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September, 2009 Disposal of Land at Blaisdon Way for New Cheltenham Academy Report of Councillor John Morris Cabinet Member Built Environment

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September, 2009 Disposal of Land at Blaisdon Way for New Cheltenham Academy Report of Councillor John Morris Cabinet Member Built Environment Agenda Item 7 Cheltenham Borough Council Cabinet – 22nd September, 2009 Disposal of land at Blaisdon Way for new Cheltenham Academy Report of Councillor John Morris Cabinet Member Built Environment 1. Executive Summary and recommendation 1.1 The issue 1.2 Gloucestershire County Council (GCC) has requested that Cheltenham Borough Council grants a 125 year lease in relation to land off Blaisdon Way to the Governing Body of a proposed new Cheltenham Academy. The All Saints Academy will be located on the existing Cheltenham Kingsmead secondary school site in the Springbank Ward (subject to planning consent). 1.3 The area of land required is approximately 947 sq m for use as access (subject to planning consent). The request is for the land to be leased for a peppercorn rent. (Site plan Appendix A) 1.3.1 I therefore recommend that Cabinet:- Agrees in principle to the leasehold disposal of the land as identified on the accompanying plan at less than best consideration to the All Saints Academy Governing Body, under the General Disposal Consent (England) 2003, on the grounds of promotion or improvement of social well-being, subject to the production of a satisfactory traffic impact analysis report, and planning permission having been granted for the new academy proposal. 1.4 Summary of implications 1.4.1 Financial As detailed in Appendix C Contact officer: Mark Sheldon, Chief Finance Officer E-mail: [email protected] Tel no: 01242 264123 Page 1 of 11 Last updated 14 September 2009 1.4.2 Legal Under the constitution the Head of Property and Asset Management is authorised to grant leases of council property except where it is proposed that a disposal will be for less than the best consideration reasonably obtainable. The disposal strategy which forms part of the Council's Constitution states that all such decisions will be referred to Cabinet for approval prior to any commitment by the Council to the transaction. More information about the duty to obtain the best consideration reasonably obtainable and the General Consents that permit disposals at less than best consideration are set out in section 3 of this report. Contact officer: Donna McFarlane E-mail: [email protected] Tel no: 01242 775116 1.4.3 Other Contact officer: E-mail: @cheltenham.gov.uk Tel no: 01242 1.5 Implications on corporate and community plan priorities 1.5.1 Aim 5: Building stronger communities • Supporting communities that suffer from multiple deprivation through coordinated action on social and economic issues. 1.5.3 Aim 9: Investing in arts and culture • Broadening sporting and recreational activities • Increasing cultural and leisure facilities for young people 1.5.4 Aim 10: An excellent, efficient and sustainable council • Promoting and protecting Cheltenham’s quality of life through working with regional and local partnerships 1.6 Statement on Risk • The lease documentation should ensure that the Council’s interests are protected should the Academy close, or any part of the site ever be developed. Therefore, there are no risks to the Council if it proceeds with this disposal on the basis outlined under paragraph 2.4. Page 2 of 11 Last updated 14 September 2009 • The land to be leased will require planning consent for use as an access in conjunction with the proposed Academy development. Any risks associated with the proposed use will be dealt with under the usual planning mechanisms. • Should the Council decide not to proceed with this disposal, there is a risk of undermining the Cheltenham Academy project, causing damage to the council’s reputation and undermining public confidence. 2. Background 2.1 Kingsmead School will close in August this year and ownership of the site will revert to Gloucestershire County Council. GCC will grant a 125 year lease of the site to the Governing Body of the proposed academy, at a peppercorn rent, once construction work is completed, scheduled for Autumn 2011. 2.2 The new academy ideally requires a new access off Blaisdon Way which will form the main entrance into the school. The concept is for a new school with a new ethos and a new access is seen as part of a fresh image. The existing entrance will still be retained and used by staff and possibly as a pedestrian/cycle route. 2.3 GCC, as the local education authority, has approached CBC to procure the land off Blaisdon Way for the new access. However, the proposed lease would be granted directly to the new Governing Body and not GCC, although GCC will meet all of CBC’s costs in the process. 2.4 The proposal is to grant a 125 year lease contracted out of the security provisions of the Landlord and Tenant Act 1954, at a peppercorn rent. The lease will include early closure clauses, effecting an immediate termination of the lease in the unlikely event that the Academy closes. Likewise, there will be clauses to protect the Council’s interest should any part of the site be developed for anything other than the new Academy. 3. Best Consideration Where the Council is proposing to dispose of a property at less than best consideration it has to consider both the statutory framework (S123(2) of the Local Government Act 1972) and the Disposal Strategy. S123 (2) of the LGA provides that “Except with the consent of the Secretary of State, a council shall not dispose of land under this section, otherwise than by way of a short tenancy, for a consideration less than the best that can reasonably be obtained”. A short tenancy is defined as ‘the grant of a term not exceeding seven years” In this instance the proposed term will be for a period longer than 7 years. The Secretary of State issues general consents to the disposal of land from time to time. The General Disposal Consent (England) 2003 provides that specific consent (from the Secretary of State) is not required for the disposal of any interest in land which the authority considers will help it to secure the promotion or improvement of the economic, social or environmental well- being of its area. This applies to disposals where the undervalue is less than £2m. In the case of the land at Blaisdon Way, the proposed disposal falls within the theme of social improvement as it will be helping to secure community benefits. The Disposal Strategy will apply to this leasehold disposal. It identifies three issues which the Council needs to have regard to when considering a disposal at less than best consideration: Page 3 of 11 Last updated 14 September 2009 − what is the overriding policy or strategic objective that will be met if the property is disposed of for less than best consideration? The Council should have clear policy reasons for accepting a price which is less than best consideration. (See Section (1,5) of the report) − will the disposal give the purchaser an unfair commercial advantage (E.g. disposal for a particular use at a price below that which might be expected for that use)? − The Council should not give a particular purchaser an unfair commercial advantage. The land will be used to provide an access to a new school which is not a commercial organisation. − the incorporation of terms which protect the Council in the event of a subsequent disposal by the purchaser (E.g. a covenant restricting use to that for which the Council disposed of the property). Provisions will be included in the lease (See Section (2.4) of the report). The Disposal Strategy also states that: “In considering any proposal to dispose of property for less than best consideration the cabinet shall be informed of:” − the policy background which supports the proposal − the potential consequences if the proposal is not approved − whether the proposal will need specific consent of the Secretary of Sate or if it is the subject of a general consent − an assessment as to whether the proposal is likely to confer a commercial advantage on the prospective purchaser − the proposed sale price − an assessment of best consideration prepared by the Head of Property and Asset Management (See Exempt Appendix C of the report). All of these points have been addressed in the report. 4. Consultation 4.1 Consultation has been carried out with Ward members, the officer Corporate Asset Group (CAG) and the Cabinet Member Built Environment, none of whom have raised concerns about the proposal in relation to the proposed disposal at less than best consideration. The Asset Management Working Party will be briefed on 24th September 2009. 5. Conclusions 5.1 The Academy proposal supports the achievement of a range of Council priorities as set out in the report and has the potential to make a significant contribution to social well being in deprived areas of the local community. 5.2 The suitability of the Academy proposal in planning terms is not directly relevant to the recommendation of this report, but the proposal will be subject to normal planning requirements. Page 4 of 11 Last updated 14 September 2009 Background Papers None. Report Authors Joanna Sill, Estates Surveyor 264365 [email protected] Mike Redman, Assistant Director Built Environment, Cheltenham 264160 (Ext 4160) [email protected] Accountability Cabinet Member Built Environment Scrutiny Function Environment Page 5 of 11 Last updated 14 September 2009 Appendix A Area of land to be leased is hatched purple. Page 6 of 11 Last updated 14 September 2009 Appendix B Submitted by Gloucester County Council Evidence of Community Benefit arising from the new All Saints’ Academy Background to area The All Saints’ Academy will be located on the existing Cheltenham Kingsmead secondary school site in the Springbank ward in North West Cheltenham.
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