OFFICIAL

Agenda Item 8

Meeting SPA Resources Committee Date 07 February 2019 Location Pacific Quay, Glasgow

Title of Paper Estates Modernisation - West Lothian Civic Centre – Lease of Accommodation to the Scottish Children’s Reporter Administration (SCRA) Presented By Yvonne Johnston, Estates Transformation Lead Recommendation to Members For Approval Appendix Attached: No

PURPOSE

The purpose of this report is to provide Members of the SPA Resources Committee with details on the proposed granting of a lease to the Scottish Children’s Reporter Administration (SCRA) in respect of accommodation within the West Lothian Civic Centre, Livingston.

The paper is submitted for SPA Resource Committee Members to recommend to the SPA Board that it endorses the previous approval of legacy Lothian and Borders Police Board to grant a lease to SCRA in respect of accommodation within the Civic Centre, Livingston, on the terms as detailed in this Report.

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1. BACKGROUND

1.1 During the period 2006 to 2009, the former Lothian and Borders Police Board entered into a Development Agreement in respect of the co-location of West Lothian Council, the then Lothian and Borders Police Board and the Scottish Ministers (on behalf of the Scottish Courts Service), whereby the Civic Centre, Livingston, was constructed and occupied.

1.2 Title to the Civic Centre is held in the joint names of West Lothian Council (to the extent of 70.99% pro indiviso share) and the Scottish Police Authority, as successor to Lothian and Borders Police Board (to the extent of a 29.01% pro indiviso share). Title to the 29.01% was transferred by the Council to Lothian and Borders Police Board for a price of £717,000, which price was described payable by way of inclusion in the agreed contribution by Lothian and Borders Police Board to the future development of the site, as detailed in paragraph 5 below.

1.3. West Lothian Council and the then Lothian and Borders Police agreed with the Scottish Courts Service to develop the site and thereafter share occupancy of the facility in accordance with a Property Management Agreement.

1.4. The facility comprises office accommodation for West Lothian Council, the Scottish Courts Service, Lothian and Borders Police, Council Chambers, a Court Complex for the Scottish Courts Service, a Police Custody Block together with external works, roads, landscaping, parking and a bridge across the River Almond.

1.5. The building contract for the development was entered into by West Lothian Council, who assumed responsibility for governance, the obtaining of planning and progression and completion of the development. The capital contribution of the police amounted to 29.01% of the amount payable by West Lothian Council to the building contractor.

1.6. The Property Management Agreement, which was entered into between the Council, the Police Board and the Scottish Ministers (for the Scottish Courts Service), was on the following terms:

(a) The Agreement regulates the occupation and management of the facility for a period of 80 years.

(b) The Council and the Police granted the SCRA a licence to share occupation of the facility for which the Scottish Courts Service pays rent to West Lothian Council.

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(c) Each of the Parties has the right to share occupation of the non-exclusive areas and the equivalent responsibility for maintenance and operation of these areas in accordance with the Agreement.

(d) While there is a general prohibition on assigning of transferring interest, West Lothian Council and the Police are entitled to enter into agreed sub-occupancy agreements which were envisaged as comprising agreements between West Lothian Council and the Court Office and Procurator Fiscal Service, Lothian and Borders Fire and Rescue and/or the SCRA.

1.7. While the SCRA took occupancy shortly after completion in 2009, no formal documentation or sub-occupancy agreement was ever concluded and the subject of this report is to obtain approval for the entering into of such a sub-occupancy agreement in the form of the lease for which endorsement/approval is sought.

1.8 The area occupied by and to be leased to SCRA falls within the exclusive area of West Lothian Council and, therefore, the rent payable will fall to be paid to West Lothian Council.

1.9. As the facility is owned jointly in terms of the Council’s and the Police Authority’s pro indiviso shares, the Scottish Police Authority necessarily requires to be a party to the grant of the lease as landlord.

1.10 The Police and Fire Reform (Scotland) Act 2012 (Supplementary, Transitional, Transitory and Saving Provisions) Order 2013, require that decisions of the existing Legacy Boards are not invalidated by the coming into force of the Police and Fire Reform (Scotland) Act and it is proposed that the SPA therefore endorses the Legacy approval of the co-location project by granting formal approval.

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2. FURTHER DETAIL ON REPORT TOPIC

2.1 The terms of the lease to be granted by the Council and the SPA at the WLCC to the SCRA are as follows: (a) Landlord: West Lothian Council and the Scottish Police Authority. Tenant: SCRA. Premises Let: Ground Floor premises extended to 333 square metres with external door. Term: 30 years (which period commenced September 2009).

(b) The right to use all common parts and shared areas together with five parking spaces within the car park. The right to maintain a dedicated security data line, use of conducting media and the right to use meeting rooms.

(c) The annual rent comprises £76,311, together with VAT and interest, in respect of overdue payments. The tenant, SCRA, has the right to make capital payments annually for purposes of reducing the rent liability, which capital payments will be reflected in any rent review with provision for reimbursement to SCRA in respect of any overpayment. The landlord’s obligation to make repayments is limited to West Lothian Council, as the recipient of the rent.

(d) A service charge in respect of costs incurred by the landlord (managed by West Lothian Council) including rates, where separately rated/insurance costs (again maintained by West Lothian Council) amounts to 2.4% allocation to the SCRA.

(e) Obligations are imposed upon the SCRA, as tenant, to repair, renew, decorate internal premises as occupied and subject to customary prohibitions on alteration etc.

(f) Assignation or sub-letting may only be with the consent of the landlord, however notwithstanding this prohibition, SCRA are entitled to share with other non-departmental public or government bodies without consent.

(g) The landlord’s obligations are to maintain the structure and common services and landscaping, to maintain interior and exterior decoration, payment of rates, to maintain equipment and requisite costs and expenses, maintain firefighting equipment and to provide catering facilities (these services are delivered by West Lothian Council).

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(h) For so long as West Lothian Council and the SPA are landlords, all rents and other sums payable by the tenant shall be paid to West Lothian Council.

3. FINANCIAL IMPLICATIONS 3.1 As the area occupied by and leased to the SCRA falls within the exclusive area of the West Lothian Council, the rent for the SCRA tenancy will fall to be paid to the West Lothian Council and there are no financial implications for Police Scotland or SPA associated with this paper.

4. PERSONNEL IMPLICATIONS 4.1 There are no personnel implications associated with this paper.

5. LEGAL IMPLICATIONS

5.1 The legal conveyancing in relation to the agreement of this lease to SCRA will be carried out by Police Scotland's Legal Department.

6. REPUTATIONAL IMPLICATIONS

6.1 There are no reputational issues associated with this paper.

7. SOCIAL IMPLICATIONS

7.1 There are no social implications associated with this paper.

8. COMMUNITY IMPACT

8.1 There is no community impact associated with this paper.

9. EQUALITIES IMPLICATIONS

9.1 There are no equality implications associated with this paper.

10. ENVIRONMENT IMPLICATIONS

10.1 There are no environmental implications associated with this paper.

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RECOMMENDATIONS

To request that members of the SPA Resource Committee recommend to the SPA that it endorses the previous approval of legacy Lothian and Borders Police Board to grant a lease to SCRA in respect of accommodation within the Civic Centre, Livingston, on the terms as detailed in this Report.

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