Agenda item

(Ms. N. Largey, Solicitor, attended in connection with this item.)

 

The Committee was advised that the Council had received two applications from external organisations to hold variety markets in the City, the details of which are set out hereunder:

 

1.1        Folktown CIC.

 

     Folktown CIC, is registered as a ‘social enterprise’ not-for-profit organisation who wish to encourage and facilitate the revitalisation and regeneration of Folktown in Bank Square, Belfast City Centre.

 

1.2      It wishes to hold 42 weekly markets per year in Bank Square. These will take place every Thursday, from 5 March to 17 December 2015, opening hours will be from 12pm to 8pm. There will be a minimum of 25 stalls up to 31 stalls each week.

 

 

 

1.1        Fine and Dandy

 

     Fine and Dandy is a new company and recently operated a small market of 18 traders on Sunday 30 June 2013 in The Crescent Arts Centre, University Road, Belfast.  Permission for this small market was granted under ‘Delegated Authority’ by the Director as there were less than 20 stalls, thus classed as ‘deminimus’.

 

1.4      Due to its success, Fine and Dandy has requested permission to hold some additional markets.  Two will be in July and August and will be under the 20 stalls limit and so can be granted under Delegated Authority.  However, demand for extra stalls has been made for markets that will run from September to December 2013.  These will have between 25 and 30 stalls, which is over the ‘deminimis’ level and requires Council approval.

 

2   Key Issues

 

2.1      Folktown -  Bank Square

 

     The Regeneration of the Bank Square area by the Department of Social Development (DSD) should be finished by November 2014.  The market will have a mixture of crafts and food and in year 1 they plan to have between 25 and 31 stalls in attendance.  Folktown CIC hopes to start their markets on Thursday 5 March 2015 and operate the 42 markets weekly taking them to 17 December 2015 and then operate approximately at least 42 markets each year thereafter.

 

2.2      Discussions have taken place between Folktown CIC, DSD, Department of Regional Development (DRD) Roads Service and BCC Officers on the regeneration of Bank Square and ideas such as underground electrical power points have been planned as part of the refurbishment.  These power points will assist in feeding electric not only to any planned market but also other forms of entertainment.  Folktown have received verbal and written support for this market from retailers, restaurants and churches in the immediate vicinity.

 

2.3      As part of assistance in a start up of this market, the DSD have agreed to make a £8400 contribution in kind; offering free rental of Bank Square (in light of the CIC’s not-for-profit status).  There is also an estimated contribution of £10k (which DSD might be asked to contribute for the promotion of community related activities, including the markets in the Square), although this has not been secured at this point.  Folktown CIC is not a registered charity but is registered with the CIC Regulator and is a not-for-profit organisation.

 

2.4      Folktown aim to charge a fee of £30 per stall per market but in year 1 as an incentive to get traders involved they aim to charge traders £20 per stall.  Year 1 is estimated to bring in income for Folktown CIC between £21,000 and £26,040, depending on final number of traders attending each week.

 

2.5      Folktown have made three requests:

 

A.   To have a market licence

B.   To have their licence application and stall fee waived and

C.   To receive financial support to set up their market, including first year administration and running costs. These costs include.

1.    Public and Employee liability Insurance,

2.    Sundries such as telephone, internet, stationery and postage

3.    Market management and event team wages

4.    Waste collection

5.    Portable toilet facilities and cleaning of same,

6.    Street Cleansing

7.    Electricity costs

8.    2 x Security personnel

9.    Office rent

10.  Electricity and heating of office

11.  Accountant and legal fees

 

2.6      Capital outlay costs include:

 

1.    Purchase of 35 Market stalls

2.    Purchase of Waste bins

3.    Business plan, research and consultancy fees

4.    Design and architect fees

5.    Purchase of a computer and printer,

 

2.7      Recommended responses to Folktown CIC Application

 

2.8      A.          To have a Market licence:

 

     Granting a licence is proposed as acceptable due to the following:

 

-       The potential of developing and regeneration of the area

-       It has support of local retailers

-       Their aim is to work with local producers and suppliers

-       They aim to provide, (in year 2 and in partnership with the traders) workshops and educational events for the general public, in healthy cooking and eating 

-       They will seek to reduce anti-social behaviour

-       It provides job and work opportunities

-       They provided an acceptable business plan and other relevant paperwork as required in markets policy

-       No other request to operate a market in this area

 

2.9      B.          To have Licence and stall fees waived:

 

     Folktown Community Interest Company has, as part of their application, requested that they have any payable fees waivered on charitable grounds. Within the charitable application from Council can make concessions and waive fees on a case by case basis.  However Folktown CIC are not registered as a charitable organisation but are registered as a not-for-profit social enterprise organisation.  Therefore it is recommended that the licence and stall fees are not waivered as it is not a charitable organisation.

 

2.10    C.          Funding Support:

 

     Folktown CIC has asked BCC for financial support of £70,078 to cover start up costs and year 1 running costs for this new business venture.  the Council does not currently operate any grant scheme that could be applied to this request and there is no policy for dealing with these situations.  Approving the funding could lead to further requests of support from other CIC’s and Social Enterprises across the city.  Therefore it is recommended that Council does not accede to this request.

 

2.11    Recommended responses to Fine and Dandy Application:

 

2.12    Fine and Dandy Market

 

     Fine and Dandy held their first market on 30 June 2013 in The Crescent Arts Centre, where 18 stall holders attended.  Such was the success that they have requested to operate this Sunday market once per month from July to December 2013.  These markets will be held on the last Sunday of each month except December where a date has to be finalised.

 

2.13    The markets in June and July were under 20 traders (as will August market) and classed as ‘deminimis’.  Permission to hold these was granted under ‘delegated authority’ by the Director of Development.  They have used this market to allow some art/craft students to trade to help promote their new goods.

 

2.14    Fine and Dandy have paid the £100 multiple market application fee and the £6 per stall fee for the small market in June.  Due to demand from some craft traders, Fine and Dandy wish to increase the size of their market to over 20 (between 25 and 30) from September until December 2013.  As this is above the 20 stall limit, permission is required from Committee.

 

2.15    Fine and Dandy have supplied the relevant details such as insurance and any food traders’ food safety registration details.  Therefore it is recommended that Council agrees to the granting of a licence to Fine and Dandy until December 2013.

 

3   Recommendations

 

3.1      Members are asked to approve on the following:

 

1.    To grant a market licence to Fine & Dandy Market up to December 2013

2.    To grant a market licence to Folktown CIC

3.    To not accede to the request of Folktown CIC to waive all of the application and stall fees”

 

The Director outlined the principal aspects of the report and answered a range of Members’ questions in relation thereto. A Member suggested that, whilst there existed no provision within the departmental budget to meet the request for financial support which had been submitted by Folktown, the Council should endeavour to continue to support the work of that organisation and, as a gesture to encourage the growth of the Bank Square market, consider agreeing to waive the stall hire charges for traders thereat. 

 

A Member reminded the Committee that, at its meeting on 4th June, it had agreed to waive the stall hire charges for the traders at the market which had been established at the Conway Mill.  It was pointed out that that decision had set a precedent which had placed the Council in an unenviable position, given that a further request to waive stall hire charges had been submitted by the organisers of the Folktown market. He pointed out that the applicant, in this case, was not a registered charity and, therefore, not entitled to have the stall hire charges waived. Since the Council was duty bound to protect its income streams, he added that it would be prudent to adhere to its agreed Markets Policy and to not accede to the request to waive the stall hire charges.

 

The Council’s Solicitor provided an overview of the Markets Policy and pointed out that, whilst the Council could exercise its discretion in the waiving of stall hire fees for registered charities, or ad hoc markets which were held solely for charitable purposes, there existed a level of ambiguity regarding the charitable status of ‘not-for-profit’ or ‘community interest companies’, which would require further consideration. She suggested, therefore, that it might be prudent for the Committee to defer for a month consideration of the request by Folktown to waive the stall hire charges to enable clarification to be obtained regarding that particular applicant and in respect of ‘community interest companies’ generally. 

 

After further discussion, the Committee agreed to the following:

 

·         to grant a market licence to Fine and Dandy until the end of December, 2013;

·         to grant a market licence to Folktown, but to not accede to its request for financial assistance in the sum of £70,078; and

·         that officers from the Department would continue to provide guidance and assistance to Folktown in respect of the establishment of its market in Bank Square.

 

      In respect of the request by the Folktown to waive all or part of the stall hire fees at the Bank Square market, the Committee agreed to defer, until its meeting on 17th September, consideration of that mater to enable further clarification to be provided on the Council’s Markets Policy.