LYN COMMUNITY DEVELOPMENT TRUST LTD

1. �Introduction
2. �Background to the Trust
3. �Timetable for the establishment of the Trust
4. �Objectives of the Trust
5. �Structure of the Trust
6. �The Beneficiaries
7. �The Activities of the Trust
8. �Running Costs and Funding
9. �Staff�

LYN COMMUNITY DEVELOPMENT TRUST LTD

1 Introduction

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1.1 These proposals for a Lyn Community Development Trust Ltd should be viewed very much as a discussion document. The report sets out the possible:�

• timetable for the establishment of the Trust;
• broad purposes of the Trust;
• area of benefit and the beneficiaries;�
• predicted running costs;�
• potential sources of funding;
• underlying issues relating to trusts.�

2� Background to the Trust�

2.1 The Development Trusts Association defines development trusts as, �enterprises with social objectives which are engaged actively in the regeneration of an area�.� Sustainability, innovation and entrepreneurial endeavour are key features of such enterprises. All share or aspire to a number of basic principles:

• �they are concerned with long term regeneration of an area in its widest sense - with its economy, its environment, its facilities and services and the �spirit� of its communities;
• �they seek to be financially self-sufficient and independent - not just relying on grants;
• �they aim to create assets in the community and make a profit - but not for private gain.� Any profit made is re-invested in the community;
• �they are community based and accountable - in their work, their style and the�
  composition of their boards of management;
• they are forming and working in partnerships between the community, voluntary, private and public sectors.

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2.2 Sustainable regeneration is the underpinning notion behind community development trusts:

• �this is all about working with communities (local people) to achieve lasting and�
  renewable approaches to enhance the quality of life (including social, economic financial and�environmental aspects). This should be viable after the end of the period of concentrated�regeneration effort
• ��real� ownership by the community is critical to this process; it will only occur if local people are involved right from the start in the planning process and are helped to feel comfortable and confident through affective support mechanisms (the process of empowerment)�
• a key feature of the work of Lyn Community Development Trust will be organic growth�- at a pace with which the community feels comfortable
• �partnerships will reflect the breadth of the issues to be tackled
• ��there must be a level of investment of financial and human resources as well as time which are commensurate with the scale of the problems� (Hart, (1997) p.9.)
• �The Community Development Trust will seek to realise it�s potential for long-term�
  survival, without requiring the continuing support of grant aid regimes
• �issues of competitiveness and displacement between areas will also be seriously�
  considered.�

2.3 The creation of the Lyn Community Development Trust has adhered to the above principles. It is a means to progress the work of the Lynton and Lynmouth Regeneration Partnership Group (established in 1996) and the Lynton and Lynmouth Partnership Group (initiated by North Devon District Council in 1997).

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2.4 It will provide strong community ownership of assets and issues, and thereby act as an effective vehicle for promoting the development of the local community.�

2.5 The creation of a Development Trust has demonstrated North Devon District Council�s strong commitment to the principle of subsidiarity (public functions and services handled at the lowest possible level), and the closely related principle of getting �closer to the community�. It represents progression in the partnership process towards the active policy of devolving power.

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2.6 The creation of the Trust will provide greater potential for achieving increased funding. We have already been successful in obtaining a LEADER grant to establish the Trust legally, purchase necessary equipment, and pursue registered charity status amongst other things.

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2.7 The Trust has been established as a company limited by guarantee and will be registered as a charitable trust. It could also have a trading arm, which will allow it to enter joint venture arrangements with the private sector. The Trust could use surplus income from the activities of the trading company to plough back into activities that benefit the local community in accordance with the objectives and constitution of the Trust. There are tax advantages in this arrangement. The trading company will covenant income to the Trust. This will reduce its corporation tax liability.�

3 Timetable for the establishment of the Trust�

3.1 An essential preliminary step is to clearly identify the present land/property ownership and leasing issues on the properties to form the endowment.�
Two lists are required:

1. Income generating properties (these need to be assigned to the trading arm)
2. Liability properties (these will be assigned to the charitable trust).

3.2 It is necessary to determine the terms under which the properties will be vested to the Trust (NB. the Trust will have much more flexibility for funding purposes if there are freehold transfers).

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3.3 The Lyn Community Development Trust was officially registered as a plc on the 12th of April 1999

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3.4 The First Directors of the Trust were, and remain: Edward Nightingale (Chairman), Malcolm Prowse, Jeremy Roberts, Rev. Phillip Ringer, John Pedder, Colin Evans (Secretary)�

4 Objectives of a Trust�

4.1 The overall aim is to improve the vitality of life in Lynton and Lynmouth and increase prosperity for the benefit of present and future generations.�
The objectives of the Trust, which have been incorporated in the Memorandum of�
Association, are:�

• to preserve, protect, improve and enhance in any way for the benefit of the local and visiting population the amenities including buildings or features of historical architectural or natural and wildlife interest in the Lyn area (�the area of benefit�);
• to support and expand tourism and other businesses in the area of benefit;�
• to provide, in the interests of social welfare, facilities for recreation or other leisure type�occupation with the object of improving the conditions of life of those living or working in the area of benefit;�
• to present and promote traditional local skills, crafts and industries in the area of�
  benefit;�
• to have the power to acquire, hold and dispose of property in the area of benefit;
• to further any other charitable purpose or purposes for the benefit of those living or�
  working in the area of benefit;�
• to do from time to time all such acts and things as the Management Committee may deem necessary or appropriate to further or supplement the above objectives.

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4.2 It is essential that all the local community are fully involved in the planning, development and implementation of these objectives. The advantages of doing this are highlighted by the Development Trusts Association as leading to:

• �increased relevance
• �access to energy and skills
• �long term success
• �creation of credibility
• �removal of barriers
• �support for change
• �avoidance of suspicion and cynicism
• �sustainability
• �reduction in costs.

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5 Structure of a Trust

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5.1 To obtain charitable status a Trust must remain non-party in politics and non-sectarian in religion. It must not discriminate on the grounds of race, sex, disability, religious or political beliefs or other opinion (incorporated in the Memorandum of Association).�

5.2� Other key structural aspects of a Trust which are incorporated in the Articles of Association and need to be considered are:�

• Membership should be open to individual members (over 18 living or work in the area of the benefit) and Group Members. This means that the number of members is unlimited
• The detailed management structure both day to day and advisory should represent a wide range of interests.�

5.3� The Chairman of the Board has been elected from the directors, and has a casting vote only.�

5.4 Meetings of the Management Committee will normally be open to anyone to attend. The selection of representatives of individuals and Group Members will be by ballot.�

6 The Beneficiaries

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6.1 The beneficiaries will be anyone who works, lives and visits the Lyn area.

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7 The Activities of the Trust

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7.1 The activities of the Trust will operate in accordance with its objectives. These are:

• �to promote the culture, education, environment and heritage of the local community
• �to manage and develop amenities including buildings or features of historical�
  architectural or natural interest in Lynton and Lynmouth.
• �to support and expand tourism and other businesses�

8 Staffing�

8.1 The initial establishment of Lyn Community Development Trust has been Facilitated by�North Devon District Council in co-operation with the local community. To get the Trust up�and running NDDC�s Lottery Officer has worked two days a week for the Trust on issues�relating to the Lyn Community. The Assistant Director Northern Rural has also contributed�much time to the project and has been working as the Company Secretary for the Trust.�Whilst this arrangement has been effective as a start procedure if the Trust is to become truly effective as a vehicle for community regeneration the involvement of district Council Officers must be reduced and management of the Trust must be taken on by the community of Lynton and Lynmouth. This will inevitably require Lyn Community Development Trust to employ officers of its own to make progress and steer the organisation into the 21st Century.�

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