Acquisition of a patrol base for Havering BOCU

Report: 15
Date: 7 December 2006
By: Acting Director of Resources on behalf of the Commissioner

Summary

This report proposes the provision of a patrol base for the Borough of Havering through a freehold acquisition of a development currently under construction. A cost analysis and fuller site details has been appended to the Exempt part of this report. The acquisition is considered an imperative case that should be actioned ahead of the MPA approval / deliberations of the revised MPA estate strategy and details in this regard are expanded upon in the following sections.

A. Recommendation

Members are asked to:

1. Approve the freehold acquisition of land and a new warehouse at the location stated in the EXEMPT report for a capital expenditure including the cost of fit out as stated in the EXEMPT report. The building to house the patrol and response officers for Havering Borough Operational Command Unit (BOCU), Territorial Policing.
2. The MPS confirms that the acquisition of this patrol base does not determine the future of other police buildings in this BOCU and that the existing level of front counter service will remain unaffected. Any future estate changes for the BOCU will be subject to further MPA approval and detailed stakeholder consultation.
3. Note and approve that the base build specification, to be provided by the developer, is subject to final negotiation. Changes to the agreed specification will alter the final purchase price by an anticipated +/- 10%. It is intended that this adjustment be made under existing delegated authority and be subsequently advised to the Finance Committee through the regular estate updates report.

B. Supporting information

1. The overarching strategy supporting the acquisition of a central borough patrol base conforms to the previous estate strategy and with the emerging model in the revised strategy that is still under consideration by the Authority. It is considered appropriate to proceed with this acquisition now and in advance of MPA approval to the revised strategy, as there is an urgent need to secure a suitable site in this Borough where significant property availability / cost pressures are anticipated as a result of 2012 and wider Thames Gateway regeneration.

2. Meeting present and projected accommodation need through the use of commercially available premises forms one of the core drivers of the estates strategy and is designed to deliver improving value for money. Territorial Policing fully support the design concept of a patrol base that has been developed to meet both operational policing and estate imperatives. The first two patrol bases have been successfully opened in Waltham Forest and Enfield Boroughs.

3. It is recognised that the majority of commercial solutions will be through the leasehold market where there is generally a greater supply of available warehousing. Where freehold opportunities arise these will be assessed on their merits but an overarching approach to acquire freehold sites to balance the estate mix of tenure is an essential element of the situation given ever greater revenue pressures on all MPS budgets. In this case the developer is seeking to release the freehold value of the completed development enabling the MPA to purchase the completed building and freehold outright. The purchase price is under pinned by the current investment value should the MPA wish to convert its ownership to a leasehold through a sale and leaseback in the future. Professional advice supports a gross investment value in support of this statement.

4. A patrol base is designed to achieve the following key objectives:

• Improved provision of co-ordinated 24-hour policing response for the Borough.
• Implementation of Metropolitan Police policy on leadership and supervision through a single site briefing/debriefing of 24-hour patrols with associated improvement in officer visibility and reduced administrative duties.
• Addressing increased accommodation need following growth in police recruits including Special Constables and PCSOs.
• Reducing overcrowding of the current estate, improving significantly the “fitness for purpose” of the available assets and allocating space for greater beneficial use/utilisation.

5. This acquisition will enable Havering BOCU to develop the principle strands of policing namely Detection (CID), Response, Leadership, and Safer Neighbourhoods from an effective operational estate across the Borough.

6. The MPS confirms that this acquisition does not determine the future of other police buildings in this BOCU nor does it impact upon existing front counter services which will remain unaffected. No decision will be made on the future of any operational buildings until the estates strategy review is completed and approved by the MPA. Further, any future estate changes for the BOCU will be subject to separate MPA approval and detailed stakeholder consultation.

7. The proposed patrol base will provide 38,850 sq ft of newly constructed warehouse accommodation capable of accepting a flexible internal fit out.

8. The building will house the BOCU’s response and patrol teams with supporting administration. Internal accommodation will provide new changing, locker and shower facilities for 400 officers and staff with briefing, writing and operational facilities. In addition to internal parking for 35 vehicles there is an external area for 41 vehicles plus three disabled bays.

9. The property lies in a strategic location for the Borough close to the relevant transport intersections and is in the preferred BOCU location for a patrol base. It has good links to public transport including main bus routes and main line Rail Station.

10. An extensive search of available property within the defined search area identified this site as being suitable for the construction of a patrol base. The developer has agreed to sell the freehold to the MPA upon practical completion of the warehouse to an agreed specification ready for internal fit out by the MPA.

11. After a period of negotiation agreement has been reached (subject to final agreement of the base build specification) for the MPA to purchase the freehold at the figure stated in the EXEMPT Report upon completion of the development. The transaction is not conditional upon the developer obtaining satisfactory planning with the Local Planning Authority as this matter has been resolved.

12. The purchase by the MPA will take place upon delivery of the completed development thus limiting development risk (exposure) to pre-acquisition professional fees.

13. Programme delivery currently indicates that the completed development will be handed over to the MPA in April / May 2007.

15. It is proposed to negotiate with the developer to provide a “turn-key” solution (i.e. to develop the warehouse and the fit out within the acquisition contract rather than fit out via a separate construction contract). This will minimise any delay in delivery of the completed project, enhance value for money (by the transfer of part of the risk to the developer and by minimising the number of contractors otherwise on site at any one time).

Consultation

16 Consultation with stakeholders and the community is being undertaken by the Borough and we are assured the outcome is satisfactory to allow the Patrol Base to proceed.

Abbreviations

BOCU

Borough Operational Command Unit

CID

Criminal Investigation Department

DDA

Disability Discrimination Act

HQ

Headquarters

MPA

Metropolitan Police Authority

MPS

Metropolitan Police Service

PCSO’s

Police Community Support Officers

psf

 per square foot

C Legal implications

1. A commercial purchase contract is to be entered into between the MPA and the Developer that will contain standard terms and conditions prevailing in the today’s property market. The MPA receives independent legal advice on the negotiation and content of such agreements.

D. Race and equality impact

1. There are considered to be no equality or diversity implications arising from the issues in this report. The building will be constructed to meet current regulations including DDA legislation and will provide operational facilities that are fit for purpose.

2. Members are furthered advised that the design will seek to maximise affordable environmental innovations and be in line with the published MPA / MPS Environmental Strategy.

E. Financial implications

1. Costs

Capital

These have been estimated in total as detailed in the appendix to the linked exempt report.

Revenue

Capital financing charges are detailed in the appendix to the linked exempt report.
Annual occupational costs including rates, maintenance, utilities, insurance and other running costs are deemed to be cost neutral being offset from savings generated through identified efficiency savings. Short-term cash-flow deficiencies will be met / managed through existing aggregated budgets.

Notes

Timing Assumptions – Capital purchase and fit out completed in 2007/8.

2. Funding

• Freehold acquisition to be funded through the capital programme. The net acquisition costs to be added to the Capital Programme for 2007/8.
• Capital fit out costs to be funded from within the existing Capital Programme (patrol base line). Timing anticipated 2007/8 financial years.
• The interim carrying cost of capital financing to be managed from central finance revenue budgets. On–going revenue costs to be funded from existing aggregated budgets.

Notes

1. The base build specification is subject to final negotiation. Changes to the agreed specification will alter the final purchase price by an anticipated +/- 10%. It is intended that this adjustment be made under existing delegated authority as previously stated.
2. Build cost inflation has been added to the estimated capital fit-out costs to reflect deferred time delivery in 07/08.

F. Background papers

• Building Towards the Safest City

G. Contact details

Report author: Jane Bond, Deputy Director of Property Services, MPS.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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