Request for authority to dispose of Leytonstone police station

Report: 11 Linked to exempt item 14
Date: 06 March 2008
By: the Director of Strategic Finance on behalf of the Commissioner

Summary

This report requests authority for the disposal of the former Leytonstone Police Station at 470 High Rd, Leytonstone, Waltham Forest.

A. Recommendations

That members approve the unconditional sale of the Metropolitan Police Authority (MPA) interest in Leytonstone Police Station to the indicated bidder for the sum shown in exempt Appendix 1.

B. Supporting information

1. The real estate Asset Management Plan for Waltham Forest is based on the provision of a Patrol Base; operational since 2006; a custody facility which will be operational in March 2010; Safer Neighbourhood and front counter facilities and ancillary offices. Waltham House, operational since 2007 provides front counter facilities, a Safer Neighbourhood base and ancillary office accommodation.

2. As part of the asset strategy, Leytonstone police station has been made surplus to requirements by the opening of Waltham House. Public Consultation/Communication has been led by the Borough Commander, Mark Benbow, over the last two years. The link MPA Member, Jennette Arnold, is fully aware and supportive of this proposal.

3. The building and site, approved for disposal by the Finance Committee as part of the Waltham Forest Custody Centre proposal dated 15 June 2006, has had no operational public front counter since Autumn 2007.

4. The property has been openly marketed through informal tender over the last two months, with advertisements appearing in the national and local property press. Best bids, unconditional upon the receipt of planning permission, were invited.

5. Conditional bids were not invited. There are a number of disadvantages to the MPA in accepting an offer that is conditional upon planning:

1. There is no guarantee that the scheme as proposed will be granted planning permission.
2. If planning consent is not granted the purchaser will either seek to renegotiate the purchase price (to a lower figure) at a later stage, or may withdraw from the purchase altogether.
3. Any prolonged downturn in the commercial or residential market will affect a developer’s profit margin and may adversely influence a decision to proceed with the purchase.
4. There is a high degree of risk in accepting a conditional bid in this type of market, where there is no certainty of realising the proposed purchase price.
5. Funds would not be received until receipt of planning permission and no certainty can be placed on the timescales to obtaining planning consent.

6. Ten bids were received in the first stage of the tender. The results of the bids are shown exempt Appendix 1. In previous disposals, a second stage of bidding has been undertaken. In this case, the margin between the lead bidder and the underbidder was sufficient to make it unlikely to be productive to move to a 2nd stage of bidding.

7. The recommended unconditional bid represents certain income receivable now. All bids received were made on the basis that a standard forward-sale clawback clause was included, to enable the MPA to benefit in the event that the purchaser sells on at a price in excess of that originally paid to the MPA. Property Services recommend the disposal of the Property to the bidder detailed in Exempt Appendix 1.

Abbreviations:

MPA

Metropolitan Police Authority

MPS

Metropolitan Police Service

PSD

Property Services Department

C. Race and equality impact

1. There are considered to be no equality or diversity issues arising as a result of this disposal. The Local Planning Authority is also under a duty to consider such matters when a planning application is being reviewed.

2. In the event of residential redevelopment of the site, the provision of key worker or social housing accommodation at this site will need to meet the requirements of the Local Planning Authority, as and when granting planning consent for development.

D. Financial implications

The proceeds of this transaction are currently included in the Property Services Capital Receipts budget for 2007/08. In accordance with asset management practice and the agreed MPA/MPS Estates Strategy, funds released from the disposal of surplus assets or assets that are no longer fit for use, whilst being part of the corporate capital programme, are intended to primarily support recycling and re-investment in the estate.

E. Legal Implications

1. Apart from normal property contract matters, there are no specific legal implications to report save as already noted.

2. Appropriate clawback provisions have been agreed to protect the Authority.

F. Background papers

• MPA Finance Committee – Development of the Leyton Site to Provide the Waltham Forest Custody Centre - 15 June 2006

F. Contact details

Report author(s): Alan Croney – Director Property Services, MPS

For more information contact:

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

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