South Lakeland District Council Lake Administration Committee 13 th December 2013 Wray Castle Jetty

PORTFOLIO: Not applicable

REPORT FROM: David Sykes – Director of People and Places

REPORT AUTHOR: Jim Maguire – Community and Leisure Manager

WARDS: Hawkshead

KEY DECISION NO: Not applicable

1.0 EXPECTED OUTCOME 1.1 To agree the basis upon which the encroachment rental of the Wray Castle jetty should be calculated and to agree a 25 year lease term. 2.0 RECOMMENDATION 2.1 It is recommended that Committee:- (1) Approve the grant of an encroachment lease at an undervalue, for the Wray Castle jetty, as described in the report. (2) Approve that the lease be for a period not exceeding a 25 year term (3) Authorise the Assistant Director, Neighbourhood Services, to agree the detailed terms for the lease. 3.0 BACKGROUND AND PROPOSALS 3.1 At its meeting of the 5 th October 2012, the Lake Administration Committee considered the principles of encroachment pricing and ownership of the new public transport jetties to be provided through the Go Lakes Project (Minute LA20 refers). Members will recall that the GoLakes Travel programme is a series of projects that are designed to provide improved options for sustainable transport use. The Committee resolved the principle that the Council takes ownership of the jetties and authorised entering into agreements for ownership, access to and use of the jetties provided under the GoLakes travel Programme. Where ownership is not the preferred way forward, the Committee resolved that it be agreed in principle to the negotiation on income in relation to the jetties provided under the GoLakes Travel Programme where no commercial activity is associated with the jetty

3.2 At the June 2013 meeting of this committee members considered a report regarding the provision of a new jetty at Bark Barn. This was the first jetty supported under the GoLakes initiative. In that case a new jetty where none previously exists is to be provided, funded through government grant. There are to be leases between the Council and the National Trust and the Council is to operate the jetty. 3.3 The Council has been in negotiations with the National Trust, National Park Authority and Lake Cruises in relation to a jetty located at Wray Castle on the western shore of Windermere in the North Basin. There is an existing jetty and the larger replacement jetty is to remain in the ownership of the National Trust. Negotiations regarding any lease or access agreements have centred on the use of the jetty and the relationship between the National Trust, and the Council. 3.4 NPS (NW) Ltd (NPS) has been working closely with the National Trust to establish detailed heads of terms regarding the lease. The Council had given an indication to the National Trust that provided the jetty was used in connection with, and linked to the use of the Bark Barn jetty as part of the Go Lakes network of waterbus jetties then the rent at the site would not increase beyond that already set (except for the usual yearly increases applied as part of fees and charges). 3.5 The Council has sought conditions to the new jetty usage that secure a scheduled water bus stop and provision for all lake users to use the northern side as public jetty. The National Trust have a requirement at the current jetty that powered craft are not permitted. The conditions the Council has sought also require the provision of free access between the nearest public highway and the jetty for pedestrians, cycles, wheelchairs, prams, mobility scooters and the like. 3.6 The Council is under a general obligation to obtain the best consideration that can be reasonably achieved in its property transactions. The transaction proposed here creates an undervalue as the initial rental value would not be any greater than presently being paid even though the new structure is considerably larger than the structure that is currently in situ. However the provisions of Circular 06/03 : Local Government Act 1972 General Disposal Consents () 2003 (‘the General Disposal Consent’) set out the criteria to be applied by local authorities when making decisions in such situations. Disposal at an undervalue can take place only if it can be shown to ‘help to secure the promotion or improvement of the economic, social or environmental well-being of (the) area’ . 3.7 Advice has been sought from NPS as to the best and worst case scenarios as regards undervalues in respect of the proposal set out in this report. The granting of this lease to the National Trust at an undervalue would be to support the Go Lakes initiative as described in paragraph 6.1 below. It is considered that the Go Lakes Initiative will help to secure the promotion and improvement of the economic social and environmental well being of the area. The Council has therefore complied with the guidance to the Circular 06/03: Local Government Act 1972 General Disposal Consents (England) 2003 (‘the General Disposal Consent’)

3.8 By incorporating links between the Wray Castle and Bark Barn agreements the connection with the principles of the GoLakes initiative are reinforced and ensure that should the GoLakes initiative fold and the Bark Barn jetty lease cease then the justifications for an undervalue would no longer exist and the Council would have some opportunity to bring the Wray Castle agreement back onto full commercial terms 3.9 The Bark Barn jetty has an agreed lease term of 25 years as is required by the funding grant from the GoLakes Travel programme. The Wray jetty is to be used in conjunction with both Bark Barn and GoLakes and therefore members are asked to approve a lease term not exceeding 25 years for the Wray Castle lease also.

4.0 CONSULTATION 4.1 Meetings have taken place with all the partners and NPS have exchanged draft heads of terms with the National Trusts surveyor and project manager. 4.2 NPS have also considered the question of under value that arises from the intention of the parties as described in paragraph 3.6 and 3.7.

5.0 ALTERNATIVE OPTIONS 5.1 Members could decide that the undervalue is not supported by principals of the GoLakes travel programme and therefore they could conclude that a lease at full market value is required. If this were the case the requirement for a 25 year lease would also be removed. Members are not recommended to approve this option as some of the overall benefits of sustainable travel would be lost. 6.0 LINKS TO COUNCIL PRIORITIES 6.1 The GoLakes Travel programme comprises a number of projects aimed at encouraging visitors and residents to “Drive Less See More”. By providing options for visitors and residents to have improved access via the Lake shore to the wider countryside the Council is also contributing to the wider health and well-being benefits of access to the countryside and exercise. 6.2 The Windermere Management Strategy action B4.4 is for the Council, Lake District National Park Authority and National Trust to work together to increase public jetty provisions.

7.0 IMPLICATIONS 7.1 Financial and Resources 7.1.1 As detailed in paragraph 3.5 and 3.6 the proposal does include the granting of a lease of an asset at an undervalue. There will be no decrease in revenue generated by this usage. The undervalue is not considered materially significant.

7.2 Human Resources 7.2.1 There are no Human Resource implications contained within this report. 7.3 Legal 7.3.1 An explanation as regards the General Disposal Consent is set out at paragraph 3.6 of this report. 7.3.2 Legal input will be required to deal with preparation of the lease. 7.4 Social, Economic and Environmental 7.4.1 This proposal is considered to have a positive impact on sustainability. The overarching GoLakes programme is established to encourage residents and visitors to “Drive Less See More”. The proposed jetty will form part of a network of jetties throughout the Lake that will allow access via public transport to walking and cycling routes. A sustainability impact assessment has not been carried out. This report details issues regarding a lease. 7.5 Equality and Diversity 7.5.1 An equality impact assessment has not been carried out. The jetty will be built allowing access by all parties and will be free to use. Access ramps and paths will be constructed by the National Trust to the appropriate access standard. 7.6 Risk Risk Con sequence Controls required That the Committee do There would be The Council continues not approve the significant impact on the to play a positive role in recommendations and Go Lakes travel the development of the scheme and its programme especially public jetty proposals. benefits are not surrounding the use of Approve the realised. Windermere and the recommendation as Councils wider drafted. participation in the schemes.

CONTACT OFFICERS Report Author – Jim Maguire. Community and Leisure Manager. 01539793161. [email protected]

APPENDICES ATTACHED TO THIS REPORT Appendix No.

TRACKING INFORMATION Assistant Portfolio Solicitor to the SMT Scrutiny Director Holder Council Committee 26/11/13 N/A 26/11/13 28/11/13 26/11/13 Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer N/A 13/12/13 N/A 26/11/13 26/11/13 Human Leader Ward Director Property Resource Councillor(s) Advisor Services Manager N/A N/A 26/11/13 26/11/13