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CASE STUDY

Asset transfer: Goodwin Development Trust Limited, Hull

During 1993 the Goodwin Resource Centre Association, as GDT was then known, (it incorporated in 2002) occupied a Council double shop unit in a 1960’s inner city estate parade of shops. In the middle of the estate was a former Council Old People’s Home. Being no longer fit for purpose it was closed and a security programme put in place at an annual cost of £30,000 to the local authority. Goodwin persisted and with local Councillor support convinced the Council to transfer the “asset” to the charity. Agreement was reached on a 125 year lease at £1pa provided that the “Goodwin Centre” was used for community benefit. Covenants are in place to this effect.

Using mainly SRB and ERDF Goodwin refurbished the building at a cost of £375,000 and opened for serious business in September 1999. The success of this development gave the Trustees and staff the confidence to address and lead on other issues with new policy ideas. These included:-

  • A community Warden scheme for the estate with six staff which has now expanded to cover the whole city and is financed through a five year £3m pa contract with the Council
  • 2 Sure Start programmes as lead and accountable body which focused on young children – with the change in Government policy towards Children’s Centres the Trust has built 3 new facilities which form part of a separate contract with the Council worth £1.5m pa.
  • A £5m development featuring a Council Customer Service Centre, PCT Medical Centre, 67 place nursery, offices and conferencing facilities. This building was erected on land acquired from the Council on identical terms to the Goodwin Centre. The Octagon, generates over £0.5m pa.

Over the last seven years as a direct and indirect result of the transfer of a council “asset” Goodwin has grown into a multi-million pound a year business with assets approaching £10m. Staff numbers currently total 341, of which 75% come from Hull itself. According to Chamber of Commerce figures the Trust is one of the city’s major employers.

  • The need for perseverance in pursuing asset transfer opportunities
  • The need to be able to operate in a highly competent and professional way and to buy in technical help where necessary
  • A recommendation that more local authorities take a positive approach to asset transfer as this is what the Government is now encouraging them to do

Contact: John Illingworth JohnI@goodwin-centre.org

Building third sector capacity- encouraging surer funding and asset transfer - final report (307 KB, .doc)

The Development Trusts Association and Acevo working in partnership with the Local Government Association, were contracted by the Finance Hub in April 2006 to deliver a project to improve joint working between local authorities and the third sector, focusing on encouraging the transfer of physical assets and good practice in surer funding and achieving full cost recovery (FCR) in delivery of contracts.