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A decision made (30/03/2006) for additional grant request - coastal forts and fortifications.

Subject:	Coastal Forts and Fortifications – Additional Grant Request
Decision Reference:		Exempt clause(s):		n/a
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		n/a
Telephone or e-mail Meeting?	n/a	Report File ref:		JS/2/27/3/06
Written Report – Title	Coastal Forts and Fortifications – Request to approve grant	Written report - author		Jane Strecker
Decision(s): To approve the grant of £340,000 for stage two of the Coastal Forts and Fortifications initiative.
Reason(s) for decision The proposal meets certain of the criteria against which such projects should be assessed and the rental steam will be a valuable contribution to the ongoing keep of these properties.
Action required: To advise the Tourism Development Fund Sub-Committee and Economic Development Department that in accordance with the terms of the Funds no funds should be committed in future for projects unless all appropriate authorisations have been given.
Signature: (Minister/ Assistant Minister)			Date of Decision: 30th March 2006

Coastal Forts and Fortifications - Additional Grant Request

TREASURY AND RESOURCES MINISTER

Coastal Forts and Fortifications - Request to approve grant

1. Purpose of Report

1.1. The Minister is requested, by the Tourism Development Fund sub-Committee, to approve an additional grant of £340,000 for the Coastal Forts and Fortifications project.

2. Background

2.1. On the 14th February 2006, the Economic Development Minister approved a grant for a further £340,000 to be provided for stage two of the Coastal Forts and Fortifications initiative. See attached template.

2.2. In accordance with the terms of the Tourism Development Fund, the Treasury and Resources Minister is required to approve grants over £500,000 and a sum of £250,000 has already been provided for the first stage of the project.

3. Comments

3.1. The funding is being requested to raise the Island’s tourist profile by refurbishing and letting various fortifications, to create opportunities for the public to enjoy short stays in unusual historic buildings. Additional funding of £250,000 is required to complete the work on the original ten sites.

3.2. In addition to this £40,000 is required to fit out the Radio Tower to a high standard in order to create premium product attractive to high net worth travellers, and £50,000 to accelerate the programme which would enable work on all ten sites to be completed by early 2008, one year earlier than planned.

3.3. The Sub-Committee strongly support the proposal and have agreed to allocate £340,000 to the project.

3.4. On review of the business case it is not evident that this project is a good investment and offers best value for money. The total sum invested is £758,660 and this will only generate income revenue of £65,000 per annum.

3.5. In addition to this the schedule of revenue costs does not take into account certain items such as refurbishment costs required in following years or indeed ongoing maintenance costs.

3.6. However, the Minister is placed in a difficult position in that bookings for the 2006 visitor season are already being made and the funding has already been committed based on the approval by the Tourism Development Fund.

4. Recommendation

4.1. To approve the grant of £340,000 for stage two of the Coastal Forts and Fortifications initiative.

4.2. To inform the Tourism Development Fund Sub-Committee that in accordance with the terms of the Fund no funds should be committed for those projects exceeding £500,000 unless full approval has been made.

5. Reason for Decision

5.1 The Tourism Development Fund Sub-Committee has not sought the approval of the Minister in the appropriate time scales and has already committed to the funding required for this project.

States Treasury Corporate Finance

4 April, 2006 for Decision Meeting 27/03/2006