Update on estate issues

Report: 4
Date: 19 November 2001
By: Commissioner

Summary

An update to members on a number of issues which had previously been considered by the Estates Sub-committee, the Estates Sub group and the Finance Planning & Best Value Committee.

A. Recommendations

Members are invited to note the information update on current Estates issues.

B. Supporting information

1. Headquarters Accommodation Strategy: The appointed consultants, ISGC, have completed (on programme) their study into the options for future provision of Headquarters Estate premises. Their findings were presented on 2 November to the Steering Group comprising senior police and civil staff users of the HQ Estate and the MPA Deputy Treasurer. The recommendations of the Steering Group will be submitted to Resources Allocation Committee at its November meeting. The recommendations and full report will be presented to the Estates Sub-committee at its January meeting.

2. The proposal to present the report to this meeting has been delayed by the difficulties in co-ordinating the meeting dates of the Steering Group, Resource Allocation Committee and this Sub-committee.

3. Old Street Magistrates Court: These premises are surplus to the requirements of the MPS and the Greater London Magistrates Court Authority (GLMCA). The premises form part of the MPA and GLMCA estates. They were to be jointly sold by private treaty on the open market. The MPA Co-ordination and Urgency Committee agreed at their meeting of 5 July 2001 (agenda item 6) to consider a request from the Community Advice Project (CAP) for a direct sale to them for community education purposes.

4. The Co-ordination and Urgency Committee requested an independent assessment of the commercial value of the site be obtained and agreed with the district valuer to assist the CAP in preparing their business case to seek funding. This information was communicated to the Co-ordination and Urgency Committee meeting on 13 September 2001.

5. Agreement to the proposal was obtained from the GLMCA and CAP has been informed of the certified purchase price. They are believed to be pursuing their funding options with a view to achieving the March 2002 closure date.

6. Trenchard House: Actions to market Trenchard House are progressing in accordance with the MPA Finance Planning and Best Value (FP&BV) Committee decision (19 June 2001, agenda Item 22 - resolution 4). The MPS is alert to local sensitivities that are well understood. Together with prevailing market conditions, such local issues are being taken into consideration before the final decision on the arrangements for its disposal.

7. Tintagel House: A 10-year lease has been signed. A full refurbishment of the premises is planned to commence on site in October 2002 following a full decant of all the occupying units to temporary locations. Re-occupation is planned for October 2003. The works are expected to cost in the order of £10m. Funding for the project is being identified by Finance Directorate from within existing resources, which should include capital receipts.

8. Otis House: Agreement to enter into a lease was given by the FP&BV at its September 2001 meeting. An agreement with the landlord has been signed for commencement of works. The lease will be signed upon satisfactory completion of the landlord's works. MPS fit out will follow with planned occupation in October 2002.

9. PFI South East London Police Stations: It is anticipated that, in a verbal update at this meeting, confirmation of the signing of this PFI contract will be confirmed.

10. C3i – Building Works: The three identified sites for the C3i call centres are Lambeth, Hendon and Bow. The respective provisional cost estimates (at 1st Quarter 2001 prices) are £14m, £17m and £12m. Property Services Department (PSD) awaits confirmation of these estimates from the consultant quantity surveyors. The planned completion date for all three buildings is January 2004.

11. The first stage tender for contractor design input has been awarded to Wates Ltd., who were appointed on 19 October. Similar first stage tenders for Lambeth and Bow will be awarded early in January 2002.

12. Full tender approval will be sought from the MPA for the construction contracts in May and September 2002. Critical timing in the programme may require use of the Co-ordination and Urgency Committee since it is understood that no FP&BV meeting is currently planned for May 2002.

13. The works at Lambeth can only be commenced following the decanting of five occupying units. The cost of this is estimated at £4m.

14. All C3i building works costs and fees, including the decanting, are included in the C3i budget.

15. Lanherne House: Following the tender process an offer has been accepted from Linden Homes for the sale of these premises.

16. Maurice Drummond and Norman Kendall Section Houses. Conversion work to upgrade these two section houses includes the provision of en-suite bathrooms. Work is planned to commence on site in late 2002. Finance Directorate has informed the Resource Allocation Committee that funding will be provided from the planned sale of Trenchard House.

17. 'Changing Habits': Operation 'Cleansweep' has been undertaken to review locker and washing accommodation in all operational buildings. The report is awaited but Management Board has already instructed Borough Commanders to carry out regular inspections of such areas to improve conditions until remedial works can be planned and funded.

18. Capitalisation of Leases: The consequence of legislation on the renewal of the lease of Tintagel House was raised with Home Office by Chair of the MPA in a bid to achieve exemption for the MPS as a special case. The approach was unsuccessful. PSD is pursing the matter with an approach to the Home Office to have exemption written into the pending Police Reform Bill, for which royal assent is planned in July 2002. PSD awaits a response form the drafting team at the Home Office.

19. Rochester Row: The previously reported purchasers, Barrett Homes are unable to proceed at the present time as the partners who were to develop the commercial element of the development have withdrawn. This is presumed to be a reaction to the "nervousness" in the office market following the events of 11 September combined with the downturn in the stock market on dot.com and telecoms. companies. An alternative partner is being sought. There have been discussions with under bidders but at present it is recommended that Barrett Homes is given the opportunity to resolve the situation.

20. Grafton Square SW4: The site acquired for the new Clapham Police Station, which has been declared surplus, is to be offered for sale by public auction on 15 December 2001.

C. Financial implications

Any financial implications from the above items will be reported in full papers to the relevant committees at the appropriate time.

D. Background papers

None

E. Contact details

The author of this report is Trevor Lawrence, Director, Property Services Department.

For information contact:

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

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