Hampshire County Council

Executive Member, Policy & Resources Item

25 July 2003

Sure Start Centre, Warren Park School, Leigh Park, Havant -

Lease of Building

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

The following decisions are sought:

i)

That approval be given to the lease of the Sure Start Centre and associated play areas at Warren Park Primary School, Leigh Park, Havant to Park Families Ltd for a period of 5 years at an initial peppercorn rent to enable the opening of the Sure Start Centre, with an option to extend the lease once Sure Start achieves charitable status.

ii)

That the Director of Property, Business and Regulatory Services (Head of Estates Practice) be authorised to settle other detailed terms and conditions, and approval be given to seek consent from the Office of the Deputy Prime Minister to a letting at less than best value, if necessary.

2

Reasons

2.1

To improve pre-school educational, nursery and children's community facilities in the Leigh Park area of Havant, which has limited current provision and further the Council's policy of building strong communities and maximising life opportunities.

3

Other options considered and rejected

3.1

The County Education Officer to manage the premises and facilities. This was rejected due to the implications to the County Council of increased VAT exempt income.

4

Conflicts of interest declared by the decision-maker or a member or officer consulted

4.1

None

5

Dispensation granted by the Standards Committee

5.1

None

6

Reason(s) for the matter being dealt with if urgent

6.1

Not applicable

Approved by:

..........................

Date of decision:

.........................

Councillor T K Thornber

Hampshire County Council

Executive Member, Policy & Resources Item

25 July 2003

Sure Start Centre, Warren Park School, Leigh Park, Havant -

Lease of Building

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

This report seeks approval to the lease of the Sure Start Centre building and associated play areas at Warren Park Primary School to Park Families Limited for 5 years at an initial rent of one peppercorn, with an option to extend the lease once Sure Start achieves charitable status which will provide pre-school educational, nursery and children's community facilities. It also seeks authority to apply for consent to a letting at less than best value, if that is necessary.

2

Background

2.1

The Sure Start programme is a central government sponsored and funded initiative to improve young children's educational, health, social and community facilities in a 'joined-up' manner in areas of deprivation. The County Council has already supported this proposal by agreeing to construct this new building, using central government grant under the Sure Start Initiative, on its own land at Warren Park Primary School.

2.2

As the Sure Start Initiative is not a legal body, it had previously been proposed that the County Council and School would take responsibility for provision of the services at the Centre, through a management committee incorporating user representatives. The County Treasurer has now advised that this is inappropriate because of the issues surrounding VAT exempt income to the County Council. It is therefore necessary for a third party organisation to take day-to-day responsibility. The Sure Start Centre building will be completed shortly and due to open on 1 August 2003.

3

Park Families Limited

3.1

In order to create a third party organisation, the Sure Start Initiative has decided to set up a company limited by guarantee to take a lease of the building and operate the Centre (which will include a pre-school and day nursery for children aged 0 - 4, a parent training and support service, health care, toy library, play leader training, etc). The Social Services and Education Departments will support the provision of these services. The Articles of the company are drawn specifically to ensure provision of these services. It is intended that the company will become a registered charity with these aims.

3.2

The overall Centre management will continue to be governed by a management committee, which will include representatives from the School and the County Council, as well as users of the Centre.

4

Lease and Financial Arrangements

4.1

The cost of the £1.6m building has been met almost entirely from central government funds through the Sure Start Initiative, but the building will be owned by the County Council. It is proposed to grant a lease to Park Families Limited for 5 years at an initial peppercorn rent, with an option to extend the lease once Sure Start achieves charitable status in order to reflect the financial arrangements and the Government's major financial contribution to the project. However, technically it may be necessary to seek consent from the Office of the Deputy Prime Minister to let at less than best value. The use will be restricted to early years/nursery day care and community facilities only. The lessee will be responsible for the full maintenance and insurance of the premises.

4.2

It is unlikely that the lease will be formally completed by 1 August, therefore it is proposed to issue a licence to Park Families Limited on similar terms to the lease to enable the Centre to open as planned.

5

Conclusion

5.1

By leasing these premises, the County Council will enable the opening of new education and childcare facilities through the use of central government grant in support of its own policy of building strong communities and maximising life opportunities.

Recommendations

That:

1

Approval be given to the lease of the Sure Start Centre building and associated play areas at Warren Park Primary School, Leigh Park, Havant to Park Families Limited for a period of 5 years at an initial peppercorn rent to enable the opening of the Sure Start Centre, with an option to extend the lease once Sure Start achieves charitable status;

2

the Director of Property, Business and Regulatory Services (Head of Estates Practice) be authorised to settle other detailed terms and conditions; and

3

approval be given to seek consent from the Office of the Deputy Prime Minister to a letting at less than best value as set out in the report, if this proves necessary.