(Not for Publication – Exempt information as defined in Paragraph (3) of Part 1 of Schedule 12A to the Local Government Act 1972. It is considered that in all the circumstances the public interest in maintaining the exemption outweighs the public interest in disclosing it.

Delegated Powers Report to The Leader of the Council / Electoral Ward Affected
TOWN CENTRE
Report submitted by: Head of Property
TRANSFER OF PRESTON BUS STATION AND MSCP TO LANCASHIRE COUNTY COUNCIL

1.Summary

1.1This report seeks approval to the terms for the transfer of the Bus Station and Multi Storey Car Park to Lancashire County Council (LCC).

2.Decision Required

That the delegated Memberbeingthe Leader of the Council:

2.1Approve the transfer of the land and buildings to Lancashire County Council by way of private treaty.

3.0 Background Information

3.1Background information is contained in the report to Cabinet on 5 December 2013.

3.2At the meeting on 5 December 2013 Cabinet authorised the Leader in consultation with the Chief Executive , the Governance Director and Director of Community and Business Services to agree and conclude the final terms of the transfer of the freehold ownership of Preston Bus Station and MSCP from Preston City Council to Lancashire County Council and agreed to delegate to the Leader of the Council approval of the final Heads of Terms for the transfer;

3.3An independent valuation report has been commissioned and the transaction is considered to be financially prudent. There is no issue of a transfer at an undervalue.

3.4The Head of Property confirms that the transaction represents best consideration.

4.0The Proposed Transfer

4.1The recommended terms are as follows:

Property / All that land and buildings known as Preston Bus Station and Multi-Storey Car Park (MSCP) , including all subways and connecting walkway, more particularly shown edged red on the attached plan, comprising an area of approximately 2.387 ha (5.89 acres)
Interest / Freehold (and freehold reversion), subject to the tenancies, details of which will be supplied.
PCC will undertake to register title to the walkway and subways prior to the transfer. Any transfer of land will be subject to PCC deducing good and marketable title to the bus station site.
Consideration / £1 (one pound)
Use /
  1. The land shown edged red but un-shaded shall be used as a multi-storey car park and bus station. Other ancillary uses will be permitted including, public authority, public realm, retail and office use, however the predominant use shall be as a bus station and multi-storey car park.
  2. The land shown shaded shall be used for the purposes of a bus station, public authority, public realm and public amenity until such time that planning consent is implemented for the comprehensive redevelopment of this area, at which point the restriction on use will no longer apply.
  3. These restrictions on user are imposed for the benefit of PCC’s retained property ownerships shown hatched blue on plan no.

Further consideration /

The Seller will covenant with the Buyer that in the event of a sale of the land shown hatched on Plan No. 20321 for comprehensive redevelopment then the Buyer will have first call on any sale receipts net of any costs to achieve a sale over and above its initial investment of £8.3 million. Any sale receipts generated which are in excess of the buyers total investment sum will be re-invested in Preston as agreed between the Buyer and the Seller

Pre-condition of sale / Car Park
1)PCC undertakes to relocate any Preston City Council permit holders from the bus station car park prior to completion.
2)Completion will be conditional upon the City of Preston (Central Bus Station) Order 2011 being appropriately transferred to LCC as well as any other orders in relation to parking charges
Other Matters / Expenditure
LCC will undertake to maintain and invest in the Bus Station to sustain a suitable transport hub with ancillary uses, having consideration to the listed status. Further subject to obtaining all necessary consents and approvals, the County Council will invest at least £8.3m in the refurbishment of the Bus Station and Multi Storey Car Park.
TUPE
PCC to promptly provide all relevant information to LCC with regards to the potential transfer of any PCC employees as a result of the proposed transfer, and to provide appropriate indemnities to LCC regarding any transferring employees. The indemnities will include PCC being responsible for any element of redundancy costs, pension strain costs and any other recognised forms of Severance costs up to the date of transfer.
Leases / Licences
Prior to transfer the he parties shall work together to properly deal with any existing leases and licences at the Bus Station
Contracts for Services / Maintenance Contracts:
Prior to transfer the parties shall work together to properly deal with any existing contracts for services or maintenance contracts that are currently provided at the Bus Station.
Health and Safety
The parties shall work together to ensure that any requirements on the part of the Health and Safety Executive are complied with by LCC as a result of the Improvement Notice served on PCC and dated 5th March 2009, as the case may be.
VAT
Any VAT recovered in relation to the MSCP up to the date of transfer is to be returned to PCC.
Costs / Each party shall bear the own costs in relation to this transaction

5.0Implications

5.1 The Legal and Financial implications remain as per the Cabinet Report dated 5 December 2013.

6.0Impact Statement

6.1These remain as per the Cabinet Report dated 5 December 2013.

7.Reasons for Decision

7.1To formally confirm the in principal Cabinet decision, and to approve the detailed terms.

10.Alternative Options Considered and Rejected

10.1These are discussed in the Cabinet Report dated 5 December 2013.

11.Reason for Inclusion in Part B, if appropriate

11.1This report is not available for publication because it contains information relating to the intended disposal of property by the City Council, and details of confidential financial affairs of the Council and a third party.

Any representations made in accordance with the Public Notice of Forward Plans of Key Decisions

Name: / Organisation: / Comments:
None / N/A

Background Documents:

Background documents open to inspection in accordance with Section 100D of the Local Government Act 1972:

Cabinet Report dated 5th December 2013

Contact for further information:

Derek Woods
CMRP 1146 / 01772 906519 / Head of Property Services
Environment Directorate
Decision Taken: Declarations
LEADER OF THE CITY COUNCIL
TRANSFER OF PRESTON BUS STATION AND MSCP
Original decision required, as set out in the report, approved without amendment. / Yes/No *
Original decision required amended and decision as follows: / Yes/No *
I have a personal/prejudicial interest in this matter. / Yes/No *
If an interest is declared please give details below:
………………………………………………..
LEADER OF PRESTON CITY COUNCIL
Date
Chief Officer I certify that this is an appropriate and accurate record within the terms ofthe Access to Information Procedure Rules 21.3of the decision taken by the Cabinet Member. / ………………………………………………..
Corporate Director of Environment
Date
*Delete as appropriate

Preston City Council