in this statement is that the possibility of building a public square next to St. Nicholas House has been resurrected. This otherwise hasn’t been mentioned recently in council papers.

The document mentioned is the Aberdeen City Centre Redevelopment Economic Impact Assessment Information, August 2011. This provides information for a questionnaire to be answered by some 500 organisations and individuals which would provide feedback to assess the economic impact of TIF.

Denburn Valley Health Centre Development: From the same document:

“The health centre on the roof is reaching the end of its design life and NHS Grampian is looking to vacate the building. Planning guidance issued by Aberdeen City Council has called for “imaginative” development of the site using the “highest standard of design and materials to complement the surrounding urban form, listed buildings and conservation area”. Redevelopment must continue to provide for substantial public car parking on the site and is expected to comprise largely commercial space for small and medium businesses and some residential development.”

Aberdeen Art Gallery:

“Infrastructure and development required to link the Art Gallery and Cultural Quarter to the City Gardens including partial redevelopment of the gallery and creation of additional gallery space.”

The Scottish Futures Trust (SFT) are seeking six ‘pathfinder’ projects to help establish the feasibility of TIF in Scotland. Three projects have been approved (Edinburgh Waterfront Development, Ravenscraig, and the  Buchanan Quarter in Glasgow) and three more are being sought.

There is strong interest as Barry White, Chief Executive of the SFT  told me in an email last week:

“I can confirm that we have received a submission from Aberdeen City Council and will be considering it along with the submissions received from many other local authorities over the coming days.”

The Case for TIF in Aberdeen.

Tax Incremental Funding is well established in the United States and has recently been introduced to the UK. The idea is that a local authority borrows a sum of money for a development project from Government funds and that the extra business rates generated by the development is captured to pay off the loan over 25 years for instance.
It works best where a brownfield site is used to develop a large scale business operation, the revenue from which is to some extent predictable. In this instance, the risk on a council borrowing a large sum of money is mitigated by a sound business model.

The Aberdeen TIF case is largely predicated on the City Square rejuvenating business in the city centre. There would only be a small amount of revenue generated on site and this would be insufficient in itself to provide business rates to pay back a large loan. Instead, it would be hoped to capture business rates from the surrounding city centre both from rates generated by extra business and new developments.

Trying to predict how much extra business will result from a new city square will be to a major extent speculative with a large uncertainty involved.  In other words, if Aberdeen Council borrowed £80M through TIF this would be based on hope rather than certainty that the money could be paid back.

Aberdeen Council is £562M in debt according to an Evening Express report earlier this year. The interest on the debt is paid from the revenue budget and soaks up cash that could otherwise be used for service and amenities. The Council cannot afford to take a risk on being left with more debt to service, the budget is under severe strain as it is. On the other hand, I have been told that the city is so short of capital for spending that it is unlikely that there would be any investment in the city centre without TIF.

The £70M loan for a city square would be a loan too far; particularly given how unpopular the project is in the city. There is tacit recognition in the questionnaire document that the City Square Project may never happen.

“This option considers the outcome where the City Garden Project is not realisable, but the other projects are. In this scenario, economic benefit and new business rates would be generated primarily by the North Denburn Valley and St Nicholas House developments. Although likely to be less than would be the case if the City Gardens were to be realised, these two projects would nevertheless likely provide the basis for a smaller TIF.”

In this instance, Aberdeen would get a public square at St  Nicholas, which is where most people wanted it in the first place.