Biodiversity Net Gain can provide golf clubs with much-needed capital for maintenance, improvement and development. Industry expert Stephen Cirell explains how managers can go about implementing a BNG scheme.
Biodiversity Net Gain (BNG) is a new concept that has been introduced by the Government which seeks to protect nature and biodiversity. It has been implemented via amendments to the Town & Country Planning regime, meaning that planning consent for new developments cannot be secured without the enhancement of onsite biodiversity at the same time.
The easiest way to explain BNG is by an example. A notional developer wants to construct a new factory on a greenfield site. The land currently has some trees on it, a hedgerow around its border and a watercourse running through it. If the trees, hedge and stream are to be lost in the development, then the developer has to replace those areas of biodiversity elsewhere on the site. Importantly, in addition, the developer has to increase the biodiversity of the site by a further 10 per cent.
Failure to do so will mean that planning consent for the development is not forthcoming from the Local Planning Authority.
Under the hierarchy set down by the provisions, the replacement of lost biodiversity and its enhancement should take place on the development site itself. However, the Government recognised that in some instances this would not be possible (for example in urban areas). Here, the biodiversity gain can be provided on another site by someone else and the credits for that sold to the developer. This is where golf clubs come in.
There are many reasons why golf clubs should actively consider the opportunities from BNG, including that:
They have land, which includes biodiversity areas that can be improved
A BNG project would not affect the principal purpose of the land in any way, i.e., the playing of golf
A long-term maintenance requirement would not be a problem, where they have the greenkeeping staff to maintain the biodiversity at the minimum cost
The wider membership of the club is likely to be in strong support of such a project
As golf clubs are often financially challenged, a scheme that delivers vital new capital that can be used for a new clubhouse, an extension, a new practice area or just to get the club back into the black for the first time in a while will be very welcome.
On this basis, many golf clubs are looking at BNG. But how should a club go about initiating a project?
In this piece, we will look at the practical steps PGA Managers like you will need to take.
A six-step guide to undertaking a BNG project
BNG can be a complex arrangement: on the one side there is a landowner who has land that can be enhanced; and on the other a developer who needs to purchase BNG units on the private market. In between is a complex regulatory process that needs to be navigated before the two sides can be brought together.
Here are six steps to summarise how a golf club should go about this.
Step 1: Prepare the ground
Investigate the BNG provisions and ensure that the club fully understands the concept and how it works. If this is seen to be a good opportunity, the leadership of the club must commit to delivering a project, subject to proper working up of the details.
Step 2: Develop a strategy and a plan
What does the club need money for or what could it be spent on? Why does it feel that BNG is right for its course and surrounding land? How will it engage with the members? What reporting structure will be required to oversee the specialists that will undertake the work on the club’s behalf?
The plan must also indicate how the club will find a specialist in BNG to help it deliver the project and on what contractual basis.
As part of this work, a committee member or someone from the leadership team must be identified to undertake the ‘client’ role, i.e., oversee the project and ensure that decisions are taken in a timely fashion and any project identified does not drift.
Step 3: Inform and engage
Inform the members of the proposals and engage with the membership generally. It is never the case, of course, that the support of all members can be achieved all of the time. However, there should be a general support for the project evident. Part of this might also include a promise to keep members informed as the project develops and to address any difficulties that might arise (such as from the detail of the proposals).
Step 4: Get specialist help
Engage a specialist BNG company to undertake the work on behalf of the club. While the DIY option is always available, BNG is a complex process and not really for the uninitiated.
More to the point, while it is preferable for a specialist to undertake the work (as it is easier for the club that way), the terms upon which any company is engaged are crucial. There are different ways this can be done but the most popular is the ‘turnkey’ route whereby the specialist BNG company undertakes all of the work on behalf of the club and receives a percentage of the value of the BNG units as a commission.
If the company is willing to take the risk, and the club is happy with this arrangement, it might result in a sizeable percentage of the value being paid out. Better value is provided by a ‘cost plus’ route, whereby the risk is shared between the company and the club. This means that the club funds the operating costs of the regulatory process as it proceeds but, while the company still undertakes all of the work to deliver the prize, it is paid a much smaller fee for so doing.
Whatever arrangement is agreed, this will result in the signing of contracts between the parties.
Step 5: Scrutinise the plan
Having secured the right agents to successfully deliver the project on the agreed basis, the procedural work will start. Even though this is the preserve of the chosen company, there are some important contributions required from the golf club itself.
Once the ecologists have been commissioned and have submitted their baseline assessment of the golf club’s land and the all-important plan of enhancements, the club has to arrange a meeting to go through the detail of the proposals, line by line.
This is because the ecologists will have submitted plans that maximise the value from the land. However, if a proposed change will affect the sight line from a particular tee, for example, this might not be acceptable to members. As such, the submitted documents will be amended via this process. Of course, there is nothing stopping the club from asking the ecologists to remove certain parts of the plan and come up with new proposals elsewhere instead. If that is not possible, the overall proposals become smaller, meaning that their value will reduce. However, there should be sufficient value in the overall scheme to mean this is not that relevant.
And it is definitely the case that keeping members on board is vital. If the methodology of informing and engaging with members has already been agreed in advance, this part of the process should not be a problem or delay the project.
Step 6: Delivery
The final step is to oversee the project as it progresses, ensure that any requirement for further decisions from the club is met, report back to the committee (or whatever governance system is in place) and manage the specialist company undertaking the work.
When the regulatory process is complete, a broker will be engaged to identify suitable purchasers for the units and contract for sale can be agreed and entered into. Only after the golf club has the contract to purchase the units secured, will the work to enhance the land be commenced.
Conclusion
Early projects have demonstrated that this is a huge opportunity for golf clubs. As a result of this, many are now looking at the promise of BNG and the potential gains are substantial on any view.
Feedback suggests, however, that there is little knowledge of how to progress a project once a golf club has decided it wants to engage with BNG.
By focusing on these six steps, a club can be sure that it is approaching BNG in a professional manner and that it will secure a deal that offers good value for money all round.
About Stephen
Stephen Cirell is a consultant specialising in climate change, low carbon and renewable energy. He is the author of several books on climate change projects and is currently advising a number of golf clubs on BNG. He can be contacted on [email protected] or 07774 451 587