REQUEST TO INTERIM HEAD OF PROPERTY SERVICES FOR APPROVAL OF TERMS

RE: DISPOSAL OF LAND AT MARSHES END TO DESPI.

Background

A report was taken to Cabinet by Alan Barlow, then Policy Director, on the 10th June 2003 to dispose of 1.48 acres of land at Marshes End for the provision of a new Fire Station for Dorset Fire and Rescue Services. The current Fire Station will be relocated from Wimborne Road, where the new Divisional Headquarters will be built. Please see the attached plan showing the Marshes End site outlined in red in Appendix A.

The report requested consent for the land to be sold for the construction of a new Fire Station by way of a PFI subject to detailed negotiations. Please see the attached report in Appendix B.

Cabinet approved the disposal on the 10th June 2003, please see the attached decision in Appendix C.

Negotiations & Site Contamination and Remediation

Dave Cowling of Cowling & West were instructed by Dorset Fire and Rescue Services to act on their behalf in the negotiations to purchase the land.

Additionally James Nisbet & Partners, (JNP), Quantity Surveyors were instructed to carry out site investigations and costings for the remediation of the contamination on the site and for abnormals.

Before negotiations with Dave Cowling commenced he provided JNP’s estimate of the likely remediation and abnormal cost on the site of over £700,000. This was for;

  • The removal of Japanese Knotweed.
  • Topsoil strip.
  • Flood Defence Measures.
  • Boundary Treatments.
  • Piled Foundations.
  • Gas venting to Buildings and Hard Paved Areas.

The following terms were agreed with David Cowling:

  1. The land in question comprises the area illustrated on the attached plan and will be transferred freehold subject to the issues set out below.
  1. The Borough of Poole will retain rights of access to its adjoining land over the new access way from Holes Bay North roundabout. DESPI will be responsible for constructing the access road, and the Borough’s rights will extend over the area coloured yellow on the plan.
  1. The consideration to be paid for the freehold interest will be based upon a land value of £450,000 per net developable acre. For the avoidance of doubt, consideration will be given to make an appropriate allowance from the calculation determining the net developable area for the area coloured yellow. The final consideration payable will be subject to deductions in respect of agreed abnormal costs.
  1. The agreed abnormal ‘over and above’ costs to be deducted from the disposal price will be based upon consideration of the following issues:

a)Removal of Japanese Knotweed

b)Top soil stripping

c)Flood defence measures

d)Boundary treatments relating to prevention of escaping gases

e)Piled foundations

f)Gas venting to buildings

g)Gas venting to hard paved areas

h)The provision of mains services to the site boundary

  1. It is intended that these costs will be negotiated between the parties by Messers Denley King acting on behalf of the Borough of Poole, and James Nisbet & Partners acting on behalf of DESPI.

Subsequent to the above terms a final figure for the land of £705,260 was agreed subject to the cost of remediation and abnormals.

Denley King was instructed by the Borough to report on JNP’s remediation proposals and budget costs for abnormals and negotiate the costs in consultation with the Borough. It was their opinion that the costs should be in the region of £375,000 to £400,000.

Denley King negotiated a figure of £500,000 for the remediation and abnormal costs. However, following this a further figure of £200,000 was negotiated to service the site. Bringing the total costs to £700,000. Leaving a site value of £5,260.

Easements

In order for the site to be serviced an easement strip and wayleave was required over the Borough’s adjacent land. This land is allocated in the local plan as future park and ride and therefore Transportation Services’ consent was obtained. Additionally a report was taken to the Interim Head of Property Services and approved for the easement and wayleave.

Agreement

In order for Dorset Fire Authority to secure the funding with the PFI an option agreement to purchase has to be entered into by the Borough before entering into the transfer agreement. Legal Services has confirmed that this is an acceptable approach as it is the only option available.

The option agreement confers the right on the seller during the option period to require the DFI to purchase the whole of the property for the purchase sum of £5,260.

The option period if for twenty working days from the date of the agreement.

Sale Agreement and Transfer

The terms of sale are:

  • Price - £5,260
  • Property – 1.48 Acres at Marshes End
  • Termination – the buyer may end the agreement to purchase if there is a planning refusal or calling-in.
  • The use of the site is restricted to that of a Fire Station only.
  • Various Positive and Restrictive Covenants

I WOULD THEREFORE BE GRATEFUL IF YOU COULD PLEASE GIVE APPROVAL TO THE TERMS OF DISPOSAL.

Date: 29.09.05

File Ref: M505

Approved…………………………………………………………..

Interim Head of Property Services

Date………………………………………………………………….

Case Officer – Sally Tomlinson