Item 2 Glasgow City Council 18th March 2021 Contracts and Property Committee
Report by Director of Corporate Asset Management
Contact: Ian Robertson Ext: 74570
THE 56-64 KINGSTON STREET, GLASGOW COMPULSORY PURCHASE ORDER 2021 PROPOSED COMPULSORY PURCHASE ORDER AND ONWARD TRANSFER TO BARCLAYS EXECUTION SERVICES LIMITED
Purpose of Report: To seek Committee’s approval of a Compulsory Purchase Order for the premises at 56 - 64 Kingston Street and 48-54 Centre Street, Glasgow G5 8BP (the ‘CPO’), as shown on the attached Plan on behalf of Barclays Execution Services Limited, and to enter into a Back to Back Agreement.
Recommendations: It is recommended that the Committee:
1. notes the plans to preserve, refurbish and redevelop the Listed building situated at 56-64 Kingston Street and 48-54 Centre Street, Glasgow (the “Beco Building”) by Barclays Execution Services Limited, (Company no. 01767980), 1 Churchill Place, London E14 5HP (‘Barclays’), to become part of Barclays’ ‘Masterplan Development’ of the immediate surrounding area currently under construction;
2. approves the promotion of an agency compulsory purchase order on behalf of Barclays to allow acquisition of the title interests within the Beco Building where voluntary acquisition has not been possible or where necessary to allow Barclays to proceed with the proposed development of the site; and
3. approves entering into a ‘Back to Back’ Agreement with Barclays to recover all Council costs (including compensation payable) in relation to the CPO, and the onward transfer of interest to Barclays, in terms satisfactory to the Council.
Ward No(s): 5 – Govan Citywide:
Local member(s) advised: Yes √ No consulted: Yes √ No
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1.0 Introduction
1.1 Barclays Bank are currently working on developing their new Scottish Headquarters on the south side of the Clyde in the Tradeston area of the city. The development will comprise over 500,000 sqm of mainly office accommodation on a 2.64 ha. site bounded by Clyde Place, Commerce Street, Kingston Street and West Street.
1.2 The majority of the development will comprise new buildings however it is proposed that an existing category B listed building at 56-64 Kingston Street, known as the Beco Building, will be substantially refurbished and incorporated into the larger development. While Barclays own most of the building they have been unable to acquire all of the different interests in the building. The Beco Building is shown on the attached plan.
1.3 GCC has been asked to support Barclays by promoting an agency compulsory purchase order of the Beco Building site. The CPO primarily seeks to acquire all remaining interests within the Beco Building not already within Barclays’ ownership, for onwards transfer to Barclays by way of a Disposition.
2.0 Background
2.1 The majority of the Development Site was originally owned by Drum Property Group (Drum), who obtained planning permission in principle in 2017 for a ‘mixed-use development to include offices, residential, hotel, serviced apartments, shops/ retail, offices and restaurants/ public houses and crèche, together with associated car parking, access, landscaping, public realm and infrastructure works’.
2.2 At that time, Barclays were seeking a site for the location of their proposed new development to be known as the Barclays Glasgow Campus, and they subsequently acquired large areas of the Development Site from Drum for this purpose. The fact that planning permission in principle had been obtained was a contributing factor in Barclays selecting this part of Glasgow as their preferred location for establishing their new Scottish headquarters.
2.3 The Category B-listed Beco Building, previously used as retail and residential premises, is currently vacant. Having fallen into a state of disrepair, it is on Historic Scotland’s ‘Buildings at Risk’ register. Barclays wish to redevelop it to form an important and prominent part of their new Barclays Glasgow Campus comprising of office and banking space together with supporting retail food and drink, child care and other ancillary uses.
2.4 Barclays own the majority of the Beco Building but have been unable to acquire parts of the eastern section of the 2nd floor, parts of the eastern section of the 3rd floor, and parts of the western section of the 4th floor which are all believed to belong to the one owner. While Barclays have managed to identify the owner they have been unable to trace them with their last known address being abroad. A further section of the 4th floor is owned by another party and negotiations are ongoing between Barclays and the other party with a view to agreeing a voluntary acquisition.
2.5 It is proposed that the redeveloped Beco Building may also be extended to the rear (north), creating a physical link with the adjacent building and a spatial link with Kingston House, another category B-listed building which lies to its rear. It is considered that when redeveloped, these buildings will together help to ground the overall campus design as high quality existing buildings and fine examples of late 19th century commercial architecture.
2.6 When completed, the overall development will be known as “Barclays Glasgow Campus” and will consist of a major mixed-use hub of new buildings including offices, a branch of Barclays Bank and areas of public open space, all interlinked and connected, for use and enjoyment by the public.
3.0 Planning
3.1 In 2017, the Council approved a ‘Planning Permission in Principle (PPP) (ref: 16/02357/DC)’ application for a mixed use development; comprising mainly of offices with serviced apartments and other commercial uses (retail/restaurants etc). The consent also included the closure of Clyde Place to the north of the site, which was subject to a Stopping Up Order, to allow the applicant to create areas of public realm to this area of the application site. The site within the Tradeston area of the city, is bounded by Clyde Place, Commerce Street, Kingston Street and West Street.
3.2 The overall vision for the site is to introduce a substantial level of new office accommodation over a series of varied buildings in terms of height and form, with the potential for commercial uses at ground floor locations. The proposals will also incorporate landscaping and public realm areas across the north boundary of the site, which will then filter through the development to the southern boundary. 3.3 The Beco Building does not form part of the original planning permission (ref 16/02357/DC) obtained in 2017, but due to its location it has an inherent relationship with the surrounding Development Site. It will be redeveloped and promoted in accordance with planning application 20/02428/FUL, which was for ‘Use of commercial building as financial and professional services (Class 2) and business premises (Class 4) with landscaping and associated works. A related listed building application (ref: 20/02426/LBA) was also approved and required due to the listing of the building, for ‘internal and external alterations’ for the purposes of introducing the new use (Class 2 and 4) to the building.
3.4 For information, planning consent (19/03879/FUL) and listed building consent (19/03874/LBA) were also acquired for the Beco building for the purposes of carrying our repair works to the building.
4.0 Compulsory Purchase
4.1 Sections 188 and 189 of the Town and Country Planning (Scotland) Act 1997 allow a Planning Authority to acquire compulsorily land in their area which is required in order to secure the carrying out of development, redevelopment or improvement; or is required for a purpose which it is necessary to achieve in the interest of the proper planning of an area.
4.2 In doing so the Planning Authority should have regard to the provisions of the development plan and whether planning permission for any development on the land is in place.
4.3 Circular 6/2011 sets out the Scottish Government’s policy on the use of CPOs in Scotland. The use of CPOs is encouraged where there is a strong enough case for this in the public interest.
4.4 The CPO is being promoted on the back of the approval of the Permissions to redevelop and regenerate the Beco Building. In granting permission, the Council considered the proposal against national, regional and local planning policy, in particular the Glasgow and Clyde Valley Strategic Development Plan (2017) and the Glasgow City Development Plan 2017.
4.5 Barclays have attempted to acquire the title interests in the Beco Building on a voluntary basis and have to date acquired a number of interests, however it has not been possible to acquire all of the titles interests and so a CPO is required to complete their title to the Beco Building site and allow the Permissions to be implemented.
4.6 A ‘Back to Back Agreement’ is required between the Council and Barclays. Approval is sought to delegate the approval of the content and specific Heads of Terms regarding this agreement to the Director of Corporate Asset Management.
4.7 Barclays will be responsible for all costs both in promoting the CPO and arising from compensation payments. Barclays however, will continue to seek voluntary acquisition of outstanding interests where required.
5.0 Conclusion
The regeneration of the Tradeston area through the implementation of the Barclays Masterplan Development, and including the renovation of the Beco Building, is an important priority for Glasgow City Council which will deliver significant benefits to the City in terms of socio-economic development, job creation, environmental improvements and regeneration. In order to achieve the regeneration of the Beco Building as envisaged on the approved Permissions, it is vital that Barclays hold clear title to all the title interests to deliver this. The promotion of an agency CPO in conjunction with the ‘Back to Back Agreement’ is the identified method to ensure the required consolidation of ownership.
6.0 Proposal
6.1 Costs: Barclays shall reimburse the Council in respect of its own legal costs and all other outlays properly incurred in this transaction.
Other: That the Director of Corporate Asset Management be authorised to conclude all other matters pertaining to the Compulsory Purchase of the subjects and to enter into necessary legal agreements on terms which are in the best interest of the Council.
7.0 Policy and Resource Implications
Financial: The Council will incur costs in acquiring the premises and compensating the owner(s). Barclays will reimburse the Council in full for these costs (which are yet to be determined) all as part of the terms of the Back to Back Agreement.
Legal: Legal Services will progress the CPO once authority has been granted to do so.
Personnel: There are no direct personnel implications.
Common Good: These premises are not in the Common Good fund.
Personnel: There are no direct personnel implications.
Procurement: There are no relevant procurement issues.
Council This project will satisfy the following aspects of Strategic the Council’s Strategic Plan: Plan
A Thriving Economy
Without inclusive growth the city cannot flourish or tackle the challenges it faces. Our priority is inclusive growth that creates jobs, helps us to tackle poverty and improve the city’s health. We need to demonstrate that our thriving economy benefits the city, its citizens and businesses. Our work to support inclusive growth helps to deliver a key Community Plan priority.
In particular, this report will support and assist in achieving the following outcome:
“A resilient, growing and diverse city economy where businesses thrive.” “Glasgow is rated highly for its business innovation and digital skills.”
In particular, the following priorities will apply:
01. Deliver the Glasgow Economic Strategy 2016 to 2023 and ensure it is supported by expert external advice from the Glasgow Partnership for Economic Growth.
03. Ensure the outcomes of this strategy and the City Deal benefit the city and the people of Glasgow by: Regenerating key areas of the city such as Canal and North East (Sighthill), Collegelands and Barras, the West End Innovation Quarter and Govan/ City Centre and looking at other areas for development.
Equality and Socio- An Equality Impact Assessment (EIQA) is not Economic Impacts: required for this project.
Does the proposal N/A support the Council’s Equality Outcomes 2017-21
What are the N/A potential equality impacts as a result of this report?
Please highlight if The proposals in this report will support inward the policy/proposal investment opportunities in the Tradeston area of will help address the city. The provision of the new mixed-use hub socio economic will provide employment opportunities, and will disadvantage. make a positive contribution towards addressing socio/economic disadvantage.
Sustainability Impacts:
Environmental: This proposal will lead to the renovation and replacement of derelict buildings, leading to a better environment for local people.
Social, including No Impact Article 19 opportunities:
Economic: The proposal will provide new employment opportunities in the area.
Privacy and Data N/A Protection Impacts:
Common Good: There is no requirement to consider any Common Good aspect in this transaction.
8.0 Recommendations
It is recommended that the Committee
1. notes the plans to preserve, refurbish and redevelop the Listed ‘Beco Building’ situated at 56 - 64 Kingston Street and 48-54 Centre Street, Glasgow by Barclays Execution Services Limited, (‘Barclays’), to become part of Barclays’ Masterplan Development of the immediate surrounding area currently under construction;
2. approves the promotion of an agency compulsory purchase order on behalf of Barclays to allow acquisition of the title interests within the Beco Building where voluntary acquisition has not been possible or where necessary to allow Barclays to proceed with the proposed development of the site; and
3. approves entering into a ‘Back to Back’ Agreement with Barclays to recover all Council costs (including compensation payable) in relation to the CPO, and the onward transfer of interest to Barclays, in terms satisfactory to the Council.