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Localise West Midlands
The Warehouse
54-57 Allison Street
Digbeth
Birmingham
B5 5TH
Tel: 0121 685 1155
Fax: 0121 643 3122
Email: info@localisewestmidlands.org.uk

Registered in England and Wales as a company limited by guarantee (not for profit) no: 6239211

A Community Land Trust proposal to support sustainable housing, linked workspaces and a wildlife garden in Digbeth, Birmingham

June 2009

Work on the Eastside Ecohub, a ground-breaking green development which will sit alongside the Birmingham Friends of The Earth building in Digbeth, has continued successfully over the last six months. For those of you following the progress of the project, not least the people who have expressed an early interest in living and/or working in the Ecohub, it might seem that things have gone quiet but a lot has been happening behind the scenes.

Firstly the steering group has been working on the business plan for the project looking at how the finances will stack up depending on the type of housing provided, the mix of housing and work spaces on the site and the costs of achieving a zero or near zero carbon development. We are close to producing a plan which will contain number of options.

On the housing - one of our primary objectives is for it to be permanently affordable for low and middle-income earners. Currently we are looking at a 'mutual home ownership' model with the land and some of the equity owned collectively by the Community Land Trust (CLT) and with the residents able to purchase shares in the development according to their means. These shares will give all residents an equity stake in the development so they can benefit from any appreciation in the value of the development over time (housing will remain affordable) but with the CLT retaining a significant public stake in the development. We haven't ruled out providing social rented housing at this stage but we believe that the shareholder model may be more workable.

On the workspaces we are having discussions about providing subsidised starter units for new 'green businesses,' building on the example of the businesses provided by Birmingham Friends of the Earth such as the café and the wholefood and cycle shops. There is interest from public sector funders in supporting this part of the development as it recognised how important it is to support new businesses during the downturn.

The steering group has also been taking advice on a suitable legal model. The idea behind a Community Land Trust is quite simple with land and assets placed into some form of community controlled body so that their value can be used for community benefit in perpetuity. Other assets that are developed on the land can be offered for rent or sale at discounted rate so that they are accessible to people who cannot afford to purchase housing or rent workspace on the open market. The CLT ensures that this 'below market' form of provision continues for ever and also that any public subsidy is locked into the CLT. The idea is relatively simple but finding a legal structure that can deliver is much more complicated. However again we are making headway and we think we are close to a solution.

The whole project depends on support from a number of public bodies of which the most important is Birmingham City Council who own the land which has been identified for the project. Their support is crucial in number of respects; in terms of disposing of the land to the CLT at a cost that reflects the longterm public benefit; in terms of relating the project to their housing, sustainability and city centre strategies; and in terms of giving the project planning permission. Very productive discussions have been had with City Council officers from various departments but understandably they are now waiting to see the business plan.

The steering group has secured some funding to support the administration of the project through a grant from Be Birmingham's Working Neighbourhoods Fund to Localise WM. And Accord Housing Association as the potential development partner have spent a lot of time exploring various legal and financial models with the rest of the group.

Towards the end of July we will be bringing forward our more detailed ideas and sharing them with the Council, with other stakeholders and with potential participants in the project. One aspect of the scheme that is still deliberately open ended is the actual design and form of construction. Once the business model has been agreed the intention is to look at a number of examples of similar schemes in the UK and Europe and to hold some design workshops before we home in on a preferred design. We intend to involve potential residents/workspace users in this.

We recently held a meeting for potential residents/users of the scheme (July 09), and hope to hold a second meeting in the autumn of 2009, as well as meetings with planning and property contacts within Birmingham City Council.

If you want to know more about the Ecohub then you can contact Karen Leach.

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