Estates update

Report: 10
Date: 7 April 2005
By: Commissioner

Summary

This report updates members on the latest information on Estate and Property Services matters.

A. Recommendation

 That

1. Members note the information on current estate issues.

B. Supporting information

Introduction

1. At the Finance Committee on 24 October 2002, it was agreed that a report on estates issues would be produced at alternate meetings. Source documents can be found in previous relevant reports and also in the Members' Library.

Former MPA residential property short term let to Housing Associations

2. The dispute with Housing 21 is still being considered by an appointed expert and it is therefore not possible to comment further at this stage. A full report will be made as soon as the Expert’s decision is available.

Bow Street (Police Station and Magistrates Court)

3. As reported in January 2005, the Department of Constitutional Affairs (DCA) requested a review period and with the Greater London Magistrates Court Association (GLMCA) we have agreed to this. Arrangements are being made to protect the MPA’s position but disposal is now likely in 2005/06 rather than in 2004/05.

Old Street

4. Following the MPA Full Authority’s decision to test market the property, Property Services have had a further meeting with the Deputy Clerk to agree next steps. A detailed marketing strategy will be prepared for the Chair of the MPA to approve in April.

New Scotland Yard

5. The external security works are proceeding well although some additional costs are being incurred as external areas and services are being opened up for the first time since the building was constructed. Office refurbishment works to accommodate Management Board changes and Service Review are ongoing. Many areas impacted have not been refurbished for many years and the opportunity is being taken to execute long overdue air conditioning, wiring and IT improvements and to remove asbestos.

Central London Estate

6. The moves into Empress State continue to progress well. (Arrangements have been made for MPA members to visit Empress State on 6 April.) Floors 2 – 12 are now occupied, works to Floor 13 will be completed shortly. The use of the Piazza building and building to fronting Lillie Road are agreed. Certain security works have been undertaken, the second phase of works including proposed works to the perimeter are being finalised. Occupation of Floor 16 and above will commence in April/May. The marketing strategy for Regency Street and Aybrook Street has commenced.

Action under Delegated Powers (Director of Property Services)

7. The following significant items have been actioned under delegated powers.

• Numerous operational licenses/indemnities and short term/ operational matters have been signed under delegated powers (particularly in relation to National Security matters).
• A number of day to day estate matters have been signed under delegated powers.

Safer Neighbourhoods

8. Good progress on sites and locations continues.

Property Capital Programme

9. Overall projects remain on and within budget and timescale although some rephasing has been necessary due to delays in regulatory approvals and related matters. A list of the projects completed in the quarter ended March 2005 is attached as at Appendix 1.

Sales

10. The revised budget requiring Property Services to generate £12m of receipts in addition to the requirement to release £4m of residential properties to fund the Key Home Buy Scheme, has been achieved. Additional receipts that are linked to specific asset strategies for 2004/05 and beyond will be moved to capital reserves for allocation in 2005/06.

Impact of the 2005 Budget

11. The announcement to remove the exemption of Stamp Duty Land Tax (SDLT) in depressed areas with effect from 17 March 2005 will increase the acquisition costs of properties within certain areas of London. Of immediate impact on the MPA is the approved acquisition cost of One South Central, Stratford, where SDLT will now be applicable on the acquisition costs. These costs will be reported separately to the MPA in an update report.

Performance

12. We are drafting a Year End statement against our published Operational Plan for 2004/05.

Key Worker ODPM Schemes

13. The match funding arrangements under the Key Home Buy Scheme are due to end at the close of the 2005/06 financial year.

C. Equality and diversity implications

Any equality and diversity implications arising from the matters in this report are being assessed as part of the individual project or item and will be reported separately to the Committee at the appropriate time.

D. Financial implications

Any financial implications from the above items will be reported in full to the relevant committees at the appropriate time. Unless otherwise stated no new implications are anticipated; or are already within existing approved budgets (bottom line managed).

E. Legal implications

1. Contract or other documentation in these matters will contain all the usual commercial terms and provisions, and no unduly onerous or unusual terms – except where reported otherwise.

2. Significant risks have been evaluated and considered and steps taken to minimize or manage such risks.

3. All reported matters are considered to be within the powers of the authority.

4. All/any disposal represents the best consideration that can reasonably be obtained – save where stated otherwise.

F. Background papers

• None

G. Contact details

Report author: Alan Croney, Director of Property Services.

For more information contact:

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

Appendix 1: Projects completed in the quarter ended March 2005

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