Disposal of MPA freehold – Rochester Row Police Station

Report: 15
Date: 13 February 2003
By: Commissioner

Summary

The disposal of the surplus MPA property at Rochester Row has been the subject of numerous prior reports and lengthy negotiations. In December 2002, a report was due to advise on the result of a re-tender of the site but the parties submitting bids withdrew just before the meeting.

Subsequently one of the original bidders for the site (and not one of those subject to the earlier report) has approached the agent acting in the disposal (for the MPA) and submitted an offer, which is the subject of this report.

Plans will be available for inspection at the meeting.

A. Recommendation

That the Metropolitan Police Authority (MPA) dispose of the freehold interest in Rochester Row in accordance with the recommendations in the linked exempt report.

B. Supporting information

1. The Rochester Row site has been surplus to requirements for some considerable time. A preliminary review has concluded it has no value to accommodate officer growth or other demands.

2. To achieve best value on disposal a planning consent was sought for the site but at the time this was felt to only be practicable if combined with the redevelopment of an adjoining owner's property. A planning consent for such a scheme was achieved on a “minded to grant” basis subject to completion of a Section 106 Agreement in relation to social housing and other physical aspects of the scheme.

3. Offers were invited for the scheme on a number of occasions either for the MPA interest in isolation or on a joint sale basis with the adjoining owner. The subsequent problems and issues have led to a number of changes in both the basis of the sale and the land included.

4. In light of the passage of time since potential sale figures were last reported, and the fact that a disposal of the MPA land in isolation was the only practicable way forward, the site was retendered to the top previous bidders in August 2002. Offers were invited based on an unconditional sale and / or based on a sale conditional on planning consent being obtained.

5. Tenders were returned in September 2002 with just two parties submitting offers. Both parties were well known national house builders.

6. Subsequent discussions took place to clarify certain aspects of the schemes proposed; to evaluate the planning position for proposals not in line with the 'minded to grant' scheme and to clarify such matters as additional payments offered in respect of any change to planning or the achievement of enhanced sales figures for the completed residential units (commonly referred to as overage and clawback).

7. Both parties submitted phased payment proposals. Prior to Members considering the disposal, both parties withdrew their offers.

8. Shortly thereafter, an original bidder re-approached the agents acting for the MPA and submitted a renewed offer. The previous tenders have been evaluated together with the current offer. Members are asked to consider the recommendation set out in the linked exempt report (agenda item 21).

C. Equality and diversity implications

Any development scheme on this site will need to meet regulatory requirements in respect of accessibility and the social housing requirements of the Local Planning Authority.

D. Financial implications

1. The proceeds are reflected in the Authority’s financial projections.
2. There have also been costs incurred in the progress of the scheme to planning consent that are shared with the adjoining owner. The MPA element of these costs will be met from appropriate revenue budgets.

E. Background papers

• Estates Sub-Group 9 January 2001
• Finance Planning and Best Value 17 April 2001
• Finance Planning and Best Value 19 June 2001
• Finance Planning and Best Value 21 February 2002
• Estates Sub-Committee 4 April 2002 (Update of Estates Issues)
• Estates Sub-Committee 30 May 2002 (Update of Estates Issues)
• Finance Committee 27 September 2002 (Update of Estates Issues)
• Finance Committee 24 October 2002 (Update of Estates Issues)

F. Contact details

Report author: Mr A Croney, Director of Property Services, MPS.

For more information contact:

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

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