PAPER E Purpose: For Decision Committee EXECUTIVE Date 15 SEPTEMBER 2015 Title EXCHANGE OF LAND TO ENABLE A HIGHWAY IMPROVEMENT SCHEME AT UNDERCLIFF DRIVE, ST LAWRENCE, VENTNOR Report to LEADER OF THE COUNCIL AND EXECUTIVE MEMBER FOR CHILDRENS SERVICES AND LEAD MEMBER FOR RESOURCES AND THE MEMBER FOR PUBLIC HEALTH, PUBLIC PROTECTION AND PFI EXECUTIVE SUMMARY 1. This report seeks approval for the council to exchange freehold land with the Hampshire and Isle of Wight Wildlife Trust to deliver a road improvement scheme at Undercliff Drive, St Lawrence. 2. The Hampshire and Isle of Wight Wildlife Trust (the trust) owns woodland on Undercliff Drive, St Lawrence, which the council needs control of to construct part of a new road following a landslip in 2014. After looking at various options the trust has agreed to transfer this land to the council in exchange for council owned land at Alverstone Mead, Sandown. 3. The completed works at Undercliff Drive will enable affected residents to regain access to their properties, and for the public to use part of the route as a green way. BACKGROUND 4. In February 2014 heavy rainfall contributed to a landslip at Undercliff Drive, St Lawrence, which resulted in closure of the road and nine residents losing access to their homes. 5. Since then, the council has been working towards a solution to ensure affected residents regain access to their properties, and if possible give members of the public the ability to use the road. A report was taken to the executive in November 2014 with various options. It was resolved at that stage to “Undertake a combination of pedestrian access and a low cost limited access road from the west. Work to commence and be completed as soon as is practicably possible.” A budget was confirmed to enable the preferred road improvement scheme to proceed. 6. Accordingly, a scheme has been developed with Island Roads. To enable a new road to be constructed on stable ground it is necessary to acquire land from the trust. This will enable the alignment of the road to be moved landward, away from the area of unstable E - 1 ground which suffered land sliding. A number of mature trees will have to be felled to allow construction, so Island Roads is in discussion with Natural England as well as the council’s tree officer as the area is designated as a site of special scientific interest (SSSI) and protected by a blanket tree preservation order. Due to the scale of land sliding to the east of the nine properties, access will only be possible from the east on foot or by bicycle. 7. To deliver the scheme, the council needs to secure freehold ownership of a small area of woodland owned by a third party, the Hampshire and Isle of Wight Wildlife Trust, a site plan of which is attached at Appendix A. 8. The council has been negotiating with the trust for some time on this matter, looking at all options to take control of this land (purchase, an exchange of land for another council site etc.). However, the trust confirmed that a critical issue for its board is that there must be no loss of high quality heritage land to the trust as a result of the sale, as the woodland at Undercliff Drive is an SSSI, and therefore of high quality. In addition, an alternative site must be located close to the trust’s existing landholdings to enable efficient management. Both criteria limit the amount of suitable alternative land. 9. As a result of extensive negotiations, the trust has confirmed that its board may be prepared to approve a land swap for the council’s site at Alverstone Mead, Sandown, as this is the only council site available that satisfies the above requirements. A site plan of the council’s land at Alverstone Mead is attached as Appendix B. 10. The council’s land at Alverstone Mead extends to approximately 40 acres, is a wildlife sanctuary and has been independently valued at £5,040 for the freehold interest. 11. The trust’s land at Undercliff Drive extends to two acres, is SSSI woodland and has been valued at £4,000 for the freehold interest. 12. The reason that the value of the council’s land at Alverstone Mead is so low in comparison to the woodland despite being substantially larger, is that the council’s freehold land is subject to a 99 year lease to a third party (for wildlife use) with 79 years remaining. So although the Alverstone Mead site is much larger than the woodland at Undercliff Drive, the council’s freehold value is substantially depressed due to the fact that it is subject to a lease for the next 79 years. 13. Accordingly for the council to deliver the scheme at Undercliff Drive, an option would be for it to transfer its freehold land holding at Alverstone Mead to the trust, in exchange for the trust’s freehold woodland at Undercliff Drive. 14. On this basis, both parties have indicated that a land value of £1 per site would be acceptable. 15. As noted above the land values for each site are very similar, so there is no substantial loss or gain in value to either organisation as a result of this transaction, although the council will make a small loss of £1,040. This is because the trust does not wish to sell the woodland at Undercliff Drive, but the council wishes to deliver the highway scheme. Accordingly, the trust would not be willing to pay for any difference in value – it could simply choose not to transfer the land. E - 2 16. In undertaking boreholes associated with provision of an access to Undercliff residents, laboratory results have confirmed the presence of asbestos on Undercliff Drive. The asbestos has been found within the rubble core of the access road constructed by residents of Undercliff Drive, which adjoins the land owned by the trust. The asbestos was found within a ground investigation trial hole at a depth of 0.6 metres and again at 1.0 metres. 17. The owners of the adjoining land including the trust have been notified, as have the Environment Agency and Natural England. Island Roads, with the assistance of technical specialists, will seek to identify the extent of the contamination before agreeing the appropriate course of action with relevant parties. It is possible that contamination may be present in a small section of land owned by the trust and that any remediation of the land within the highway may also be required for the trust’s land. 18. There are potential costs implications in dealing appropriately with the asbestos, however the majority of the rubble placed is within council ownership rather than land owned by the trust. 19. The council needs to progress the land swap and highway works quickly, before the winter begins. Accordingly works have already commenced on the council owned land, with the works to be undertaken on the trust’s woodland starting once the trust’s land is in the council’s ownership. It is hoped that the road improvement scheme will be complete and the road will open by late autumn. STRATEGIC CONTEXT 20. This exchange of land supports the council’s priorities as set out in the corporate plan 2015-2017: • Supporting growth in the economy, making the Island a better place and keeping it safe. • Ensuring that all the resources available to the island are used in the most effective way in achieving the island’s priorities. CONSULTATION 21. Consultation for the land swap proposal in this report has included the service area (parks and countryside), the local member and the town council. Any comments received prior to the meeting will be reported verbally. FINANCIAL / BUDGET IMPLICATIONS 22. If the land exchange takes place on the suggested terms of £1 per site, there would be no substantial capital gain or loss to either organisation. There is a small loss in capital value to the council of £1,040 due to the council’s asset to be transferred being worth £1,040 more than the trust’s asset. 23. The council will need to fund legal and surveyors fees to oversee the exchange of sites. Each party will bear their own costs. There is sufficient funding for these costs in the E - 3 budget identified when the road improvement scheme was approved (under council decision reference 100 (14/15)). 24. There will also be capital expenditure to clear part of the site and construct the road, but the funding for this will also be met by this budget. 25. As the site is already leased to a third party who manage the site on behalf of the council, there will be very limited revenue benefits to the council in disposing of the site. 26. There will be a future revenue cost to the council in managing/maintaining the remaining woodland. The cost of this will be met by the council’s parks and countryside department. CARBON EMISSIONS 27. As both sites comprise land only and not buildings, the council’s carbon emissions will remain unchanged as a result of this land swap. LEGAL IMPLICATIONS 28. The council will be required to transfer its freehold ownership of Alverstone Mead to the trust, while the trust will be required to transfer the freehold ownership of its woodland at Undercliff Drive to the council. 29. The council has the power to dispose of property under section 123 of a Local Government Act 1972 which requires it to achieve ‘best consideration’ in any disposals.