1. |
Introduction |
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1.1 |
The County Council has extensive property assets from which the majority of its services are provided. The County Council has some 5,000 buildings, 16,505 acres (6,679 hectares) of land with over 300,000 building users in a working day. The corporate management of these assets has been a key feature of the Council's policies and strategies over many years. Long term planning over 5 to 10 years and beyond has often been a key to exploiting and providing capital receipts for reinvestment in County Council facilities. Some £370 million has been provided in this way in the last 20 years. |
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1.2 |
This report sets out the relevant policies and objectives as part of the annual review of the estate. A number of the key projects are identified for implementation within the next 12 months, others take the County Council through to the end of the decade. The Executive Member for Policy and Resources recently approved the Strategy for the Built Estate, which dealt with the management of the major maintenance liabilities. This report concentrates in a complementary way on the targets and opportunities to further enhance the County Council's use of its Property in the coming months and years. |
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1.3 |
The report contains three main sections which: |
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(i) identify Property Objectives and their links to the County Council's Corporate Objectives |
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(ii) reviews performance and progress towards the above objectives over the last financial year |
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(iii) sets out a challenging agenda for 2003/4. |
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The management framework is attached as Appendix 1. |
2 |
Corporate Policy and Property Objectives |
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2.1 |
The strategic property objectives of the Council have for some time been: |
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· to ensure the effective and efficient use of land and property through regular land and property reviews
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· to implement planned programmes of refurbishment, adaptation and maintenance to best meet changing requirements for effective service delivery (dealt with in the recently approved Strategy for the Built Estate)
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· to maximise the level of capital receipts whilst achieving high quality schemes in the provision of sustainable new buildings and development by third parties on County Council land
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· to acquire additional land for service delivery, development projects or investment purposes at the same time as considering the environmental issues around development in Hampshire.
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2.2 |
Each of the above contribute to the wider corporate aims of the County Council in particular its stewardship of the environment, improving services with new facilities and maximising the opportunities that residents have to access and use the Council's built estate and landholdings. |
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2.3 |
More recently two further objectives were established: |
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· to create increased capacity to deliver the capital programmes through partnerships with the private sector
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· to review procurement opportunities to maximise the return on investment and the quality of outcomes from key projects.
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3 |
Property Management Objectives - 2002/2003 |
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3.1 |
Capital Receipts and Reinvestment Projects |
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3.1.1 |
Throughout the year, continuing progress has been made in delivering the programme of Capital Receipts or Reinvestment Projects (formerly known as In/Out projects) sales. The process of disposal is the same for both categories, and to be effective requires a long term perspective to be taken. This is to ensure that planning and other statutory approvals are secured and as much uncertainty over physical, legal and ownership issues are removed so as to maximise capital receipts and influence the quality of the resulting development. |
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3.1.2 |
The sale and development of the County Council's Major Development sites at Binfields, Basingstoke and Segensworth, Fareham are now nearing completion. Resources have been concentrated on bringing the next major areas of County Council owned land to secure planning approvals for their sequential release to generate capital receipts over the next 5-10 years. At the same time, continued progress has been made on a range of sites across the County to support an major increase in the programme of Reinvestment Projects. Due to changes in planning and statutory approvals and to meet the changing service requirements, sites are now being actively promoted within the Local Plan review process (see below). It is difficult to overestimate the importance of both the advocacy involved and the preparatory work required to achieve a future stream of receipts. |
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3.2 |
Capital Receipts |
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3.2.1 |
In approving last year's strategy, the total receipts target was increased by £3m to £25m for the years 2002/3 and 2003/4. It is anticipated that this will be achieved by the end of the current financial year. |
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3.2.2 |
The sale of the first two housing phases at Binfields, Basingstoke was completed and reflected the strong market interest in these greenfield sites with outline planning approval and also, importantly, their fully serviced character. Also, the sale of Site 1 Segensworth for a quality office development scheme, rounds off the County Council's successful completion of the Segensworth Employment Area with over 168,000 square metres of accommodation, 75 premises and approximately 5,250 employees. The receipts total includes the sale of Hatch Farm, Mattingley and the County Councils portion of the receipt also includes the sale of land and buildings at St John's CE Primary School, Old Rowlands Castle, and an overage contribution from the sale of the John Hanson School sites. (see below). |
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3.2.3 |
Substantial progress has also been made on the sale of an area of County Farm land as an extension to the Chilworth Science Park and completion is anticipated shortly. |
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3.3 |
Reinvestment Projects |
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3.3.1 |
A gross total of £7.28m was received in 2002/3 for the sale of sites to support the County Councils' Reinvestment Projects. This total includes receipts from the sale of land at Thornden School, Chandlers Ford, Old Botley Primary School and the Phase 2 payments form the sale of the John Hanson School sites at Croye Close and The Drove, Andover. |
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3.3.2 |
The new replacement John Hanson School opened on programme last September with the structure of the sale of the former school sites being phased over 2001/2 and 2002/3 to reflect the expenditure profile of the overall project. As part of the planning approvals secured for the redevelopment of the former school, Test Valley Borough Council entered into a legal agreement to "waive" the usual affordable housing provision until the value of the sites and the outturn cost of the project was known. Following the completion of the school and finalisation of the contract, the sale proceeds from the former sites, together with £1m Surplus Place removal funding from the DfES has allowed the County Council to pay for the Borough the full overage sum of £750,000 whilst also still making a significant contribution as a windfall receipt to the capital receipt programme. The £750,000 payment to the Borough will fund the provision of accommodation and support facilities for young homeless people. |
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3.3.3 |
This innovative agreement between the County and Test Valley Borough Council assisted in the delivery of a new secondary school building for Andover and subsequently delivered the full level of capital investment otherwise available to the Borough Council for the provision of affordable housing. |
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3.3.4 |
Significant progress has also been made on a number of other Reinvestment Projects with the completion of the sale of the former Henry Tyndale School , Farnborough and Grange Farm, Old Basing expected shortly. A preferred purchaser has been selected for land at Hayling School and Southdown School, Winchester. Applications to secure outline planning consent for residential development on land at Crestwood School, Eastleigh and the Former Mayfield School, Farnborough are currently in progress. |
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3.3.5 |
During the coming year it will be important to secure planning approval to enable the sale of sites at Southdown School, Greenacres, Lankhills and Winton House in connection with the County Council's major expenditure on improved facilities under the Winchester and Eastleigh Special Education Needs Review. |
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3.4 |
Local Plans (and the Land and Property Review) |
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3.4.1 |
Last year's Property Management Strategy highlighted the impact of recent changes in the way planning and statutory approvals are obtained, which has complicated the process of secure planning approvals for County Council owned sites coming forward from either the Land and Property Review and/or Service Reviews. It is no longer possible to rely on promoting them as overage development opportunities. More restrictive central Planning Guidance on the use of school playing fields, the need to secure disposal consent of playing fields from the DfES on a site by site basis, and the wider brownfield - v - greenfield debate means it is necessary to formally promote surplus land and buildings through the formal reviews of District Local Plans. The opportunity is also taken to comment on various plan polices to protect the Council's position in relation to operational sites that may become surplus at a future date. |
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3.4.2 |
Local Plan Reviews are currently on-going in 8 of the 11 Districts in Hampshire and at each of the statutory phases in the Review Process representations are being made on behalf of the County Council as landowner and its role as a public developer. This approach in relation to Local Plan reviews was approved in the report to the Executive Member in November 2002. |
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3.4.3 |
Notable successes to date in relation to Local Plan work include: |
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(a) Securing a renewed allocation of the Council's land at North Popley, together with the John Hunt of Everest School site as a major part of the North Basingstoke Action Plan regeneration strategy.
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(b) Securing recognition, post 2011, of the land west of Basingstoke (Manydown) as the preferred choice for strategic development in Basingstoke.
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(c) Securing a site specific allocation for land at Warblington School, Havant. Attendance at the Inquiry has sought to secure an earlier release for the development.
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3.5 |
Development Account |
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3.5.1 |
The remaining contract to provide the access roads and other public utility infrastructure to service the Council's land at Binfields, Basingstoke was completed and has contributed to the very strong market response to the initial phases of development at Binfields. The development Account funding allocated to prepare an outline planning application for the North Popley site, to include an Environmental Statement is well advanced using a multi-disciplinary consultant team to cover the range of work required. Proposals are being prepared on the way in which North Popley, including the replacement John Hunt of Everest School, will be procured and for the necessary funding mechanisms to be in place to support this strategy. |
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3.6 3.6.1 |
Land and Property Reviews The Land and Property Review remains an important database assisting corporate asset management and informing action in respect of individual properties. Direct access to this information is due to be extended throughout the department. Whilst most areas of the Review have been finalised, the results related to the remaining client areas, Transportation and Waste Disposal, are to be reported later this year. It is recommended that as the cycle of reviews is nearing completion, it would be appropriate to bring together all outstanding action points from the reviews by way of a report in July 2003. |
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3.7 3.7.1 3.7.2 |
County Farms The County Farms Review was concluded in October 2002 and progress has since been made in rationalising the Compton and Kings Worthy Estates. The introduction of Whole Farm Plans for new lettings will ensure that farming activity is compatible with the environment, and provide additional access and educational opportunities where practicable. The annual programme of reinvestment in farm infrastructure focused on improvements in animal husbandry which has been part funded through the sale of surplus property identified in the farm review. The Estate has continued to help generate significant capital receipts and proposals for the development of County Farm land at North Popley will be submitted for planning approval in Summer 2003. |
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3.8 3.8.1 3.8.2 3.8.3 3.8.3 3.8.4 3.8.5 |
Gypsy and Traveller Management - Review The County Council manages four permanent gypsy sites and provides liaison services to unauthorised encampments on its land. During the last year, the establishment of a Panel of local authorities, working with the Police and other landowners, has assisted with the management of unauthorised access. Best Practice Guidelines have been approved by Hampshire Constabulary and circulated throughout the County. Codes of Conduct have been provided to assist with the management of unauthorised access which has assisted in controlling the cost of unauthorised encampments. Following the decision taken in October 2002 to permanently close the Peak Copse Gypsy Caravan site at Dummer, a large scale unauthorised occupation occurred in December 2002 involving up to 55 caravans. An Order for vacant possession was secured in the County Court following which two applications were made for Judicial Review of the County Council's decision to permanently close the Peak Copse site and also its decision to pursue a Court Order for vacant possession. The application for Judicial Review of the decision to close was refused but leave was granted for a Judicial Review for the application to the County Court to evict the unauthorised encampment. A date for the hearing of the Judicial Review has yet to be scheduled but it is likely to be before the autumn of 2003. In the meantime, measures have been taken to minimise the re-occupation once any of the caravans move from the site. The number of caravans currently on the site has dropped to below 10. Following a decision to permanently close the site, alternative uses were considered and the decision was taken to work up proposals for the use of the site as part of the Hampshire Natural Resource Initiative which aims to increase the recycling of consumer durables and other waste materials. Detailed proposals are currently being worked up and a Development Brief will be prepared to bring forward the early redevelopment of the site. The County Council is tendering for the provision of Gypsy and Traveller advice and Needs Assessment for local authorities in Hampshire, including Basingstoke and Deane, Eastleigh Borough and New Forest District Councils. If selected, this will generate fees and provide a co-ordinated response across these districts. |
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3.9 |
Performance Conclusions |
3.9.1 |
The overall performance has been good and once again targets have been achieved. Progress on disposals (see section 8), capital receipts and major projects (see section 6.2) has been to plan. However, the important point that emerges from a review of last years activity is the need to continue to take a medium to long term view to enable sufficient work and permissions to translate the objectives into realisable assets. The recent emphasis on improved levels of preparatory and feasibility works are pre-requisite of an effective approach. |
4 |
Strategies and Priorities for 2003/2004 |
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4.1 |
Disposal of Land and Property - Targets |
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4.1.1 |
The target for 2003/4 will include a further £3m as previously agreed. |
4.1.2 |
Land releases at Binfields continue to form the mainstay of the capital receipts programme until 2005/6 and detailed work is now being progressed to secure outline planning approval for the County Farms' land at North Popley, Basingstoke to ensure a future stream of land with planning consent and servicing to generate capital receipts. An outline application for both North Popley and the redevelopment of the existing John Hunt of Everest School sites are intended to be submitted this year. Further submissions to the local Plan review process are also intended in respect of Manydown to protect its long term allocation for future development. |
4.2 |
Development Account/Procurement for Major Development Areas |
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4.2.1 |
As the development of Binfields nears completion, it is necessary to consider how the next Major Development Area at North Popley, Basingstoke will be brought forward to secure a stream of capital receipt opportunities over the next 6-8 years or so. The first stage for this is to secure the necessary planning consent for the Councils' land ownership and notwithstanding the scale and complexity of the development proposals involved, considerable progress has been made regarding this. To support the continued work to procure both the replacement John Hunt of Everest School, and to provide access and servicing infrastructure to ensure the implementation of the Popley Development Area over the next decade, significant capital funding will be required. There is precedent for this at the Major Development Areas at Fishlake Meadows, Romsey, Fareham Western Wards, Segensworth, Chineham, Basingstoke and In/Out schemes such as John Hanson School, Andover have all been successfully developed following the provision of servicing using Development Account funding. |
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4.2.2 |
Given the scale of the development proposed at north Popley and the likely extent of servicing infrastructure required, the implementation strategy to undertake these works will extend over several years. This will require the overall likely financial commitment at the outset and to establish an appropriate mechanism to produce the necessary infrastructure to allow the serviced sites to be released. A more detailed report on the procurement strategy for North Popley will be brought in the near future. |
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4.3 |
Rating |
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4.3.1 |
The minimisation of the County Council's liability for non-domestic rating remains a major property objective. Rating cases are now being listed in great numbers. Appeals for 170 schools and 30 other properties were settled during the last financial year with estimated savings to the County Council, over the 5 year period of the current Rating List being at least £400,000. There are just over 400 appeals listed for the next 12 months and Property Services are on target to inspect, measure, value and agree assessments for all these properties. It is anticipated that substantial savings will result. |
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4.3.2 |
In addition to the above, general rating queries and general management of the County Council's properties continues. Preparations are underway for the next rating revaluation of non-domestic properties which the Valuation Office Agency will be carrying out in 2005. This revaluation will be based on values existing at the 1 April 2003 and an important part of work to minimise the County Council's rates payable is the assembly of a comprehensive database for use in the valuation negotiations and appeals on the individual properties appearing on the 2005 rating list. |
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4.4 |
Acquisitions |
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4.4.1 |
There is a substantial amount of acquisition work at present, largely in support of the Transportation Capital Programme. Several schemes are being progressed, the largest of which is the Fareham-Gosport-Portsmouth LRT project which requires the purchase of some 300 property interests. The SHRT project also requires the relocation of 11 businesses along the route, of which 5 have been achieved so far. Acquisition or entry onto land for the project needs to be progressed to meet the expected timetable of a start of construction work in Spring 2004. |
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4.4.2 |
A number of non-programmed acquisitions have been completed in the past 12 months. Two are of particular significance: the Sir George Staunton Country Park at Havant has been acquired from Portsmouth City Council in order to ensure that the integrity of the Park is maintained and its facilities enhanced, and a factory unit at Winnall has been acquired in order that a number of the County Council's business operations can be rationalised and an expensive leasehold property at Bar End relinquished. |
5 |
Office Accommodation |
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5.1 |
The County Council occupies 69,800 sq.m of office accommodation. The current capital asset value of freehold properties in the corporate office portfolio is around £40m and the total replacement value of all the properties, including leaseholds, is approximately £120m. Some 5,000 staff are located in these offices. It is proposed that a major review of office accommodation is carried out to identify the opportunities for more home and flexible working, and to exploit the emerging technology base of the Council. |
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5.2 |
In the last year, there has been continuing pressure for additional accommodation resulting from recruitment and various internal restructuring, the impacts of which are likely to continue to be felt well into this new financial year. |
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5.3 |
The freehold acquisition of Acquitaine House has proved a valuable addition to the Council's stock of offices in Winchester, but there continues to be pressure to meet service needs. In 2003/4 new ways of working will be developed and tested. This will seek to provide staff with a workbase and suitable facilities, whilst balancing those with the requirement to maximise the utilisation and value of the accommodation estate. Outcomes to be explored include the introduction of a combination of increased home-working, workstation sharing, and much greater use of the technology that we now have available. |
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5.4 |
There remains a sizeable proportion of leasehold accommodation within the estate, 15 significant buildings, all of which are costly to occupy - roughly £1.5m per annum in rental charges. Although these offices are expensive to run, they would also be very expensive to replace with freehold alternatives. A typical payback on the investment could be anything from 6 to 10 years. However, if economies of use could be introduced, and the replacement costs reduced and if the `new ways of working' savings are achieved, there would be significant benefits to the Council in the medium to long term. |
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5.5 |
There is also the risk of the future potential capital scoring of renewed leases (many of our significant leases will require renewal or vacation in the next three or four years), though the impending White Paper on Local Government Finance is thought likely to provide some relief from this particular pressure point. |
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5.6 |
Significantly, a major lease (Babbage House in Andover) has recently been sub-let to a third party, and one is about to be surrendered at the Bar End printworks in Winchester, which will reduce the County Council's rental commitment by £135,000 per annum. Further work clearly needs to be done to consider the Council's options. |
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5.7 |
Projects which are due to commence shortly, include investment to bring Serle's House into greater use, and a refurbishment of the former Intech building in Winchester as the base for the Hampshire Music Service of the County Education Department. |
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5.8 |
It is recommended that a major review of office accommodation demand, utilisation, cost and opportunities take place during the current year and a further report be prepared in the autumn. This would require a major strategy for decision later in the year. |
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6.0 |
Strategic Land Development -Key Projects |
6.1 |
Whilst a great deal of time and attention is (rightly) focused on the capital receipt target, it is just as important to recognise that the County Council's land represents one of its most significant levers in developing approaches to service provision. In the 2003/4 the following projects need to be resourced and developed. · The potential disposal of Jewry Street and North Walls Reference Library ( as a precursor to the new Winchester Cultural Centre). · The development of a new Waste Recycling Centre in Winchester and Resources Park at Bar End (leaving the residual site with a capital receipt) · The development of a sustainable project plan for the proposed Hampshire Natural Resource Initiative use of the redundant land in the former Gypsy site at Peak Copse, Dummer · The delivery of nursing care accommodation throughout the Council's Social Services sites.
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6.2 |
In addition, the acquisition of Sir George Staunton Country Park and the completion of the new visitor pavilion at the Sir Harold Hillier Gardens provide unique opportunities to improve recreational and visitor attractions by the County Council. The relocation of the Medecroft Centre in Winchester is another example of the benefits of using our land holdings in a strategic manner to achieve objectives that would otherwise not be realised. |
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7.0 |
Key Worker Housing |
7.1 7.2 7.3 7.4 |
The aim for the County Council is to improve the availability of accommodation for its employees under a range of tenures to suit individual requirements. The Council now provides 25 key worker units in Basingstoke and Bordon in partnership with housing associations, and itself manages approximately 20 houses and flats for use under the Staff Temporary Housing Scheme. A further 8 flats will be provided following the conversion of the Waterlooville Hostel (which is currently awaiting planning consent) and other smaller schemes such as the development of key worker flats on land at Harriett Costello School are also being progressed. Feasibility studies are complete on five potential key worker housing sites, and these are now the subject of detailed discussions with the relevant district councils and potential hosing association partners. At a strategic level, the Council has successfully promoted key worker housing policies as part of the Local Plan Reviews already undertaken by certain district councils. Over the next 12 months the intention will be to: · ensure key worker housing policies are included in all new Local Plan Review. · progress the five feasibility studies to secure planning approval · seek opportunities for County Council employees to access key worker housing provided through the normal planning process, including in particular shared equity schemes. · seek provide key worker housing in development schemes promoted by the County Council on its own land and property
A detailed report on sites in progress will be presented to the Executive Member for P&R on 12 June 2003. |
8.0 |
Vacant Property Schedule - Major Projects |
8.1 |
(i) Chesapeake Mill The property is currently on the market on the basis of an agreed marketing and planning brief. A lease of the Mill is being offered, which will enable the County Council to use its freehold ownership of the property to achieve a sympathetic refurbishment, provide an element of public access and ensure that the most important elements of the milling machinery will be retained in-situ within the building. There is considerable public interest in this important historic building and it is expected that the best of those schemes that meet the County Council's requirements will be available for consideration in the summer. |
8.2 |
(ii) Gosport Railway Station A development brief is currently being formulated, following consultant's advice on the range of uses that would be commercially viable for this important Grade II* listed building. Discussions are being held with Gosport Borough Council and English Heritage, and a historical survey including map regression and synthesis of historical sources has been commissioned at their request. This will serve to inform the development brief, which will need to be agreed with Gosport Borough Council, prior to marketing. The introduction of productive uses to the site will require planning and listed building consents. |
8.3 |
(iii) Fort Gilkicker In a separate report on this agenda the Executive Member for Policy and Resources is being recommended to enter into an agreement and subsequent long lease with a preferred developer. This follows negotiations with the three companies that showed interest in acquiring the Fort for refurbishment and conversion into residential use on the basis of the scheme where consents and agreements were in place with the Phoenix Trust. |
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The early release of the property will save the high cost of essential care and maintaining security at the Fort which is a Scheduled Ancient Monument. |
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8.4 |
(iv) Grange Farm, Old BasingIn accordance with the earlier decision of the Executive Member, Grange Farmhouse has been placed on the open marked inviting offers from purchasers wishing to use the property as a single dwelling house. Contracts were subsequently exchanged on 11 April with completion set for 6 June. The purpose of the sale is to secure beneficial use of the building and at the same time raise funds for investing in improvements to the Basing House and Grange Farm complex. A scheme of improvements is being prepared and will be presented to a future meeting. In addition, an application has been made to the Heritage Lottery Fund for grant aid towards the cost of further improvements to the facilities available to visitors based on the capital receipt being used as match funding in support of the application. The net sale price available for reinvestment in the buildings and visitor facilities will be in the region of £475,000. |
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9.0 |
Asset Valuations |
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9.1 |
The 5 year rolling programme is now almost up-to-date, with a small percentage of outstanding valuations due to be completed by early May when the County Treasurer closes the accounts for 2002/03. There are a number of valuations in the account at low values which will be examined in the current financial year to establish whether they are `de minimus' or whether a new valuation is appropriate. A new rolling programme to spread, more evenly , the number of valuations in each year is being developed for agreement with the County Treasurer. |
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11 |
Conclusion |
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11.1 |
Overall, good progress has been made on a significant number of plans and strategies. The importance of providing a clear plan of key objectives is essential in the shorter and medium term. The use and development of the County Council's land and property continue to make a significant and strategic contribution to the development of our services. A series of specific recommendations for further work is given below. |
Recommendations |
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1. That the property objectives mentioned in Section 2 of the report be endorsed. 2. That the Director of Property, Business and Regulatory Services:
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1. Reviews progress and outcomes from the last cycle of land and property reviews for a report later this year; 2. Ensures that the two-year target for all receipts for 2002/3 and 2003/4 as previously agreed is achieved by the end of 2003/4; 3. Brings forward a report on the procurement strategy for the development of Popley, Basingstoke; 4. Reviews the office accommodation portfolio for a report in the autumn of this year; 5. Develops further the County Council's proposals for key worker housing and reports to the Executive Member for Policy and Resources meeting on 12 June 2003; and 6. Ensures that the key projects mentioned in sections 6 and 8 are developed and implemented. |
The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.
2 Documents which disclose exempt or confidential information as defined in the Act
