Harringay, Haringey - So Good they Spelt it Twice!
Council admits it is actually £300,000 for Chickentown
Papers provided by Haringey Council reveal that the Chickentown venture is set to reach more than the originally declared £250,000.
The business venture will be supported by £300,000 of public money. This is made up of a £90,000 grant and a £210,000 loan.
The loan will be re-payable over eight years.
The loan terms are 5% and repayments based upon thresholds reached in profits. So, no repayments until £50,000 distributable profits after tax are achieved in any year and then repayments are made of 25% of remaining distributable profits after tax.
Which in lay-person terms means no repayment until £50,000 profit achieved in the year.
Here is the link to the council planning meeting held on 23rd July. Please read the officer report in support of Chickentown application to turn the old fire station on Tottenham Green into their Chickentown restaurant.
http://www.minutes.haringey.gov.uk/Published/C00000728/M00007351/AI...$FirestationsCommitteeReportfinal.docx.pdf
Tags for Forum Posts: 'tottenham regeneration, 'healthy, chickentown, eating, funding
Replies to This Discussion
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Permalink Reply by Alan Stanton on
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"Luck, luck", said Chicken Finger-Licken as coins, banknotes, bitcoins and euros rained down on her. "I must go off to tell my Bank Manager. There seem to be some stinkingly rich councillors around here."
"Or maybe", said Joe Golduck, with a wink: "They are spending someone else's money?"
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Yes, Osbawn, this time the sky really is falling.
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Permalink Reply by Clive Carter on
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I couldn't agree more Osbawn.
The motives behind Chickentown are commendable. However there has to be doubt that this chicken-restaurant experiment or "strategy", will make a meaningful contribution to public health, or even any contribution.
There are also surely doubts as to whether the chicken shop business will succeed and whether the soft loan could be repaid.
A majority of restaurant start-ups, of all kinds, fail relatively quickly. An extra factor here is that the location for the restaurant appears to have been chosen by politics, rather than by commercial experience.
The public funds from which this largesse is abstracted, was casually described by the lead member as "the riot money".
Haringey Cllr.
Liberal Democrat Party
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Clive, I'm not sure if "a majority of restaurant start-ups, of all kinds fail relatively quickly". As I recall, the figure may be around a quarter.
A Financial Times article in May 2015 mentions the relative decline in pub-going. With restaurant eat-out customers rising as the drink-out trade fell. And overall it still seems that the restaurant business in London is growing - with people ready to take risks on new ventures or relaunching older establishments.
Though this means increased competition. The FT quoted a restaurant owner saying that: "... it’s just hand-to-hand combat to get great sites”. The competition can include pop-ups and so-called street food. Also an expansion of chains. For example, Granier in Wood Green is a franchise from a successful Spanish business.
As we see locally, competition can take the form of restaurants spending more on interior design, new kitchens, furniture etc. Established places may revamp. Which costs serious money, of course.
So put this all together and look at the Tottenham Green context. A sometimes lovely green space which the KoberTories are determined to turn into some sort of semi-permanent market. Along the High Road, to its north and south, are established restaurants and cafés - some independently owned; some chains. (Like Costa).
Unlike any other local restaurants and cafés, Chicken Town won't need to put up so much of its own cash. Because it's getting a massive public subsidy: a grant + a soft loan. With premises in a publicly-owned building overlooking a pretty green. (Recently revamped at public expense with a projected cost of £1.2m; but ending-up costing £1.5m. )
it's interesting that the brave new world of Chicken Town was announced as a done deal even before it had been given Planning permission. And before local residents living nearby were notified and had the chance to voice their views and any objections to the change of use. (There were many. Ignored of course. )
As a most-favoured business, Chicken Town got free publicity from the Council - before the Planning application, of course. The Council's website has an artist's impression of an elegant and tasteful design. To uglify our emerald gem of Tottenham Green.
And that's before we think about waste arrangements. Not a problem if we ever have a half-way competent Council, able to keep Tottenham streets clean and properly look after its green areas.
Is Tottenham Green a prime location? Is there "hand-to-hand combat" for this site? Perhaps not. But parking may be a problem. Unless of course the Council relaxes the rules for a most-favoured business. But it is certainly a location on a main 'walkway' for Spurs fans. Thousands walk up the High Road as part of the experience of attending a match. Along with spending on food, drink and perhaps making a bet.Anyone who lives in Tottenham rather than in Muswell Hill or Crouch End - where key members of the Colonial Administration have their homes - would have realised this long ago. Or maybe they do know and choose to ignore it as one more inconvenient fact in their foolish and flawed regeneration fantasy.
Frankly, if I was the owner of a restaurant in Tottenham I'd be consulting my lawyers to see if there was a way I could sue the Council for grossly unfair competition.
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Permalink Reply by AndrewAW1 on
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Given that it's described as a not-for-profit company, won't the profits be fairly minimal?
I also note that we're the only council that has an Opportunity Investment Fund. Do other councils have an equivalent? Does anyone know the split between Haringey and GLA funding?
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THE Planning Committee meeting that considered the Planning Application (including Listed Building Consent) for the Old Fire Station ("Chicken Town") was last night.
The Council's webcast of the meeting may be viewed here.
(you may need yet another "Flash" update on your computer to run).
The Chicken Town discussion starts at close to the beginning (00:03:45) and runs through to 01:21:30.
Members' questions begin at (00:43:15).
I'm sitting at second left.
CDC
Councillor
Member of Planning Committee
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