REPORT TITLE:
CARGO FLEET LANE, MIDDLESBROUGH
PROPOSED DISPOSAL OF FORMER SPORTS HALL
EXECUTIVE MEMBER FOR RESOURCES
NICKY WALKER
EXECUTIVE DIRECTOR FOR CHILDREN FAMILIES AND LEARNING : TERRY REDMAYNE
EXECUTIVE DIRECTOR FOR RESOURCES :
PAUL SLOCOMBE
Date 11 MARCH 2005
PURPOSE OF THE REPORT
1. To recommend the disposal of the sports hall at the former St Anthony’s School Cargo Fleet Lane to the Ormesby Table Tennis Club on the Council’s standard terms and conditions for a development agreement and 125 year lease.
BACKGROUND AND EXTERNAL CONSULTATION
2. The subject premises were at one time the sports hall for St Anthony’s School which is now closed and has been converted to the East Middlesbrough Training and Learning Centre.The premises are surplus to this initiative.
At its meeting held on 20 January 2003 the Asset Management Group approved that provisional discussions be opened with Ormesby Table Tennis Club for a disposal of the premises. In order to facilitate early use a licence to occupy on a monthly basis was approved and the club is now in occupation on this basis.
Ormesby Table Tennis Club is a club with an international reputation which has produced a number of national and international players over the years. The Club formerly occupied inadequate premises in Church Lane in Ormesby and has been looking for better facilities for some years. This disposal is seen as an ideal opportunity to assist the Club and enhance considerably the sports offer of Middlesbrough.
The Club was founded in 1959 and is currently Chaired by Alan Ransome OBE who is also Chairman of the English Table Tennis Association. The sport of table tennis is one of the government’s selected sports for the promotion of well being and inclusion in the community and the level of the Sport England grant indicates the significance attached to this opportunity.
The Club proposes to improve the existing sports hall and also build an extension to provide room for an additional twelve tables with a dedicated car park. A new access road direct from Cargo Fleet Lane which will serve the subject premises as well as the East Middlesbrough Training and Learning Centre has recently been completed.
Funding for the improvement/renovation works has been approved provisionally subject to the commitment by the Council via the formal disposal to the Club of a substantive interest in the premises. The approved funding sources are Sport England (£500,000) and Single Programme (£175,000). The grant of a peppercorn lease would be seen by the funding agencies as the Council’s contribution although as specified in the Financial Issues paragraph a disposal in itself confers financial advantage to the Council.
In order to unlock the funding, commitment by the Council to the disposal of the premises needs to be given as soon as possible; as early in March as is practicable.
Terms have been provisionally agreed for a disposal based on standard terms for a development agreement and 125 year ground lease at a peppercorn rent on the Council’s usual terms for such agreements.
The proposed use falls within the allocation of the site in the Local Plan as Secondary Open Space (Education/Community uses).The Club’s proposals have been the subject of extensive discussions with the Council’s planning and highway services and in broad terms the proposals (long term use of the sports hall, construction of an extension and the new access route from Cargo Fleet ) comply with the Local Plan requirements. A disposal for the subject purpose is the only form of development which meets current policies.
OPTION APPRAISAL/RISK ASSESSMENT
3. If the grant funding is not secured then the improvements will not take place and the advantages and opportunities set out elsewhere in the report will be lost. Thus the Council’s commitment to a disposal is time critical. Failure to progress with the renovation/extension to the premises would be seen as major lost opportunity to Middlesbrough and the sub-region.
There is no practical opportunity for a commercial disposal of the premises hence in both terms of the most practical option and in economic regeneration terms the subject proposal holds out the greatest promise.
The recommendations in the report are considered to be the only option available.
FINANCIAL, LEGAL AND WARD IMPLICATIONS
4. Financial – The Council will have permanently relieved itself of the maintenance liability of the subject premises together with potential demolition costs.
For all practical purposes there is no market for this property nor for the site upon which it stands were it to be demolished.
6. Ward Implications – These are felt to be considerable and wholly beneficial. The sports offer of Middlesbrough will be enhanced considerably in local and sub-regional terms and Pallister will become the venue for occasional national and international table tennis tournaments.
8. Legal Implications – Save for the progression of the necessary documentation
there are not considered to be any.
SCRUTINY CONSULTATION –
There are not considered to be any scrutiny implications.
RECOMMENDATIONS
9. That a development agreement and 125 year ground lease at a peppercorn rent in respect of the sports hall to the former St Anthony’s School be granted to the Ormesby Table Tennis Club.
That the transaction encompasses the additional land required for the construction of an extension to the premises.
REASONS
10. To support a key local community and inclusion initiative and enhance the sports offer of the Middlesbrough area.
To relieve the Council of long term maintenance liabilities.
BACKGROUND PAPERS
No background papers were used in the preparation of this report:
AUTHOR: Peter Metcalfe
TEL NO: 727076
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Address:
Website: http://www.middlesbrough.gov.uk