Subject: PROPOSED DISPOSAL of LAND to FACILITATE DEVELOPMENT of NEW DIVISIONAL POLICE

Report of: JOHN RICHARDSON

Subject: PROPOSED DISPOSAL OF LAND TO FACILITATE DEVELOPMENT OF NEW DIVISIONAL POLICE HEADQUARTERS AT ST HILDA'S

Date:7 MARCH 2005

SUMMARY SHEET

1. PURPOSE AND SUMMARY OF REPORT (NOTE: Summary only needed if report more than 3 sides)

1. IF THIS IS A KEY DECISION WHICH KEY DECISION TEST APPLIES?

It is over the financial threshold (£75 000)

It has a significant impact on 2 or more wards

Non Key

1. SUMMARY OF RECOMMENDATIONS

That the Executive approve the proposed lease of the land to the CPA at a peppercorn rent for a term of 60 years for the purpose of developing the land as a Divisional Police Headquarters.

1. DECISION IMPLEMENTATION DEADLINE

For the purposes of the scrutiny call in procedure this report is

Non-urgent 

Urgent report 

If urgent please give full reasons

PROPOSED DISPOSAL OF LAND TO FACILITATE DEVELOPMENT OF NEW DIVISIONAL POLICE HEADQUARTERS AT ST HILDA'S

Councillor Nicky Walker

EXECUTIVE MEMBER FOR RESOURCES

John Richardson

EXECUTIVE DIRECTOR ENVIRONMENT

7 MARCH 2005

PURPOSE OF THE REPORT

1.To assist the Cleveland Police Authority (CPA) to relocate their Middlesbrough District Headquarters to new purpose built premises within Greater Middlehaven by leasing to them vacant cleared land at St Hilda's at a peppercorn rent for 60 years.

BACKGROUND AND EXTERNAL CONSULTATION

1. The land, which is proposed to be let to the CPA, is made up of various areas of land belonging to the Council, adjacent to the sites of the former St Mary's Roman Catholic Cathedral and former St Christopher's Primary School, shown edged red on Plan 1 attached to this report. Most of the land was acquired between the early sixties and early eighties and 5 properties within the area of land adjoining William St and Wellington St were acquired between 1993 and 2003 in connection with the, then proposed, regeneration of the former cathedral, at a combined cost of £125,500. The proposed regeneration of the former cathedral did not take place because the property was destroyed by fire. St Christopher's school was closed in December 1997 and demolished in 1998.

3The location of the new divisional headquarters is a significant investment in the St. Hilda's phase of the Middlehaven Regeneration Project. The new facility will demonstrate how the land immediately to the north of the subway has the ability to provide a good location for high quality accommodation within easy reach of retail and commercial facilities and good public transport facilities.

4The Council and the MTCC have successfully lobbied for this site and it is hoped that the PFI agreement, which CPA has negotiated to facilitate the development, will be signed very shortly with construction work starting on the project shortly thereafter.

5To assist with the assembly of the land required to facilitate the PFI arrangement, the CPA have asked the Council to lease to them, at a peppercorn rent for 60 years, the areas of land shown edged red on Plan 1 attached to this report. It is proposed that the Council include its interest in the half width of street site, of the former William St. in the disposal of to the CPA, if the public rights therein are extinguished by a Road Closure Order.

6The CPA is also in negotiation with the Catholic Diocese and the Church of England in respect of adjoining land, which is owned by the churches, to complete the assembly of land that will be required by the CPA for the project. The proposed disposals by the churches are also for leases of 60 years. The total extent of the land required for the proposed PFI development is shown edged red on Plan 2 attached to this report.

7On disposals of land, the Council's usual legal duty is to obtain the best consideration reasonably obtainable for the disposal. However, where, in the Council's opinion, the proposed disposal would bring about an improvement to the environmental, social or economic well being of the area, the Council is permitted to dispose of land at an undervalue, provided that the undervalue does not exceed £2 million pounds. The land, which is proposed to be leased to the CPA has been valued at an annual rent of £5,000. The undervalue therefore is well within the legal limit. Government guidance to Authorities on disposals at an undervalue, suggests that when considering a proposed disposal at an undervalue, the decision maker(s) should have regard to the Authority's Community Strategy.

8The siting of the proposed headquarters at this location will bring major regeneration benefits to St Hilda's, the Town Centre area and the town generally and will make a key contribution to achieving many of the objectives of the Community Strategy and the Mayor's Raising Hope agenda.

9As a major supporter of this project and a key partner in the future development of the area, the Council has an opportunity to assist the CPA to bring their PFI project to fruition and deliver this landmark development.

OPTION APPRAISAL/RISK ASSESSMENT

10Leasing the land to the CPA on the terms requested by them will enable them to proceed to the conclusion of negotiations with other parties and their funder, on their PFI project. The CPA has indicated that current negotiations connected with the project are well advanced and agreed in principle. The CPA has to meet very tight PFI timescales and has also indicated that, if the lease cannot proceed on the terms proposed, further negotiations might compromise their deadlines and consequently, potentially, jeopardise the project. At present the CPA hopes to conclude the PFI arrangements in March with an April/May start of work on site.

11If the project does not proceed it is unlikely that the Council would be able to achieve, in the short term, any other project, which could promise to deliver anything similar in terms of benefits to the community and regeneration.

12No formal risk assessment has been undertaken.

FINANCIAL, LEGAL AND WARD IMPLICATIONS

13 Financial - Foregoing a potential receipt of £5,000 per annum in rent. The land does not generate any income at the present and because it is fragmented, it would not, on its own, form a site for such significant redevelopment.

14Ward Implications - This report has implications for St Hilda's Ward and the Town Centre area and the relocation of the Police Divisional Headquarters has indirect implication for all wards.

RECOMMENDATIONS

15That the Executive approve the proposed lease of the land to the CPA at a peppercorn rent for a term of 60 years for the purpose of developing the land as a Divisional Police Headquarters.

REASONS

16As outlined above.

BACKGROUND PAPERS

No background papers were used in the preparation of this report.

AUTHOR: John Richardson

TEL NO: 729400

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Address: PO Box 99A, Town Hall, Middlesbrough. TS1 2QQ

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