Manchester City Council Item 12 Executive 14 March 2012 Manchester City Council Report for Resolution Report to: Executive – 14 March 2012 Subject: Agreement to give up a right of pre-emption in respect of Baguley Hall and associated grounds and an associated freehold disposal of a small area of adjoining land to the Heritage Trust for the North West Report of: City Treasurer, and Assistant Chief Executive (Regeneration) Summary To request approval for the Council to give up a right of pre-emption in respect of Baguley Hall and its associated grounds, and to request approval to the freehold disposal of adjoining land at Nethercote Avenue, Baguley, Manchester to the Heritage Trust for the North West at less than best price. Recommendations The Executive is asked to: 1. Approve the giving up of the right of pre-emption in respect of Baguley Hall and its associated grounds and approve the disposal of the adjoining land at Nethercote Avenue Baguley as set out in the body of this report, and 2. To authorise the Head of Corporate Property and the City Treasurer to finalise the terms of the transactions and for the City Solicitor to execute the documentation . Wards Affected: Baguley Community Strategy Spine Summary of the contribution to the strategy Performance of the economy of The proposal is intended to assist in the the region and sub region conservation, restoration and bringing back into beneficial use of the Grade 1 listed Baguley Hall. Reaching full potential in Provision of jobs both during the restoration and education and employment future use of the property which will help secure and create additional employment opportunities. Manchester City Council Item 12 Executive 14 March 2012 Individual and collective self None esteem – mutual respect Neighbourhoods of Choice The proposal has the potential to improve the local area and should further assist the goal of it becoming a Neighbourhood of Choice. Full details are in the body of the report, along with any implications for: • Equal Opportunities Policy • Risk Management • Legal Considerations Financial Consequences – Revenue The giving up of the right of pre-emption and the allied disposal will ensure the City has no ongoing liabilities. Financial Consequences – Capital The proposed terms for the freehold disposal of the small parcel of land on Nethercote Avenue represent a disposal at less than best price. The unrestricted Market Value of the site is estimated to be not more than £30,000. Under the terms of the proposed disposal the City Council will be forgoing the above sum. Contact Officers: Name: Helen M Jones Position: Head of Corporate Property Telephone: 0161 234 1257 E-mail: [email protected] Background documents (available for public inspection with the exception of item 1 below i.e. the Part B report): The following documents disclose important facts on which the report is based and have been relied upon in preparing the report. Copies of the background documents are available up to 4 years after the date of the meeting. If you would like a copy please contact the contact officer above. None Manchester City Council Item 12 Executive 14 March 2012 1.0 Introduction 1.1 The property know as Baguley Hall and associated grounds as shown edged red on the attached plan was disposed of by the Council by way of a Deed of Gift to the Ministry of Public Buildings and Works on 13 th January 1969. 1.2 Baguley Hall is a 13 th Century Grade 1 Listed building and a Scheduled Ancient Monument of National Importance, comprising the original Tudor Manor Hall with later Victorian and Georgian Extensions with associated kept grounds having been listed on 25 th February 1952. 1.3 The property is now in the ownership of the Secretary of State for Culture Media and Sport and is managed on his behalf by English Heritage (EH). 1.4 When the City Council originally gifted the property to the Ministry, it imposed a right of pre-emption whereby if the property was ever to be de-scheduled as an ancient monument the City Council would have the right to reacquire the property at nil consideration. 1.5 There has been a long history of attempting to find a suitable use for the property however all previous attempts have failed. The property is currently vacant, and the current condition of the property is of concern to EH. 1.6 EH has been instructed by the Secretary of State to dispose of the property. As a result EH has undertaken detailed consultation with the City Council and a comprehensive disposal brief has been agreed detailing the types of use and future conservation requirements for the property. 1.7 EH is proposing to provide the purchaser with a Grant in the sum of £1m towards works which are deemed necessary to protect the fabric of the building however this remains conditional on the funding not being withdrawn by Central Government budgetary requirements. It is therefore imperative that the disposal of the property is progressed with alacrity to ensure the grant will not be lost. 1.8 EH appointed GVA Grimley as its marketing agents and as a result of the exercise, two compliant bids were received. After a detailed analysis of the bids, EH is now recommending that the Secretary of State accept the bid submitted by the Heritage Trust for the North West (HTNW). 1.9 HTNW is a registered Building Preservation Trust and was established in 1978 as a charity and company limited by guarantee . It has an excellent track record of successfully restoring and finding long term solutions to ensure the future preservation and reuse of historic building in the North West. 2.0 Proposal 2.1 In order to facilitate the restoration of Baguley Hall, EH now intend to seek approval to de-schedule the property as an Ancient Monument as EH is satisfied that the Grade 1 listing and the conditions it intends to impose in the Manchester City Council Item 12 Executive 14 March 2012 disposal documentation will be sufficient to protect the future of the property. EH consider the de-scheduling will facilitate the proposed works. 2.2 At the time the comprehensive disposal brief was prepared in early 2010 and after consultation with the City Solicitor, the City Council officers gave EH written assurance that the City Council would be prepared to waive the right of pre-emption subject to the following; Either (a) that the purchaser and future use is considered by the Council to be in the public interest or (b) that the purchaser shall enter into a fresh covenant in favour of the City Council on similar terms to the existing right of pre-emption so that the City Council would retain a degree of control over future uses and sale of the Grade 1 Listed Building. 2.3 After discussion between EH and HTNW it is now clear that EH wish to seek Council approval to waive its existing right of pre-emption under option (a) above, as this will ensure HTNW will not have any constraints in its attempts to securing funding for its proposals. 2.4 Furthermore in order to give HTNW the maximum degree of flexibility in its attempt to provide a long term solution for Baguley Hall, HTNW has requested to acquire the City Council’s freehold interest in the land shown shaded red on the attached plan amounting to 335 sq metres or thereabouts. This area of land is vacant land which is laid to grass and maintained by the City Council. The intention would be for HTNW to fence the land as part of the Baguley Hall site and in due course to make a planning application for use of parts of it for a car park to help support the long term reuse of Baguley Hall. Ward Councillors, planning and regeneration officers are all supportive of the proposal subject to no access being taken from Nethercote Avenue. 2.5 HTNW has confirmed it has no funds to acquire the land and therefore it has requested to acquire the site for the sum of £1 with each party bearing its own fees. 2.6 The unrestricted Market Value of the small site is estimated to be not more than £30,000 as a single building plot. As such the proposed disposal terms represent a proposed disposal at an undervalue and therefore Executive approval is required to proceed. 3.0 Contributing to the Community Strategy (a) Performance of the economy of the region and sub region 3.1 None. (b) Reaching full potential in education and employment 3.2 The proposal has the potential to improve and further enhance temporary Manchester City Council Item 12 Executive 14 March 2012 employment during the development and future uses of the site. (c) Individual and collective self esteem – mutual respect 3.3 None. (d) Neighbourhoods of Choice 3.4 The restoration and sympathetic development of the site will improve the area and Baguley Hall has the potential to become a significant local attraction. 4. Key Policies and Considerations (a) Equal Opportunities 4.1 None (b) Risk Management 4.2 There would appear to be limited risk of the project failing as EH are satisfied that HTNW is fully committed to the scheme and has an excellent track record of delivering this type of project. 4.3 The proposal has support from Local Ward members and the Wythenshawe Regeneration Team. 5. Legal Considerations 5.1 Under Section 123 of the Local Government Act, the City Council is required to secure the consent of the Secretary of State to a disposal at an undervalue.