Guysmere Centre, Castlerock

Feasibility Study of Redevelopment – Positive Report

Redevelopment Proposal:

Create a high-quality Centre incorporating residentialaccommodation, with inspirational views of the beach andbeyond, to facilitate church groups, youth groups andothers; offering maximum flexibility

➢ stays of varied duration ,

➢ accommodating individuals, families or small groups,including those with profound special needs

➢ Partnering with others to provide a range of activitiesfrom action packed, spiritual formation or quiet retreatprogrammes.

• Assist the Presbyterian Church in Ireland in fulfilling itsministry and mission objectives by facilitating theactivities of faith-based groups whose principles are inalignment with the church’s core values.

• Use this prime location to complement and add valueto other community-based activities therebycontributing to the creation of a sustainable, accessibleenvironment in this rural location.

• Promote positive mental and physical health and well-

being, improved economic vitality of the area, greater

cohesion and sustainability of the local community.

The development will:

• be sensitive to its coastal location

• contribute to a thriving local economy

• contribute to the growth of a healthy andsafe community

Proposed Facilities (1):

• A stand-alone coffee shop designed to maximisethe surrounding views, with kitchen and toiletfacilities and an outside patio dining area

• En-suite Bedroom accommodation for 70 people

• Lounge and Dining facilities for approximately 70with external patio areas.

• A Kitchen facility to serve the above

Proposed Facilities (2):

• A Foyer/Reception area

• An area to service Water Sports and Beach Activities, with equipment storage, showering and changing facilities which would have separate beach access.

• Drying Rooms

• Car parking for 30+ cars.

Proposed

Redevelopment

of Guysmere

Proposed Entrance Elevation

THE GUYSMERE CENTRE

Lounge Main Entrance 2 Storey Bedroom Fire Escape Accommodation

Café Kitchen Entrance Accommodation

Proposed Beach Elevation

Balcony Dining Lounge Kitchen Cafe

Proposed Beach Elevation

Balcony Dining Lounge Cafe

GUYSMERE CENTRE REDEVELOPMENT - Positive Feasibility Report April 2019

Key findings can be summarised as follows:-1. At a strategic level, the case for investment in

facilities at Guysmere is sound.• supports Council’s Community Plan in

addition to contributing to health andwellbeing agendas and creating greateropportunity for promoting social inclusionand working with vulnerable groups,including people with disabilities.

Key findings can be summarised as follows (2):-2. Strong community support identified through

robust consultation engaging with the members

• of Castlerock Presbyterian Church

• potential user groups from a faith background

• a public meeting attended by over 50members of the Castlerock community

Key findings can be summarised as follows (3):-

3. A wide spectrum of potential centre users (fromboth faith and outdoor recreation perspectives)were highly supportive of the redevelopmentplans for Guysmere

Key findings can be summarised as follows (4):-

4. significant interest from experienced promotersin taking on the proposed café/dining facility atthe centre, enhancing the viability of thescheme in addition to catering for centre usersand visitors to Castlerock

Project Component Rationale

Clearing site to facilitatedining/eating provision,including options forevening dining

Interest expressed by experiencedoperators (4 no.) in taking on thecatering franchiseMeets an evidenced need created bylack of quality eateries in the village(dining/eatery as opposed to coffeeshop provision)Enhanced project viability throughrental income

Summary of Need (1)

Project Component Rationale

60 bed space accommodation

Potential users have confirmedinterest, including a need for largergroup accommodation - Mostcommon query at VillageInformation Centre

Council Service Level Agreement

Potential to work in partnershipproviding shower, changing andtoilet facilities, creating anadditional revenue stream

Summary of Need (2)

Project Component Rationale

Water sports provision

• Growing number of water sportsusers, including out of season

• Surf schools have expressed interestin the facility and opportunities forpartnership working

• Direct beach access providesopportunity for people withdisabilities

• Scope to accommodate bothindividual and group users

Summary of Need (3)

Project Component Rationale

Recreational multi use space

• Local community identified needfor physical activity/gym offer;need to cater for local residentsas well as those visiting

• Scope for rental income throughsuch studio space, cognisant ofnot displacing Peter ThompsonHall offer

Summary of Need (3)

“Given the complexities and potential of the project, arobust project development process must be developedwhich promotes mission and ministry, underpinned by asound business model and is technically compliant.”

• Providing a multi-use complex incorporating modernresidential accommodation for up to 60 people.

• Facilitating retreats and camps for a wide range ofnational and international groups to include churches,youth and children’s groups, families andmissionaries/ministers on sabbatical leave.

“… which promotes mission and ministry, ...”

• Providing conference facilities for PCI councils,committees, leadership teams, mission organisationsand church ministries.

• Providing facilities for water sports and outdoor activityministries.

• Providing social and meeting space for local churchesand the local community including a coffeeshop/restaurant.

S.M.A.R.T Objectives going forward (1)

• To arrive at a consensus decision at the General Assembly of PCIto retain the site and progress the development of the site andthe preferred option

• To establish a lease agreement with a compliant andexperienced café operator by March 2021 generating an annualreturn of £20,000 per annum

• To source the resources to undertake a compliant and detailedtechnical project development process (full design, site andenvironmental surveys, full planning consent and sourcingcapital funding) by September 2019

S.M.A.R.T Objectives going forward (2)

• To complete the technical project development process(excluding acquiring all capital funding) by Sept. 2020

• To secure the full capital funding requirement to deliverthe preferred option (circa £4,000,000) by June 2022

• To fully deliver the preferred option (subject torefinement via the technical project developmentprocess) by May 2023

• To support 3,000 people per annum on a faithjourney/mission

S.M.A.R.T Objectives going forward (3)

• To complete the technical project development process(excluding acquiring all capital funding) by Sept. 2020

• To secure the full capital funding requirement to deliverthe preferred option (circa £4,000,000) by June 2022

• To fully deliver the preferred option (subject torefinement via the technical project developmentprocess) by May 2023

S.M.A.R.T Objectives going forward (4)

• To support 3,000 people per annum on a faithjourney/mission

• To achieve an 35% occupancy rate over the year fromrelease of the accommodation element of the project

• To accommodate 40% out of state visitors

• To generate a minimum of £30,000 fixed income fromnon-trading income arrangements (Service LevelAgreement, catering lease agreement, membershipfees)

The preferred option involves the development of a newresidential centre, taken forward in two phases, each with its owntechnical planning and delivery stage.Phase 1 will see provision of dining/café facilities

• (Technical) will see the clearing of the site, then PCI leasingpart of the site to a private operator to take on the cateringelement as a franchise. (on open market with terms consistentwith PCI mission and values). Any technical compliance issueswill also require to be addressed at this point.

• (Delivery) will see delivery of the site and associated buildingto provide onsite eating facilities. (Ongoing liaison withPlanning Service to ensure the integrity of the site andcoastline are respected by any building).

Phase 2 will concern building residentialaccommodation, meeting space, recreational studiospace and water sports facilities• (Technical) will include a detailed project planning phase

to develop a robust business model; ensuring technicaland environmental compliance on the proposed buildingand access, liaison with Tourism NI on accommodationspecification, visiting other models to identify bestpractice and securing the capital funding package;supported by a technical assistance budget over a five -seven year period to source and secure funding for capitaldelivery and ensure the model is sustainable.

Phase 2• (Delivery) will see delivery of residential

accommodation, meeting space, lettablerecreational/studio space and water sportsfacilities on the site. (Ongoing liaison with PlanningService will be integral to this phase to ensure theintegrity of the site and coastline are respected byany building which will be of a high quality with asuperior design standard in addition to beingpractical in respect of accommodating heavy footfalland outdoor users.

Guysmere Capital Funding Strategy (1)Phase Target

(£)Target Funder Contribution (£) Timeframe

One 350,000 1.CC&G BoroughCouncil AnnualCapital Fund

2.PCI contributes

1.300,000

2.50,000

Sept. 2019June 2020

Two 3,650,000 At the moment the Capital FundingStrategy should focus on beingready for effective applications tosome (or all) of the followingpotential opportunities:

Jan. 2020 –Dec. 2024

Total £4,000,000-

Guysmere Capital Funding Strategy (2)Phase Target (£) Target Funder Contribution (£) Timeframe

Two 3,650,000 1.Peace Plus Programme (SEUPB)

2. DAERA Strategic Project Call

1.3,650,000 (this funder has the potential to fund at a 100% intervention rate

2.500,000 (up to 80%)

Jan. 2020-Dec. 2024

Guysmere Capital Funding Strategy (3)Phase Target (£) Target Funder Contribution (£) Timeframe

Two 3,650,000 3. Social Investment Fund (Tranche two)

Other opportunities are likely to emerge from Tourism N.I and Sport N.I.

1.Announced in the budget but depending on a functioning Executive (typically up to 80% funding for projects in the range of £500k-£2 million

Jan. 2020-Dec. 2024

Total £4,000,000 - £4,000,000-

Financial Appraisal (1)An analysis of the five year revenue and operatingcosts projections confirms the following:On the assumption that the project carries no morethan 10% borrowing and that the revenue projectionsare met and operating costs budgets adhered to theproposed project can operate in a financially viablemanner.

Financial Appraisal (2)The following points are noted:• Given that this will be a social enterprise there may be some

opportunities to secure revenue assistance which couldcontribute to revenue costs such as employment, marketingand marketing and promotion

• Achieving 100% capital funding (and thus not carrying the10% loan responsibility have a major impact on projectviability)

• An element of prudence has been applied to occupancyrates – these being estimated at 35% occupancy rather thanthe NI norm of 40%

Factor Year 1 Year 2 Year 3 Year 4 Year 5

Revenues Generated 202,401 221,769 240,989 240,989 240,989

Operating Costs205,501 222,122 240,617 240,617 240,617

Surplus/Deficit(3,100) (353) 372 372 372

Cash Flow (3,100) (3,453) (3,081) (2,709) (2,337)

Financial Appraisal (3)