To consider approval to progress a local project adjustment request for the sub project of Alford Windmill, which is part of the Lincolnshire Wolds: Culture & Heritage programme (Levelling Up Fund).

PLEASE NOTE:  Appendices 1 to 8 are Exempt.

The Deputy Leader of the Council and Portfolio Holder for Community Safety, Leisure and Culture, and Carbon Reduction presented a report to consider approval to progress a local project adjustment request for the sub project of Alford Windmill, which was part of the Lincolnshire Wolds: Culture & Heritage programme (Levelling Up Fund).

During his introduction, the Portfolio Holder for Community Safety, Leisure and Culture, and Carbon Reduction advised Members that the Lincolnshire Wolds Culture and Heritage programme (Levelling Up Fund) was within the Council’s capital programme and consisted of 3 main elements – Alford Windmill, Alford Manor House and Spilsby Sessions House.  The report set out the rationale, context, requirement for and benefits of progressing a local Project Adjustment Request (PAR), along with next steps (including decision making), funding implications and future use.  The PAR proposed the reallocation of remaining funds from Alford Windmill to Alford Manor House, both sub projects of the Lincolnshire Wolds Culture and Heritage programme.  Utilising the PAR mechanism would enable the LUF programme to continue at pace and deliver revised outputs and outcomes to those defined in the Levelling Up Fund bid and as set out by Government in the Memorandum of Understanding and as contained within the Council’s capital programme.  Securing a local PAR through this decision-making process was necessary to ensure the sub projects were completed within the Government’s prescribed longstop date of 31^st March 2026, together with the delivery of the outputs and outcomes.

The proposal to reallocate funding had followed a formal decision by Alford Town Council not to receive the freehold of the site on completion of the works and extensive discussions with Lincolnshire County Council (LCC), as the current owner of the site and provider of the match funding of the Windmill structure.

A local PAR was beyond existing officer limits and in the scheme of delegation and the requirements under Grant Conditions was a Section 151 function.  This report was intended to be the mechanism that informed that decision.

Following which, the recommendations were duly Proposed and Seconded.

Members were invited to put their comments and questions forward.

A Member queried when the Levelling Up Funding had been received by the Council.  The Portfolio Holder for Community Safety, Leisure and Culture, and Carbon Reduction advised that the funding was received in March 2023.

A Member asked for clarification with regards to Section 2.21 of the report in relation to the 30%/33.3% freedoms and flexibilities and what this referred to, page 238 of the Agenda refers.

A Member referred to Section 1.2 of the report where it stated that once work was completed, the asset would be transferred to Alford Town Council who would establish a new charity.  It was highlighted that based on that, the freehold of the property would remain with Alford Town Council.  A concern was raised that should Alford Town Council be hit financially, or in the event of a government restructure it would be better to transfer the asset to a newly formed trust for it to not only remain independent, but be eligible to apply for other grants and funding.

A Member highlighted his disappointment that the Alford Windmill project had changed and the 18 months it had taken to get to this stage.  He raised concerns that the government may ask for the funding to be returned should it not be spent as it was intended which was a risk to the Council and asked for assurance that having transferred £2.9m over to the Alford Manor House project that there would be a commitment on paper that the blades and cap would be put back on the windmill as they should have been in the first instance.  He further considered that for future projects there should be a resident scrutiny panel set up to monitor these projects which would provide an opportunity for concerns to be voiced if projects did not progress.

In response to the queries raised, the Portfolio Holder for Community Safety, Leisure and Culture, and Carbon Reduction explained to Members that the Alford Windmill Scheme had been on Alford’s wish list for some time.  The windmill was a Grade 1 Listed Building owned by Lincolnshire County Council (LCC) and had been a profitable windmill, milling corn, selling to the public and also operating a tearoom.  Members were advised that the Levelling Up Funding was not for the repair of the mill, but to update the miller’s cottage, the café, teaching area and museum area so that the enterprise would have an income to make itself self-sustainable.

LCC was keen to take on the windmill once it had been fully restored but difficulties had ensued due to the prohibitive cost of the repair which was circa £480k. 

N.B.  At this point in the Meeting, as Council had been in session for 4 hours, a vote was required to continue the business.  It was Proposed, Seconded and agreed that the Meeting continued.

However, Alford Town Council would have taken on the leasehold and sub-let to Alford Windmill Trust to run the mill and that was still the hope and aspiration.  If work was not immediately started on the windmill, due to a shortage of millwrights and a workforce with that expertise, it was clear that the work on the windmill would not have been completed by the deadline of March 2026 and this would have exposed the Council to having to return the funding.

It was highlighted to Members that in the rules as recipient of the funding, the Council could make an application to move up to 30% of the funding around.  This funding redistributed to Alford Manor House would cover extra work they wished to undertake, on top of the funding already allocated to them.

The Portfolio Holder for Community Safety, Leisure and Culture, and Carbon Reduction wished to praise the officers that had dealt with the Alford Windmill project in a very professional manner.

As Ward Member, the Portfolio Holder for Partnerships highlighted that an incredible amount of work had been undertaken with the different groups in Alford and was disappointed that the windmill project had not got off the ground as anticipated.

In conclusion, the Portfolio Holder for Community Safety, Leisure and Culture, and Carbon Reduction informed Members that where the Council had incurred costs, any money allocated to the windmill project which was credible against that sum would be taken out and the remainder passed across to the Manor House, however this would have to be rubber stamped by government.

A Member highlighted that she knew some millers in Amsterdam who would be pleased to restore the windmill and queried whether the funding could be used for its original purpose and whether any other funding could be secured for the repairs.  The Portfolio Holder for Community Safety, Leisure and Culture, and Carbon Reduction responded that he was happy to speak to the Member outside the meeting with regards to this.

RESOLVED:

1. That the Council’s capital programme be amended to move the remaining funding allocated to Alford Windmill to the eligible works at Alford Manor House.

2. That the Section 151 officer be delegated authority to submit the recommended Project Adjustment Request for sign off and advisement to HM Government.