T h e T e r r i e r

The Journal of ACES - The Association of Chief Estates Surveyors & Property Managers in the Public Sector VOLUME 20 - ISSUE 1 - Spring 2015

ACES Over ONE HUNDRED YEARS of managing PUBLIC PROPERTY for the PUBLIC GOOD If walls could talk, what would your property assets say about your organisation?

People will always be the public We understand that no one organisation is the same, sector’s greatest asset but with growing which is why we offer a bespoke package of services, selected and adapted to meet your specific needs. demand and year-on-year funding cuts, property and its effective management is • Policy and strategy increasingly important to the successful • Estate management, planning and valuation delivery of public services. • Integrated design • Building maintenance and statutory compliance With expertise and planning, property has the • Sustainability and energy efficiency potential to reduce costs, generate revenue and • Property information and portfolio metrics release value for re-investment in services. For a longer term partnership - our unique approach The way a building is managed, designed or to joint ventures has been nationally acclaimed for maintained, therefore, speaks volumes about the its ability to support local authorities in delivering efficiency, performance and reputation of the efficiencies and quality services. organisation that owns it.

Business Development, North Business Development, South Wayne Brierley Janet Russell 07990 582297 07595 552616

Offices throughout the UK - nps.co.uk T h e T e r r i e r

The Journal of ACES - The Association of Chief Estates Surveyors & Property Managers in the Public Sector VOLUME 20 - iSSUE 1 - Spring 2015

Contents If walls could talk, EDITORIAL what would your property assets say about your organisation? ACES National Betty Albon ACES Presidential Conference...... 04 Council Meeting - Keith Jewsbury...... 05 Membership news - Keith Jewsbury...... 06 Welcome to the Spring Terrier. Obituary - Peter Handley...... 07 New ACES website...... 07 Some years ago I inherited a set of bound volumes of Estates Gazette. Some of you may remember that in my Presidential Professional year, through a RICS initiative, I ran a campaign to send surveying books to 2 African universities. This included Elphinke House Report...... 08 volumes of contemporary Estates Gazettes. The rest have Underperforming Towns Commission - Jeremy Blackburn.12 been stacked in my loft and I promised myself that when I Careers to RICS - Will Brown...... 15 retired, I would skim read them. Well, I have started, on 1963. RICS Viability Conference...... 19 Viability review mechanisms - Victoria Critchley...... 20 Two things fascinate me. Firstly, in the 1960s the publication People will always be the public We understand that no one organisation is the same, Peterborough FC investment - Richard Hodgson...... 22 was full of facts in a tight-packed small black font – sector’s greatest asset but with growing which is why we offer a bespoke package of services, Paradise Circus, Birmingham - Peter Jones...... 26 selected and adapted to meet your specific needs. information was not dumbed down. And there was an demand and year-on-year funding cuts, amazing amount of legal and casework advice, particularly Urban design - Ramon Keeley...... 29 on compulsory purchase. Secondly, the same issues were Offices to residential - Matthew Wood...... 32 property and its effective management is • Policy and strategy concerning surveyors then as are concerning us now. Co-location for services - Andrew Rowson...... 37 increasingly important to the successful • Estate management, planning and valuation For instance, office modernisation and efficiency – being Kensington Town Hall - Keith Harper...... 40 delivery of public services. • Integrated design proposed were electric typewriters, dictaphones and Public Contracts Regulations 2015 - Katherine Souter...... 43 • Building maintenance and statutory compliance connected departmental telephones, rather than iPads Municipal Bonds Agency...... 47 and iPhones of course (and they had offices!). Shortage of • Sustainability and energy efficiency Community asset transfer - Joanne Forbes...... 48 With expertise and planning, property has the housing generally (200,000-400,000 new and refurbished Community assets grants - Stephen Rolph...... 50 • Property information and portfolio metrics units needed a year) and affordable housing was another big potential to reduce costs, generate revenue and Estates health check - Jonathan Marwood...... 52 release value for re-investment in services. issue, particularly the effectiveness of housing associations For a longer term partnership - our unique approach and the potential for a talked about housing corporation. Asset management systems - Bob Howell...... 55 to joint ventures has been nationally acclaimed for There was even a piece about building lives – physical, IFRS13 changes - Chris Brain...... 58 The way a building is managed, designed or economic and whole-life costing. its ability to support local authorities in delivering maintained, therefore, speaks volumes about the Branches news efficiencies and quality services. Another interesting snippet was the reporting of the ALAVES efficiency, performance and reputation of the Heart - Richard Allen...... 60 Summer Meeting when the President was Ken Blessley, organisation that owns it. Eastern - Duncan Blackie...... 62 whose obituary featured in 2012 Spring Terrier, my first as editor. He was a massive figure in his day, as well as writing North East - John Read...... 63 a History of ALAVES, which has also featured in Terriers. The meeting was in the President’s ‘home patch’ (a tradition Other interest areas adhered to by ACES) of Middlesex and the guest list to the Gloucester Gladiator...... 64 formal dinner included a certain Mrs Margaret Thatcher, Suffolk Scribbler...... 65 Parliamentary Secretary to the Ministry of National Insurance.

One thing’s for sure – the range of work that public sector surveyors are involved in remains expansive and crucial. Business Development, North Business Development, South Wayne Brierley Janet Russell The contents of these articles are not the opinions of the Cover: The Lowry Centre, Salford Quays, venue for ACES Editor nor ACES. Presidential Conference on 17-18 September 2015. 07990 582297 07595 552616 3 THE TERRIER - SPRING 2015

Offices throughout the UK - nps.co.uk ACES

PRESIDENTIAL CONFERENCE THE LOWRY CENTRE, SALFORD QUAYS 17-18 September 2015 REGENERATION AND DEVELOPMENT COMMERCIALISATION OF PROPERTY SERVICES ‘ONE PUBLIC ESTATE’

The Lowry Centre epitomises the energy and optimism that has been instrumental in regenerating this redundant industrial dockland into the thriving Salford Quays, which has now grown further into Media City Uk with the arrival of the BBC, ITV and Salford University’s media campus plus many other small companies and residents.

The conference will encompass the themes of regeneration and development, commercialisation of public services through companies, trusts and mutuals, and “One Public Estate”, with its pitfalls and practicalities, all set against the backdrop of a new government, possibly a hung parliament and potential devolution to the regions.

Excellent CPD opportunity

Social programme

The event will be open to all ACES members and partners, plus other public and private sector delegates with booking details to be announced soon.

Contact: Keith Jewsbury [email protected] 01524 745643

We will be able to meet and mingle with our sponsors and other delegates in the Quays bar, which has panoramic views over the Quays and Media City. The main sessions will be in the Compass Room atop the Lowry Centre for a series of interesting talks and panel discussions. A black tie dinner will give more opportunity for networking and discussion. 4 THE TERRIER - SPRING 2015 ACES National

ACES COUNCIL MEETING NOTES, 16 JANUARY 2015

Keith Jewsbury, ACES Secretary

21 members attended the meeting held Conferences with regard to the database ongoing at the Guildhall, London. maintenance and discuss with the Following a detailed report regarding President. Matters considered initially included the London Conference 2014, it was Council to look at member categories agreed that the President meet 3Fox Publications and updating the ACES Rules and International to discuss the outstanding Constitution; also to consider a Peer matters regarding the 2014 London Following a discussion regarding Review, to be scoped for the April Conference and the involvement of 3 the costs of producing The Terrier Council meeting. ACES Treasurer to look Fox in the Salford Conference 2015. journal and the possibility of charging at financial year dates again. non-members for it, Council decided The Salford Conference is to be held to consult branches, seeking views Secretary’s report at The Lowry Centre, Salford and on whether only electronic copies accommodation provided in a close by should be produced in the future. Following a report by the Secretary hotel [Ed – see further information in Also members to be consulted on on matters arising during the period this issue of Terrier]. the possibility of a new name for the from the Annual General Meeting in quarterly journal. November 2014, and in particular the CPD events 2015 handover of secretarial duties, the ACES Award for Excellence database and subscription invoices, it Following a report on the progress to was agreed to reduce the amount of date of organising CPD Events, it was The President to write to all branches data stored on the ACES database and agreed to send an email to all branches and members regarding the ease to make sure that ACES complies with setting out the likely format and to of applying for the award and to the Data Protection Act. seek out branch interest and possible encourage applications. venues. Financial matters Co-ordinators and external working Database and website groups The Treasurer reported on the financial position of the Association including Council was updated with regard to the Reports were received from the a detailed breakdown of the income current problems with the Domesday Compensation, Rating & Taxation, and expenditure. The first 6 months’ database and progress with the new Performance Management, FPS, expenditure exceeded income but the ACES Website. It was agreed that Corporate Asset Management, and subscription income was expected the website developer be contacted the proposed Post Graduate Course at within the next 3 months. The financial in order that the new website be Leeds Metropolitan University (Leeds outcome of the Presidential Conference launched as soon as possible and the Beckett) co-ordinators. 2014 was still awaited. A shortfall of outstanding documentation uploaded £7,000 is being budgeted for in the and that arrangements be made for the Heart of England Branch initiative current financial year. The Treasurer is to necessary training for the Secretary and present a 3 Year Budget forecast to the one other. It was agreed that an updated copy of April Council Meeting. the Heart of England Branch initiative The Secretary to contact contractors to promote membership and improve 5 THE TERRIER - SPRING 2015 attendance at branch meetings shall Annual meeting 13 research paper into shared property be circulated to all branches once the November 2015, tba service models and the resource branch had received the comments of dilemma faced by public sector Council and further discussed it. Proposed RICS research project, shared organisations. property services Future meetings The RICS is to be contacted regarding Presidential 17/18 ACES involvement in this project, September 2015, Salford Quays concerning the preparation of a

MEMBERSHIP Keith Jewsbury I list below the changes in membership between 1 January Resignations and 31 March 2015. 14 members resigned during this period.

New members approved Doolan Ian There were 8 new applications approved during the period Woods Tony Summers Carol Gregory Jonathan Surrey Heath Borough Council Makin Richard Livesey Sharon Liberata UK Ltd Hart Gayle Aminossehe Sherin Cabinet Office Dennis Amanda West-Clarke Karon London Borough of Hackney Watkinson Alison Livesey Claire Lancashire Police Authority Humphreys Paul Kay Alastair Dundee City Council Willitts Neil Turvey Neil Concertus MacKenzie Neil Quinney Murray Cabinet Office Page John Davidson Douglas Transfer from full to past membership Huke Marie-Laure 4 members transferred to past membership during this period Reed Christopher

Manley Peter I also have to report the death, at the end of February, of Peter Williams Mike Handley, formerly of Barnsley MBC and Chairman of the North Wild Andrew East Branch (1993-1995) Anstey Kate Total membership

Full 221 Additional 78 Honorary 33 Past 56 Total 388

The Terrier

The Terrier is published quarterly by ACES. The inclusion of any individual article in the Terrier should not be tak- en as any indication that ACES approves of or agrees with the contents of the article.

ACES Secretary: Keith Jewsbury FRICS ACES Editor:

8 Coolidge Avenue Betty Albon FRICS Lancaster, LA1 5EH [email protected]

01524 745643 [email protected]

[email protected] ACES [email protected]

6 THE TERRIER - SPRING 2015 OBITUARY Peter Handley 1946 – 2015

It is with regret that we have to report He was the principal officer involved He was a large as life character with the death of Peter Handley who was in the development of the Alhambra quite a “loud” voice and even louder involved in the formation of the North Shopping Centre and helped to secure laugh. He was passionate about East branch and an active member. a town centre supermarket scheme. Barnsley FC so much so that all the staff Peter was Chairman from 1993-95. Throughout his career Peter amassed a knew the last time that Barnsley won considerable range of experience and the FA cup as the office keypad door Peter was born and raised in Barnsley. knowledge. Peter always worked to the code was 1912! He was a draughtsman with the then highest professional standards and was Yorkshire Electricity Board for 3 years very supportive of colleagues and staff. Following his retirement he became and worked for the Land Registry for involved as a member of Silkstone about a year. He joined the old Barnsley He was always keen to see the Parish Council where he advised on Borough Council in 1966 as an Estates development of staff too and their asset management matters and Assistant. After qualifying with ISVA he supported many getting through his ex Barnsley colleagues still dealt worked for Slough Council for about 18 their APC and introduced some staff with him. months before he returned to Barnsley to Bernard White as an APC mentor, as a Principal Officer just before local through his links within ACES. government reorganisation in 1974.

NEW ACES WEBSITE www.aces.org.uk

The new ACES Website is now up and running

The new website is still being populated with some required information and all details from the old site is being transferred.

Gone are the complexities of interacting on the Forum and the new site is easier to use.

The user names and passwords, for the time being, remain the same but if anyone has any difficulty accessing the site please email me and I will supply your password.

Keith Jewsbury FRICS, ACES Secretary [email protected] 01524 745643

Please use it. The website is only as good as the members and branches participating

7 THE TERRIER - SPRING 2015 Professional

THE ELPHINKE HOUSE REPORT – REVIEW INTO THE LOCAL AUTHORITY ROLE IN HOUSING SUPPLY

Below are extracts taken from The report sets out detailed now and retaining the value of the the report commissioned by the recommendations on how housing freehold interest Department for Communities and delivery organisations can be Local Government. The 2015 LA established, how private sector ll Converting land consideration into Housing Review Report can be found financing can be attracted and how an investment in a development in pdf format on www.gov.uk. a Housing and Finance Institute partnership should be established to promote and support the sharing of ideas and drive ll Providing a guarantee purchase Foreward innovation in housing finance. agreement, whereby a council agrees to buy completed homes The Review was established to look at The report involved more than 400 from a developer if a buyer cannot what councils do, and to see if more participants across England, to explore be found on the open market could be done to boost housebuilding the housing activity role undertaken and to create strong and sustainable by councils from a full range of ll Entering into a rent guarantee communities. The authors believe that perspectives: from residents, housing nominations agreement whereby councils could achieve much more by associations, developers, start-up a council agrees to guarantee rent taking a more central role in providing housing businesses, finance and for a minimum duration or amount new homes. investment markets, mortgage markets, as well as nominating tenants for councils, council leaders and council rental accommodation Their key recommendation is that officers, MPs and Ministers, central councils change from being statutory government and other public bodies ll Supporting financial assistance to providers to being ‘Housing Delivery such as the housing regulator. purchasers of new developments, Enablers’. Councils can be proactive in through help-to-buy style schemes identifying housing need, growth and Financing opportunities and financial inclusion work, such opportunity. They can work closely with as deposit savings schemes and businesses and other partners to share There is a very useful Chapter 7 on rent to buy scheme ideas and experience – and actively financing opportunities for councils. use their own assets and knowledge Evidence to the Review demonstrated ll By providing development finance to unlock housing opportunities and 14 principal ways in which councils at commercially attractive rates of deliver more homes. created, or added, financial value to return, harnessing the lower cost developments in order to improve funds available to councils Partnership is key. The evidence is that viability and/or to create an investment councils are most successful when return, including: ll Creating a council housebuilding working in partnership with others and reserve or ‘fund’, requiring pay- where they promote opportunities. ll Providing a range of market hous- ment in lieu of on-site affordable Councils can develop this further ing and thereby enabling cross housing. by encouraging new entrants and subsidy for affordable and low cost providing an open opportunity for all starter homes Recommendations participants on a level playing field. ll Selling land under deferred con- There is only space here to publish the The government’s stated priority sideration arrangements including recommendations and the paragraph is to see a public sector surplus in the use of development licences on references in the report. 2017/2018. The scope of the Review council owned land was set in this context, so unlocking The local authority as a Housing innovative financing mechanisms for ll Splitting the value of its land to Delivery Enabler new housing development is therefore make it more affordable, by selling essential. a fixed term long lease interest 2.1 Councils have primary

8 THE TERRIER - SPRING 2015 responsibility to assess and meet the (ii) the accessibility of Business leadership housing needs of their local population assessments, for example through as Housing Delivery Enablers. Councils publication of a very short executive 5.10 Government considers issuing should assess and drive housing summary of Strategic Housing Market guidance on development panel activity and housing delivery in their Assessments setting out the key best practice so that HCA, GLA and areas and for their local population. information; and other public bodies with panels invite applications from developers/ builders/ 2.1 The role of Housing (iii) the importance of reporting new entrants/ specialist providers to be Delivery Enabler can be met through progress in monitoring housing need on a development panel each year, and (i) community leadership and and delivery annually to residents. actively enable greater diversity and strategic clarity; (ii) creating housing opportunity. opportunity; (iii) business leadership; 4.18 That where the strategic (iv) management of housing supply; housing market assessment covers a 5.19 Councils, in their role as and (v) shaping a stronger housing wider geography than the council’s Housing Delivery Enablers, consider finance market. own area, councils clarify their how they can actively support smaller individual responsibility – accounting and start-up housing businesses Community leadership for their part of their housing market in locally with land, finance, and skills/ and strategy clarity the own area, in accordance with the business training and opportunities for expectations in the National Planning partnerships and collaborative working. 3.13 Government considers Policy Framework. strengthening advice to encourage 5.23 Government monitors its more councils to pro-actively support 4.27 Government considers schemes to support small builders, neighbourhood planning and for within its overall current spending and considers further support to help councils to engage residents in shaping plans flexibilities in any possible expand this sector of the building housing needs more regularly. further HRA borrowing programme to industry. enable councils to use both additional 3.15 Councils develop more robust borrowing and 1:1 receipts to enable Management of housing supply housing approaches that include councils to deliver replacement units housing demography, mobility of for Right to Buy stock. 6.9 Government consults on tenure, economic growth and business extending the Transparency Code to needs as well as broader choice for 4.31 Government publicises cover all HRA land and assets, and residents, including the impact on the the freedom available to all councils that councils should start to make physical and economic wellbeing of to build outside the HRA, and preparations for publishing data ahead residents’ changing needs in older age, opportunities to dispose of non- of this extension. as well as affordability and financial strategic sites both inside and outside inclusion. the HRA. 6.14 Government works with public bodies to develop an electronic Creating housing opportunity 4.32 Government raises the platform allowing data on all land – guideline threshold for the number of owned and leased – that is held by 4.8 Councils, including county ‘council’ units that can be built outside public interest bodies to be open and councils in two-tier areas, consider the HRA for all councils from 50 to 200 transparent. potential models for funding Rural units. Housing Enablers, including the 6.19 Government updates and potential for forward-funding from 4.33 Government considers ways re-issues guidance about land disposals future development value. to simplify the process for obtaining and in particular clarifying public the directions and general consents procurement considerations and 4.10 The LGA considers how it can needed from the Secretary of State options, so councils are clear about encourage councils to fulfil more of where a local housing authority the factors that need to be taken into the role of Housing Delivery Enablers, proposes to build units outside the account in disposing of land. including through its peer challenge HRA, before writing to all councils processes. setting out the new approach. 6.25 Councils take a proactive role in identifying smaller sites suitable for 4.16 At its next review, government 4.39 Councils periodically test custom build and local builders. considers guidance to councils on: value for money from their contracts, so savings and service quality benefits 6.27 Councils consider using land the importance of transparency might be generated by operating covenants, development licences, and about the findings of housing market different procurement models. overage to secure best value at a later assessments – given their link to point in time in order to release small housing delivery; sites for priority housebuilding.

9 THE TERRIER - SPRING 2015 6.36 Government consults on consideration of opportunities to operates a joint venture with Morgan proposals, ahead of legislation, to invest in local housing and social Sindall Investments for redeveloping an give councils a new direction power infrastructure in their areas. under-used council-run car park with allowing them to dispose of larger sites the aid of HCA ‘Get Britain Building’ in their area which are owned by other Making the change; monitoring the aimed at first time buyers and a sale public bodies. change and leaseback student accommodation scheme; phased investment using 6.42 Councils take responsibility to 8.3 That, if a Housing and Finance internal funds, Public Works Loans work with developers, local businesses, Institute is established, (i) that it collects Board and the private sector 3 year agencies and others to ensure that sites and makes available a library of policy build programme; subsidiary council with planning permission are taken and practical papers and research for owned bank; buying run-down houses forward in a timely manner to delivery. utilisation across the housing sector using HCA grant and prudential as a whole; and (ii) that measures borrowing. Shaping a stronger housing of housing market performance finance market are developed and maintained for Joint Venture – Luton BC – JV using the utilisation across the housing sector as Local Education Partnership to form 7.19 Government, with support a whole. the Luton Learning and Community from the Local Government Association, Partnership Ltd, working with establishes an independent Housing 8.5 Government maintains a partners on a package of 16 mixed and Finance Institute to support a step public record of formal governmental sites for residential and commercial change in housing activity leading to reports in each Parliament together development. Also employing 18 full- better understanding and assessing with reports on the progress of time apprentices, 14 work experience of options, faster implementation, recommendations which are subject to placements pa, a trainee programme, increased housing delivery over the further work by government. and a skills programme helping local long term and which can help to shape people facing employment barriers; a stronger housing finance market. Case study examples viability issues for remaining projects. provided to the Review 7.24 Councils that are considering Private Finance Initiative - Leeds expanding their housing offer beyond Below are brief notes of the case CC to deliver a huge regeneration their traditional one consider setting up studies included in the report: programme for its inner city; 20- local housing delivery organisations. year partnership with Sustainable Addressing supported housing needs – Communities for Leeds; funded by HCA 7.25 Councils consider the Richmond LBC. Disposal at discounted with a significant council contribution; benefits in developing private finance value; capital support, partnership first scheme of its kind where the opportunity utilising models to Paragon Community Housing Group; private finance element is secured support their role as Housing Delivery independent living accommodation through the capital funding markets via Enablers that are not dependent on for 4 young adults with learning a bond issue. local authority or national borrowing difficulties. constraints. Privately funded affordable Open to Scrutiny – Barnsley MBC housing - Barking and Dagenham 7.33 If government decides to is setting up a Strategic Housing LBC partnership arrangement with consult on detailed proposals for Partnership Board; specific focus on contractor, Laing O’Rourke, and creating common investment vehicles, 4-year housing delivery plan, to hold institutional asset developer, Long consultation on residential housing the council to account for delivery. Harbour, to develop homes in Barking; asset classes is also undertaken. innovative privately funded affordable Major Investment - Greater Manchester housing model, at affordable rents, 7.35 Government works with the Combined Authority has set up 50-80% of local market rates; self- sector to ensure that local decision the Greater Manchester Housing financing on the basis of a sale and making committees are given Investment Board; partnership with the leaseback structure from the rents paid appropriate information and advice HCA; workstreams include mapping over the term of the lease. At the end about where pension investments sites, pilot projects of delivery models. of the lease period, all the properties can be made. This would encourage will automatically transfer into full greater choice of investment and Local asset based vehicle – Gateshead ownership of the council. more investment in housing and MBC established The Gateshead infrastructure. Regeneration Partnership with Joint venture – Derby CC JV with Evolution Gateshead to deliver 2,400 developer Keepmoat; mixed site 7.36 Councillors responsible homes over the next 15 years, on 19 including refurbishment of Osmaston for local pension fund investment sites of varying viability. Primary School and community hub consider the benefit of a 3% Pension within the listed former Rolls-Royce Fund Challenge to encourage active Multi delivery model –Bournemouth BC building, Marble Hall.

10 THE TERRIER - SPRING 2015 Exploring funding options - Kings community-led scheme in the country - its homelessness duty through ABC Lynn BC examined 3 different funding 55 for market sale, cross-subsidising 40 Lettings. routes - sale properties to go into a homes for affordable rent; £1m funding separate company and let as private from the HCA; redundant land and loan These extracts are subject to the terms rental; private rent exploring funding funding; partnership with Strata Homes of the Open Government Licence: via insurance funds or pension funds, or (the developer) and Derby Homes. http://www.nationalarchives.gov. via the council. uk/doc/open-government-licence/ Listening to communities – Southwark version/3/ Addressing the needs of the private LBC - Community Right to Build project rented sector - Kensington and Chelsea through the Leathermarket Community LBC. Grainger to develop and manage Benefit Society, to build 70+ new 2 council-owned sites, with 50% of homes; construction options and costs. the homes for the PRS; managed by Grainger under a 125-year agreement, Building out redundant garages - with a management fee. The council Waltham Forest LBC ‘garage strategy’ will retain the freehold and will share identified over 36 redundant garage the long-term rental income with sites suitable for delivering new Grainger. affordable homes with further 90+ for disposal, with the receipts being used Master planning to attract to build affordable homes. development - Kent CC and Kent Housing Group social housing Joint venture – Peterborough CC JV partnership coordinated approach to with a private sector organisation to housing in Kent, bringing together the secure investments up to an initial county, unitary and district councils and value of £130m; scope will cover housing associations; Kent and Medway development sites that the council Housing Strategy, the country’s first owns, secure market value for the land, county- area housing strategy; secured share of future profits. in excess of £60m of funding [Ed – see 2014 Autumn Terrier]. Pension Fund Investment - Greater Manchester Pension Fund and HCA Supporting micro builders – to deliver 241 homes across 5 sites Wolverhampton MBC ‘Connecting through private investment on council- Procurement Roadshows’ Small and owned land. Buyers will be able to Medium Enterprises can meet buyers access the government's Help to Buy from Wolverhampton Homes and equity scheme. other local buying organisations, and discuss potential opportunities Improving efficiency – Woking BC, with procurement teams; helped through transferring its housing more than 350 tenants to get work management functions to Pinnacle PSG experience, new skills, and training for and Mansell Plc operating a JV, New 69 apprentices. Vision Homes. Improved outcomes for tenants and estate regeneration, with a Releasing land for development – £250m budget; at the planning stage. Waveney DC has for over 25 years provided land to housing associations Promoting mixed communities – at nil cost. Hackney LBC estate regeneration programme, financed throughHRA Custom build and self-building – borrowing freedoms; self-funding; Cherwell DC has experience of self- range of partners to replace existing, build projects, through ‘Build!’; recently poor-quality homes with new homes acquired a large MOD site (Graven Hill, for social renting, shared ownership Bicester) to deliver up to 1,900 self- and private sale. build housing units and will be the largest self-build scheme in the UK. Community leadership – Ashford DC; its property company, A Better Choice Community-led housing development for Property Ltd, secures homes that – Derby CC has supported the the council can market at affordable Osmaston Community Association of rents, and makes a return for the Residents in developing the largest General Fund; proactively discharges 11 THE TERRIER - SPRING 2015 UNDER PERFORMING TOWNS COMMISSION – TOWARDS A BRIGHTER FUTURE

Jeremy outlines the emerging work of the combined professions’ Commission for underperforming towns and cities, Jeremy Blackburn whose aspiration is to influence the policies of the next government. Jeremy is Head of Policy, RICS

The end of this Parliament and the The Commission and Combined Authorities. Localisation election of a new government is a good of business rates, duty-to-co-operate time to reassess what has been done Also thinking about that Economist and enterprise zones. Town teams to drive regional growth, empower our article in Newcastle was Keith Burge, and business improvement districts. cities and regenerate the high street. Chief Exec, Institute for Economic Office to residential conversions and The focus on city deals at one end and Development (IED); he and Martin the impact of the ‘click and collect’ high streets on the other, has however Blackwell at the Association of Town model on town centre shopping. A new missed key settlements out – and yet Centre Managers (ATCM) discussed how generation of garden cities in the south these towns are where many of us live a response could be formulated. of England and a Wolfson Prize saying and work, and indeed feel a passionate we should focus on expanding and identity about and a desire to succeed There were obviously a number of making viable existing settlements. and grow. existing reports and initiatives, not least from both Mary Portas and Bill Grimsey, Our underlying assumption though was An article in The Economist (Britain’s the Future High Streets Forum, and the that there needs to be a step-change in Decaying Towns, October 2013) BCSC led ‘Beyond Retail’ report. Several performance, requiring a fundamental suggested that towns and cities that other research pieces had looked at rewiring/re-invention of purpose had consistently underperformed over why we had a surplus of commercial relating to our towns. While potentially the past 20-30 years - in spite of high property and issues around vacancy useful, any proposals that merely tinker profile regeneration schemes - did and footfall. around the edges of these issues were not merit any further interventions. unlikely to have the required impact. “Governments should not try to rescue They decided we needed something failing towns”, it said. It typified what different and not a gimcrack paper, The Commission’s work was based we have seen over the last 5 years, but one with solutions that were at largely on a series of round-table to paraphrase the Greek historian a number of spatial levels and across discussions across the nations and Thucydides, the strong do what they a spectrum of policy areas. And regions of the UK, involving members can and the weak suffer what they more than that, it was time that the of ATCM, IED, RICS and RTPI. These must. professional organisations put their events took place in England (Bristol, collective minds together and created Colchester, Leeds, London, Macclesfield, At the RICS North East Policy Summit ideas for regenerating our towns and Mansfield and Newcastle), Northern in Newcastle during January 2014, cities, ready for new ministers. Keith Ireland (Belfast and Cookstown), the reaction to this approach was and Martin then approached RICS and Scotland (Inverness) and Wales (Barry). strong and instinctive. Newcastle and RTPI to join them in a ‘Commission for In addition, a workshop was held at the surrounding towns and cities could underperforming towns and cities’, IED’s National Conference in November and would stand on their own 2 feet, but whose approach was very much 2014 (also involving members of but an approach which only rewarded couched in A Brighter Future. partner organisations). Conscious of the those cities that were already successful sensitivities of discussing these issues would fail to realise the potential of We all understood the context of what with local authority representatives, a vast swathes of the country. And that we were setting out to do. Less national handful were directly approached for in turn would undermine any genuine intervention, more local leadership. City confidential telephone discussions. shift towards regional rebalancing and Deals and Regional Growth Funding. private sector job creation. Local Enterprise Partnerships (LEPs)

12 THE TERRIER - SPRING 2015 What’s really the problem? Austerity vs public investment requirement of property owners to pay business rates on vacant properties. Many underperforming places are It is fully recognised that appealing characterised by small populations, for additional resources in an era of In addition, although business rates and not having the critical mass to public sector funding cuts is unlikely to should relate to property values, there sustain the range and quality of private be looked upon favourably. However, has been no scope for negotiation and public sector service provision there is a clear distinction to be drawn on rates. This has left many occupiers common to more successful locations. between public sector expenditure and feeling that they are paying over the Furthermore, many of these towns public sector investment. odds. However, it is not just cyclical and cities previously served purposes factors at play, with the impact of that no longer pertain. They may have Coalition ministers have admitted that significant structural changes also hosted a coal mine, shipyard or major in many areas of capital spending, such beginning to be felt. In particular, manufacturing plant, or performed as infrastructure, they cut back too hard national retailers’ investment strategies the function of a market town. The loss too fast. There is a need here to look have changed, with a focus on fewer of these functions has removed their at enabling investment, which equips locations. This suggests a withdrawal to fundamental raison d’etre. towns and their parent LEP to attract larger centres, or at least those with a more businesses and properly connect large catchment area. These are the places that fall farthest functional economic areas. and fastest in an economic downturn, This process may be exacerbated by and yet tend to feel the reviving drips Several mechanisms like the regional the “lease-bubble” which is expected of recovery later and to a lesser degree growth fund have been set up, but to pop from 2015 onwards. Reputedly, than most other towns and cities. these are either too thinly spread or not this is the point at which many the Furthermore, while successful locations acquired by underperforming towns; leases of many high street multiples can form their own virtuous circle by and where they have been acquired, are due to expire and from which attracting more people and capital in how many LEPs and local authorities they can therefore walk away without search of their own individual success, have put small towns into their local penalty. This in turn is likely to add the reverse applies in underperforming economic strategies, using a miniature further momentum to the downwards locations. enterprise zones in a town centre, allied trajectory in rental values. to investment funding, to drive change? They tend to rely more heavily on the Local vs national leadership public sector – which will shrink even Exacerbating factors here include more in both absolute and relative what the Institute for Employment There is a need for more effective terms over the next few years as further Studies has called the ‘productivity leadership across local authority areas (and the majority) of austerity measures gap’ and the consequential lack of in order to provide a mechanism kick in. Their populations tend to rely business investment. The causes of the for more strategic and effective to a greater extent on unemployment UK’s productivity deficit include: low approaches to planning and economic and low income-related benefits, and levels of investment in innovation and development. One example is in as the real value of these falls, there research and development; declining assessing the need for new housing is even less money to be spent in quality of technological and transport alongside current and proposed local economies. In some places this infrastructure; structural shifts to low infrastructure and within a broad downward spiral has become a highly productivity sectors; and lack of access spatial economic development context. destructive whirlpool, sucking the to finance for private sector investment. economic life out of communities. Workshop participants in areas that Most are beyond the policy scope of appear to lack strong leadership Successful local economies have higher employment and skills ministers, but often regarded this as the most numbers of high growth businesses in reinforce the perennial need for ‘joined debilitating factor in seeking to address expanding sectors. So how does this up’ policy making and for new ministers underperformance. Elected mayors come about and is it replicable? Why to work constructively with those in appear well thought of (including are good things happening in some other departments. in Bristol, Liverpool and London, places and not others? according to Commission contributors) Interacting property trends but most cities that have been offered What’s holding our them declined. However, it ought not to towns back? In the vast majority of locations outside be inferred from the outcome of those London, town and city centre rental votes that people do not want strong The combined insight of planners, values have collapsed over recent leadership. surveyors, town centre managers and years, in both the retail and office economic development professionals sectors. The impact on rental values of There are now many component parts identified a range of factors that are recession and the move to out-of-town to the local leadership, funding and holding back our towns: retail and office locations has been powers that can make a difference multiplied several fold by the continued to these towns. How can national 13 THE TERRIER - SPRING 2015 government guide local leaderships enable local bodies, or create the right of unemployment for each of the past on how to join up their mechanisms to funding and tools for them to wield. 3 years. create growth and regeneration? Clarity around the future package of devolved For instance, there may be merit It should be noted that these powers and funding may well inspire in devolving more local tax raising recommendations have emerged from many places to pull together and bid powers in order to better engage local the work of the Commission (principally for them, or open a second round of people and businesses in local decision practitioner workshops) and do not economic focus for LEP areas in the making. This may or may not generate necessarily represent the official next parliament. additional resources for economic views or policy of each of the partner development, but will mean greater organisations. Maximising growth potential local control of how business rates and other locally generated taxes are The report will be available on all the The Commission’s report goes on to spent. In addition, while City Deals have organisations’ websites later in April deal in greater depth with what can be helped to facilitate some development 2015. done to drive growth at national and at in some places in England, there is local levels, looking at both specific and believed to be merit in exploring other It is the intention of the IED, RTPI, RICS inter-connecting factors. borrowing mechanisms. and ATCM to provide this report and its recommendations to new ministers At a local level a number of focuses The danger that needs to be within the first 100 days of the next emerged: avoided is central government using government. decentralisation/devolution as an ll Sense of place excuse to abdicate all responsibility The next Parliament must be seen as an for pursuing balanced economic opportunity to make a difference for all ll Retaining the brightest and best development across the UK. Stepping those living and working in towns that away and allowing a battle of the fittest The Economist described as ‘failing’. ll Forming effective partnerships to play out may well see gaps between No-one will be naïve to think that every across all boundaries. places widen rather than narrow. town will get a slice of the cake, but a genuine move to utilise the economic At a national level further issues Recommendations potential of our towns towards the emerged: economic rebalancing of the UK, will The Commission has drawn on a encourage city regions to park their ll Devolution huge depth and range of property, differences and pursue the opportunity planning, economic development and of power, funding and leadership. ll Government intervention regeneration skills and experience. This report cannot possibly reflect all of that ll Strategic investment in full, but it hopefully demonstrates the commitment of those working in ll Local Enterprise Partnerships related professions to trying to address [Ed – background information can be the issues cited and our willingness found in RICS’ “High Streets: Adapting ll Education and skills to work with partners at all levels to Change” (June 2014) at http://www. to further develop and enact 16 rics.org/uk/knowledge/professional- ll Area based regeneration. recommendations. guidance/information-papers/ high-streets-adapting-to-change-1st- A strong thread to the national These should apply to all towns and edition/ , which was also featured in level discussions was how national cities with populations above 100,000 2013/14 Winter Terrier. government and its agencies can and with above average national levels

Estates Gazette 1 February 1964

“The results of this Census [1961] should give some confidence to those concerned with the financing of town centre redevelopment…..There are indications that conditions are changing and it certainly seems likely that the public will willingly forsake the High Street for the out-of-town shopping centre if the opportunity is given. Considering the intolerable congestion which exists in the majority of town centres today, which reduces to nil any enjoyment that a shopping expedition can give, this is not surprising.”

14 THE TERRIER - SPRING 2015 CAREER PATHS TO RICS MEMBERSHIP

Sally Leeks, Will Brown, Oliver Loughton and Kieren Stuck

Sally, Will, Oliver and Kiernan are all members of the West Suffolk Property Services, who provide a shared service to St Edmundsbury Borough and Forest Heath District Councils.

At the meeting of ACES Eastern branch in March, Richard Combes, Valuation and Estates Manager, volunteered his young colleagues to give an outline of their different routes into RICS membership. This provoked an enthusiastic discussion with the audience, which of course encouraged the Editor to follow up with this article. The styles of each author are their own. What their presentations reinforced in me was just how varied a range of experience trainees can gain from working for local authorities.

Will Brown, Estates Surveyor that that was not the career for me and Anyway, having undertaken a 6 week had ought to do something more with whistle-stop experience of estate Graduate Route 1 pathway my life. Either way, I had decided it was agency in my new employer’s sister in Commercial Property time for a change and I did apply….and company, I began my training with Practice I did get accepted into my top choice my former employers. Early on, university. we contacted various universities As you may or may not be aware, and decided that Anglia Ruskin career guidance in schools is somewhat As fate would have it, I was having (Chelmsford) provided the best suited limited. Consequently, unless things dinner round at a friend of a previous course for me – BSc (Hons) in Real have changed significantly in the last girlfriend, where I got talking to Estate Management – importantly 10 years, you are given 3 options for her father. He was what you might being RICS accredited. I enrolled when you leave school: 1. become a call a multi-discipline surveyor, immediately and began the 5 year lawyer; 2. become a doctor; 3. become specialising particularly in planning and course at the earliest opportunity, while a teacher. development and residential valuation. separately joining the RICS as a student Being the son of a chartered surveyor, I member, who strongly advocate such All of the above involve further must have given the impression I knew early professional involvement. education at sixth form and roughly what I was talking about – or at subsequently university. Regardless least said the right buzz words, as while I began at this company by shadowing of which career option you choose, the conversation progressed, it became various colleagues in differing you must under all circumstances apparent that this girl’s father was scenarios, in particular the Director go to uni. With none of the above looking for a trainee and offered me the who had employed me. The majority really fully appealing to me, but with opportunity to join his practice. of the work consisted of site visits for decent enough grades for acceptance the purpose of planning appraisals into various universities, my sixth Having considered the proposal for on sites of all shapes and sizes, for form mentors were surprised when I a day or two, I gave Mr S a call and various purposes and in a whole range informed them that I was not intending arranged a further meeting. The of locations. The main objective of to waste my parents’ money socialising subsequent discussion resulted in this preparatory work was to form a at university. a more formal job offer with the base from which to advise the client chance to gain a degree (part time) on development opportunities and One teacher wasn’t surprised – one simultaneously to my employment. I the extent of any future works likely who fully supported my decision - my considered this refined proposal while to be required. Following on from PE teacher. I don’t know if it was for I awaited the formal offer by post. these site appraisals, our firm was often this reason, combined with my love When the offer did arrive, my mind instructed to proceed with a scheme to of sport, that I did eventually apply to was already made up. The chance to develop such land, our role including several universities to study physical earn money while obtaining a degree the coordination and submission of education, or whether it was the fact seemed too good an opportunity to planning applications, monitoring that after 18 months working at the turn down – despite having never their progress, and presenting, where auction centre where I had done work seriously considered following a similar necessary, at Development Control experience 4 or 5 years previously, with career path to my father. committees. The firm also dealt with little alternative direction, I decided planning appeals in cases where 15 THE TERRIER - SPRING 2015 planning consent was not granted but existing tenant liaison, viewings and the banking world. After several years where the firm felt that a strong case negotiations for new lettings, a whole and having progressed through the for its consent could be proven to the range of landlord and tenant matters, ranks I decided I wanted a different Planning Inspectorate. acquisition and disposal, town and challenge, so in 1999 I joined the village green legislation, viability Property team at St Edmundsbury The other main arm of the company’s analysis and commercial planning and Borough Council. Initially I undertook a business was valuation – quite often development. financial role collating fees for projects, in relation to right-to-buy properties assisting with the implementation on behalf of housing associations. This The experience has, on the whole, been of ISO9001 and dealing with energy work involved a lot of inspection and positive and, while I have also been management, then in 2007 I joined the comparable research, followed by able to transfer and adapt skills from Estates team. My role here helped me reporting on condition, development my previous employment to the work to gain experience in a whole range of potential, value and discount entitlement I currently do, I believe I am starting to estate management skills so in 2013, to to any purchase. Other smaller roles fully appreciate life on ‘the other side enable me to progress further, I looked included my introduction to viability of the fence’. With my graduation from into becoming a member of the RICS. appraisals, schedules of condition, rent university complete, I immediately reviews and lease renewals. I would like applied to enrol upon the RICS APC. As I don’t have a degree the AssocRICS to point out that the vast majority of each Given my ‘career change’ I have enrolled route was perfect as the entry of the disciplines described above were upon the Graduate Route 1 pathway requirements for this are either: residential in nature and my role was in Commercial Property Practice. This mainly ancillary to that of Mr S, my mentor. route will hopefully allow me to display ll Relevant degree with 12 months skills from both past and present experience in the relevant area There is a wry sort of irony that my employment – and is one that is 7 year fixed appointment at the firm directly related to my current role. I am ll A relevant vocational qualification commenced at the beginning of 2007. just over a year into the process – the HND/HNC plus 2 years experience I’m sure I don’t need to explain the interview of which I hope to sit towards in the relevant area for your chosen story of the ‘Great Recession’. However the end of the year. pathway I watched the company steadily contract in size over the following 4 or I see RICS membership as a ‘career ll Four years’ experience in the rele- so years until it was wound up in early passport’ – allowing you access to vant area for your chosen pathway 2012 – a year shy of me completing my many different routes into and across 5 year university course. I think it is a property career. I believe its status Therefore having worked in the Estates fair to say that during my working life, remains internationally respected team for 6 years I qualified straight I have not really experienced a stable and is seen as a benchmark for good away for the Commercial Property economic climate. standards. I further believe that it is a Management pathway. great shame that more is not in place to Moving on, after a month of bar work, introduce potential budding surveyors Getting Started I was made aware of a trainee position an insight into the property world and becoming available at St Edmundsbury associated careers at an early stage. I Once enrolled on the course the RICS Borough Council as part of its shared think better awareness could – and sends you the relevant submission services agenda with Forest Heath should – be raised in schools, and a document where you log/complete the District Council. I duly applied for more diverse range of careers conveyed following information: the role and, following interview, was and endorsed. Despite how you are offered the position. The move allowed guided (or not) at school, everyone Summary of Experience – Mandatory me the opportunity to complete my needs a slice of luck. I guess sometimes Competencies – max 1,000 words final year of degree-level education you just need that career break and I while remaining employed in a relevant am thankful for the chance encounters ll Client care discipline. It should also be said that a that have led me to where I am now. move to a large open plan office, with ll Communication and negotiation the opportunity to work alongside Sally Leeks, Assistant Estates a broad range of departments and Management Officer ll Conflict avoidance, management people had a strong appeal to me. and dispute procedures AssocRICS route to RICS via The commercial property minded job the Commercial Property ll Data management I now have has allowed me to diversify Management Pathway my knowledge significantly. Learning ll Health and safety the job specifics from a range of Background colleagues, enhanced by theory taught ll Sustainability at university, my current role includes On leaving college with a diploma in property management, comprising Business and Finance I started work in ll Team working

16 THE TERRIER - SPRING 2015 A brief example is needed for each of been completed I emailed it to the As part of this employment I the above to demonstrate my ability RICS for the Assessment Board to progressed on the route offered by to work with colleagues, meet client decide if I had passed. While this was the Chartered Institute of Building requirements, manage my own work being undertaken I was sent a link to become an Associate Member of and act with honesty and integrity. to complete an ethics module. I had the Institute. On achieving Associate to pass this as it also counted to my status I then embarked on a further Summary of Experience – Technical overall score. The assessment process period of 18 months’ education to Competencies – max 2,000 words took 4 weeks and I was emailed my achieve Member status of CIOB. This result. was successfully achieved and provided ll Landlord and tenant great benefit during my subsequent I found this route into RICS very straight employment. ll Measurement and inspection of forward and because I already had land and property 4 years’ experience of commercial After a period, I was offered the property it felt as though I was getting opportunity to join a building ll Property management recognised for doing my job. I would construction company as a Contracts definitely recommend it to anyone Manager dealing with the delivery of ll Property records/information looking to become an RICS member construction projects for private and systems as it now means I can use it as a step commercial clients up to the value of towards gaining my APC. £200,000. This was a very rewarding ll Rental appraisal role, providing me with the opportunity Oliver Loughton, to work closely with experienced Plus one of the following Building Surveyor tradesmen on site and learning the practical aspects of construction, as well ll Building Information Modelling Graduate Route 3 – as gaining knowledge in the estimating Professional Experience of projects and the buying of materials ll Leasing/letting Route and plant and delivery of projects to time and cost. Regrettably after a ll Local taxation/assessment By contrast to my colleagues I am further 5 year period I was again made pursuing the Professional Graduate redundant and was quickly offered the ll Property management accounting route to RICS accreditation. opportunity to return to my original employers as a Building Surveyor for ll Valuation Graduate Route 3 is directed towards which I spent a further 10 years. individuals who have gained Examples are needed to provide experience through their history of Three years ago I progressed to a record of the experience I have employment in the field. So, a brief working within local government as gained in relation to the 6 technical overview of my career to date. a Building Surveyor. I am responsible competencies which are pathway- for the maintenance of a number of specific “hard” skills needed for my role. After leaving school I joined a chartered council owned and operated premises. architectural and surveying practice These buildings range from small Case Study – max 2,500 words dealing with surveying, design and public visited sites to large commercial procurement of alterations, adaptation units. This role is also enabling me to This is to illustrate my level of and new builds to both domestic and gain a wider knowledge of statutory professional practice. The focus of commercial premises. I was employed regulations as well as achieving a the case study must be on one recent for a period of 5 years. At the height good understanding of property project that enabled me to show of the 1980s recession and following management and a whole range of what involvement I had in the project, subsequent redundancy, I decided to landlord and tenant matters and its what support I provided and what progress on a 3 year degree course at processes. decisions I took and why. The project Brunel University in London, studying must demonstrate at least 2 technical Building Construction. The experience gained over nearly competencies. 25 years’ employment, as well as the Upon graduation I was successful in opportunity and desire offered by CPD gaining employment as a Building my current employers to progress Surveyor based at an insurance my qualifications, has led me along A total of 48 hours CPD must be loss adjusters, dealing with the the RICS pathway to accreditation. undertaken before the submission can initial diagnosis and subsequent The Graduate Route 3 route is no less be made. implementation of repairs to domestic involved than other routes adopted by and commercial properties affected my colleagues although the timescales Conclusion by subsidence, fire, flood and impact involved can be shorter. For example, damage. Repair values ranged from from registration to Final Assessment Once the submission document had £1,000 to £500,000. can be as little as 14 weeks although 6 17 THE TERRIER - SPRING 2015 months is a more realistic timescale. part-time basis. I was able to begin at year 3 of a 5 year course since my Level RICS is a respected organisation and 5 HNC Building Studies qualification becoming a Member of this Institution gained me prior accreditation. is one to which I now aspire. I am currently 2 months into my Kieren Stuck, Building academic course. The course is RICS Surveying Technician accredited and hopefully on successful completion I can look towards RICS Part time degree in Building membership, and starting a rewarding Surveying route career in surveying.

I came into the job primarily from an engineering background, having spent 8 years with the Corps of Royal Ed – There are other routes into Engineers, as a Combat Engineer and becoming members of RICS which Design Draughtsman, leaving as a could benefit our staff, or facilitate professionally qualified Engineering appointing new staff. One that springs Technician. Despite my job title of to mind is the Chartered Surveyors Building Surveying Technician, I had Training Trust. I’m very happy to run little building surveying experience, this theme in subsequent issues of with most of my transferable skills the Terrier, if you would like to submit coming from construction design and your experiences. Or maybe there knowledge of CAD. Therefore, I felt I are opportunities for student/APC needed to improve my base knowledge candidate support groups? of surveying and I applied for an undergraduate place at Anglia Ruskin University (Chelmsford) studying Building Surveying Bsc (Hons) on a

ACES PRESIDENTIAL CONFERENCE THE LOWRY CENTRE, SALFORD QUAYS

17-18 September 2015

REGENERATION AND DEVELOPMENT COMMERCIALISATION OF PROPERTY SERVICES ‘ONE PUBLIC ESTATE’

Excellent CPD opportunity Social programme

The event will be open to all ACES members and partners, plus other public and private sector delegates with booking details to be announced soon.

Contact: Keith Jewsbury [email protected] 01524 745643

18 THE TERRIER - SPRING 2015 RICS VIABILITY IN PLANNING AND DEVELOPMENT CONFERENCE 1 day National Conference, London, 23 June 2015

Following on from the successful conference last year with ll At a time of great change, select a choice of one hour over 120 delegates, this one day programme brings you up interactive workshops that enable to you examine real to date with the new political landscape, the solutions to issues around housing targets, application processes, de-risking in your current work practices and identifying commercial property value, legal risks, sustainability solu- detailed, practical mechanisms for delivering viability. tions, CIL, Section 106, market standards and more

This year’s sessions are designed to examine viability in the ll An open forum opportunity to have your concerns heard context of the mounting challenges facing UK development and addressed through the RICS Global Planning & De- and planning. Sessions will examine sector and role flexibility, velopment Board professional group and key players. strategic land use, local council considerations, ensuring an internationally competitive UK regime, the system’s lack of Speakers include efficiency and the role of you as a surveyor and that of the RICS in the political, global and economic context so you can Paul Collins Nottingham Trent University & Chair, RICS overcome risk to the development’s viability. International Planning and Development Professional Group Board You will also be able to choose from 2 one hour, interactive workshops giving you the opportunity to find out how to Ruth Stanier OBE, Deputy Director, Planning, DCLG improve delivery. These workshops examine the key steps to viability solutions around commercial property value and Kate Henderson, Chief Executive, Town & Country Planning standards, housing targets and options, legal risk and case- Association law and mitigating risk in the planning process. James Brierley, Partner, Gerald Eve Location Simon Coop, Director, Planning, ETC Venues Victoria, One Drummond Gate, Nathaniel Lichfield Partners, Cardiff London, SW1V 2QQ Alan Gunne-Jones, Principal, Join leading speakers and senior decision making delegates Planning and Development Associates from across the UK at this important event to debate, discuss and find solutions for a practical way forward. Jennie Daly, Director, Planning, Taylor Wimpey, Manchester

Highlights for 2015 Sandra Fryer, Company Director, Sustainable Works, Bristol Trustee, Town and Country Planning Association ll Leading keynote speakers will share their experiences and views providing solutions to efficient delivery in this Price: £337.50+VAT sector, including a look at the new and changing political landscape, the issues around viability, new approaches We can offer ACES Members the RICS Members discount rate, to the market, flexibility in the system, area wide and site which is £250. This will include the Early Bird discount of £195 specific challenges, your role as a surveyor, meeting local until 1 May. needs and land use options Visit rics.org/plandev to book your place today

19 THE TERRIER - SPRING 2015 VIABILITY REVIEW MECHANISMS IN DEVELOPMENT SCHEMES

Victoria Critchley BSc MRICS

Victoria is a Partner in Gerald Eve’s Planning and Development team based in Manchester. She has extensive expertise in advising on strategic property issues, and undertaking complex development appraisals and financial modelling. She also has significant asset management experience and has worked with both occupiers and landlords across a wide geographical area. Her specific experience includes financial Victoria outlines the options for viability assessments on behalf of councils, for the Rugby Radio Masts Site, and land agreeing how viability review may for 2,200 houses at Worcester; Silvertown Quays site for London Development Agency’s be tackled for complex phased selection of a development partner; strategic advice for the acquisition of land for schemes, including advantages and Crewe Green Link Road; instructed by Corby Borough Council to provide development disadvantages for the local planning valuation advice for a large out of town supermarket development. vcritchley@ authority and the developer. geraldeve.com

Introduction a. Phased schemes over the longer costs and considered in today’s term circumstances. By definition this An important aspect of development excludes looking backwards over past viability is to consider how planning b. Where there has been a significant performance, and this point was clearly policies can best be secured in delay in implementing a planning expressed in the planning appeal changing market conditions. Viability consent, particularly where the Inn on the Green PH, Denham Green review mechanisms can be a helpful economic cycle is likely to change (APP/N0410/A/14/2228247). It also way of encouraging developments to significantly undermines the basis of a competitive start, secure benefits during the lifetime return as envisaged by the NPPF by of large scale phased development c. Where the initial viability review introducing uncertainty post the and allow stalled schemes to become was at outline application and implementation of the development. more deliverable. As an alternative where there were significant ‘provi- This may make funding the scheme to review mechanisms during the life sional sum’ assumptions. difficult or unlikely in many cases. of a development, growth modelling may deliver a more even delivery Outcomes of pre-development It is important to ensure that the of planning policies (The Outturn commencement viability reviews drafting of viability review mechanism approach). This article considers should avoid physical changes in the provisions do not result in the earlier the review mechanism options and development where reserved matters phases becoming uncertain as to explains the ‘pros’ and ‘cons’ of the have been agreed as this would involve the amount of development to be various methods. further delay and costs. Any proposed provided on site. This would have changes should be sought in later the unfortunate effect of stifling Viability review is a suitable way of stages of the development where development. Each phase requires assessing viability in longer term reserved matters are still to be dealt sufficient certainty to be able to schemes where the economic cycle with, but payment of a commuted sum provide the required returns and secure may vary. It allows for planning may be a more practical approach. development funding. applications to be determined but leaving, for example, the level of Post development (Overage) reviews Approaches to affordable housing to be fixed prior to are not appropriate. PPG Viability viability testing implementation of the scheme. Such para 17 says that assessments should re-appraisals are generally suited to: be based on current day values and A ‘one size fits all’ approach will not

20 THE TERRIER - SPRING 2015 work effectively in all cases. Each Local agreement on a viability review applications has the advantage of Planning Authority (LPA) needs a taking into account all relevant factors, range of tools and mechanisms to deal c. There is recognition that agreeing based on the market as a whole. As with viability and the 3 fundamental terms is about finding the level or such, it fully reflects viability as at approaches are: approach at which deliverability of the date of review and in the current a project and the amount of plan- market conditions. However, the time 1. Financial viability assessment in a ning policy objectives (including taken to review and potential costs similar way to the planning appli- affordable housing) are in appro- mean that this approach could result in cation assessment priate balance significant delays in implementing later phases of a development. 2. Open book review – full disclosure d. For any particular approach to the by the developer of all relevant viability review mechanism to be The open book approach considers value and cost factors on an appro- the preferred way forward, there the actual costs and values of the priate cycle throughout the life of needs to be broad consensus scheme. It relies on full and detailed a scheme beyond simply at the hands-on disclosure by the developer. It therefore practitioner level. This is particu- reflects the actual circumstances and 3. Automated review – of one or larly relevant for key stakeholders accurately assesses the viability of the only a small number of key value such as local authority councillors development, allowing an assessment or cost factors affecting viability, of additional profitability to be fully usually with reliance on some e. Developers need a reasonable measured. However, this method does simple indexation of key elements, incentive to optimise the future not necessarily reflect the market with the remaining inputs being economic outturns of a project so as a whole. It potentially ‘rewards’ pre-agreed. that greater planning policy contri- inefficient developers and penalises butions can be secured. Therefore, those developers who perform more Within these approaches, there may be the principle of sharing of any efficiently than the market. From a a number of further options dealing additional profit is appropriate practical point, developers are reluctant with amending the delivery of planning to disclose this type of detail as it may policy requirements, such as: f. When considering the options for result in disclosure of commercially improving viability to close a gap sensitive information. For these a. Sharing of additional profit. In between what is currently deliver- reasons, it is generally not the method particular this looks at a split of able and a policy level affordable usually adopted in viability reviews. improved viability between devel- housing obligation, the potential Elements of this approach such as sales oper and LPA to incentivise the de- for: and letting terms should be provided. veloper to optimise performance, a) Adjusting tenure in favour of while ensuring as much delivery of other intermediate products The third method, ‘automation’ works policy obligations as possible b) Provision of affordable housing on the basis of predetermining a off site/commuted sum should not number of assessment inputs, with the b. Escalator/cascade of split of im- be overlooked. key variables to be settled by agreed proved viability between develop- indexation of previously agreed inputs. er and LPA, particularly of on-site Given the diverse nature of projects, While automation allows for a quick affordable housing. there does need to be some choice or and readily understood review, it does a range of review mechanism options not necessarily reflect current market Relevant factors to be in order to establish the most effective factors of the development at the date considered approach in each circumstance. of review. This is why an automated While 3 typical methods have been approach is not the recommended In agreeing viability review mechanisms identified, it may be appropriate approach for s106 stalled scheme a number of factors need to be consid- to agree a review process drawing reviews. ered such as: elements from each type. S106 agreement details a. The quality of the process for Advantages and establishing a project’s current disadvantages of each LPA policy will generally express a viability and the reliability of the approach preference that additional profit should base input information is crucial to result in an increase in provision of agreeing robust review arrange- Where a review mechanism is on-site affordable housing. However, ments appropriate, consideration should flexibility in policy on this to permit be given to the advantages and commuted sums in appropriate b. The cost and time taken in the disadvantages of each type of circumstances is recommended. negotiation and review process are approach. The approach adopting the major considerations for both de- same financial viability assessment Viability reviews should usually be velopers and the LPA when seeking methodology as used in initial planning undertaken during the reserved 21 THE TERRIER - SPRING 2015 matters application stage on later always be undertaken prior to the delivery for LPAs, viability review phases of a scheme, or at pre-specified implementation of a scheme or phase mechanisms on multi-phase schemes points (date/units disposed etc). in order to fully account at the time for create uncertainty both for the LPA and Careful consideration will need to the risk the developer is undertaking, developer. be given as to how this is set out in a and, therefore, the appropriate return. s106 agreement, although it will be An alternative is to assess viability important to the LPA and applicant to Whichever approach is chosen, it would based on reasonable assumptions express a range for the assessment, be usual to include arrangements for of growth, both of values and costs, i.e. for the applicant to state the level 3rd party determination if agreement is over the anticipated period of the of obligation above which they would not reached within a specified period. development. In agreeing to this not be expected to exceed and for Terms of reference need to be included approach, the developer accepts the LPA to state the level of obligation in the agreement. the risk that anticipated growth in below which the development will be sales and costs may be different. The unacceptable, regardless of the benefits Alternative approach to attraction to the LPA is that increased that arise from it. viability review - growth planning policy objectives would be modelling delivered throughout the development. The methodology may include, for For the developer the risk of example, specifying the process While capturing changes in anticipated growth variations would involved, the basis of model, inputs, development viability in changing be outweighed by the certainty of basis of return, and site value. It is market conditions and potentially agreed planning conditions, improving stressed that the re-appraisal should resulting in additional planning policy funding arrangements.

PETERBOROUGH –

Richard agreed to write this article, INVESTING IN GROWTH following an Eastern branch meeting at “The Posh” football ground last year. There are many elements to this project which illustrate good practice, Richard Hodgson including State Aid, the Carbon Challenge scheme, and even Assets of Community Value. Richard is Head of Assets and Projects at Peterborough City Council.

Background has enabled the council to deliver a The ownership of the ground and club project which touches on all of the went through various changes in the According to Centre for Cities, aforementioned elements of balanced last 20 years. By 2008, the then owner Peterborough is the 2nd fastest growth. had obtained planning permission for a growing city in the UK. Growth however residential redevelopment of the Eastern is not only about building new homes; Since 1934, the London Road Stadium Stand, the Moy’s End, and there appeared it’s about balancing the creation of has been the home of Peterborough a very real possibility that the whole new communities and an up skilled United FC, more commonly known ground might be sold for residential workforce with improved vibrancy of as The Posh. The ground had been redevelopment when the Club’s the city centre, health and well-being of developed incrementally over the contracted out lease expired in 2014. its citizens and generally giving people years, the most recent having been the something to do. South Stand, built in 1996/97 on the Given this threat, The Posh could back of grants led from the Football potentially have been left with nowhere Of all the projects the council has Trust. Interest had been shown at that to play and either need to ground share embarked on over the past few years, time in moving the stadium to a new in another town, or face not being one more than any other has created location, to potentially be replaced able to take its place in the League the more newspaper column inches than by a superstore but these proposals following season. To counter this threat the council’s decision in 2009 to acquire did not move forward. Not only was to one of the most visible symbols the London Road Stadium - recently there no suitable site found but the of the city, the council took the bold named the Abax Stadium. Five years cost of rebuilding the stadium in its decision to step in and purchase the on however, it is probably the best entirety was unaffordable (estimated at ground. It did so, however, having example of how hard work and a vision approaching £30m). established the significant “value add”

22 THE TERRIER - SPRING 2015 that the purchase could bring. The league regulations prohibit teams to a new long term lease at a rent stadium and its car park was acquired playing more than 3 seasons in the that would have to cover a significant in December 2009 for £8m. Championship with standing terraces. proportion of the council’s costs. £4m Since 2008 The Posh have been 3 times of the budget would be through Public The council’s vision in the Championship so if promoted Works Loan Board borrowing, with would now be prohibited from using its the balancing £5.5m being the Skills The aims of the council in purchasing standing terraces. grant. £2m of the borrowing would go the ground were threefold: towards the skills centre, underpinned Financial and lease matters by revenues that were generated, and ll firstly to preserve professional £2m for the football elements. The football within the city, a business In 2008 the council was awarded a council was able to secure £1.74m of according to an economic assess- government grant of £5.5m to be spent 0% interest short term Local Enterprise ment which was worth over £20m primarily on developing technical Partnership funding (repayable over p.a. to the city education for 14-19 year olds. The initial 3 years) to assist with start-up. The vision was to develop a STEM Centre council therefore only had a small ll secondly, and this is where the (Science, Technology, Engineering amount of capital to source until year 3 vision was created which runs and Mathematics) somewhere in the for the skills centre, over and above the through all the work undertaken city centre. An independent study £5.5m grant. on the stadium, was to create a was commissioned by the council, true “community stadium” with a to identify the best location for such This raised the first challenge - there multitude of uses. Nationally, stadia a facility. The report subsequently is little in the way of second guessing are substantially under used out- recommended that the new STEM what the new lease rent would be. side of maybe 25 games a year be located at the London Road Stadia rents tend to be a combination Stadium as part of the first phase of a of Depreciated Replacement Cost and ll finally, acquiring the stadium en- comprehensive redevelopment. investment valuations but there was abled the council to deliver access the real issue of affordability for the for the proposed 295 unit Carbon Following the above report, the club, particularly when it had spent Challenge scheme, a joint project council instructed FWP (architects) most of the past 10 years between between the Homes and Commu- to look at how the Moy’s End Stand the 3rd and 4th tiers of professional nities Agency, Peterborough City might be developed, as both a STEM football. Council and the now disbanded Centre and a new Away Stand for The East of England Development Posh. Initial design advice indicated State Aid Agency - one of only 2 Carbon that a centre of circa 3,400 sq m gross Challenge schemes to be built in could be developed, alongside a new The council used Lambert Smith the UK and by far the largest. This stand seating around 2,600 spectators Hampton, specialists in stadia valuation, development will bring in over within the overall budget set of £9.5m to assess a market value and confirmed £1.8m of New Homes Bonus for the (£7.5m for skills and £2m for football it would not accept a rental which council and additional Council Tax elements). fluctuated to reflect which league the approaching £350k p.a. club was playing for that season. To do To commit to this level of funding The so would mean the council’s income The Council used the Deepdale Ground Posh would be required to commit could vary and there would be far less of Preston North End as a model. As well as having 4 new stands, developed on a phased basis, the ground also incorporates a large Primary Care Medical Centre; fitness club and at one stage the National Museum of Football, now relocated to Old Trafford.

The council appointed Frank Whittle Partnership (FWP), the architects for the Deepdale, to work on the London Road Stadium. The Eastern End of the ground, the Moy’s End, was identified as the most obvious first phase for redevelopment. At the time, both the Moy’s and the opposite London Road end were terraced, with the main North Stand and the much newer South Stand being all-seater. Football 23 THE TERRIER - SPRING 2015 clarity on how the council’s borrowing costs could be met. The club did lobby the council for a low rent but the council was neither inclined, nor felt it was in a position to allow the club to pay anything less than market rental, mindful of State Aid. Some stadia rentals do take account of which league a club is in, but this is often embroiled in quite complex funding and profit sharing related agreements, and tend now to be historic arrangements. Ours is more simplistic. Moy’s End Stand Moy’s It has been well reported that the European Union has and continues to Procurement on with the project. The new lease look closely at stadia development/ also provided a commitment by the leases to establish whether there is When considering the procurement council for future investment up to evidence of State Aid. The 2 most of a building contractor for the new £1m (this was towards the next phase widely reported cases are Real Madrid development the option to use a - to retrofit seats or a 2nd new build and Ajax in Europe but there are now Framework was looked at but the stand if Posh was promoted back to reports emerging of local authority council’s technical advisers Mace, the Championship, underpinned by owned stadia in the UK starting to be recommended the council would be additional rents). All necessary council scrutinised. best served by going to the market. approvals were obtained and work started on the joint stand and skills The council worked closely with The contract was advertised using centre development in November 2013. The Posh on the issue of State Aid the OJEU procedure on a 2 stage compliance, giving them a real insight design and build basis, the initial 19 Skills Centre into the regulations. If there had been interested parties being reduced to evidence of State Aid, the club as a tender list of 6. Kier Eastern was By this time the Skills Centre had recipient would have to have repaid eventually appointed in October 2013. gone through at least 3 iterations all this. Pinsents who acted on behalf of The appointment and hence start of which required design adaptations. the council on the question of State on site was delayed due to dispute An example of one of these iterations Aid with the independent valuation with the club about the level of rental was the development of the concept of to hand, was able to confirm that the paid under the lease which when it adapting the STEM Centre design into a proposed new lease was on terms that was signed was higher than the new a private owner, acting at arm’s length, LSH valuation. However this was would have entered into in similar resolved by the council standing by circumstances and hence likely to be the new valuation and backdating State Aid compliant. the reduced rent. There was also an independent assessment again by LSH Carbon Challenge scheme of the potential loss of income during the construction works during which In July 2011 following extensive public only 3 of the 4 stands could be used. consultation, planning permission was A rent abatement was agreed which granted for the new stand and skills took account of matters such as loss of centre which at that time was also to gate receipts, hoardings advertising, incorporate a 2 megawatt combined additional stewarding and police costs heat and power plant serving both the through more onerous supporter stadium and the Carbon Challenge segregation, merchandising and scheme. The regulations have since catering. changed for the Carbon Challenge scheme so power no longer needs to be Following the issue of the Pinsent generated on site, being replaced now report, the agreement with Posh over with an a “Allowable Solution” in this terms for a new 25 year lease, rent case, a cash payment for offsite energy abatement, pre-emption and option saving initiatives. The area assigned to purchase in favour of the existing for this use now forms part of the skills owner who had repeatedly asked centre. the council to sell, at less than what the council paid, the council pushed Moy’s End Stand interior

24 THE TERRIER - SPRING 2015 Moy’s End Stand interior broader skills offer. Following election in 2010 the Coalition Government removed the restrictions on what the council’s £5.5m Target Capital Funding for STEM could be used for. This gave the council added freedoms to look at a wider scope than just 14-19 education, particularly given the council’s drive to make Peterborough a university city which specialises in green technologies.

There are over 600 businesses in Peterborough specialising in this field and there was a political desire to extend this into green technologies in the construction industry. Peterborough has been driving towards being the UK’s Environment Capital for many years, so the ability of Community Value (ACV) which was has so far delivered over 150 new to use the Skills Centre as a centre successful, the first of 3 ACVs that the zero-carbon homes on a brownfield specialising in such technologies, council now has within its portfolio of city centre development site. The utilising government grants, was not to assets. This could have caused a major council was bold in acquiring the be missed. The centre was renamed the problem during construction as the stadium; there was at the outset, and Peterborough Sustainable Skills Centre council had to provide a new substation subsequently since, a lot of dissenters with partnerships planned with both which was to be located within the particularly during a sustained period under and postgraduate providers as new stand. It is undoubtedly never the of austerity but there was a vision set, well as links to business while retaining intention of the Localism Act to cause that of creating a fantastic asset for its 14-19 age skills emphasis. issues such as this but with the utility much wider community use and this companies insisting that they take a vision is part way to being delivered. This initiative has now been taken lease of more than that allowed within a step further and when the centre the Act (less than 25 years) the council The project for the replacement of the opens in May 2015 it will include green had to advertise the lease and rely on remaining terrace has commenced technology business incubation space, no one other than the utility companies and it is anticipated this project will be an innovation lab (the FAB LAB which coming forward and expressing an bigger, contain both commercial and will have specialist testing equipment interest during the statutory 6 week community based uses, particularly the likes of which are only usually advertising period. Fortuitously none, around leisure and will form a new seen at a university campus or in other than the utility company, did, gateway into the city centre, a place large technology and manufacturing otherwise there could have been issues from the outset the council chose to businesses, and 3D printers). In addition during construction with the provision retain for a vibrant football club in it will have conferencing for up to 250 of long term temporary supplies until facilities fitting of a city with a slogan delegates, teaching space and an area the 6 months moratorium period for “growing the right way!”. for digital start-up with gigabit internet the ACV had run its course. Until this speed all integrated with a new 2,600 matter was resolved it had a flashing all-seater football stand. red light on the risk register, one that could never have been foreseen when Kier Eastern was able to provide the the build contract commenced. council and football club sectional handover of the stand which opened So where are we now? The build for its first game, on 22 November 2014. project is complete, the stand is in use, In doing so the amount of disruption the 3,400 sq m Skills Centre is due to caused to the operations of the club open in May, already with a number were kept to a minimum as well as the of key anchor users, Posh has a long amount of time the council had to offer term commitment to the council and a rent abatement. security of tenure, a new state of the art stand, new car park and access road. Asset of Community Value The community uses the stadium During construction, the Football facilities far more than ever before and Supporters Trust applied for the this is just the start. All of this adjacent stadium to be registered as an Asset to the Carbon Challenge project which 25 THE TERRIER - SPRING 2015 THE REGENERATION OF PARADISE CIRCUS, BIRMINGHAM

Peter Jones and James Dair

Peter Jones is the Director of Property at Birmingham City Council and a Director of Paradise Circus LP. He is working on a number of commercial and residential JVs including New Street Gateway and Icknield Port Loop as Birmingham sees this as the way forward to deliver major regeneration schemes.

James is a Director within the Public Sector Advisory Team at Lambert Smith Hampton. James, a qualified accountant by trade has worked in local government finance for the last 17 years, and over the last 7 years has led the financial work on the Grand Central and New Street redevelopment, the Paradise Circus redevelopment scheme, Birmingham Council’s award winning back office rationalisation programme, as well as supporting the early thinking around the Interchange and Curzon Street sites for the proposed HS2 project. He has recently joined LSH’s public sector team, where he will provide advice and support to public bodies to develop innovative and sustainable delivery models which provide greater synergy between the finance and property sectors.

The ambitious joint venture, Paradise Paradise Circus before Paradise Circus after Circus Limited Partnership, formed between Birmingham City Council and the BT Pension Scheme, with a business plan which includes a TIF style capital injection, will enable the regeneration of the key site at Paradise Circus. Construction work is underway from January 2015.

exposing the council to financial risk. shopping and commercial buildings, Background Also by using its property asset as with the consequent transformation of leverage, the council has been able to public perception. “Visitors to the city walking through generate a long term income stream Victoria Square are confronted with which generates a commercial level IRR. The final piece of the jigsaw is this import from post-revolutionary Paradise Circus. This glorified traffic Russia and forced to go through a Over the last 25 years Birmingham City island sits in a key location alongside tacky assortment of fast food outlets Council has slowly pieced its city centre the Grade 1 listed Council House en route to meetings or concerts at the back together; undoing the damage of and the Town Hall and separates ICC and Symphony Hall” - Freddie Glick, the failed post war Manzoni Plan which the new development in Westside Birmingham Civic Society: January gave us the 1970s Bull Ring Shopping (International Convention Centre, 2015 Centre, the Central Library and the Library of Birmingham and Brindley concrete collar of the inner ring road Place) from the established commercial This project depends on the ability to which constrained the growth of the centre on Colmore Row. The 8 acre site use innovative financial mechanisms commercial centre for 40 years. The city is a seriously dysfunctional area that in a public private partnership to fund is now seeing the fruits of public and needs to be re-developed in order to a major regeneration scheme without private investment in infrastructure, re-establish connectivity and provide

26 THE TERRIER - SPRING 2015 safe permeability across the city while improving the setting of some of Birmingham’s finest architectural heritage. In addition it has the opportunity to provide an environment to attract high quality commercial development and create a sense of place commensurate with a modern 21st century European city.

The ambition for Paradise Circus is to create a world class commercial development which will attract international occupiers to Birmingham. The aspiration is for a top quality architectural statement of intent for the city and a continuous flow of high quality public realm which will re- establish connections across the city. The model is Argent’s redevelopment of The LP has 2 directors representing retail, bars and restaurants, a hotel Kings Cross and the Limited Partnership BTPS and 2 representing the council. It of 250 bedrooms and a 550 space (LP) has harnessed the skill and has a viable business plan funded by a basement car park. The comprehensive imagination of leading architects and working capital facility, capital receipts redevelopment will create new public designers to achieve this. and ground rents from plot sales and spaces and restore key views which an innovative TIF style capital injection will re-integrate the site with the Paradise Circus Limited facilitated by the Greater Birmingham rest of the city centre, providing new Partnership and Solihull Local Enterprise pedestrian routes and public squares. Partnership (GBSLEP) Enterprise Zone. To achieve the scheme objectives, For the last 15 years the council has As part of the overall deal BTPS has significant changes need to be made been working on various iterations of committed to build out the first phase to the highway infrastructure together a scheme to redevelop Paradise Circus on a speculative basis, comprising 2 with public realm improvements. and the project is the most complex we office buildings of 170,000 sq ft and A Compulsory Purchase Order was have dealt with. In a different economic 175,000 sq ft net. The site was placed in promoted to assemble the site and and political environment, the council the hands of the contractor, Carillion, in to enable the acquisition of those could have used its financial muscle January 2015 and work is underway. elements not owned by the partners. directly to deliver the regeneration project, as it has done in the past. That The commercial redevelopment of Over its life PCLP will incur costs of option is no longer available and in any Paradise Circus is primarily office £146m. This comprises JV operating case experience tells us that some form focused, allowing for up to 1.5m costs, including land acquisition/ of public/private joint venture is likely sq ft of built space including some compensation and interest on working to produce a better all-round result by capital of £58m and £88m capital costs harnessing the delivery expertise of the Diagram 1 – PCLP structure Diagram 1 – PCLP structure private sector alongside the overarching Bri=sh Telecom governance structures and stakeholder Birmingham City GBS LEP Enterprise Zone management that the public sector Council Pension Fund brings to large scale projects.

The result is an ambitious joint venture Land injected EZ Investment vehicle with a complex finance structure, through long lease Investor returns through Paradise Circus Limited Partnership upliPed NNDR (PCLP), which is established to assemble the site, demolish the existing JV BOARD buildings and deliver the infrastructure change to the highway network and Enabler (Joint Delivery Long term return on investment of Assembles land and Venture with (Developer) the development platform for the land through disposes of building private sector) commercial buildings. The partners in ground rent plots to a developer the LP are the City Council and the BT DM following comple=on Pension Scheme (BTPS) represented of infrastructure works by Hermes. Argent is appointed as the development manager. 27 THE TERRIER - SPRING 2015 Diagram 2 – Paradise Circus project governance arrangements PCLP Board. The Plan takes the Joint Venture out to 2028 by which time it is

Local Enterprise anticipated that the redevelopment will Partnership (LEP) be complete. Paradise Circus Limited Partnership Board (PCLP) The formal establishment of the LP Enterprise Zone Finance Sub CommiHee was preceded by a period of working Execu6ve under a Collaboration Agreement and Paradise Circus project – Steering across both periods the project has Group Land Acquisi6on Steering Group Accountable body for been managed through a joint venture the Enterprise Zone / EZ Board comprising representatives of Directors Board BCC project update mee6ng the council and BTPS, supported by Argent. A clear governance structure has been in place throughout with working groups reporting back into Planning & Highways/ Legal/Finance Property Regenera6on Transporta6on the main Board. A Financial Plan has been in place throughout to maintain financial discipline across the income Note: PCLP Directors – Paul Dransfield (BCC), Peter Jones (BCC), Chris Darroch and expenditure profiles. (Hermes), David Grose (Hermes); PCLP Company Secretary – Anita Sadler (Argent) The complex legal documentation for enabling and infrastructure works, complex regeneration project which needed to put the project on site has which are prudentially borrowed by utilises the innovative governance been completed and the project is the council. The annual borrowing and financial structure that we have fully funded. The contractor is on site repayments are met by the uplift in developed for Paradise Circus. The and work has commenced, with BTPS the business rates generated from LP is compliant with both the public committed to deliver the phase 1 the redeveloped site in accordance sector procurement requirements buildings. with the Enterprise Zone principles. In of the council and the commercial order to maintain a positive cash flow and regulatory requirements of the The redevelopment of Paradise for PCLP, BTPS is providing a working pension fund. The structure enables Circus will make a major difference capital facility. The PCLP Financial Plan the council to inject the Enterprise to Birmingham. It will finally close a has a net annual balanced position Zone funding into the LP business plan chapter in the history of the city and after draw down of the working capital without exposing the council to risk. will provide a significant opportunity which is fully repaid over the life of the The downside risks of cost over-runs for future economic development. joint venture. are managed through the LP with All this has been achieved through a Argent using its experience of major complex public/private joint venture The GBSLEP has agreed to allow regeneration projects. with an innovative financial structure the council to utilise the uplift in made possible by the ability to utilise rates income coming from the Over recent years there has been much the uplift in rates income to support redevelopment of Paradise Circus to debate about greater freedoms and prudential borrowing. support the prudential borrowing flexibilities around the financing of costs. From 2021/22 the rates growth major urban regeneration projects. from Paradise Circus provides a positive One of the suggestions that has been contribution to the wider investment promoted through the work of the City plan for the LEP. This provides a major Growth Commission (see report ‘Powers source of investment for other schemes to Grow: City Finance and Governance’) across the LEP region. After the is the proposal for the introduction prudential borrowing has been repaid, of Tax Incremental Funding (TIF) to the Paradise Scheme will contribute invest in infrastructure and recoup over £180m of net business rates to the the costs through increased business LEP for reinvestment. rates. In the absence of any legislation on TIF, the council has decided to use In return for the injection of its land assets its Enterprise Zone (EZ) to mirror a TIF into PCLP, the council receives a long term funding model. secure income stream from the completed redevelopment which provides a At the PCLP level a business case was commercial level IRR for the council. developed to support the bid for EZ funding and latterly translated into Public/private partnerships are not a Business Plan and Financial Plan new but we are not aware of another which have been approved by the

28 THE TERRIER - SPRING 2015 URBAN DESIGN IN AN AGE OF AUSTERITY

Having enjoyed working with Ray for a good few years on development Ray Keeley proposals in the Bury St Edmunds area, I wanted to give him a chance to express his compelling arguments to surveyors Ramon is an independent Landscape Architect and Urban Designer based in East to give more consideration to the Anglia. Before setting up his own practice in 2013 he worked in local government for important principles of urban design. more than 25 years. [email protected] http://ramonkeeley.wix.com/ubiety

Principles for good what will future generations read predict the nature of demand in 100 architecture into our legacy? What will our town- years’ time, or even 50, or 25? It seems building say about us? almost certain that needs will evolve Our towns and cities are a physical and change – and rapidly. So much expression of our socio-economic and My guess is that for the most part the better then that whatever we put political institutions. It was ever thus. there won’t be a legacy. The Vitruvian up can be easily removed to make Older settlements can often be read principles for good architecture – way for the new. Buildings made with like a book with each district a chapter, firmness, utility and delight – are well- firmitas cost more and can be a bit of the streets and public spaces the pages, enough known and often espoused but a nuisance when the time comes to and the buildings the text. Together it seems that, particularly in an age of sweep them away. And delight? Well, if they tell the stories of the lives of their austerity, 2 of them seem to belong to they’re not going to last anyway it can’t inhabitants. Some are rigidly ordered, a different era and are not infrequently matter too much as long as they are not others almost haphazard. They may be overlooked today. Utilitas is king in downright ugly. grand or unassuming – often running the 21st century. And perhaps that is the gamut from one to the other - as it should be. Does ‘firmness’ belong So there we have it - make it useful, indicative of the social hierarchy. But in a fast-changing world? Who can make it cheap. And we have a most excellent methodology for procurement. It’s called The Market! It’s almost guaranteed to deliver the most useful development at the lowest cost. Good news for estates managers. You have a duty to get the best returns from the public estate and the market will help you do the right thing.

Pause for thought? Are we missing something? I believe so. Because even if we are not thinking of leaving a legacy, the fact remains that unless we are going to retreat ever further into a virtual world (and I have to admit to that possibility) the places we build remain not only an expression of our society but help define many of the Firmitas? Built to last but not exactly adaptable. possibilities for how life is lived. If we lose sight of this fundamental aspect 29 THE TERRIER - SPRING 2015 of development we risk the health and in shopping habits – mixed uses, different uses and parcelling the zones success of ourselves as individuals and walkable, attractive, and while we are into discrete sites is not so clever and as communities. It is that important. about it, let’s plant more trees because every development needs to consider Or perhaps you might think that I am many studies have shown that being how it is going to make a contribution over-stating the case? Allow me to cut off from the natural environment to a connected, visually rich, and vital expand upon a few aspects. can be psychologically stressful. Is this settlement. So next time you find familiar? yourself saying “that would be nice but Health and wellbeing we can’t afford it” step back, look at the But there’s no denying that the wider picture, and ask “can we afford Physical health … really? Well some of bottom line counts. Everything else not to?” In other words, maximising the most common risks to health in the is a nice-to-have extra, if we can returns is about more than direct, western world arise from obesity and afford it. But there again – are we short-term, monetary returns but even inactivity. We drive from home to work measuring things the right way? For a in these terms it is the wider town that and to the out-of-town retailers (if we’re given site there is a need to maximise needs to be considered. And while not using the internet). We’ve designed returns as a sale or a yield in order to we’re about it, let’s plant more trees – a our towns that way, but we could attract the necessary investment. Of leafy street is known to raise property build more healthily. We could be course we recognise that there are values by 7-15%. building a connected public realm that ‘externalities’ and each development is perceived to be safe and attractive has to make its contribution to the Sustainability within the framework of an accessible wider infrastructure. We have the and legible built environment in order mechanisms for this built in to the What about that firmitas thing? Well to encourage walking and cycling. planning system in the form of s106 or for ‘firmness’ substitute ‘sustainability’ Fortunately this goes hand-in-hand CIL contributions – as long as they are – particularly in the sense of being with reducing reliance on the private strictly relevant to the development resilient. Buildings may come and car because that is also proving to be a and they can’t be argued away. It’s go but the framework in which they major risk to health with an estimated tidy. Maximising development returns sit - our streets and spaces - tend to 29,000 people in the UK dying from air on the site will facilitate payment of last much longer. If we build places pollution (internal combustion engines these contributions and everybody is that are integrated, connected, legible, being a prime source) – that is 5% of all happy. But I would suggest that no diverse, adaptable, and have a strength deaths and the equivalent of the loss matter how big the fence is around of character, then they will be durable of 340,000 years of life in 2008 with an the site, it should not be considered as places, despite all of the changes that average reduction in life expectancy of an entity that can separated out from they will endure. And while we’re 11 years for those affected. And while the rest of the built environment. To about it…. trees really do contribute to we’re about it let’s plant more trees quote John Donne (almost) “No site is sustainability and resilience in all sorts – they filter out pollutants as well as an island, entire of itself.” All such ‘sites’ of ways. providing UV protection. are the building blocks of the places that we inhabit. In truth there are no The Romans also built Colchester High OK, but psychological well-being? ‘externalities’. The physical and social Street (overleaf), which is coming up Surely that’s all in the mind! The infrastructure is integral to the site even to its 2,000 anniversary. The buildings influential American historian and if not located in its ‘boundaries’ and, may change but the place has proven philosopher Lewis Mumford explored conversely, the development site is part to be resilient by being adaptable. the subject in some depth and of the wider whole and should make concluded that social interaction – its contributions in other ways too – in Which probably takes us all the way essential for psychological health - is its design and the way that it forms back to the Vitruvian concept of the very definition of a city. Mumford part of the wider built environment. I beauty or venustas. If we are going to was tapping into a rich seam of study think we all know that doesn’t always make durable places then we might and among more recent contributions happen. And if it’s about the bottom as well make them a delight too. The is ‘Happy City’ by Charles Montogomery line, consider the impact on the bottom Vitruvian principles have been going who concludes that there is a choice line for the town as a whole. for 2,000 years now so maybe he had to me made in development terms a point. Attractive places instil pride between the pursuit of economic Well designed, convivial places attract and aspiration – just think what the returns or the pursuit of the common higher income residents and businesses opposite would be. We know what wealth. When we measure outcomes that have more locational options. The we ought to be avoiding – “banal and in monetary terms we are probably highest rental values are not necessarily monotonous development, humdrum measuring the wrong thing. Bhutan achieved by the biggest, or indeed by in design and dominated by traffic” famously switched from measuring the most attractive, buildings, but by (Urban Design Compendium) and GDP to measuring GNH (Gross National those that are in the most attractive while it is undeniable that we have Happiness) and it is an idea that has locations and every development must made substantial progress in the last taken root. We need to build convivial play its part in achieving this in an 15 years or so, it does require effort places – a task made harder by changes integrated way. Zoning our towns into if we are not to slide backwards into

30 THE TERRIER - SPRING 2015 References

Report by the Committee on the Medical Effects of Air Pollutants, 2010

The City in History (Lewis Mumford) 1961

The Happy City: Transforming our Lives through Urban Design (Charles Montgomery) 2013

The Value of Urban Design (CABE, Colchester High Street DETR) 2001

Urban Design Group www.udg.org.uk

Malmo, Sweden

older habits that, I think we all realise, without really having to get to grips we have not entirely shaken off. And with economic imperatives. Well yes, our legacy? I worry less about the but it is part of my calling to prick buildings that we leave behind than the the conscience of those that have communities that inhabit them, but it is more difficult choices to make but our built environment that shapes our guess what, if you are engaged in communities. If we can leave a legacy the business of making places then of communities that are cohesive, you too are, by definition, an urban thriving and fulfilled I think we will be designer, like it or not. It’s a very doing well, but to do that we need to inclusive term. And design is not plan and build with care. simply about aesthetics (not that I want to be dismissive of aesthetics) it’s about We could do worse than look to our function – more than anything else. European neighbours for tips on how It’s about making places that work, in to build integrated development and every way, for the long haul. So really sustainable communities. The happiest we are all trying to achieve the same country in the world league tables is thing. And while we’re about it… Denmark, but Malmo, Sweden, pictured have you thought of joining the Urban here, is close on its heels. Design Group? Its where all the built environment professionals can come Of course, I would be saying these out of their silos and share ideas and it things, wouldn’t I? I’m an urban would so much the better with more designer. I have the luxury of being RICS representation. able to rant about utopian ideals 31 THE TERRIER - SPRING 2015 OFFICES TO RESIDENTIAL PERMITTED DEVELOPMENT RIGHTS – SUPPLY AND DEMAND

Matthew illustrates the implications of this temporary right through outcomes Matthew Wood in Hertfordshire. “Delivery of much needed housing is a clear positive, but the ad hoc nature of proposals Matthew is a Director in Planning at Lambert Smith Hampton. He is a town planner put forward under the prior approval with 24 years’ experience in both public and private sectors across development process make it difficult to plan for.” management and policy. [email protected]

Overview building to C3 dwelling house use, or to a red edge site plan plus written flats, as permitted development, not description of the proposal. These In 2013, the government introduced requiring full planning permission. streamlined requirements are a positive rights enabling the change of use thing for owners of office buildings in of B1 offices to C3 residential use as The Local Planning Authority (LPA) has sustainable locations in settlements permitted development. When it was a 56 day prior approval period, within where there may be significant pent up introduced, it was difficult to predict which to consider details of and ask for demand for housing. Further factors what the impact and consequences additional information on: which make exploring the provisions might be. appealing are the slow pace of local ll Transport/highways impacts of the plan preparation and adoption, as At a stroke, a potential source of development well as frustrations with the planning housing was identified that could system as it is currently operating. be realised without awaiting the ll contamination risks on the site; and often lengthy outcome of decisions Role of the local plan regarding new land allocations through ll flooding risks on the site. emerging local plans, or the need for Local plans seek to reconcile planning applications to demonstrate The right is temporary however, with diametrically opposed visions. On consistency with prevailing planning revisions to the General Permitted the one hand, there is a need to policy. Development Order laid before provide housing and the other land parliament on 24 March, confirming uses required to achieve sustainable This article, using Hertfordshire as that the right will expire after 30 May development, which according to the a case study, will explore the effect 2016. This could change though National Planning Policy Framework and consequences of permitted after the general election, with some (NPPF) lies at the heart of the planning development over the past 22 months. commentators anticipating that the function. On the other hand, there are right could be reintroduced by a re- those who would argue that housing Context elected Conservative government. land supply is all very well, but that the special nature of their district or To begin, it might be useful to sum up Submission requirements borough is such that any objective the right and the context it is operating assessment of housing needs should in. The process enables those interested be tempered so there are no green belt in considering this route to deliver releases to provide new housing. The nattily titled ‘Part 3, Class J of the housing without resorting to the Town and Country Planning (General broadside weight of information Situation in Hertfordshire Permitted Development) (Amendment) associated with a planning application. Order 2013’, introduced the ability Hertfordshire contains 2 garden cities, to change the use of a B1(a) office Submission requirements are confined Letchworth Garden City founded

32 THE TERRIER - SPRING 2015 Making property work harder

ambert Smith Hampton is proud to advice, building consultancy to asset valuations, work with over 250 public sector planning and development support to working L organisations, providing property with private partners to deliver the best outcome advice and managing complex real for you. estate portfolios. Contact us to find out more about how we can We can help you to achieve more – from estate help you make the most of your property interests. management to strategic asset management

Lambert Smith Hampton 45 Grosvenor Road, St Albans, Hertfordshire AL1 3AW T +44 (0)1727 834234

33776 LSH PROPERTY DEVELOPMENT ST ALBANS AD.indd 1 26/02/2015 16:20 in 1903 and Welwyn Garden City in And for the LPA? of 489 residential units will have 1920, plus 4 post war, first wave new been delivered via the permitted towns (Stevenage, Hemel Hempstead, Delivery of residential units via the development right since May 2013. By Welwyn Garden City and Hatfield). permitted development right enables comparison, the annual rate of house Unlike Cambridgeshire, where new hard pressed local authorities to point building envisaged in the St Albans settlements at Cambourne and to continued success in delivering Strategic Local Plan consultation in Northstowe will deliver approximately housing in their Annual Monitoring October/November 2014 was 436 19,500 new homes, housing delivery Reports (AMR) and use it as further dwellings p.a. Office to residential in Hertfordshire is likely to be from evidence why there is no need to permitted development has therefore urban concentration and sustainable begin identifying new housing sites on delivered over one year’s housing land urban extensions, which themselves contentious green belt sites as part of supply in the urban area. are deeply controversial in their host their local plans. locations. Here, the planning authority could However, the extent to which a LPA can not foresee the extent of permitted This context is relevant to the office prepare, plan, monitor and manage development schemes it would be to residential permitted development for this type of development is clearly confronted with. The AMR enables right. It sets the background against limited. They have to be reactive rather monitoring of the scale of loss of which demand can be met, land valued than proactive when it comes to the employment land. A ‘Plan, Monitor, and the relative benefits to be derived impact of the provisions. Manage’ approach to the issue might from a nimble streamlined process see replacement employment land of housing delivery. It should not In addition to the ‘wildcard’ nature of supply identified as part of the therefore be surprising that office to emerging proposals, there are other emerging spatial plan – but of course residential permitted development disadvantages from a LPA perspective. the only place that could be is in the schemes are proving attractive in Introducing new residents into existing green belt. Hertfordshire. enclaves of employment land has potential to place conflicting uses In Welwyn Garden City, similar press In part, driven by land values resulting into close proximity to one another. interest was aroused by proposals to from pent up demand, the permitted There will be no financial contributions change the use of 3 office buildings development right has delivered towards infrastructure from prior formally occupied by Rank Xerox additional residential units on land approval development such as early to 133 residential units, all within in sustainable urban locations, where years, school places, library provision the designated employment area in housing sites allocated in local plans etc. the town. That proposal resulted in are either few and far between, or trading of political brickbats, as well as at worst non-existent. Replacement With these issues in mind, a number respondents observing that selective local plans are at such early stages of of authorities sought identification of ‘pruning’ of other employment areas preparation and therefore of strictly ‘exempt office areas’, Article I(6A) to could see the borough council meet limited weight for decision making secure exclusions from the permitted its housing target without needing to purposes. Therefore, the potential to development right. resort to any green belt releases. enhance value, and realise that value without resorting to an expensive In Stevenage for example, the A positive planning response planning application, has obvious council protected its prime gateway attractions for landowners. employment land supply in Gunnels Welwyn Hatfield Borough Council Wood Road. Stevenage is tightly has actively sought the views of Benefits to landowners of constrained by its administrative landowners regarding whether permitted development boundaries. The appetite for growth employment land would be suited to rights in the borough is not matched by alternative use as a consideration for land to grow, whether for housing the emerging local plan. Proactively For landowners, in addition to the or employment, principally into scoping the likelihood of landowners streamlined and therefore cheaper neighbouring North Hertfordshire. The putting forward sites for alternative prior approval process, the permitted decision to seek to protect prime sites use and planning for replacement development right can be explored can be understood, when the ability employment land in the emerging local without having to wrestle with policies of the planning authority to provide plan is a positive planning response. intended to protect employment compensatory replacement is limited. land, which are in place in some areas. Tensions associated with that under the Spatial plan preparation provides an Planning obligations mitigating the NPPF‘s ‘duty to cooperate’ have been opportunity for the LPA to consider impact of development are avoided well documented elsewhere. issues of employment land availability, and the scope of consideration and and suitability of land to meet its opportunity for intervention by the In St Albans, recent local press required purpose. As with housing planning authority is reduced. Thus, the coverage reveals that for St Albans land, one would expect that a shortage decision making process is simplified. City and District Council, a total of employment land supply would be

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Commercial • Rural • Residential • Planning & Development carterjonas.co.uk addressed as part of the preparation of may have a significant role to play. Country Planning (General Permitted the local plan. Ultimately though, the consequence Development) (England) Order 2015, of continued permitted development appears to signal the end of the office Delivery of much needed housing is a office conversions must be that, in to residential permitted development clear positive, but the ad hoc nature addition to considering green belt right. After the general election, one of proposals put forward under the green field releases for housing land, might speculate that a re-elected prior approval process make it difficult the same needs will exist in relation to Conservative government could to plan for. Consideration needs to be employment land. issue one of the first amendments given to identifying contingent sources to the 2015 order and reintroduce of employment land as part of the local In the absence of anything like a the permitted development right for plan process. county structure plan, the appropriate conversion of offices to residential use. Local Enterprise Partnership may be Authorities also need to co- well placed to take a leading role in In the meantime, planning practitioners operate articulating these needs, as well as can begin to consider the implications sourcing funding and driving forward of the new permitted development However in Watford, where the pipeline infrastructure projects, which can right proposed in the 2015 Order, of new supply has been identified as a facilitate delivery of sites. introducing a permitted change under weakness, that will be difficult since the Class P of up to 500 sq m of Class B8 authority has such tight administrative Dangers of forgetting about Storage and Distribution buildings to boundaries. Delivery of additional other land uses C3 dwelling house uses, subject to a employment land relies upon co- prior approval process, until 15 April operation with neighbouring planning Factoring in the need to identify 2018. What will the implications of that authorities, as well as innovative employment land, alongside housing be? approaches to recycling existing land. and education land, public open This is something Watford Borough space, roads and other community One thing is for certain, if the Council is achieving with projects such infrastructure are all part of local plan planning system fails to compensate as the Watford Health Campus, which making. There is a danger however or anticipate a degradation of can only be further enhanced by the that the debate becomes polarised employment land supply by identifying Croxley Rail Link. around housing delivery at the new sites and new ways of working, expense of other land uses, which are then it might be argued to have Other examples of areas where the equally important component parts of failed in the fundamental objective of ‘duty to co-operate’ and a shared vision sustainable land use policy. delivering sustainable development. of the way forward is required are East Hemel Hempstead, where development In those areas where authorities’ around junction 8 of the M1 could boundaries are tightly constrained, deliver significant new employment neighbouring authorities should be land opportunities as well as housing. working closely together to achieve the Co-operation and a joint vision strategic planning across boundaries between Dacorum Borough Council required by paragraph 178 of the NPPF. and St Albans City and District Council will be critical here. Given that the NPPF says that spatial plans have a critical economic role to Some employment sites may provide play – “building a strong, responsive potentially suitable housing sites, and competitive economy, by ensuring though issues such as site assembly that sufficient land of the right type might require more interventionist is available in the right places and approaches by LPAs. Fundamentally at the right time to support growth though, from a planning perspective, and innovation; and by identifying where there is finite land resource and coordinating development and the constraint of green belt, there requirements, including the provision is a real danger of robbing Peter to of infrastructure” – it would be strange pay Paul if replacement employment if provision of new employment sites opportunities are not provided. and opportunities is not part of what the government envisaged in local Realising additional housing plans. opportunities on employment sites does reduce pressure to identify Conclusion politically contentious sites on the edge of settlements and in the green The tidying up exercise carried out belt in the short term, and they by the government in the Town and

36 THE TERRIER - SPRING 2015 CO-LOCATION, CO-LOCATION, CO-LOCATION

Andrew Rowson

Andrew leads EELGA’s asset management offer across the East of England. He established the “East 17” Essex Property Partnership and has managed its programme since 2011. Previously as a director with the 4ps and Local Partnerships, Andrew led the national housing and property team, setting up the West Midlands Property Alliance Andrew provides a very useful summary in conjunction with Improvement and Efficiency West Midlands and creating the of service types, opportunities for Strategic Asset Management Review process (commended by the Audit Commission) for co-location, and functioning examples. the benefit of authorities across the country. He was formerly the Director of Property Further sources of information are and Asset Management at Cambridgeshire County Council gaining beacon status for referenced. the Council in 2005. [email protected]

Introduction it is worth reflecting on when and in highways depots, police stations, fire what circumstances co-location is the stations) need to have good road East of England Local Government answer. This article seeks to offer some and geographical access and be Association (EELGA) is a politically-led, thoughts on the subject and show how strategically sited. cross party, organisation which works the EELGA is working with councils on behalf of the 52 local councils in contemplating these major change I think most services can be included the East of England to harness their programmes. within one of these categories and it collective strength to shape and serve can be a useful first step in deciding their communities and localities. Taxonomy of services “who else” might be a candidate to co-locate with. It is not an exhaustive In a changing world there are some As a first step it is perhaps helpful to list of service areas but hopefully certainties – there will be less money draw up a simple taxonomy of services provides a sufficient idea of how such a for local government and more demand to see how they fit a potential co- tabulation works and provides a guide pressure on services year by year. This location solution. as to which services can be readily is driving councils and partner agencies grouped together and share a building to think more radically about the way A first group of services, which I call on a co-location basis. So for example they deliver services and increasingly “community specific” (such as libraries, one can see how “community specific to examine more critically where their health centres and schools) need to services” could be brought together physical footprint needs to be and how be in the community and located in or under one roof and so on with the large it needs to be. It is encouraging close to the population centres they other 2 categories. them to think about how they can serve. share support service infrastructure and also how they can share community A second group of services, which I access space where front line services call “administration specific” (such as are delivered. legal, finance, HR, democratic) have no particular location requirement in One of the themes therefore to emerge terms of the population other than for over recent years for asset managers the convenience of staff or Members. has been the mantra “co-location, co- location, co-location”. While it might A third group of services, which seem obvious what this is all about, I call “logistic specific” (such as 37 THE TERRIER - SPRING 2015 CO-LOCATION TAXONOMY

Community specific services Location parameters Suitability for co-location

• Libraries Public needs to be able to access There are safeguarding issues concerning • Registrar service/register offices schools to be addressed and sensitivities • Schools Location based on demographics around social care interviews and court • Youth service functions • Doctor surgery/health centre • Leisure centres However all the services listed are potentially • Job Centres eligible for co-location in communities and • Justice (courts) [1] can form hubs • Social care [2] • Village/town halls Since administration specific services (see • Housing/benefits offices below) can be located anywhere these • Local voluntary and community groups community hubs can also be designed to accommodate services from within that category

Administration specific services Location parameters Suitability for co-location

• Planning Typically where these are local authority All these services require office space and • Environmental offices these sites have not been chosen are natural candidates for co-location with • Economic development or designed for the current purpose in each other in terms of the ability to share • Resource management services e.g. hand but are inherited from previous accommodation legal, HR, finance, asset management, local government eras and have simply ICT, audit been adapted This is one reason why shared service • Member functions arrangements for so called” back office” func- • Housing administration No constraint on location tions are becoming more common • Education administration • Social care administration Principally office environments are • Contact centre required (but note Member/ceremonial • HM Civil Service Depts. e.g. HMRC functions) • Social enterprise HQs • Housing association HQs For legacy reasons most civic centres and • Clinical Commissioning Groups town halls tend to be in the centre of the relevant city or town - but there is no ser- vice reason for this now. Reasons tend to include such things as the attachment to civic pride architecture and the presence of council chambers etc.

Channel shift and modern working styles are increasing the freedom of location

New locations will be determined by staff access and opportunity (e.g. availability of suitable site or suitable office supply)

Logistic specific services Location parameters Suitability for co-location

• Fire stations [3] Sites are selected strategically - for exam- Police and fire are excellent candidates for • Police stations ple to enable: co-location • Highways depots • response times to be met, or • Waste recycling centres • public duties to be performed Depots and recycling centres can also be • MOD efficiently, or compatible • Hospitals [4] • to allow large numbers of people to access a service Hospitals can be included with police/fire sites (ambulance siting)

MOD has security considerations which makes it more complex to associate with

1. Justice centres (Crown Courts, Civil Courts, Magistrates) can also be argued to fit the logistic specific category

2. Social care – this is referring to field based social work care teams who need to be reasonably close to client groups

3. Fire stations are strategically sited according to fire cover review studies – often this will mean proximity to risk areas i.e. population centres

4. Larger hospitals with scale will serve large populations and hence their inclusion in this category

38 THE TERRIER - SPRING 2015 East of England examples councils and the rest of the public for co-location across the emergency sector to embrace the “one public services and between the health and There are lots of good examples of estate – one public service” concept care sectors where the new social care co-location across the country. To take and add value to communities as well agenda is particularly driving increased just a few examples from the East of as saving themselves money through collaboration. One outcome will be a England you have: co-location and rationalisation. toolkit for the public sector on how to approach co-location opportunities. West Suffolk House, Bury St Edmunds, The EELGA is able to help many Suffolk – this first phase of a full public authorities in the region with initiatives For more information on how EELGA’s service village concept houses Suffolk such as co-location because it has built Talent Bank operates and how it might County Council’s west of county up a team of expert asset management help you please contact me at andrew. services, St. Edmundsbury Borough specialists within its “Talent Bank”. [email protected] . You can also Council, Forest Heath District Council, This is a resource for the sector that see our information booklet on asset West Suffolk CCG and the EELGA in can provide additional capacity and management services by viewing a fully integrated new building with the skills and experience needed, as our website www.eelga.gov.uk (NB shared reception and FM. It is an required, at cost, on a non-profit basis. Search for asset management, click on excellent example of administrative the first item that comes up entitled specific services being co-located The EELGA Talent Bank has, for example, “Asset Management Support I Talent been working with Essex County Bank I EELGA” and there is a link to the Sackville House, Cambourne, Council and all its partner authorities booklet). General information can also Cambridgeshire – this purpose built on its One Public Estate programme be found within the Talent Bank section community building helps anchor the building on the East 17 Essex Property of the website. new community of Cambourne by Partnership it helped establish 4 providing a library and health centre years ago. This has, among other Note 1. Norfolk is working jointly for the residents as well as providing achievements, provided the foundation with Suffolk on a One Public Estate meeting rooms and touch down space of a common shared map based on programme as a GPU/LGA OPE pilot). for council staff. It is an excellent line data system (the Essex Property example of a community specific Asset Map or “EPAM” for short) that EELGA Talent Bank - Improving the East service co-location has proved so fundamental and useful in supporting the geographic locality Causeway House, Braintree, Essex – a reviews that EELGA has carried out and major refurbishment of Braintree in identifying co-location opportunities. District Council’s Civic Centre enabled the county council to vacate unsuitable EELGA has also worked extensively properties elsewhere and co-locate, supporting all the Cambridgeshire taking a significant amount of space authorities with their Making Assets for its teams in the newly refurbished Count (MAC) project. As a DCLG building. Again this is a very good sponsored capital and asset pathfinder example of administrative specific project, MAC has helped ensure the service co-location development of a common estate strategy across the county and has Shared Use of Fire Stations in Essex developed full business cases for the with Essex Police – for example at regeneration of key market towns such Tiptree, Brightlingsea, Wivenhoe and as Ely, March, St. Ives and St. Neots. West Mersea – demonstrating logistic EELGA has worked with MAC partners specific service co-location practice to develop business cases for co- location projects and on the production Landmark House, Suffolk, Ipswich – of an overarching business case, this building has been reconfigured examining alternative delivery models to accommodate police functions based on a joint venture approach with and county council services and is an the private sector. interesting example of a hybrid – part administrative specific and part A further exciting challenge for EELGA logistic specific illustrating that there currently is taking its learning from can be cross-over between categories across the region now to support on occasion. Norfolk County Council with the implementation of its ambitious Notwithstanding the progress already One Public Estate programme (1). made there are many, many more This programme includes projects opportunities across the country for specifically focusing on opportunities 39 THE TERRIER - SPRING 2015 KENSINGTON TOWN HALL UPGRADE

Keith Harper and Adam Granger BSc(Hons) MRICS

Keith is Programme Manager at the Royal Borough of Kensington and Chelsea. He has over 30 years’ experience in facilities management and his been working on project and programme delivery since 2005. Keith is an MBA and is a qualified MSP practitioner.

Adam joined Pellings in 2007 as Head of Project Management, bringing with him extensive project management experience for numerous clients in a variety of sectors including local government, commercial, education and leisure. He was lead project manager for the delivery of the refurbishment of the second and third floors at the RBK&C Town Hall.

This case study of public sector office buildings included Knightsbridge not available at all and consequently the rationalisation has all the hallmarks Barracks and, most famously, Coventry cost of operating the plant was rising. of effective asset management and Cathedral. shows how an historic building can In 2005 a comprehensive survey of the be transformed internally to provide a The town hall stands on an oblong site building outlined the works required dynamic workplace with a big ‘wow’ factor. which slopes up from Kensington High to refurbish the M&E services and the Street with Vincent Harris’s neoclassical review team provided budget costings library, built between 1957 and 1960, for planning purposes. A project was The finishing touches to the £21m fronting the high street. The air- developed to ascertain what work upgrade of Kensington Town Hall conditioned building constructed with was required and how it could be overlooking Kensington High Street a steel reinforced concrete structure completed with minimal disruption and have recently been put in place and and brick cladding which matches at optimum cost. The refurbishment it is now regularly used by around the library’s red Roman brickwork, programme was considered to be 1,600 council staff who can work more comprises administrative offices, essential if Kensington Town Hall was to effectively and more easily in a well- public halls, a civic suite and public car remain viable as an office facility. designed flexible workplace. parking ranging over 8 levels. It is laid out around a square courtyard plan and At around the same time a senior The scheme was project managed by there is a giant redwood in the centre group of council officers were looking multi-disciplinary practice Pellings of the courtyard which was planted in at staff accommodation issues across and designed by architects Sheppard memory of Sir Winston Churchill. the borough under the working title of Robson. The overall programme “People and Places” and towards the delivered total savings to the council Like all local authorities in recent end of 2007 a workspace utilisation in the region of £3.79m a year, with a years, the Royal Borough was faced study was completed on the town hall. significant part of that total realised by with having to put in place cost Unsurprisingly and as is typical for releasing other office buildings in the saving measures and with a number territorial office accommodation, it was borough. In fact it has gone one better of buildings occupied by the council established that half the desks in the and released space within the town around the borough, there was the building were empty most of the time. hall which has been let out, in itself potential to relinquish this space and to contributing a net gain of over £1m a make better use of a smaller number of The survey found that: year to the total savings. All of this as a buildings. result of flexible working allowing more ll Of the 1,220 desks surveyed, 115 staff to share the same facilities. Furthermore, by 2000 the mechanical desks were not used at all during and electrical services to the building the survey period Kensington Town Hall was the last were at the end of their expected major work of architect Sir Basil Spence economic life. Maintaining the old plant ll Nearly half of all desks were unoc- and was completed on 29 November in service was proving more difficult, cupied for 3 days a week or more 1976. Spence’s previous notable spare parts were not easy to come by or

40 THE TERRIER - SPRING 2015 ll 280 desks were unoccupied for 4 emissions. As a result, the proposed Ultimately the project was procured days a week or more 25% reduction in energy consumption in 4 discrete stages with a separate arising from the M&E works at the town contract for each, using a full EU ll The maximum desk occupation hall would have a significant effect on compliant procurement process and a level recorded in the study was 52%. the council’s level of carbon emissions. framework agreement. The final phase, which required creating a separate It was clear that this represented an The delivery team’s solution was to lettable area, was separately procured opportunity to use the office space create a building with a range of “work to ensure a competitive price. The more effectively. One of the most settings” that were to be found at the contracts used in each case were JCT common staff frustrations and barriers council with inbuilt flexibility to cope Standard Form. to productive working was the difficulty with these settings changing over time. in finding meeting rooms and yet many It was acknowledged that different The professional design and delivery dedicated offices were found to be teams had different work styles. For teams were each appointed directly empty much of the time. This, together example, it was accepted that not every with the council using the appropriate with excessive paper storage, often not meeting needs to be confidential and industry forms of appointment. The well organised or managed, indicated could therefore be held in any one of a architect was engaged using RIBA inefficient use of office space and range of flexible work settings, where forms, cost consultants, Henry Riley was detrimental to the quality of staff staff are more visible to each other and project managers and contract accommodation. Arguably it also had in a more open environment where administrators Pellings were retained a negative impact on staff morale and everything is shared. using RICS forms and Butler & Young working effectiveness. Associates, the mechanical and Another key decision taken was electrical engineers, were employed It was at this point that the officers that the council would direct the using ACE conditions. The CDM advisers realised that the if the M&E upgrade refurbishment using an external were Watts & Partners. was to take place the building could professional team of construction either be returned to its traditional, consultants while the ‘people change’ The strategic approach undertaken territorially occupied, set of hierarchical work would be delivered directly by by the council procurement team cellular offices with allocated desks and council staff and given external support at the outset proved invaluable, windowless corridors, or it could be the when required. This allowed the council especially with the building being catalyst for workplace change. to create residual knowledge and in part occupation throughout the experience to handle future work style whole of the project programme. This The officers were aware that in public changes when required. assisted Pellings as project manager and private sectors, the approach to and contract administrator and enabled workplace provision was changing – For a number of reasons the decision a smooth transition from one phase hierarchies were flattening out with was taken to undertake the project in to another with the flexibility to make more open plan and collaborative phases. Like any office refurbishment changes that became apparent during working becoming the norm. ICT completed ‘in occupation’, works had the programme. colleagues were delivering technology to be carried out around the building that was allowing better collaboration users. The cost and disruption to The upgrade that was finally delivered and releasing staff from needing to vacate the building would have been on 3 upper floors and lower ground be in a fixed location; they could work excessive. The sensible approach was floor created a whole new working in a more mobile way, not reliant on to tackle the project floor by floor – experience. Before, each floor had a a specific location within a building decanting people as necessary. As staff central corridor running around the or in many cases not even reliant on a started to share space and work in middle of the 4 sides of the building building at all. more agile ways, the decanting work with cellular offices each side of the became easier. Also, contracting for the corridor. These were all scrapped in At the same time there was the phases discretely allowed the council favour of shared space where all staff opportunity to save on energy costs. flexibility should financial or other are more visible to each other and can Kensington Town Hall was responsible constraints require significant changes collaborate more easily. This design also for around 23% of all council carbon to the proposed work. created more office floor space.

41 THE TERRIER - SPRING 2015 In addition to the main open plan create a space in one of the wings operation throughout the works; floor areas, architect Sheppard Robson known as Niddry Lodge for letting out careful planning enabled phased created a range of different size spaces on the open market and producing works across the office floors, well from booths for individuals providing valuable income for the council. controlled in terms of noise etc., semi-privacy to break-out spaces Determining the right level of finish and minimising cost and disruption providing meeting spaces for between specification for what was a speculative 3 to 30 people. office letting at the time, without ll A good design brief which drew knowing who the tenant would be, from staff consultation has The basement floor has been totally was a key challenge. It was not known delivered a bright, contemporary upgraded. Previously it was used for at the time of specification and design office space, delivered at industry meeting rooms with artificial light and whether the accommodation would standard rates that staff like and storage but now it acts as the new staff be a single or multiple let. The council can work in effectively entrance, with bright break out spaces appointed a well-known, successful, for relaxation and informal meetings local letting agent who knew the local ll Very good use has been made together with a staff café that is used market extremely well. Pellings liaised of the basement area; through for meetings and work by staff. closely with the council to agree the creative design the area has been most appropriate level of fit-out and reclaimed as an attractive, effective The architect came up with a colour finishes. It was necessary to ensure the set of workspaces coding for all 4 corners of the building new entrance to this self-contained unit – orange, purple, pink and green- was sufficiently attractive, without over ll 96% of all the old office materials covering all 4 floors. These strong specifying, to ensure the costs were (walls, floors, carpets, ductwork, colours provide the real ‘wow’ factor kept within budget as reflected in the cables etc.) removed from site were which was really important as staff robust business case. This again was recycled was being asked to relinquish personal done through liaising with the agent desk space and the management and soft market testing. ll Staff are more mobile with laptops team wanted them to have a working and mobile telephones issued environment they were really proud of. Pellings ensured the design brief built as standard, while a one device The whole ethos is that everyone gets in sufficient flexibility to accommodate per person policy simultaneously what they need to do the job when up to 3 tenants (one on each floor) reduced the organisation’s spend they need it, but it is all shared. in terms of access control, lift access, on ICT metering, alarms and evacuation. Before the upgrade the offices had Common areas were determined, ll Flexible working practices, over 6km of storage which was not taking into consideration the need alongside staff training and new considered efficient use of premium to maximise the lettable space. technology, are helping staff office space. A thorough information Ultimately, the accommodation has work together better, making the management initiative was completed been let to a single tenant at a rent organisation more effective and to ensure all building users disposed which was above the predicted market transparent of unnecessary items, archived papers outcome and business case. where appropriate and made full use ll Tele and video conferencing of existing electronic storage systems. In conclusion the whole project technology and electronic ways of The target was to provide 2.2 linear highlighted the following very positive working are helping us collaborate metres of storage per work station but deliverables: more easily with colleagues across in the event this has come in at under 2 borough boundaries metres. As all building users share desks ll A well-structured programme, each individual has his or her own with clear objectives and effective ll Early benefits of the workstation locker, being their only territorial space! mechanisms for decision making, 7:10 sharing ratio made it possi- delivered the programme of works ble to accelerate the programme, The building services were totally ahead of time and within budget completing works both in larger revamped. 40 years’ worth of cabling tranches and consecutively, short- was removed from false ceilings, ll Good staff engagement early on, ening the works programme perimeter air-conditioning induction and throughout, minimised disrup- units were ripped out, new chilled beam tion to services and good take-up ll In order to meet a very tight gov- ceilings were installed and raised floors of new technology and working ernment deadline, the photo vol- incorporated to carry data and power. practices taic array on the roof of the town hall was installed as part of the 3rd During the project it was decided to ll The town hall remained in normal floor refurbishment works.

42 THE TERRIER - SPRING 2015 THE PUBLIC CONTRACTS REGULATIONS 2015

Katherine Souter

Katherine explains the increasingly complex procedures for procuring Katherine is a senior solicitor at Mills & Reeve LLP, focussed on construction law and public service and supply contracts in the specialist European competition law areas of state aid and public procurement. this detailed and informative piece. [email protected]

The Public Contracts Regulations 2015 The definition of “contracting authority” Below-threshold contracts (“PCR 2015”) implement in England and is not significantly different although Wales the new EU Directive 2014/24/ there is a clearer distinction between Previously below-threshold contracts EU on public procurement. They have central government authorities and were not regulated. The PCR 2015 now been in force in England and Wales sub-central authorities. regulates below-threshold contracts in since 26 February 2015 subject to 3 ways: various transitional provisions and The thresholds exceptions. Any person within a ll Contracts as low in value as public body who has responsibility The PCR 2015 sets out the rules £10,000 (or £25,000 for sub-central for overseeing public spend on on how to calculate the value of a authority procurements), if adver- works, services and goods will most contract for the purposes of assessing tised by the contracting authority, likely already be aware of the public whether the above-thresholds are must then also be advertised on procurement regime and will most exceeded. It refers to the value of the government’s Contracts Finder certainly need to be aware of the the procurement (as opposed to the portal practical implications of the changes. value of each individual contract) so it This article outlines those changes is important to note, particularly with ll Unless an exemption applies, which will be of interest to estates the professional team in construction details about contract award must professionals in the public sector and in procurements, that the value of all of also be sent to Contracts Finder particular in the context of construction the professional team’s contracts may projects. need to be aggregated for the purpose ll There is a new ban on the use of of assessing if the procurement is above a pre-qualification questionnaire A brief recap or below-threshold (and therefore or separate selection stage for subject to the Regulations). below-threshold contracts and a The basic application of the PCR 2015 statutory obligation to have regard has not changed since the Public In a design and build project the to Cabinet Office guidance on this. Contracts Regulations 2006. value of any supplies or services being made available to the contractor (i.e. Advertisement The full regulations apply to public contracts with design consultants to be works contracts (above £4,322,012), transferred to the contractor) should be All contracting authorities are now public service contracts (above included in the valuation of the works required to offer full and unrestricted £111,676 for central government contract for the purpose of establishing access to all the procurement authorities and £172,514 for sub- its value for the application of the documents from the date that a central authorities) and public thresholds. contract (OJEU) notice is published. supply contracts (above £111,676 for “Procurement documents” is a central government authorities and Where a contract value falls under the defined term in the PCR 2015 and £172,514 for sub-central authorities), relevant threshold the PCR 2015 will includes (non-exhaustively) technical for pecuniary interest, concluded in still have limited application. specifications, descriptive documents, writing between one or more economic pre-qualification questionnaires operators and one or more contracting and the terms and conditions of the authorities. contract. Under the old regime many 43 THE TERRIER - SPRING 2015 contracting authorities would publish competitive with negotiation PCR 2015 will be subject to the new the contract (OJEU) notice and pre- procedure can be used in a number of rule that call-offs following a mini- qualification questionnaire (PQQ) and circumstances, the most relevant for competition will have to be published then prepare the invitation to tender construction projects being when: on Contracts Finder. (containing technical specification and contract documents) in the ll requirements involve design or Labelling interim period while candidates were innovative solutions; or responding to the PQQ. Under the Contracting authorities may now PCR 2015 this approach is no longer ll the contract cannot be awarded specify that a supplier must use a allowed. It will mean that a lot more without negotiation due to nature, specific label as a means of proof that time and effort will need to go into the complexity, legal or financial make the goods/works/services comply suite of procurement documents before up or risks attached; or with environmental/social or other the call for competition is published. characteristics (for example sustainable ll the specifications cannot be estab- timber), provided that the safeguards It is also worth noting here that (other lished with sufficient precision. set out in the PCR 2015 are met. than a contracting authority that is a maintained school or academy) The new competitive with negotiation Division into lots contracting authorities should now procedure appears to fit in with the way publish on Contracts Finder any most construction procurements work As part of the drive to encourage Contract Notice or Contract Award in practice. Provided the circumstances SMEs the PCR 2015 now requires a Notice which is published in the OJEU. for its use (above) are fulfilled, it will contracting authority deciding not to allow the contracting authority to invite divide a contract into lots to explain Choice of procedure and the contractors to raise comments on why this decision was taken in its timescales the building contract terms prior to Regulation 84 report (see below under tender, for the contracting authority heading “Regulation 84 report“). Under the PCR 2015, 5 standard to review, consider and if appropriate, procurement procedures are available: amend the contract in line with the In order to encourage contracting contractor’s comments, before reissuing authorities to “share out” lots among ll open to contractors prior to them submitting bidders, the PCR 2015 allows a limit to their final bid. It is very important be set on the number of lots that may ll restricted to note that the competitive with be awarded to one particular supplier, negotiation process does not permit but it is possible to reserve the right ll competitive with negotiation (new) any negotiation following receipt of to combine lots if required, provided final bids. If contracting authorities this is set out in the OJEU notice or ll competitive dialogue; and wish to negotiate with a preferred invitation to confirm interest. bidder they will need to use the ll innovation partnership (new). competitive dialogue process. Project This is of particular importance when specific advice should be sought when procuring the professional team. The PCR 2015 contains the determining which procedure to use. When planning a procurement the circumstances in which each procedure contracting authority should consider may be used. It is likely (depending Sub-central contracting authorities advertising all design and non-design on the complexity of the project) that using the restricted or competitive professional services in one OJEU the most commonly used procedures with negotiation procedures may notice, aggregating the values for the for works will be restricted (perhaps set their own time limit for receipt of purpose of calculating the thresholds, for simple projects with standard bids, subject to agreement with all the and then splitting each discipline into form contracts), competitive with bidders involved. It is worth noting lots (for example Lot 1 – Architect, Lot negotiation or competitive dialogue here that a lot of “mystery shopper” 2 – M&E Engineer, Lot 3 – C&S Engineer, (perhaps for larger and more complex complaints received by the Cabinet Lot 4 – QS, Lot 5 - Project Manager, projects). Office are related to contracting Lot 6 – BREEAM Assessor/Advisor authorities setting very tight timescales and so on). This enables both larger The restricted procedure has its which are difficult to comply with, so organisations to bid for one or more limitations for all but the most simple although the rules have relaxed slightly of the disciplines where they have the of building projects where it is likely in this respect, short response times in house capability and also opens up that contractors and the professional can be a real problem for bidders in the procurement to SMEs who can only team will want to negotiate the terms practice, which they often raise with offer one of the services. of the contract (since negotiation is the Cabinet Office. not permitted under the restricted Equally, the circumstances of a procedure). Framework agreements particular project might demand that the same entity is awarded the contract Under the PCR 2015 the new New frameworks established under the for all of the design. In this case the

44 THE TERRIER - SPRING 2015 contracting authority will have to justify on/delivery of the contract being does not alter the overall nature of why it is not splitting the requirement bid for). the contract and the price increase in to lots. is not greater than 50%; note too Modification of contracts that there is a requirement to Selection stage publish an OJEU notice about the Readers with previous procurement modification once it has taken In above-threshold contracts, the experience may be aware of the place) Cabinet Office has now mandated that Pressetext case which was our authority central government departments must on the extent to which a public ll where additional works, services use the Cabinet Office’s published contract could be modified without or supplies are necessary and a standard PQQ. For works contracts triggering a requirement to run a new change in contractor cannot be PAS91 must be used (the construction procurement process. The PCR 2015 made for economic or technical specific PQQ). This requirement is not has now codified (and clarified) this reasons e.g. interoperability with mandatory for non-central bodies but judgement. existing kit; or, as with building use of these standard PQQs is strongly works, where to change suppliers advised in order to streamline the A modification which is provided for in would cause significant inconve- process for bidders (and encourage the original contract in “clear, precise nience or duplication of costs. To SMEs). The selection stage changes and unequivocal” terms will not trigger come within this category the price cover: a new procurement process (i.e. the increase must not exceed 50% and “Change” or “Variation” process in most there is a requirement to publish ll new grounds for mandatory standard form building contracts). an OJEU notice about the modifica- exclusion tion once it has taken place; or A substantial modification not ll extension of grounds for discre- originally provided for in the contract ll there has been a replacement of tionary exclusion will trigger a new procurement process. the supplier following a corporate This will arise where the modification restructuring, insolvency or merg- ll duration of exclusion and materially changes the nature of the er, and the new supplier still meets “self-cleaning” contract or if there is: the original selection criteria. This exemption is only available where ll financial standing (limiting the ll replacement of the contractual there is no other substantial modi- maximum turnover requirements) partner (usually) fication to the contract.

ll technical capability; and ll introduction of new conditions Payment of invoices that would have allowed for other ll European Standard Procurement bidders to compete or changed the The new rules on payment of Document (ESPD) and e-Certis (not procurement outcome undisputed invoices within 30 days yet in force). apply to all public contracts other than ll considerable extension of contract those for health services under the NHS Evaluation – new rules on scope; or Regulations and those awarded by a award criteria (tender stage) maintained school or academy. ll a change to the economic balance The changes cover: in favour of a contractor in manner There is a requirement to ensure that not provided for. invoices are considered and verified in ll all contract awards must now be a timely fashion. This new rule should made to the “most economically In addition to where the modification be of less concern in construction advantageous tender”, using a was provided for in the original contracts to which the Housing Grants cost effectiveness approach (for contract, there are 4 situations where Construction and Regeneration Act example life-cycle costing could be the PCR 2015 do not require a further 1996 (“Construction Act”) applies, due used as one of the award criteria); procurement process to be run, as to there already being in place robust this may include best ‘price-quality follows: payment procedures. ratio’ ll where the change in value is rela- It puts onto a statutory footing what ll abnormally low tenders (con- tively small - under 10% (services previously had been the subject tracting authorities must demand & supplies) or under 15% (works) of guidance only; an obligation an explanation of tenders which and is also under the applicable on contracting authorities to pay appear abnormally low); and EU financial threshold (cumulative undisputed invoices within a 30 where there is a series of changes) day period. This will need careful ll evaluating experience at award consideration against the payment stage (now permitted provided it ll where there are unforeseen cir- terms in a Construction Act contract. relates directly to the performance cumstances (provided the change Arguably invoices under the Construction Act regime only become the contract and at the latest before paragraphs (a) to (i) of the Regulation. undisputed at the beginning of the the commencement of the works) to There is an ability to simply cross “prescribed period” before the “final date notify the contracting authority of refer to the contract award notice, for payment”. the name, contact details and legal where this already contains all the representative of its subcontractors, in information required. The Cabinet Finally, there is an obligation on so far as they are known at the time and Office has the right to request a copy contracting authorities to ensure that to require the main contractor to keep of the Regulation 84 report. Practically suppliers abide by these conditions in that information up to date as/when speaking, once the contracting relation to their own sub-contractors, changes are made. authority has created this report a such that the 30 day payment term couple of times and has a precedent is passed down the supply chain, Contracting authorities may also verify form for it, it should not be too no matter how far remote from the with the main contractor whether difficult or time-consuming to pull this contracting authority. there are any grounds for exclusion information together at the end of the of subcontractors (against the same procurement. There is no possibility of opting out criteria used to verify the main of these obligations since contracts contractor at PQQ stage). that do not comply will have the terms “deemed”. Estates directors and Termination procurers will need to ensure that their standard form contracts are updated to Public contracts should now contain comply. the right for a contracting authority to terminate the contract where: There are now statutory obligations to have regard to guidance issued in this ll there has been a substantial mod- area and a requirement to publish on ification to the contract within the the internet a report on compliance meaning of the PCR 2015 with the payment obligations during the preceding financial year. The report ll the contractor should have been must include, in relation to the previous excluded under the “selection” financial year (to paraphrase): grounds for mandatory exclusion; or ll details of the percentage of invoic- es that were paid on time ll the contract should not have been awarded in view of a serious ll details of liabilities the contracting infringement under European authority has incurred as a result of law which has been declared as breaching its obligations to make such by the Court of Justice under timely payment; and Article 258 of TFEU (infraction proceedings). ll details of the amount of additional interest actually paid in discharge Where these termination rights are not of that liability. included, the PCR 2015 will deem them to be included in the contract. However, On the whole this is good news for there will be better risk management construction sub-contractors as they and greater legal certainty where are often paid late which threatens the contracting authorities have dealt reliability of the supply chain and a with termination in the contract itself more stable supply chain is good news and included appropriate provisions for employers in the long term. on giving notice, consequences of termination and so on. Subcontracting Regulation 84 reports The PCR 2015 now expressly allows the contracting authority to ask bidders to Regulation 84 requires contracting indicate any share of the contract that authorities to draw up a report in the bidder intends to subcontract. relation to every contract or framework that is awarded under the regulations It is also now mandatory for the (but not contracts called off under contracting authority to require the a framework agreement). It should main contractor (after the award of include all the information listed in

46 THE TERRIER - SPRING 2015 ESTABLISHING A MUNICIPAL BONDS AGENCY

The Bonds Agency was drawn to my attention and this piece is a summary taken from a December 2014 press release on the Local Government Association (LGA) website. It gives councils opportunities for both investing and borrowing.

75% of council long-term borrowing But the LGA believes there are other capital raised from the first bond, it will sits with the Public Works Loans Board important factors for councils to not be possible to proceed. (PWLB). This leaves councils vulnerable consider beyond price: to non-market driven changes in the The Agency does not just offer the rates at which they can borrow and can ll Reducing exposure to shifting gov- prospect of cheaper borrowing for hamper long term capital planning. The ernment lending policies through councils, but also an investment hike of interest rates, to 1% above the increased competition and diversi- opportunity for both councils and gilt rate, at the end of 2010 was one ty of lending sources council pension funds. The latter not example of such a change and it led to only have the option of purchasing the the LGA publishing in 2012 a business ll Creation of a potential new mech- bonds, but like councils, they can invest case for a Municipal Bonds Agency. anism for prudent investment by in the establishment of the Agency and pension funds in local government take an equity stake in it. Work to establish the Agency as the Local infrastructure Capital Finance Company (LCFC) finally By December 2014 LGA had nearly 40 got under way in 2014, based on a revised ll Increased transparency and bor- councils joining the LGA as investors and updated business case. The revised rowing. While the PWLB processes in the Agency. They are of all types business case, and a 2 page summary, can are very efficient, they do not carry and sizes; from all sides of the political be accessed via the link below. the normal level of scrutiny lending spectrum; and from all over the large sums of money would entail. country. After a successful phase 1, LGA The Agency's single purpose is to Experience in other countries has has raised over £4.5m and is therefore reduce councils' capital costs over the shown that an Agency's credit pro- well on the way to meeting its target of long term. It will do this by: cesses aligned with the incentive £8-£10m through phase 2. of lower borrowing costs, and the ll Raising money on the capital mar- oversight of peers, has strength- Because of the clear sector support kets through issuing bonds ened the overall credit worthiness for the Agency, the LCFC was set up of councils as a platform for the equity raising ll Arranging lending or borrowing process. It is the incorporated legal directly between local authorities ll The creation of a centre of exper- entity underpinning the Municipal tise at the intersection between Bonds Agency. LGA has also recruited a ll Sourcing funding from other capital markets and local govern- small team of interims with significant third party sources such as banks, ment finance experience of the capital markets to pension funds and insurance prepare the company for launch and to companies. ll Tailored flexibility evolving from develop the processes and procedures the development of the centre of needed to take the first bond to market It aims to be able to lend to eligible expertise. in March/April 2015 and on-lend the councils at a lower rate than the PWLB capital raised. or than if the councils were to issue The proposals are grounded in the their own bonds. This lower rate will be prudential code and the revised There is still time and opportunity for attained by: business case reinforces the principle councils to become equity investors that borrowing by councils must be in the Agency. If you are one of those ll Achieving a sovereign-like credit prudent and affordable. In developing ambitious councils interested in taking rating through a joint and several the revised business case, LGA met an equity stake in the LCFC or indeed guarantee (see section 6 of the with 6 of the top 10 leading sterling becoming an early borrower the LGA business case) and adequate risk syndicate banks and the consensus would be very keen to hear from you. capital of 3-5% of the total volume remains that there is likely to be “This is a unique chance to shape the of bonds (see section 4.6.2.8 of the significant demand for the Agency's future and improve the value we are business case) bonds. offering local taxpayers.”

ll Issuing bonds in benchmark sizes The revised business case presents a See more at: http://www. of £250-£300m strong financial argument. However, local.gov.uk/finance/journal_ without first securing the investment content/56/10180/3684139/ ll Sourcing capital at low interest required to establish the Agency, and ARTICLE#sthash.RaeQJm3z.dpuf rates from third parties finding committed borrowers for the 47 THE TERRIER - SPRING 2015 COMMUNITY EMPOWERMENT (SCOTLAND) BILL 2015 Joanne outlines some of the themes discussed at Scottish Branch in relation to community asset transfers Joanne Forbes in the forthcoming Community Empowerment (Scotland) Bill 2015. Joanne is Asset & Projects Manager at South Lanarkshire Council.

TO CHARGE OR NOT TO CHARGE, THAT A number of themes emerged from the with a Service Level Agreement or IS THE QUESTION being raised through discussions: service contract, the authority has consideration of Community Asset no means of monitoring or enforc- Transfer. Assessment of the value of community ing the delivery of the community benefits benefits after the property has The potential impact of the transferred. forthcoming Community In terms of the Disposal of Land by Empowerment (Scotland) Bill 2015 has Local Authorities (Scotland) Regulations In essence, each application for asset dominated the minds of the Scottish 2010, best consideration can be transfer is unique in terms of the nature Branch during the past year and at achieved even if the price or rent is of the community, the demand for its meeting on 30 January 2015 in less than market value, providing services, the strength of community Hamilton, discussion focused on the that community benefits include participation, and commitment. implications arising from processing the promotion or improvement As a result a formulaic approach community asset transfer transactions of economic development or will not automatically produce the at less than best value. regeneration; health; social wellbeing right outcome in assessing best or environmental wellbeing. consideration. In conjunction with Shona Harper and Brian Taylor from Scottish Government, The Scottish Branch had no examples That is not to say that there is no the branch considered the likelihood of of any attempt to place a monetary assessment of community benefit increased applications for community value upon the community benefits being undertaken. Most authorities asset transfer following Royal Assent of associated with transfer projects. While have in place an assessment panel the Bill (anticipated for Summer 2015) there are a range of social benefit with representatives from different and explored the various practices and indices in circulation, such as value per professions and disciplines that policies already in effect within local hour of volunteer time, etc, these have consider the merits and risks associated authorities. not provided meaningful in assessing with each proposed asset transfer. any reduction to market value There is often considerable debate It is recognised by surveyors that principally because: at these panels, particularly around community asset transfer does not the business plans for projects and necessarily mean transfer at less than ll Generally, organisations’ business their sustainability. The outcome of market value. However, community plans are not sufficiently devel- which informs the recommendation organisations, local Members, oped to define/quantify outcomes to transfer and the price/rent to be Community Development Officers and at the point that requests for charged. the public in general, perceive that community asset transfer are being such transfers should be at a nominal made Discount applied to market value value. ll Organisations’ business plans tend Some authorities have policies in place One of the many challenges facing to evolve during the application defining the level of discount that is surveyors in managing applications for process to take in the requirements applied to successful community asset community asset transfer is reconciling of funders, the local community transfer requests and others consider these community expectations with the and changing capacity within the the level of discount on a case by case Act and their authorities’ own financial organisation basis. budgets and capital receipts targets. ll Unless accompanying the transfer It was highlighted during discussion

48 THE TERRIER - SPRING 2015 that there is potential for loss for of the majority of authorities is that the legal and property departments have value of an asset where an application “protest groups” do not successfully to consider the risks based upon the for asset transfer fails. The general complete a community asset transfer. activities of the organisation, taking experience of authorities is that Considerable time is spent in dealing into account the organisation’s access requests for asset transfers take around with these applications despite the to other sources of public funding 2 years to develop and progress to high risk of failure. It is not “best subsidy, (which includes Big Lottery actual transfer. Given that the majority consideration” to delay the sale or Funding), over a 3 year period. of properties considered for transfer let of a property for organisations so to date have been vacant at the time unlikely to deliver a viable project, but In summary, assessing what discount of application and the associated very difficult to reject outright such should be applied to market value to maintenance budgets already offered applications at present. take account of community benefits is up as savings, the condition of the not a science. Property departments properties deteriorate during the It is anticipated that the criteria for have developed a variety of ways of application process. There is evidence community organisations set out in assessing applications for community that where the community withdraws the new Bill will facilitate the rejection asset transfers which reflect the its application and the property is then of applications by groups without priorities of their authorities and sold on the open market, the receipt is proper constitutions, community the local area needs. Procedures between 25% and 30% less than would representation and/or management and processes will no doubt be originally have been expected. structures at an early stage, enabling refined further once the Community scarce staff resources to be directed Empowerment (Scotland) Bill 2015 is Protest v progress to those organisations more likely to enacted. deliver community benefits. There are 2 broad categories of community organisations applying State Aid Ed – see invitation from Locality for asset transfer - “protest groups” on Community assets – Grants and established to prevent something Few authorities have, as yet, support, featured in this Terrier. happening (usually the closure undertaken asset transfers that of a property or sale to another required an assessment of the organisation) and “progress groups” implications of State Aid. generally already involved in the local community and looking to expand their Those that have report that the State involvement or take advantage of a Aid unit is happy to provide advice to property opportunity. The experience authorities but ultimately the councils’

49 THE TERRIER - SPRING 2015 Stephen Rolph, Development Manager COMMUNITY ASSETS – at Locality has asked that ACES readers are made aware of this opportunity. [email protected] GRANTS AND SUPPORT

You might have heard already, but a Partnership areas accepted into the this partnership way of working. Locality led partnership was successful COMA programme will benefit from the (Note: Champions will not receive in winning the new assets support following direct support: payment but will be eligible for programme for Department of expenses). Communities and Local Government. ll Up to 10 days of dedicated rela- It is called ‘Community Ownership and tionship management support Apply Management of Assets (COMA) 2015/16’. from an experienced broker from our partnership to help areas to Applications for COMA will open on 1 It is a ‘multiples’ asset transfer develop joint strategies and action April 2015. programme that is aimed at public plans, with clear milestones and bodies and community partnerships. deliverables COMA Pre-Feasibility Grant It’s about supporting strategy and developing action plans across ll Up to 6 additional days of spe- Amount of funding available: Maximum localities to improve the speed cialist/technical assistance to of £10,000 per organisation. and scale of transfer. The strategic undertake business planning for partnership emphasis is key – this is not ambitious asset transfer projects. Further information on the grant about supporting single groups one by criteria and timelines will be made one with their individual asset projects. Who can apply for direct support? available in due course to successful The maximum number of places that partnership areas receiving Direct can be supported by COMA is 50 – and Individual community groups (or Support. The grants will be aimed at we expect that the places will be filled consortia) parish councils or local developing an organisation’s capability within 6-8 weeks of opening at the public bodies can be lead applicants for to take over asset ownership. beginning of April. a partnership area application. Apply The blurb on Locality’s website is Partnerships wishing to apply for and reproduced below, but can be seen access the direct support element of Partnership areas in the COMA at: http://mycommunity.org.uk/ COMA must: programme will be informed of how programme/community-assets/?_ to apply. It is anticipated that the aims a=funding ll Include more than one named and objectives of partnership areas organisation in their partnership will need to be established before Website information area application individual organisations can apply for the grants. This is to ensure that The COMA programme offers ll Be based in England the grants can be clearly linked to partnership areas the following grants advancing the overall plan. & support: ll Demonstrate (or are on the road to demonstrating) a commitment to When will we hear if we have been ll Direct support partnership working between the successful? local community and local public ll Pre-feasibility grants. bodies with the aim of greater Decisions about acceptance onto community ownership and/or the COMA programme will be made Direct Support management of assets on a rolling basis from April. It is our intention to inform partnership areas Amount of funding available: £1.5m is ll Demonstrate value for money of the panel decision within 10 working available for up to 50 partnerships. including, where appropriate, days of receipt of their application. through match funding from other Closing date: We are operating a rolling sources including in-kind resources Please note that we cannot accept application window that will be closed multiple expressions of interest from a to new applications once the 50 places ll Nominate at least 1 representative single organisation, so please ensure have been filled. We expect that the to act as a ‘Champion’ in the local- colleagues are aware of any submission programme will be at full capacity ity supported, who will actively you plan to make well in advance. within 2 months of the programme promote community ownership launch date. and management of assets and

50 THE TERRIER - SPRING 2015 Delivering solutions First class advice and support to Local Authorities

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Jonathan Marwood MRICS MCIArb

Jonathan has 18 years’ experience as a chartered surveyor covering all aspects of commercial property. Main areas of expertise lie within asset management including acquisition, disposal, lease re-gears, management, rent reviews, lease renewals, valuation, and service charge consultancy and development/redevelopment advice. He works for a number of public and private bodies throughout the UK and is the lead on Crown Commercial Service Framework Agreement RM928 Estates Professional Services. [email protected]

Hartnell Taylor Cook LLP is an estates strategy but without good, alternative opportunities may exist? independent commercial property accurate up to date information consultancy, based in London, Bristol and contained in it, estates performance Alternative use values Plymouth. cannot be analysed or maximised. Do you have a number of sites/ As we all know property has many It never ceases to amaze me how many properties where the alternative use facets, each of which can have a major public and private sector organisations value is higher than the current value? impact on occupancy costs or returns do not have an accurate record of their [Ed – see IFRS13 article in this issue of but when was the last time you carried property, which is a tool that allows Terrier]. out a health check on your property them to fully support service delivery portfolio and reviewed your internal and be seen as “go to” people. Are the alternative use values being systems? Was it longer than you realised in order to free up capital and actually think it was? What information does your terrier hold drive funding for services? or should it hold? An internal health check doesn’t Return on investment have to be that arduous and once Asset valuations completed, it is likely to ease your Where properties are held as an existing time pressures. Here are On what basis has your portfolio(s) investment do you know the return some tips for the areas that should be been valued? received after taking into account considered and how it can be made management costs? Are you getting an easier. Depreciated Replacement Cost is a adequate market return? method of last resort, although within Estate terrier – is yours the public sector many properties with Again we find that many organisations working for you? a market value are still being valued do not know the true management this way. These valuations do keep asset costs in terms of maintenance, Always a good starting point. valuation costs down but do you know insurance, service charge, internal the market value of each property in professional staff costs or costs of rent How hard is your estates terrier your estate? collection. When these are considered, working for you? Is it providing you the true investment return is often with accurate information to inform Without this information you cannot lower than originally anticipated or, your estates strategy and therefore accurately benchmark nor make best in some cases, even negative. By providing the necessary information to value judgements. considering these costs, it may also the support services? be possible to identify potential for Further, do your valuers visit each making reductions. An estate terrier is the core of any site? Are they able to advise on where

52 THE TERRIER - SPRING 2015 Where there is a community benefit, compliance health checks undertaken and realistic? If acting as landlord, are how do you factor this in and are there including contractor performance the terms ‘institutional’ in nature to alternatives? audits? support value on disposal? We have recently undertaken a series of rent Occupational requirements Have you thought about the financial reviews for a local authority where the and reputational risk of each property? standard lease drafting, particularly Do you know the occupation levels with regard to the hypothetical of your service delivery sites, the Which risks will lead to an increased lease in the rent review clause, had a operating costs of the buildings and future workload if not dealt with now? significant damaging effect on rental future liabilities in terms of rent, service value at review and thus underlying charge, insurance, dilapidations, Do any of the risks jeopardise future/ capital value. For other clients we have maintenance and other operating current lettings or investment value? successfully negotiated increased rents costs? to take into account a lack of service What maintenance costs are looming in charge. Do the service delivery teams know the future? these costs? Are occupation levles Are you planning early for lease breaks aligned with service delivery and Do you know your future leasehold and considering dilapidations, moving structured to support future service liabilities? costs, etc at an early stage, ie 18 months delivery? in advance? Without doing so you Rents are greatly reducing your negotiating Do you know the future service position. resource needs in terms of facilities? Is your terrier up to date? If acting as a tenant do the terms Do you know the vacancy levels in each Are all current rents appropriately minimise future exposure? building and whether the standard of demanded and collected in accordance accommodation is reflected in this? with lease terms? Is interest charged Service charge where appropriate? Are the supplier contract specifications Either as a landlord or a tenant, do relevant to each site and regularly Is there other income to be collected? leasehold mechanisms fairly reflect audited? the services that are required on the Do the management Have you considered where these costs costs outweigh the can be reduced by investment/use of returns and, if so, Rent Reviews/Lease Renewals grants/relocation to alternatives? is there a service delivery reason What is the effect on reputation and for this and is this staff morale of the differing units? Are reflected in the these benchmarked along with other performance model Acquisition & Disposal financial factors? and thus estates

strategy? ManagementAsset Development Consultancy Do you know the space your teams all operate within and where Rent reviews/ The Strategic Advice improvements can be made? lease renewals Valuation Personal Rating Approach Are all these factors benchmarked Is your terrier up to Property Management against the market and factored into date? Project & Building Consultancy Town Planning your investment model?

Are strategies Lease Expiries/Breaks Risk management formulated for multi tenanted properties? Do you know the covenant strengths It’s easy to sit back Landlord & Tenant of each of your tenants? Do they pay and wait for a promptly and, if not what are their problem to occur current levels of arrears? Is this taken but with pro-active into account in the performance review asset management, of each site? further income could be generated. www.htc.uk.com

Do you know the compliance risks on Jonathan Marwood Stuart Howell each site (and common areas) and are Are the leasehold DDI: 0117 946 4547 DDI: 020 7744 3802 these maintained within a terrier? Are terms reasonable 53 THE TERRIER - SPRING 2015 ground? Are services provided to health and safety risks managed? Are of the client’s future key events, no cover these leasehold obligations regular inspections undertaken by system for reviewing property financial and all costs recovered? Are the competent persons? Is the asset being performance and, perhaps most amounts demanded in accordance protected, eg from vandalism, theft, worryingly of all was that they did not with leasehold mechanisms and fire etc? even know how many sites the client RICS requirements? Is there a test of occupied. Consequently, the client has reasonableness in the lease and, if so, is EPCs missed out on potential income and the it being adhered to? client’s operation teams had distanced Do you have a list of EPC ratings? themselves from the estates team on Where acting as landlord, do budgets service delivery. ensure the investment is correctly As you will be aware the legislation maintained in accordance with changes in April 2018 and if any of your Don’t let this happen to you, just give lease terms in order to protect the properties fall into the lower 2 bands F us a call if you require further help or investment value? Are services correctly and G they will become unmarketable information or a MOT for your portfolio. specified, tendered and contracted? without capital expenditure. Do you know what works are required to bring Where you are tenant, is the landlord’s the ratings of these properties up to the budget fair and reflective of the minimum grade E and where lease re- leasehold obligations? gear opportunities may arise from this?

Insurance Non Domestic Rates

Are properties regularly revalued for Are these accurate in terms of tone insurance purposes? and current use? Can they be reduced through compiled list appeals? Are Does the lease allow recovery of vacant period rebates, s44A reductions insurance and insurance revaluation for partial use or disturbance being costs? If so, are these being recovered? claimed?

Is there a test of reasonableness in the Conclusions lease and, if so, is it being adhered to? This may seem like a sensible list, Void management however we recently inherited the estates management of a government Are insurance obligations being met? portfolio from another agent and found Is the vacant property’s condition and that the portfolio had not been pro- marketability being maximised? Are actively managed, there was no record

ADVERTISING IN THE TERRIER The Terrier is a good way to get your company known to public sector surveyors. ACES represents the chief estates officers and their staff, who are the property, strategic asset management and valuation professionals in public sector organisations throughout the UK. Membership includes the range of local authorities, the Government Office, fire, police and health authorities and the Valuation Office Agency.

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If you wish to discuss advertising please get in touch. Betty Albon [email protected] or Keith Jewsbury [email protected]

54 THE TERRIER - SPRING 2015 ESTATEMAN LTD AS A SOFTWARE SUPPLIER – USER SATISFACTION

Bob Howell

Stephen Bolton, FRICS, is one of the original founding directors of Estateman and after more than 20 years, is still its MD [email protected] .

Bob is Consultant at Estateman Ltd.Services. [email protected]

In 2014/15 Winter Terrier, Mark Jones can develop in any large organisation in “user satisfaction” is the variation of Remit Consulting published a very (and local authorities/government in suppliers’ product design and interesting article on “user satisfaction” agencies and other public sector support philosophies. Some believe with property asset management bodies are no exception) between the in a “one-size-fits-all” product, where systems in the private sector and I look users in the various departments and modifications for specific client forward to reading his findings on the IT management, when it comes to requests are only made when sufficient same topic in the public sector. deciding on the products that best suit demand has been established, the the needs of individual work-groups. requirements are aggregated, jointly We’d like to add a few thoughts to this All too often one hears users within specified, developed and then made discussion. the smaller departments (and not just available as part of the next scheduled the property department) complain release. This makes the suppliers’ lives In the private sector, most of the that what they would really like for easier as the support staff are only property asset management systems their department is software product working on the latest (or maybe the tend to be purchased by organisations “X”, but IT management tells them that immediately previous version) so any for whom property is either their entire it doesn’t fit in with the organisation’s bug fixes can be universally applied. business (e.g. property investment overall strategy and therefore they companies) or is a major part of their must adopt something that conforms Other suppliers, of which Estateman Ltd operation (e.g. retailers or multiple to that strategy. This means that is one, have a more holistic approach, branch corporate companies), and so the practitioners then have to use where the core product will usually the property department usually has a a product that often only partially meet 100% of any client’s requirement, free choice (budget permitting!) of the satisfies their needs, and when it comes but particular “tweaks” and additions various systems on the market. to getting improvements made or to meet local individual needs may be modifications undertaken, they are readily (and quickly!) provided. In the public sector, however, firmly towards the back of the queue. property asset management (with Unfortunately, in some software a few exceptions, and excluding Some software for the property asset companies there is a management social housing management) is not a management sector is developed attitude that once the sale is made and major focus of organisations in local almost as an afterthought by the support revenue is being generated, and central government, where the suppliers of the very big and complex then working with the customers to property owned, leased, rented and ERP (Enterprise Resource Planning) meet their needs as their requirements managed by that public body is only packages and it forms such a small change, and the environment in which a relatively small part of the entire part of the overall offering that other they operate alters, is not particularly “business”. priorities for development are selected high on the priority list. These by the manufacturer. This can then be variations and modifications can often This means that the IT requirements compounded by the imposition of an be regarded as tiresome “quirks” by within an authority are usually overall IT strategy by the organisation software vendors whose main business focused elsewhere and the property and so, in one way or another, the IT lies elsewhere and one sometimes department, although an essential “tail” ends up wagging the Property hears of “deterrent pricing” being part of the whole, becomes an “also Department “dog”! used in quotes for relatively small and ran” in terms of budget and priority. straightforward “add-ons”! One of the reasons is the conflict that Another factor in the fluctuations 55 THE TERRIER - SPRING 2015 organisations is because Estateman was developed by a team of “insiders” rather than “techies”, who understand not only the overall requirements of property professionals but also that individual local requirements need to be accommodated. It is for this reason (and sometimes disconcertingly so to the IT management of some organisations, who can become obsessed by the “latest and greatest” technical gizmos) that we have not embraced “bleeding edge” technology, as our well established database engine enables us to deliver a stable, reliable, easy-to-use system for the property department and yet provide changes and add-ons, simply, quickly and cheaply.

Our 70+ installations in the public sector are throughout the UK. They range from district councils such as Thanet in the South-East corner of England, where property assets, apart from the usual industrial and commercial properties, include beach huts, cafés, kiosks and the A further contributor to the variances 90s, because the software that was soon-to-be-reopened “Dreamland” in client satisfaction with the suppliers then available was only for recruitment amusement park, to the Royal Borough and their products is (oddly enough) “agencies” and just did not meet the of Kensington and Chelsea, which the way that the Property Management requirements of an executive search includes units varying from roadside and other “niche” software systems practice. It is now the most widely advertisement hoardings to the Fulham originated. used Executive Search software in Road “flagship stores” of major retailers the world with over 2,000 clients in in its portfolio, to Aberdeenshire Software for “niche” applications – as 150+ countries. It was the “insider” County Council in the far north of opposed to generic software for, say, knowledge that went into the original Scotland, with a great many industrial accounting or payroll - tends to be development that has proved to be the properties linked to the North Sea oil de developed and then subsequently key to its extraordinary success. and fishing industries. In addition, we evolve in 2 different ways. The most have a number of clients in central usual way is when a software house is Similarly, Estateman has become government agencies and authorities, commissioned to develop a software one of the most successful property large and small, owning and managing application for an organisation in management software packages an enormous variety of property assets. a specific sector and then sees its available today because it was potential and so markets that product developed by a small team of chartered For us at Estateman, variety is the spice to other, similar organisations in surveyors and is now installed on more of life, which is why we are happy that market place. The other way than 300 client sites throughout the UK to continue to provide standard or that software is developed is when and abroad. customised systems for all types and a practitioner within a particular sizes of local authorities and public professional discipline creates a In addition, to our numerous public sector bodies for both operational and software application which is then sector clients we have developed non-operational property assets. adopted by others in that sector. the core system for a wide range of commercial property companies, This second method has had some retailers and other multi-branch significant successes. For example, commercial organisations, and some in the somewhat esoteric world of of the largest and best known country Executive Search (also known as estates in the UK. head-hunting) a software package was originally designed by a “sole- The reason we are able to meet the practitioner” head-hunter in the early differing requirements of all these

56 THE TERRIER - SPRING 2015

IFRS13 – LATEST CHANGES IN THE WORLD OF LOCAL AUTHORITY ASSET VALUATION, PART ONE

Susan Robinson and Chris Brain

Susan Robinson MRICS is a Construction and Property Advisor with CIPFA Property. Her remit is to promote best practice in property asset management within the public sector. This includes the development and delivery of CIPFA’s Asset Management Network and Construction and Property Advisory Service, production of best practice briefings in relation to current topics and provision of specific consultancy projects. [email protected]

Chris Brain FRICS is a Senior Property Advisor within the CIPFA group. Chris delivers the CIPFA’s Asset Management Network and Construction and Property Advisory Service, advises on asset management issues and undertakes a range of related consultancy. He has worked with a range of authorities, providing consultancy Chris and Susan from CIPFA provide and training including strategic approaches to asset management and delivering some valuable detailed guidance efficiencies. [email protected] for valuation practitioners for local authority accounting purposes. CIPFA Property: www.cipfaproperty.net

Some significant changes are taking The first thing to say about the ll Defines fair value place to the way that local authority adoption of IFRS13 within the Code property assets are to be measured is that it is prospective. So this ll Sets out in a single IFRS a frame- and valued from 1 April 2015, thanks to means that there is not going to be a work for measuring fair value, and the adoption of International Financial requirement to make any retrospective Reporting Standard 13 (IFRS13 within changes or restatements. ll Requires disclosures about fair the CIPFA Code of Practice on Local value. Authority Accounting (the Code). While IFRS 13 introduces changes This two-part article sets out for local to accounting standards that create One thing practitioners need to bear in authority valuation practitioners, some changes to valuation approach, it is mind is that IFRS13 is an international of the key changes that they need to be not intended to establish any valuation accounting standard and so is phrased aware of and which will impact upon standards or affect valuation practices in terms that make it capable of this year’s asset valuation programme. outside of financial reporting. For local application globally and of course authority asset valuers, the publication capable of application within a wide There has been a fairly long lead-in to of valuation standards remains the range of organisation types. So some the changes. Discussions around how role of the RICS. Some redrafting of of the language within the standard and the extent to which IFRS13 should the RICS Red Book has accordingly itself can be confusing and to some be adopted and implemented have been taking place in parallel with the seem rather impenetrable. been rumbling on for a while. The full drafting of the CIPFA Code in order to extent of the implementation proposals reflect the changes we are going to IFRS13 became effective globally from was contained in the exposure draft discuss in this article. 1 January 2013 and one of the reasons for the 2015/2016 CIPFA Code when it it has taken until this year for the was published for consultation in the In essence IFRS13: standard to be adopted by the CIPFA summer of 2014. Code is that there has been a need to

58 THE TERRIER - SPRING 2015 consider the implications of adoption terminology within the CIPFA Code, the A key aspect of fair value under IFRS13 on local authority accounts and balance valuation approach will remain entirely is the concept of ‘highest and best sheets. unchanged. So the terminology for the use’. This concept means that it is the valuation of the majority of Property, duty of the valuer to consider value One of the principal issues to be Plant & Equipment (PP&E) assets that for the asset that may not necessarily considered was the definition of fair local authority valuers will be familiar be reflected in the actual current value under IFRS13, which is essentially with, such as Existing Use Value, configuration or use. the highest and best use. In other Existing Use Value – Social Housing, words “the price that would be received and Depreciated Replacement Cost As to whether a higher value exists for to sell an asset or paid to transfer (DRC) are all still there – albeit that alternative configuration or uses will a liability in an orderly transaction they now fall under a new ‘umbrella’ be dictated by how the valuer believes between market participants at the term adopted in the new CIPFA Code of ‘the market’ would view the asset. It measurement date.” “current value” and DRC is now adopted is the same whether the asset is an as an accounting ‘basis of value’ and is Investment Property, an Asset Held for If this basis had been fully adopted not simply a valuation approach. Sale or a Surplus Asset. by the CIPFA Code then it would effectively result in all property assets So what does all this mean The local authority valuer should being valued to highest and best use for the valuation approach? already be considering alternative irrespective of the use to which the configuration and use in adopting the asset is put. In valuer language this It means that the biggest single RICS Red Book definition of market would result in all property assets being change in the valuation approach of value for Investment Property and valued in most cases at market value local authority property assets will be Assets Held for Sale, but we are aware – including all operational property in respect of Surplus Assets. Up until that this is not being universally assets that have in the past been valued 31 March 2015 the valuation basis for applied. on an existing use basis. these assets was fair value (existing use) and under the 2014/2015 CIPFA Code To illustrate the point, if an authority CIPFA/LASAAC, the body that this required such assets to be assumed owns say a rank of retail units in a town determines local authority accounting to be still in the same use as they were centre, the most common valuation standards, resolved after much debate when last occupied, for the purpose approach is likely to be one that that for assets used by local authorities of the asset valuation, irrespective of involves a term and reversion valuation in the delivery of public services, it what, when or how long ago that was. on each retail unit, where each unit would not be appropriate for these to is identified in the asset register as a be measured and valued in that way, From 1 April 2015 the valuation of distinct and separate asset. However, and that the ‘existing use’ approach still Surplus Assets is brought in line with it might be the case that the value of had relevance. Assets Held for Sale and will need to be the assets in combination with each valued to the IFRS13 definition of fair other would attract a higher value in Therefore, while the CIPFA Code value, i.e. highest and best use. the market. If the valuer believes this fully adopts IFRS13, it does so only to be the case then the assets should for certain classes of property asset, This will impact upon your valuation be valued in combination, provided this namely Investment Property; Non- programme for 2015/2016 as this is a alternative use is realistic. Current Assets Held for Sale; and change in accounting standard, meaning Surplus Assets. The first 2 of these that all your Surplus Assets will need to The term and reversion valuation asset classes should already be valued be revalued this year to ensure that they approach is robust enough as far as at Market Value and so in theory the comply with the standard at the balance it goes, but of course it is based on valuation approach should not be sheet date of 31 March 2016. the existing uses, rents passing and changing. However, we know from reversionary values of the rents passing. discussions we regularly have with What does the new IFRS13 In many cases this approach may well local authority valuers that the proper definition of fair value mean? generate the highest and best use, and intention of market value may not have hence meet the requirements of the been fully embraced by everyone, in It is important to understand the IFRS13 fair value definition. However, which case the adoption of IFRS13 workings of fair value under IFRS13 it cannot be assumed that this will provides an opportunity to revisit as of course this is a new basis of automatically be the case in every current valuation approaches in this valuation for Surplus Assets. But as instance. area to ensure compliance with the hinted at previously, it is possible that CIPFA Code and the RICS Red Book. We your approach to the valuation of both Let’s say that the retail units in our will explore this further later on in this Investment Property and Assets Held example have a large enough footprint article. for Sale might need to be reviewed where ‘the market’ might consider to see if you are complying with the redevelopment of the site through say For all other classes of property IFRS13 requirements. demolition of the existing retail units assets, while there is a change in and the construction of a replacement 59 THE TERRIER - SPRING 2015 asset such as an indoor shopping Financially feasible takes into account to sell the asset is presumed to be the centre. If this were the case then the whether a use of the asset that is principal market. valuer will be obliged to consider this physically and legally permissible alternative and determine which use generates adequate income or cash In considering alternative higher and would most closely meet the IFRS13 flows (taking into account the costs best uses for the asset being valued, definition of highest and best use, after of converting the asset to that use) IFRS13 therefore means that the valuer taking account of demolition, tenant to produce an investment return that must not be restricted by the existing compensation etc. market participants would require configuration or use of the asset and from an investment in that asset put to needs to consider alternatives that Naturally the valuer should not that use. might generate highest and best use. necessarily restrict his or her consideration to the same type of One other important aspect of IFRS13 is This does of course raise the thorny use. If the highest and best use for the position regarding ‘the market’ and issue of valuer competence under PS2 our retail units would be residential it introduces the twin concepts of what of the RICS Red Book. Where a valuer development or leisure development are called the “Principal Market” and the in undertaking an asset valuation then these should be considered and “Most Advantageous Market”. identifies the potential of a higher and the highest and best use selected for best use for the asset in a different the asset valuation. But in considering The Principal Market is defined as “The configuration or use, then of course the various alternative options IFRS13 market with the greatest volume and the valuer would need to satisfy his or requires that such uses must be: level of activity for the asset or liability.” herself that they have the necessary competence to make the decision of ll physically possible The Most Advantageous Market is whether to continue to undertake the defined as “The market that maximises valuation or pass responsibility for the ll legally permissible, and the amount that would be received valuation to someone else – a colleague to sell the asset or minimises the or an external valuer - that has more ll financially feasible. amount that would be paid to transfer appropriate skills, knowledge and the liability, after taking into account experience of that asset or use. Physically possible takes into account transaction costs and transport costs.” the physical characteristics of the asset Not that much seems to have that market participants would take In practice, in terms of property assets, changed – so what is all the into account when pricing the asset e.g. our view, which we accept might not fuss about? location or size necessarily be shared by all, is that the Principal Market and the Most Well the answer to that will be clearer Legally permissible takes into account Advantageous Market may be one in the 2015 Summer Terrier, when any legal restrictions on the use of the and the same thing, but this may not we move on to the 2nd part of this asset that market participants would always be the case. However, IFRS13 2-part article and get into the areas take into account when valuing the does say that in absence of evidence to of accounting disclosures, valuation asset e.g. zoning regulations, title the contrary, the market the authority hierarchy and valuation inputs. restrictions would normally enter into a transaction Branches News

RICHARD ALLEN, HEART OF ENGLAND BRANCH

To ‘promote and support the corporate This was the mission statement adopted out the benefits of ACES membership, role of branch members, as both by the branch at its first meeting of branch aims and roles for members. strategic asset and general public the year, hosted by Kettering Borough The action plan had been taken to sector property managers, to achieve Council and held in their council offices ACES Council in January where it was the highest standards of performance; on 5 March. The mission statement endorsed. At Council’s request, now that through the provision of professional forms part of an Action Plan to promote it has been formally adopted, it will be development and the sharing of best the benefits of ACES and to increase shared with all other branches. practice through networking, holding attendance at branch meetings and regular meetings and exchanging views’. national conferences. The plan sets There were 19 attendees at the meeting

60 THE TERRIER - SPRING 2015 which welcomed 2 guests; Richard right environment for the targeted the ‘Openness of Local Government Wynne, ACES President, and also businesses. Regulations 2014’ which it was felt did Roger Moore, Eastern Branch member, not apply to property transactions; and Head of Asset Management for The afternoon session was started by examples of where local authorities LGSS one of the largest public sector Richard Wynne, the ACES President were coordinating disposals and sharing shared services ventures in the UK. talking about his aims for his year assets within the wider public sector; Roger opened the morning formal of office. These covered further Telford’s asset valuations having been CPD session by giving a presentation developing relations with the RICS and audited twice by the RICS, who advised on ‘Collaborative Asset Management’, promoting technical CPD training for that all valuations for any purpose had referring to the Essex, Cambridgeshire ‘grassroots’ staff of member authorities/ to be carried out in accordance with and Northamptonshire property organisations. He said that a lot of the ‘Red Book’; valuation of schools not partnerships. He gave examples of effort was currently being put into under the control of local authorities how they had all evolved and operate, rationalising the national ACES records which it appears have to be valued with case examples of failures as well and data that the new Secretary had as local authority assets; the use of successes. In summary, he said that inherited and getting the new website ‘contracting out of Sections 24 to 28 mapping of assets is the trigger, it up and running. Branch Secretaries of the Landlord and Tenant Act 1954 is about identifying and brokering would need training on how to use and provisions’ in community asset transfer opportunities, and a high level of input data on to the new website to leases and short term lettings to starter political buy in is essential as well as the keep it regularly updated and relevant. businesses which appeared to be now need to develop their own culture to He considered that the property market common practice; and the formalisation succeed. In Cambridgeshire the driver was getting stronger, but deals were of the use of school premises for had been improving services, but in more complicated. He concluded by nurseries. Northamptonshire it is saving money. promoting his Presidential Conference which would be held at the Lowry The next branch meeting will be held on Alex Jelly, Economic Regeneration Centre, Salford Quays, on 17 and 18 Thursday 2 July in Nottingham. Manager for Kettering Borough Council September [Ed – see further details in gave a presentation on ‘Enabling this edition of Terrier]. Finally, thanks to branch members Responsible Growth in Kettering’. It Simon Peters from Nottingham City and was an update on the presentation There was a discussion on how, as Andrew Stevens from Nottinghamshire that had been given to the branch, proposed in the Action plan, 2 non- County Councils for hosting for the when it last met in Kettering in 2011, ACES members attending the national second year, visits to their headquarters by Paul Thomas, Programme Manager conference would be nominated. It offices and providing presentations on for ‘Suite 16’; an ambitious programme was accepted that the criteria would the respective councils’ estates strategies of regeneration in Kettering (see 2011 be a reward for good performance and to the final year Nottingham Trent Spring Terrier page 50). The growth to support career development, and University students on its corporate real plan includes 5,500 more homes on the that it be aimed at people whom it was estate undergraduate course. east side of the town, a new business considered would benefit themselves park near junction 10 onto the A14 and their authorities/organisations from and a renewable energy park. He the experience. explained that the plan was based on infrastructure led growth to produce Next discussed was the CPD roadshow, tangible benefits for communities, the focusing on technical issues proposed town centre regeneration being at the by ACES Council. Offers to host the forefront of the plan, and in a poor event had been received prior to the economic market it was necessary to meeting from both Birmingham City and make bold decisions and think creatively Worcestershire County Councils. At the and innovatively about the use of meeting Nottingham City also offered to funding sources. Although Kettering is host this, or the event in future years. It often referred to as the most average was agreed that the branch should host town in the country, retail occupancy the event in Birmingham and that the rates in the town were now better than Secretary progress the arrangements. the national average. The presentation If successful as hoped, in future years it was followed by a walk around the town could move around the branch area. centre to view the completed market square and also the £350,000 Yards Before running out of time, as is often project, aimed at providing a niche and the case, there were a range of general ‘independent’ shopping experience. The asset management and valuation developer of the Yards explained how matters raised and discussed which he was mainly refurbishing old buildings included ‘disposals policies’ and how and recycling materials to create the they could be open and transparent; 61 THE TERRIER - SPRING 2015 DUNCAN BLACKIE, EASTERN BRANCH

Eastern Branch met at West Suffolk standing officers in these roles. He ll Reductions in floor area of 15% House, Bury St Edmunds on 6 March explained that the new website should 2015. There were 32 attendees, including be ready for operation within a month ll Reductions in running costs of 50% Richard Wynne, ACES President, and or so [Ed – now up and running] and he guest speakers, Beth Dale and David hoped that branches would make a full ll Generation of capital receipts Henry. contribution to ensuring that it presents an interesting and up to date picture ll Improved service delivery Chairman, Neil McManus opened the of the role and experiences of ACES branch meeting and immediately members across the country. Richard also It is hoped that a start on site will be introduced the first presentation from provided an interesting insight into the made by 2018 and regard will be had David Henry, a director of Savills, on impact that a much improved property to the future use of RAF Mildenhall, development and viability issues, market is having on local authorities following the announcement that the in relation to s106 Agreements and in Manchester/Salford – having been base is to be decommissioned by the Community Infrastructure Levy. David obliged to adopt defensive tactics for United States Air Force over the next chairs the RICS Planning Policy Panel, a number of years, councils are now decade. which includes on it representatives seeking to maximise opportunities and from both the public and private sectors. benefits (through planning gain etc.) of Routes to RICS membership. Our host, This results in regular direct discussions increased development activity. Finally, Richard Combes, introduced 4 of his with senior politicians of the major he recommended that Eastern Branch staff who are currently pursuing RICS political parties, as well as civil servants. members attend the forthcoming membership through 4 different routes. David spoke for over half an hour, conference, to be held in Media City, Sally, Kieren, Oliver and Will all stood up concentrating on the importance of Salford, on 17 and 18 September [Ed to explain their own background and setting the correct narrative/framework – see further details in this edition of the new flexibilities provided by the RICS for negotiations between parties Terrier]. for new entrants to achieve associate with varying interests/objectives. For and full membership [Ed – see article in example, David explained that house Branch business. With nothing arising this issue of Terrier]. This stimulated a lot builders are working to a 4/5 year exit from the minutes of the previous of discussion and helpful contributions, whereas trader developers may be meeting, an update was provided on resulting in recognising that the working to 10 years plus. The former the recovery of Jeff Clarke, who hopes development of younger surveyors is therefore struggle to meet infrastructure to re-join us in July. Jeff’s longstanding a good thing for local authorities and commitments whereas the latter are membership and attendance at branch ACES. It was therefore agreed that the often able to build out infrastructure, meetings was applauded and members branch will develop this theme in future. such as schools and parks, at the asked that best wishes be passed beginning of the development [Ed – onto him. The meeting noted that The next meeting will be held in David has offered to write an article for a strong support had been received for Cambridge on 3 July. forthcoming issue of the Terrier]. continuing to develop Eastern branch’s meeting format around CPD, with lunch, David then responded to a range of for £20. It was also noted that the branch questions and observations, including may benefit from a national initiative to the desirability of an extension of PD ‘centrally source’ speakers on landlord & rights for office to residential conversion tenant and other relevant topics. [Ed – see article in this Terrier]. He also highlighted carbon targets as Immediately after lunch, we received having a much higher profile after the a presentation, from Beth Dale, Project forthcoming election. A lively debate Manager, Concertus on the business took place on a number of issues development for the Mildenhall Hub. concerning the provision of physical and We heard that this is potentially a social infrastructure. £60m development involving up to 30 stakeholders from across the public/ Richard Wynne, ACES National President, voluntary sectors. It is being driven followed David Henry with a view of by the need to re-provide social ACES from the President’s perspective. infrastructure, including a leisure centre. Richard commenced by explaining the The key partners are seeking to ensure challenges facing the new national that the project meets demanding Secretary and Treasurer, who have criteria set by the One Public Estate recently stepped into the shoes of long including:

62 THE TERRIER - SPRING 2015 JOHN READ, NORTH EAST BRANCH

The branch held its 70th branch meeting outlined the post graduate research from the floor, including some about on 6 March hosted by Gateshead project that has been established to procurement and fees. Council in the Civic Centre, a building address these issues and how the that was officially opened by Neil project had developed to create a GIS At this stage we broke for the usual Kinnock in 1987. The meeting was held property model that could present buffet lunch and networking. In the in the Council Chamber which features a geo-visual representations based on afternoon session we dealt with branch spectacular set of stained glass windows the hundreds of thousands of data sets business with John Murray confirming and the Follonsby Miners Lodge banner, collected from a variety of sources. By the date for the next Branch Meeting reflecting some of the heritage of the way of an example Paul was able to and CPD day which will be held at area. Before entering the meeting room, present the findings of the pilot study of the Crucible Theatre, Sheffield on 3 members also had the opportunity the north east region including details July 2015 and a discussion followed to have a look at a scale model of The of retail, office and industrial space. The regarding potential presentation topics. Angel of The North which is on public geographical information for Gateshead Jenny Dixon and Bernard White also display outside the Council Chamber. which was underpinned with hard gave a summary of the proposed theme The maquette by sculptor Anthony data showed that 28 buildings account for the winter meeting on 6 November Gormley was valued in 2008 by the for 58% of all of secondary property 2015 which would cover development Antiques Roadshow at £1 million. vacancies. The research has already viability from landowner, developer and provoked interest from the private professional advisor perspectives. The meeting was opened by the Chair sector and is considered to be a very John Murray and after a moment of useful tool in shaping policy related to The branch also received a report silence and reflection, Bernard White smart cities. from the Treasurer, Allison Johnston, (assisted by contributions from Daniella confirmed the appointment of Jenny Barrow), presented a memorial to Peter Gillian Telford-Cooke, one of the PhD Dixon as Academic Liaison Officer for the Handley, Branch Chair 1993-95 who students at Northumbria University branch and received a useful technical had sadly passed away recently [Ed, see gave a short presentation on her update from the Chair. obituary in this issue of Terrier]. progress in researching Community Asset Transfers. She advised that Finally, the branch was pleased to Dan Gillbanks from the host authority metropolitans appeared to be the most welcome Keith Jewsbury in his capacity gave a short background to the area prolific in the transfer of assets and her as the new national Secretary and Keith including early railway heritage, Team research would suggest that long leases outlined his role as that of a conduit Valley Trading Estate being the first seemed to be the preference as opposed between the branches and national trading estate in Great Britain with to freehold transfers. She referred to organisation. He gave an update on some of the buildings being listed, and the e-questionnaires sent out to 360 national ACES business, advised that the modern Millennium Bridge, not to local authorities and asked for a higher the new website would go live in a mention the full size Angel of the North. volume of contributions. few weeks and explained the rationale He also posed a question to members – around the promotion of CPD events in What is the current day value of Angel The final presentation was from Nicola those branch areas that did not provide of The North maquette? Sadly, no one Sloan, of Rightmove Commercial. Nicola an active programme. We also had a came up with a satisfactory answer, so gave an introduction to the company discussion about the Terrier publication that’s one for Gateshead’s valuers to and its position in the market as one of and the costs of hard copy with the consider. the UK property portals and how the consensus of branch members being company compared against others. that the paper copy was outdated and In line with the usual approach of She outlined who advertised with the that electronic publication was the way providing members with quality CPD, company including a number of councils forward. presentations were delivered as follows: and 2 branch members and gave examples of website listings, explaining Dr Paul Greenhalgh, Reader and Faculty how the listing process worked. Usage Director of Research Ethics, Northumbria statistics were presented, including University gave a presentation on the those from a branch member’s authority spatial analysis of vacant commercial who gave a positive testimonial to the property in which he posed the question benefits and increased market exposure “Does it make sense to build new of council property for sale or to let. property when we have so much vacant Nicola finished with a summary of space and does anyone truly know the what advertisers say about Rightmove extent of vacant space in the UK and and how advertisers handle leads how this relates to real buildings? He before answering a range of questions 63 THE TERRIER - SPRING 2015 Other Interest Areas THE GLOUCESTER GLADIATOR REMINISCENCES OF THE LIFE OF A RURAL SURVEYOR

Farm relettings are always one of the asked: “Why do you want to take on son, who had effectively run the farm highlights of the land agent’s calendar: such a millstone, tied to the backside for a pittance for many years, asked to out with the old, in with the new; a of a cow 365 days a year when you succeed to the tenancy. As was his wont chance for fresh blood to flourish. can continue to enjoy the relative the chairman of the Farms Relettings security of salaried employment as Sub Committee, delegation of such After negotiations with the outgoing head herdsman?” Back would come an important task having been made, tenant have been concluded, the the inevitable response: “Because I decided to walk the farm before the Letting Particulars prepared, and the want to be my own boss.” Nothing interview. It was a dank, wet November farm advertised, the Open Day, or days better encapsulates the strengths day, the farm was in a really sorry state if interest is particularly strong, takes of this service than this; that restless and the tour round was not going place. The land agent and entourage unrequited entrepreneurial ambition well. We trudged through a very well will ensconce themselves in a suitably which eloquently demonstrates why cow trodden gateway with mud up to sheltered spot, and then they arrive – county farms continue to be such a force our boot tops. Suddenly the chairman land rovers, shooting brakes (yes that for good in the rural economy. stopped, he was sinking deeper into does date me!), and other modes of the mud and mire, and could only be transport always mud splattered and Mind you the old adage of if at first rescued by pulling him out of his boots seriously worse for wear, trundle up you don’t succeed……. is never better onto firmer grass. For all I know the the farm drive. Out pour the family; illustrated than in the hardy perennials boots are still there as there was no way inevitably these events become days who turn up every spring and summer they could be reclaimed. The chairman, out and families become more than hoping , at last, to secure their dream. who had not been in the best of nodding acquaintances and potential I recall one such individual pipped at humours at the start of the day, was now competitors as they do the rounds the post on 3 occasions at interview. In drenched, cold, and bereft of footwear. of opportunities, hope springing desperation he phoned me to inquire Needless to say the unfortunate son eternal. Round the farm they trudge, what had gone wrong. I couldn’t satisfy was not successful, but he continued inquisitively investigating every his curiosity or allay his frustration by to serve the successor tenant as head nook and cranny. The opportunity to explaining that on each occasion he cowman for a number of years. ingratiate themselves with the ever had been second choice. “But there patient land agent is never lost, but it must be something I could do to better Over the years I have met literally has the virtue of enabling said stoic to my chances” he asked. “Well” I said in thousands of interested parties at sort the wheat from the chaff and see an effort to be constructive, “On each Viewing Days. They come in all shapes prospective tenants in their natural occasion the successful applicant has and sizes: the keen, the noisy, the environment. had the support of his spouse, and that ambitious, the go getters and the no has been the deciding factor as running hopers. I have interviewed hundreds of The interview can be a daunting these businesses is very much a family shortlisted applicants, again covering experience, especially for the novice affair.” “Right” he responded, “Thanks the full panoply of ability, commitment, first timer, nervously adjusting tight for the advice.” Some months later I was and ideas. I like to think we got it necked shirt, food spattered tie and idly glancing through the pages of the right on most occasions. It’s the most ill-fitting jacket with attendant wife local paper when a vaguely familiar important task, bar none, of the council (yes, I will be old fashioned and use face beamed out at me with a blushing land agent. Get it right and success such a quaint expression) more suitably bride by his side. Some weeks later the follows; get it wrong and problems soon attired. Back in the day the event next Farm Open Day took place. There, mount as I have experienced to my cost would be an opportunity for the whole at the front of the queue, was said on a couple of occasions. County Farms Committee to boost their gentleman: “Boss, I did what you said attendance allowances by assuming and got myself a missus.” Well, as I’m sure These days, suites of corporate the roles of grand inquisitors, each with you’ve guessed, he swept the board at performance targets will measure their allotted question with which to the subsequent interview, and as far as success; financial, development torture the eager to please supplicant. I know went on to have an immensely potential realised etc. but for me the More often than not it would be the successful farming career. true benchmark will always remain of partner (over the years I have become how many relettings opportunities have more PC) who would save the blushes On other occasions though, success been created; how many dreams have of her tongue tied spouse, eloquently proves elusive. After the death of the come to life; how many small businesses expanding on their vision for the farm. former elderly tenant of one rather run have had the chance to thrive. Long may The inevitable question would be down 60 acre dairy farm his middle aged that continue.

64 THE TERRIER - SPRING 2015 THE SUFFOLK SCRIBBLER

Free the Beyton 14 – summoned the police! And in fact the ll Access to the west is curtailed by or is it 15? police were powerless to act as a recent the Fens change in the regulations governing Beyton is a village to the east of Bury St public meetings means that a member ll And to the south is curtailed by the Edmunds situated just off the A14 trunk of the public can now make recordings London and North East Railway. road. In the middle of the village is a in meetings. large triangular shaped green bounded The 3rd item can now be updated as on all sides by public roads. Indeed one The outcome of this intervention so far follows: of the green’s adjacent roads was the has meant that: then A45 trunk road until the village was ll Access to the south is generally bypassed some 20 to 30 years ago. ll Half the members of the Parish limited particularly after bank hol- Council have resigned iday weekends by the joint efforts The village sign incorporates geese as of Greater Anglia and Railtrack. for as long as anyone can remember ll Parish Council business has come there have been a dozen or so geese to a virtual standstill until new Par- The Suffolk Punch. Our East Anglian free ranging over the green and its ish Council members are elected predecessors were pretty good at surroundings. This caused no problems, on 7 May definitions and described the Suffolk apparently, even though one of the Punch as, ideally, having the head of adjacent roads was a very heavily used ll The geese still roam the village an angel, a body the shape of a Greene trunk road. green. King beer barrel and having a rear end like a farmer’s daughter. The Punch is, However a few years ago all the geese East Anglia matters of course, a heavy work horse, now alas disappeared and were last seen, or an endangered species, as, not so many so I am told, walking, late at night, up Isolation. Perhaps it is a product of the years ago, hundreds were employed in Church Road heading for, probably, the feeling of isolation but I cannot help agriculture and in railway goods yards, celestial freezer in the skies. The green but view the latest pronouncements by shunting wagons. then remained empty of livestock for both local and national bigwigs on the a year or so until, following a survey of impending broadband “roll out” with The End of an Era. In January the parishioners, geese were reintroduced huge amounts of cynicism. No doubt the Pentagon announced its intention to the green. aforesaid bigwigs are excitedly calling to redeploy the activities and each other on their mobile phones full personnel and to eventually close RAF When I was last in full time employment of self-congratulations and wishing that Mildenhall. It is estimated that the base our weekly Management Team meetings this latest roll out is as successful as the contributes around £200m a year to were held on Monday mornings in order earlier mobile phone signal roll out. the local economy and provides direct to get the bad news out of the way employment opportunities to a few early. Proceedings were considerably However so far as I am concerned the hundred local people. Immediately enlivened when we were joined by a mobile roll out didn’t happen here at all local politicians and MPs went on new chief officer from Scotland who as I still cannot get a mobile signal at my record to say that plans for reinvention, regaled us with stories about how things property unless, that is, I stand on top of growth and investment are discussed were done north of the border. Our a step ladder situated in the north east and completed before any base assets favourite stories ended up with “and corner of the lounge. In this position I become available. Discussions began on then the police had to be called in order can get a call out provided I do not nod the formation of appropriate working to restore peace among the members.” or shake my head while doing so. parties. However a few weeks later the These were our favourite stories as MOD announced that the possibility of calling in the police was so alien to us as Apart from that we have in my village the RAF taking over the base was still to be inconceivable. perfectly acceptable broadband and being discussed and plans were being we all hope it survives unscathed the made to mothball the base if needs be. But back to the Beyton geese; planned roll out. apparently one parishioner objected Sic transit gloria mundi so strongly to their reintroduction that Our East Anglian predecessors defined she turned up at a formal meeting of the area’s isolated nature as follows: A former chief officer colleague asked the Parish Council and started to film me some time ago whether, now I was and record the proceedings. On being ll Access to the north and the east is fully retired, I took the time to take asked to desist she refused and the curtailed by the North Sea a look at developments I had been Chairman suspended the meeting and associated with. I didn’t really know 65 THE TERRIER - SPRING 2015 how to respond to this as so far as I was From the Treasurer’s point of view the competitors in the world. Why was concerned the possibility did not arise building was a good long walk away nothing ever discovered? And secondly, as I had been mainly involved with the from Members’ rooms and so was ideal. bearing in mind he seems to have been generation of capital receipts, so there shopped by most of his “friends” or was little to see. However one situation All went well until it was my turn to be former teammates it illustrates the old where there was something to see came made redundant with a date fixed for maxim of treating contacts reasonably to mind and the “development” arose as the end of 2000 but in mid-October on the way up or inevitably they will get follows. 2000 my staff were moved out and I their own back on your way down. had to leave my comfy partitioned-off Back in the late 60s and early 70s I was space on the Milner Road side of the Now (March 2015) a little light is beginning to feel that my time with building for a desk in a special “naughty beginning to be shed on the first British Railways in London had run its boys” room on the first floor. Here I was point following a report by the Cycling course so when an opportunity with expected to turn up every day until 31 Independent Reform Commission Suffolk County Council at Ipswich, December 2000 but soon got fed up (CIRC). According to press comments close to where I actually lived, was with that and eventually just turned up the report, on Lance Armstrong and advertised I jumped at the chance. So for my last day. systematic doping in cycling, lays on 2 April 1970 I was interviewed for much of the blame on the International the job but didn’t get it as they were Thus in terms of developments I had Cycling Union (UCI) and states that looking for someone with compensation been associated with, even though I had “There are numerous examples that experience. However they were survived almost 30 years, St Giles House, Armstrong benefited from a preferential impressed with my landlord and tenant my only development, was still going status afforded by the UCI leadership”. experience, which they could also use strong after nearly 30 years. Having been For example: and so I was hired on that basis, subject prompted by the question referred to to approval being forthcoming for an above, in January 2015 I decided to drive ll Backdated prescriptions to legiti- establishment increase. I duly started by the location after a routine visit to the mise failed tests work as a Junior Valuer at County Hall on Ipswich Hospital. In truth it wasn’t far out 18 May 1970. of my way so I wondered why I had not ll Collusion with Armstrong’s legal done it during the intervening 15 years. team The project they had in mind for me was land at the eastern end of the Having thought the matter through ll The bending of the rules to allow County Hall site; a narrow strip of land I realised if I took the first exit from his participation in races with frontage to Milner Street and the hospital roundabout, and not the currently occupied by a number of small more usual second, drive down Spring ll The soliciting of financial donations workshops all mainly engaged in the Road to the Rope Walk turn-off, then motor trade. My job was to displace take the first left into Milner Street with ll And a supposed investigation into these users and recover possession so luck I could park just outside my office the rider’s EPO readings which was that the site could be developed as window. On the day my plan went like actually an investigation into how offices sufficient to make up the shortfall a dream and the first parking space in the information became public of office space on the County Hall site. Milner Street was available. I took it, knowledge. switched off the engine then looked So first thing I had a chat with each left to see who was using my comfy CIRC’s conclusion is that while the UCI occupant to put them in the picture, partitioned off space on the Milner Road “did not act prudently” it could not then served the appropriate notice side of the building. And the answer was classify its relationship as corrupt. on each as provided for in the 1954 no-one; there was just a nice green lawn. Landlord and Tenant Act. The occupants St Giles House was no more - it had been Although there can be no doubt that duly left the scene and the office block demolished! Armstrong’s active participation in the was built and christened Milner House. above was corrupt, apparently the active Lance provision of opportunities that enable Over the years many departments a third party to act in a corrupt manner moved into and left Milner House which Back in January 2013 I wrote what I is OK. at some point was rechristened St Giles assumed would be my last piece on House until in January 1988 I and my Lance Armstrong. Among other things I Whatever; remember you read it first in relatively small number of staff took over said that following his “confession”: The Terrier. half the ground floor. We shared the building with the Treasurer who had no Presumably “everything” now being said intention of leaving for more prestigious about Lance Armstrong is true………….. accommodation elsewhere even though but 2 thoughts occur to me. Firstly St Giles House was, due to its age, as a winner of 7 Tours, or whatever it expensive to heat in winter and had no was, and innumerable stages, he must cooling for summer time temperatures. have been one of the most drug tested

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