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Subject: Breakspear House Harefield Hillingdon Responsible Officer

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Subject: Breakspear House Harefield Hillingdon Responsible Officer Ref: PHD 019/06 Subject: Breakspear House Harefield Hillingdon Responsible Officer: Andrew Trehern Contact Officer: John Hannington Portfolio Holder: Leader and Portfolio holder for Strategic Overview and External Affairs Key Decision: No Urgent/Non Urgent: Urgent Power to be exercised: Para 3 of delegated powers to Portfolio Holders Appendix to Executive Procedure rules part 4D of the constitution Status: Part I Section 1: Summary Decision Required Approval to Harrow Council as owner of Breakspear House entering into a Section 106 Planning Agreement with Hillingdon Council in conjunction with the Developer subject to the Developer providing Harrow Council with a full indemnity in regard to the planning obligations Approval to dispose Breakspear House to the Developer on the revised terms set out in this report. C:\moderngov\data\published\Intranet\IssueDocs\0\0\6\0\I00030600\01906BreakspearPortfolioHarefieldHillingdon0.doc Reason for report The Council has entered into a contract to dispose of Breakspear House to a Developer conditional upon the grant of planning permission. The sale cannot be completed without planning permission being granted to the Developer To enable planning permission to be granted for the development of Breakspear House Hillingdon Council will require Harrow Council to join in their section 106 planning agreement as landowner together with the Developer as applicant, given the Developer will not have an owners interest in the property before completion of the sale. The Developer wishes to complete the planning agreement immediately. As such a decision is required before the date of the next meeting of the Cabinet Benefits The sale of Breakspear House can be completed and the revenue cost of providing 24 hour security will be removed. Cost of Proposals There will be a potential capital cost to the Council of £50,000 if the overage conditions come into force in due course. Risks The section 106 Agreement comprises planning obligations. There is a risk that the Council may be required to comply with the obligations. The Council will technically be obliged to comply with the planning obligations during the period of its ownership. However as the obligations (save as regards the costs of preparation of the planning agreement), will only take effect upon the implementation of the planning permission this risk is small as the planning permission will only be implemented following the sale by Harrow Council of Breakspear House to the Developer. To further protect the Council, the Developer will be required to enter into a deed of indemnity to indemnify the Council in respect of any default by the Developer of the obligations comprised in the planning agreement or otherwise relating to Breakspear House Whilst there is a risk that the Developer might default on its indemnity obligations the planning agreement incorporates a provision to the effect that no party to the agreement is liable for any default occurring after that party ceased to have an owners interest in the property. C:\moderngov\data\published\Intranet\IssueDocs\0\0\6\0\I00030600\01906BreakspearPortfolioHarefieldHillingdon0.doc Implications if recommendations rejected Sale of Breakspear House will not be completed and Harrow will continue to be exposed to a substantial liability in respect of the restoration of this listed building and will continue to incur the revenue cost of 24 hour security Section 2: Report 2.1 Brief History 2.1.1 Breakspear House is a Grade 1 listed building located in the London Borough of Hillingdon. It was acquired by inheritance from Middlesex County Council the main mansion and immediate grounds passing to the London Borough of Harrow the balance passing to the London Borough of Hillingdon. The building is now unused and available for disposal. It has remained empty apart from periodic use as a film set since the late 1990’s. Harrow Council currently employ 24 hour security officers to protect the building and grounds and incurs a revenue cost, which is partially offset against filming income. The state of repair of the building is not good and is declining rapidly. 2.1.2 Member gave consent to the disposal on terms to be agreed by Minute 71 of the Councils Estates and Strategic Planning Sub-Committee dated 23rd January 1991. The property was offered for sale by public tender in 1998 and a preferred bidder The Heritage Group was identified. A conditional agreement for sale and redevelopment was entered in to on 28th October 1999. 2.1.3 The original contract was conditional on the grant of planning permission and Green belt consent and other conditions, which involved the London Borough of Hillingdon, and other third parties and these conditions have taken substantially longer to resolve than was originally envisaged. 2.1.4 Revised terms of disposal were approved by Cabinet on 17th February 2005. The Minister has now given green belt consent and the London Borough of Hillingdon has agreed to grant planning permission subject to the Developer entering into a S106 Agreement with Hillingdon. 2.1.5 The planning agreement is being negotiated by the Developers with Hillingdon Council. Hillingdon require Harrow Council to join into the planning agreement as landowner because the Developer does not have a legal interest in Breakspear House. 2.1.6 Approval is now sought for the Council to be a party to the planning agreement. It is hoped that the property will be sold to the Developer {simultaneously} on completion of the planning agreement. C:\moderngov\data\published\Intranet\IssueDocs\0\0\6\0\I00030600\01906BreakspearPortfolioHarefieldHillingdon0.doc 2.1.7 The presence of asbestos in the property not previously declared or known has been revealed by survey. This was not factored into the sale price previously agreed with the Developer. Additionally substantial damage has occurred to boundary walls .The total cost of both items is estimated at £62,500. Rather than reduce the sale price by £62,500,it has been agreed that threshold 1 in the overage table can be increased by £166,750, which at 30% will allow the purchaser to recover approximately £50,000 of this capital cost. 2.1.8 Consequently there is a slight change in the terms of the disposal agreed by the Members on 17th February 2005. The new terms are capital payment of £1.2M with overage agreement with a revised base of approximately £6.35M with of sales value over threshold 1 of 30%, threshold 2 of 32.5% threshold 3 of 37.55% and 40% of any excess over threshold 4. The base figure and thresholds are shown on the attached overage Table. The payments will be made on each individual sale at 30% with the additional sums being reconciled on completion of the development. 2.1.9 It is confirmed that the disposal on these revised terms represent the best value that can be currently achieved in the market. 2.2 Options considered Sale of Breakspear House by Harrow Council to the Developer being completed simultaneously with the Section 106 Planning Agreement (with the Developer but not Harrow Council being joined in as owner) and grant of the planning permission. This is not acceptable to Hillingdon Council as it may put in doubt legal status of planning agreement. 2.3 Consultation N/A – property is located in the borough of Hillingdon. However, the Portfolio Holder for Property, Housing Planning (Development) and Planning (Strategic) has been consulted. 2.4 Financial Implications As set out above. Signature ………………………………… Date …………………………… Name (print). 2.5 Legal Implications The Legal Implications are set out in the brief history. Signature ………………………………… Date …………………………… Name (print) ……………………………………………………………………. C:\moderngov\data\published\Intranet\IssueDocs\0\0\6\0\I00030600\01906BreakspearPortfolioHarefieldHillingdon0.doc 2.6 Equalities Impact None. 2.7 Section 17 Crime and Disorder Act 1998 Considerations None. Section 3: Supporting Information/ Background Documents Appendices: Supporting Information: Background Documents: Overage Table List information that is on deposit in Group Offices and can be viewed on the web: List other background papers that are available on request: Signature: ………………………………………………………………………… Position Insert Relevant Head of Service Name (print) ……………………………………………………………………. Date: C:\moderngov\data\published\Intranet\IssueDocs\0\0\6\0\I00030600\01906BreakspearPortfolioHarefieldHillingdon0.doc FOR PORTFOLIO HOLDER/LEADER * I do agree to the decision proposed * I do not agree to the decision proposed * Please delete as appropriate Notification of personal interests (if any) :- (Note: if you have a prejudicial interest you should not take this decision) Additional comments made by and/or options considered by the Portfolio Holder Signature: ………………………………………………………………………… Portfolio Holder Date: C:\moderngov\data\published\Intranet\IssueDocs\0\0\6\0\I00030600\01906BreakspearPortfolioHarefieldHillingdon0.doc .
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