HEREFORDSHIRE Council is ready to hand a  99 year lease on Queenswood Country Park and Bodenham Lake nature reserve to a newly formed company.

That new company would be a legal entity established by the New Leaf co-operative and Herefordshire Nature Trust (HNT).

Both iconic sites are among a host of natural assets countywide that the council can no longer afford to keep, as reported by the Hereford Times last year.

The groundbreaking deal could be sealed in principle as soon as next week on the decision of cabinet member for contracts and assets Councillor Harry Bramer.

But related recommendations mean HNT and New Leaf must demonstrate the capacity to cover operating costs before the transfer can go ahead on a 99 year lease.

Objections or alternative proposals could still put a stop  to the transfer if deemed valid.

At least one other  charity - Siren Conservation -  has expressed a specific  interest in Bodenham Lake.

The council has been considering a number of options for the future management of both sites, an issue crucial to the council’s savings plans.

An option to retain direct responsibility - with a zero budget and the introduction of parking charges – has already been approved if the transfer cannot go ahead.

Putting site management out to procurement, however, is seen as affecting the pace by which relevant savings might be achieved.

A transfer, as proposed, needs a formal public notice to progress, allowing for objections and alternative proposals.

The process of assessing the proposal to take over the management of both sites was authorised by Cllr Bramer a year ago.

Council officers have been working with not for profit New Leaf and HNT - which manages 54 local nature reserves - over the past year to support the development of the business plan.

The new entity to be created as a result will be a community interest company - most likely limited by  guarantee - with an independent board, formal and informal partnerships defined by  service level agreement contracts and full time staff.

A financial plan provided includes projections over the first five years and cash flow projections for the first two years  of operation, based on information provided by the council such as condition of assets, rental income from tenants and existing operational plans.

The transfer recommendation requires financial viability for a minimum of three months on transfer and continued financial sustainability as agreed by the council’s chief financial officer.

If the transfer is finalised, the new entity must manage risks around income generation, take full responsibility for introducing a parking charge if required and ensure “appropriate” communications with visitors and other interested parties.

New Leaf put its proposal out to community consultation in March last year. A majority of the 200 responses supported the transfer to a New Leaf led entity.

There was support, too, for a membership scheme, parking charges for non members, and the development of on site activities include outdoor theatre/arts.

But charging to use toilets was widely opposed.

New Leaf has also engaged with range of related interest groups over its proposal.

TRANSFER OF QUEENSWOOD & BODENHAM LAKE – NEXT STEPS

Should the principle of transfer be agreed, six weeks will be allowed for objections and alternative submissions.

Then, HNT/New Leaf will need to establish the community interest company and provide appropriate evidence of the company’s governance and constitution, launch its membership scheme and demonstrate financial viability for a minimum of 3 months of operation.

The council will set out the terms of the leasehold transfer, sub letting terms and other triggers that could see the sites returned to the council.

Resolution of related human resources issues in relation to options for  secondment, TUPE transfer, redeployment or redundancy.

THE FINANCIAL IMPLICATIONS

The two sites represent the most financially significant element of the council’s countryside service.

As part of the council’s medium term financial plan, there is an agreed savings target  of £300,000 - £150,000 in 2014/15 and £150,000 in 2015/16 - to cut the cost of countryside services to zero.

Anticipated savings as a result of the transfer recommendations will mainly come from further staff reductions (£120,000) and other cuts to operational costs of £30,000.

There are likely to be one off “legal advice” costs estimated at £5,000 and, subject to the final business plan, there may also be costs associated with  meeting the council’s obligations to countryside service staff estimated at £38,000.

The council says these costs can be covered within current budgets.

The New Leaf proposal does not indicate any ongoing financial contribution from the council, the new company will be expected to operate entirely independently.