A note about values and opportunity costs

Words of caution..



There is some need for caution when it comes to valuing community assets.


Where a building complex is designed to fulfil a particular need, its valuation may present some difficulties in reconciling different interests. To the bank manager who may be providing an overdraft, the value offers some guarantees in the unlikely event of a default. The economist may be interested in the economic and social value of the asset; what it may have cost to build and what social value a community may be deriving from it. On the other hand, a decision to build a large prayer hall may be reflected in the opportunity cost of foregoing a convenient parking facility.


It could also be argued that the value of the property is determined largely by its purpose. A large prayer hall with related facilities could only be of value to its current users. Notice the number of old churches which have been purchased by Sikh communities; the task of valuing those premises offers interesting challenges if the buildings are going to be radically modified to meet different sets of needs. A community with a large congregation and many sources of donations may move on to more modern and custom built premises. How would one cost the old temple complex? One guideline is how the old premises may be marketed to offer value to new users.


The purpose of this discussion is not to arrive at hard and fast rules for the valuation of community assets. It is more to highlight the challenges which lie in valuing community owned buildingd and how, as this programme develops, there will be a need to seek expert advice on valuation. Any comments on this issue are most welcome. They will help to inform future attempts at valuing community assets.

Why new heritage matters

The humble beginnings

Let us not forget the very humble beginnings. Anyone who is familiar with the sites of the major Sikh temples will recognise this picture:

• Areas in the less well served parts of town, properties in decay or in derelict state with mostly sub-standard housing needing urgent refurbishment. Quite often the areas were served with poor amenities, low quality of street furniture and poor lighting. Many of the buildings that the minority communities took over from the 1950s onwards were churches, school outbuildings and sometimes even cinemas which could no longer compete in their respective markets. These were areas of rateable value, needing high levels of investment and particularly, risk capital.
  It is generally known that the Sikhs, Hindus and Muslim communities saw these ‘opportunities’ as attractive options for developing places of religious worship and in some cases community centres which were connected to the temple or mosques. Taken together, many of these amenities offered accessible space for religious worship and when the religious programmes were over for the day, many a Sikh temple was quickly reconverted into a social space for serving meals and in some cases even celebrating cultural events. These humble beginnings saw the accumulation of savings, offering of voluntary labour to upgrade the premises and donations from members in the form of a single door, a carpet, a saucepan and yes, even loo rolls to equip the venues for meetings and events. Everything that cost money was welcome and accepted.
  
  
  These humble beginnings have seen the emergence of many success stories. Today, the Sikh communities, for example, can point to many premises which occupy prime space and provide large, well designed and well furnished temples, community halls and kitchens and dining halls. There is space for language classes and in a few locations, even the odd clinic. I estimate that there are over 350 Sikh temples in the UK today. A basis for this estimate and the cost of infrastructure will be discussed in a future post.
  
  
  It would be useful to offer a few examples, only if to ensure that any comparisons of the assets and quality of buildings compares like with like. Selected in no particular order, the temples in Southfields, Slough, Upton Park (Neville Road, East London), Southampton, Coventry and Birmingham’s Soho Road are major examples of not only high value premises but also how local areas have seen a slow but successful transformation over a period of 20 years. Then there are the major landmarks – the Sikh temple on Havelock Road in Southall, Middlesex and aforementioned temple and social complex on Soho Road are worth millions even in today’s depressed prices. The temple on Havelock Road is said to have cost £14 million and it is still being upgraded, pending completion.
  
  
  The next few posts examine how these examples of successful transformation have provided the impetus for local economic development by attracting thriving trade and commerce, car parks and...traffic wardens.
  
  
  
  
  
  

Introducing new heritage economics

Introducing....

new heritage economics© is a new initiative, which is being launched in the English regions of the United Kingdom including London which have seen major investment in the ‘new heritage’ of the South Asian and other minority ethnic communities in the United Kingdom. These investments are mostly in the form of places of religious worship but British Asian communities have also developed major cultural infrastructure. One of the key aims of new programmes is to encourage South Asian leadership to connect itself with the creative economy. The ‘new heritage’ is wider in its definition and context and includes the histories of African, Afro-Caribbean, Middle Eastern and other large minority communities which have settled in the UK but this programme takes the analysis further and some of the heritage planning is unique to South Asian content. Other communities may receive attention at a later stage, subject to availability of resources.


I am interested in developing a major collaborative programme, which involves locating, documenting and interpreting the growth of what I call the ‘new heritage’, which is the heritage of new communities in the UK. The ultimate aim is to help new heritage communities to maximise their potential.

Programme Focus and Aims

• The religious and social infrastructure of British Asian communities, notably of the Sikhs, Hindus and Muslims who have invested in major projects relating to their religious heritage but also converted some of the most derelict buildings and specific sites in the country into thriving areas which have boosted the local economies in many ways. This is a key area of interest for targeting new investment for regeneration in the new creative economies by supporting new heritage communities to attract greater support.

• New community heritage investment needs to be recognised. Many new centres reflect high level of creative enterprise, landmark architectural work and community access sites which provide a platform for communities. These achievements may have not been recognised by planners, funders and potential partners

• Identifying and assessing community development potential by working the new heritage communities. The infrastructure of the new heritage communities provides sustainable opportunities for local development projects.

• Assessing how and why the communities may need advice and support for maximising their potential and providing a new stimulus for adding new heritage to a vibrant and diverse cultural economy of the United Kingdom.

Investment in Collaborations and Partnerships


I have identified a number of skilled and experienced people who are interested in working with me, consisting of heritage experts, sociologists, architects, photographers and historians who can help to capture and interpret the new heritage content, especially the creative design and infrastructure. I will also be talking to regeneration experts to explore key areas of impact for local economies.

The economic value of new heritage investment may be up to £3 billion, the 'social value' is much higher
My own estimate, based on anecdotal evidence of property values and economic impact of Sikh and Hindu temples and Muslim mosques is that these alone could be worth £2.5 to £3 billion in terms of value of real estate assets and the economic spin-offs for the local economies where the major institutions are based could be even more. All communities provide input in kind and support through volunteering, leading to a suggestion that the value of these inputs may be as much as £1 billion every year, subject to ratification of these estiamtes.

There is clear evidence of uncharted local economic turnarounds in many parts of the country, notably London, The Midlands and the North West. For me this is of major interest – how have culturally diverse communities created new economic hubs and how can the returns from their investment be maximised for the benefit of the entire community?

A new steering group is to be established. We will be applying for Heritage Lottery Funding to put together a cross-regional project. Our proposal has to compete for funding and meet all essential criteria in the same way as other projects do. Consequently, I am looking into qualitative research and collaboration as a first step.

Please contact me to suggest how you and your organisation could be involved in the development and implementation of the above programme. We will be starting initial discussions English Heritage and other organisations interested in the value of heritage.

Can you suggest how we might be able to contribute towards the diversity programmes in your region and work collaboratively with you to ensure qualified personnel make the ‘new heritage’ accessible to all communities through documentation, photographic records and interpretation?


Objectives

• To identify the Sikh, Hindu and Muslim communities’ investment in local economic and related community development with policies which trigger investment. There is a need to recognise the economic value of the emerging infrastructure, described in this programme as the new heritage infrastructure, and its social value in order to facilitate more effective use of capacity.

• To identify and detail the new heritage infrastructure in the regions and record how the communities have converted some of the most derelict sites in the country into thriving areas of economic and social development as well as social enterprise, which have boosted the local economies in many ways.

• To enhance community development potential by bringing some of the heritage infrastructure into better use.

• To recommend how engagement with people from ‘hard to reach’ backgrounds can be taken on board and maximised

• To develop new research and development programmes and study projects with modular content and to maximise efficiencies, access and linkages between new heritage developers and the wider communities.

• To create multimedia and web-enabled projects to build and enhance the capacity for long-term partnerships and help to further collaborations in this critical area of development through creative exchange.

Funding the new heritage economies


This programme is entirely self-funded at this stage but its potential for engagement and collaboration is substantial. In the early stages I expect to release ‘inherent human capital’ and unleash latent energy of many keen partners and institutions. In other cases, new and dedicated programmes will be formulated, subject to legal incorporation, on the basis of structured research and development. The aim is to understand and record the ‘what’ and the ‘why’ before new actions are developed to proceed to the ‘how’.

Lack of funding is not a restricting factor. Money always chases good projects. Please contact me for further information and details on how we may work together to create a viable development programme with sustainable outcomes.


Kalwant Ajimal FRSA
Founder,
New heritage economics


Tel: 01483 538265 Mobile: 07973 168331
email: kalwant.ajimal@btinternet.com