Archived decisions

Hampshire County Council

Executive Member for Policy and Resources Item

18 June 2008

Totton College

Report by the Acting Director of Property, Business and Regulatory Services

Contact: Peter Bennett; (01962) 846635; [email protected]

1

Introductory Summary

1.1

Totton College is a Sixth Form College that transferred out of Local Education Authority control in 1993 under the provisions of the Further and Higher Education Act 1992. All further education colleges transferred at the same time. The County Council passed its freehold interest in the majority of the site to the Totton College Corporation, but it retained the freehold of part of the campus occupied by a New Forest District Council Recreation Centre and associated car park. The College now proposes a multi-million pound new capital investment that will replace most of the existing 1950s buildings, but this will necessitate part of the new building being constructed on the land owned by the County Council. The College wishes to agree terms for a transfer of the County Council's freehold.

1.2

    These decision support the Corporate Priorities of

    a) Maximising wellbeing, by enabling the College to secure substantial capital funding to provide new education facilities for the benefit of Hampshire residents

    b) Enhancing our quality of place, by replacing 1950s college buildings with a new purpose-built structure that will improve the appearance of the site.

2

Recommendations

a) That approval be given to a transfer to the Totton College Corporation of the County Council's freehold interest at Totton College on terms to be agreed; and

b) the Acting Director of Property, Business & Regulatory Services (Interim Head of Estates) be authorised to settle detailed terms and conditions.

3

Background

3.1

Totton College is located in the centre of Totton, and only 5 miles from the middle of Southampton. There are currently 1,330 full-time students, and each year the College enrols between 800 and 1,000 students between 16 and 18 years old, and over 100 adults on fulltime courses. It also enrols approximately 5,000 part-time students, predominantly on short-term courses.

3.2

Totton College has achieved high learning standards, including an `outstanding' grading in a recent Learning and Skills Council inspection. It is `outstanding for education and social inclusion', and it is a `Centre of Vocational Excellence.' It consistently achieves high A and AS Level results.

3.3

The College buildings date mainly from the 1950s, and many are no longer viable for further modernisation. It currently occupies 8,300 sq m of floor space within 9 separate bocks, and although some of these buildings have been improved on an incremental basis, the site lacks cohesion and many buildings do not function effectively. In a recent Condition and Functional Suitability assessment, 54% of the accommodation was categorised as `operational, but major repair or replacement needed soon'. There is also inefficient use of space.

4

The College Proposals

4.1

The College has commissioned a masterplan for the site, and it envisages a significant new building on the campus to replace most of the existing teaching blocks. This building alone will comprise approximately 12,000 sq m and will be developed partially on the site of the existing college buildings so as to minimise encroachment onto the playing fields. The development will need to be staged to allow continuity of education provision throughout the redevelopment period. To enable this staged approach, part of the new building will have to be constructed on the land owned freehold by the County Council, and leased to New Forest District Council as a car park for the recreation centre. The recreation centre buildings themselves will remain.

4.2

The College has been in discussion with the County Council and New Forest District Council officers on options to achieve this. Drawing No 2374/18 shows the proposed development, and Plan No B/7/4/A shows the extent of the County Council freehold reversion.

4.3

On transfer of the College in 1993, the County Council retained the freehold of the land comprising the recreation centre and car park. The remainder of the campus transferred to the College. The County Council had previously granted New Forest District Council a long lease (99 years from 1989) of the entire County Council freehold at a peppercorn rental. The District Council has now indicated that, in principle, it would be willing to restructure its leasehold interests, and to relocate its car park (which is shared with the College) to elsewhere on the campus in order to accommodate the College's planned investment. The College is also agreeing terms with the Tottonian Rugby Club for a minor revision to its leasehold interest in part of the playing fields.

4.4

The College redevelopment proposals are dependent on a successful capital funding bid to the Learning and Skills Council. In this respect the College has completed an initial property strategy and a feasibility study, and both have been approved by the Learning and Skills Council (LSC). The College is now about to submit its third stage "approval in Principle', which will enable the LSC to determine funding availability. The College is confident funding will be forthcoming, and is in regular contact with the LSC. At this level of capital investment, the LSC would prefer the College to own the freehold interest, particularly where the new building is to be constructed. It is unclear how the LSC would view a long leasehold interest from the County Council if that is all that is available. However, Assuming the County Council wishes to encourage this major capital investment in education facilities in Hampshire, the alternatives open to the Council are:

· Transfer the freehold of just the car park site where the building will be constructed to the College

· Transfer the County Council's entire reversionary freehold interest (it is all subject to the NFDC lease) to the College

· Restructure the existing NFDC lease to allow the College redevelopment to take place.

4.5

The County Council's reversionary freehold has negligible investment value, since only a peppercorn rent is payable. This arrangement reflected the degree of College use of the New Forest District Council's recreation centre agreed at the time the Centre was constructed. However, it is possible that, at some future date, the whole college campus could come forward for redevelopment for an alternative valuable use, and if the Council is to transfer its freehold interest at this stage, a payment should be made to reflect this distant possibility.

4.6

In estate management terms, the `cleanest' solution would be for the County Council to transfer its entire freehold reversion to the College, conditional upon the College then granting New Forest District Council a new lease of the recreation centre and the new car parking area. The County Council would indirectly gain significant benefit from the major investment in new education facilities that Hampshire residents will enjoy, and would also receive a payment for its reversionary freehold. This is the preferred option.

5

Traffic management and car parking

5.1

The external areas will be designed to ensure optimum vehicle and pedestrian access arrangements. The College is keen to provide as much car parking as possible on site, and is in discussion with the highway authority as to the number of spaces that will be acceptable. An initial transport appraisal has been submitted proposing 320 spaces. An area will be allocated for bus/coach drop-off and parking to reduce the need for vehicles to wait on adjacent roads. The College regularly reviews its green travel plan and actively promotes sustainable transport options to staff and students.

6

Consultation with local Member

6.1

Councillors David Harrison and Alan Weeks have been consulted on this project/scheme and support the proposals recommended.

7

Conclusion

7.1

With Learning and Skills Council support, Totton College is planning to invest approximately £42m to build modern fit-for-purpose facilities at its main Totton campus. To assist the College's capital funding bid, and subject to agreement on the financial consideration payable, it is proposed to transfer the County Council's reversionary freehold interest to the College.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

_

Maximising well-being

_

Enhancing our quality of place

_

Section 100 D - Local Government Act 1972 - background papers

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.

NB the list excludes:

1 Published works

2 Documents which disclose exempt or confidential information as defined in the Act

None

EM294X08-Report

PJB/5-Jun-08