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
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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.
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• 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:
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− 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.
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Background Papers None.
Report Authors Joanna Sill, Estates Surveyor 264365 [email protected]
Mike Redman, Assistant Director Built Environment, Cheltenham 264160 (Ext 4160)
Accountability Cabinet Member Built Environment
Scrutiny Function Environment
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Appendix A
Area of land to be leased is hatched purple.
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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. The school also serves the neighbouring wards of St. Mark’s, St Peter’s and Hester’s Way. These 4 wards are considered to be the local community. As the new Academy will be a Catholic/Anglican Academy it will also serve the wider community of Cheltenham Borough.
In terms of the immediate 4 wards surrounding the Academy site, each of the 4 wards is divided geographically into 4 lower level super output areas (SOA’s). For this area therefore, that means there are 16 local SOA’s.
The Index of Multiple Deprivation (IMD) 2007 is a national measure produced by the Department of Communities and Local Government. It includes 7 domains: • Income • Employment • Health Deprivation & Disability • Education Skills & Training Deprivation • Barriers to Housing & Services • Crime • Living Environment The IMD scores for each SOA are ranked. In terms of these local SOA’s, 7 of the 16 (43.8%) of these areas are within the most 10% deprived in the county. None are in the least deprived 10%. In terms of the wider community element 12 out of 75 (16%) of the Cheltenham local super output areas are within the most 10% deprived in the county. 14 out of 75 (18.7%) are in the least deprived 10%.
Background to existing schools
The new Academy will be formed through the closure of Cheltenham Kingsmead and Christ College establishments.
Cheltenham Kingsmead School is currently judged by OFSTED to be performing satisfactorily, whilst Christ College was given a good overall rating as a result of the most recent inspection, which took place on 26th and 27th November 2008.
However, the need to continue focus on school standards is evident from analysis of data, which indicates that pupils living in the area served by Christ College and Kingsmead schools do not reach their potential. They achieve the lowest percentage of A* to C grades, including English and Maths compared with the achievement of pupils living in similar areas across Gloucestershire. In 2008, pupil achievement at Kingsmead was 6% below the national floor target of 30% 5 A* to C grades at GCSE, including English and Maths and
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pupil achievement at Christ College was 4% above this floor target.
How will the new Academy change this?
The replacement of Christ College with a high - performing Academy, which will also provide new sixth form provision in the area, supports directly, the following CYP outcomes and priorities:
• To improve attainment of vulnerable children and young people (CYP Priority 4) • To improve choices for 14-19 year olds (CYP Priority 7) • To improve outcomes for all children and young people. • To reduce the gap between good outcomes for most and poor outcomes for some.
From September 2009, Year 10 and 11 pupils who have been attending Kingsmead School will transfer to the roll of Christ College.
The proposed Academy will meet the needs of pupils and the communities, which are currently being served by these two existing schools. It is proposed that all pupils on roll at both sites at the time of its closure will be offered places at the new Academy.
The governors of Christ College and the Clifton and Gloucester Dioceses have carried out a linked consultation process on the proposed building of a new Academy and the closure of Christ College. The consultation feedback indicated strong support, with 82% of responses in favour of the proposal to build a new Academy and 79% of responses in favour of the linked proposal to close Christ College.
The development of the planned Academy directly supports the aims and priorities of the Children’s and Young People’s Plan 2006-2009.
At a meeting on 22 October 2008, GCC Cabinet reiterated its support for the development of a high performing Academy in Cheltenham to provide for both faith and local communities and the new Academy is included in the Capital Programme.
Through the establishment of the new Academy both sponsors Catholic Diocese of Clifton and the Anglican Diocese of Gloucester are committed to ensuring the achievement of high standards and regeneration not just for the students but also the wider community. They will take the lead role in opening up opportunity and strengthening the community, looking to maximise the educational and family provision for the communities it serves.
This will be further enhanced through the links with the additional establishments who have agreed to partner the Academy namely:
• University of Gloucestershire • The Cheltenham Ladies College • Gloucestershire College • Pate’s Grammar School • Universities and Colleges Admissions Service (UCAS) • Gloucestershire County Council • Dean Close School • National Star College • Learning and Skills Council (LSC)
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These partners have agreed to support the new Academy in variety of ways and will bring their expertise and strengths to maximise the opportunity for raising standards.
The construction of this Academy will represent a significant investment of £24M into this area of Cheltenham. This represents a significant boost for the area in a number of ways:
• It will create a centre for transformational education to raise aspiration and achievement levels, not just for the students but also parents and the wider community • It will contribute to enhancing community identity and cohesion. • It will be a significant boost for the local economy • The quality of the new 21st century facilities will give the community a presence and something they rightly deserve and can be proud of, in particular when compared to the existing accommodation at Kingsmead School
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Appendix C - Not for publication by virtue of paragraph 3 of Schedule 12A (as amended) of the Local Government Act 1972.
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