Regeneration & Property Committee. 29 June Tankerton Football Club. Tricia Marshall - Director of Resources. This report is open to the public

Transcription

1 Regeneration & Property Committee 29 June 2017 Subject: Director/Head of Service: Tankerton Football Club Tricia Marshall - Director of Resources Decision Issues: These matters are within the authority of the Committee. Classification: CCC Ward(s): Summary: To Resolve: This report is open to the public Swalecliffe and West Bay The report sets out a proposal to lease an area of land to the east of St Augustine s Business Park off the Whitstable Road between Swalecliffe and Herne Bay to Tankerton Football Club to develop football pitches, changing rooms and a parking area. That the Head of Property be authorised to agree suitable lease terms with Tankerton Football Club to enable the club to secure sufficient funding to develop the land as football pitches but also protects the council s position in the event of the development not being completed or the club being unable to secure sufficient funding. That the Head of Legal Services be authorised to approve and seal such lease documentation as is necessary to bring about a developed football facility. Next stage in process: Implement the decision SUPPORTING INFORMATION 1. Introduction Following the grant of planning permission to use the council s land as football pitches together with the erection of a pavilion with 84 parking spaces, this report seeks authority to lease in stages an area of approximately 15 acres of scrub land adjacent to St Augustine s Business Park to Tankerton Football Club for the purpose of developing a variety of pitches for children and adults. Tankerton FC is a community-based football club and registered charity that provides a service to children from the local and east Kent areas. The club has grown since the early 1990s and now caters for over 350 boys and girls with ages ranging from 5 to 18 years old. It is an FA Grassroots Priority Project and one of the only clubs in east Kent to have attained the English Football Association Charter Standard Development Mark.

2 2. Detail The club is currently located at the Seaview Holiday Park on St Johns Road, Whitstable. However, the club does not own this site and it is not available for purchase. As such there is no security of tenure and the club cannot invest funds into the site without the risk of losing that investment in the near future, should they be required to vacate. In addition, the Seaview site is not available between September and March, further restricting the functioning and viability of the club and displacing the 30-plus Tankerton FC teams for a significant period of the season. Following The Open Space Strategy for the Canterbury District , which identified a gap in the provision of football pitches in the area as a shortfall in mini and junior football pitches, the Whitstable Community Football Steering Group (which includes representatives from the City Council) undertook to research possible sites and review options to address the identified need. Options for sites within the urban area were explored but the search was restricted to those that were available, for sale and in the Tankerton area. A sequential review was carried out and included a scoring matrix that considered a number of criteria such as accessibility by different means of transport, scope for future development and market impact on local businesses and schools. The subject site outscored the other 5 sites that were considered. The land came into council ownership by way of a 1992 section 106 Agreement with George Wilson Developments in connection with the development of St Augustine s Business Park, although the transfer to the Council was only completed in Council officers started discussions with Tankerton FC in 2014, which were shelved after an ecology study of the site revealed the presence of protected species. Following proposals to mitigate environmental risks Tankerton FC submitted a planning application in April 2016 and was granted permission in August the same year. Based on the available funding sources (including Sport England, Football Foundation) and timing, the club intends a phased approach; Phase 1 will comprise laying out a single pitch, with access and parking, Phase 2 will comprise a conservation area, and Phase 3 will include further pitches and a pavilion. Environmental grants will be sought for developing the conservation area, to which the club plans to make access available to outside bodies on a permissive basis. Discussions have been held recently with club representatives as to the most appropriate formal basis for the club s occupation; a 30-year lease has been proposed and to this end draft heads of terms (appendix 1) have been produced and agreed in principle, prior to instructing lawyers. Ordinarily, in order to protect the Council s interests the leases would include a landlord s break clause, to be triggered in the event that the club does not fulfil its obligations, becomes insolvent, or fails in some way to meet the required standards; however, the funders will not agree to release grants where a lease could be terminated by the landlord within the funding period (normally years) and after speaking with each of the main funders we have removed this provision from the heads of terms. In this instance we feel this is acceptable for two main reasons: the phased nature of the project will enable the Council to monitor progress during each phase, and the funders terms and conditions contain strict financial and project controls that the recipient has to meet.

3 The phased nature of the proposal might require separate leases for each phase. The Council s legal team are involved and advising. The lease will be a standard commercial lease and subject to the usual terms. Rent will initially be a peppercorn, with a regular pattern of reviews to a rent reflecting its current use and condition, ignoring the club s improvements. The commencing peppercorn rent will not be full market value but we are relying on the general disposal consent as this proposal is regarded as providing a community benefit. The Local Government Act 1972 general disposal consent (England) 2003 allows local authorities to depart from the overriding duty imposed by Section 123 Local Government Act 1972 ('s123') which enables a local authority to achieve necessary or desirable objectives. Any such departure from the duty imposed by s123 is known as a disposal at an undervalue. The general consent permits a disposal at an under-value where the authority considers that such disposal will help to secure the promotion or improvement of the economic, social or environmental well-being of its area. As scrub land the site has little monetary value. In addition, the transfer from George Wilson Developments includes restrictions on use of the site to amenity land/agricultural or open space (the Open Space Act 1906 includes land used for recreation in its definition of open space), although construction of public toilets and shelters and a sports pavilion is permitted. The land is also subject to an overage provision in favour of George Wilson Developments and Ideal Homes (now Persimmon) in the event of redevelopment. Early discussions with George Wilson suggest that he is supportive of the proposal, and we are awaiting his formal approval. It should be noted that if this consent is not received the proposal might not proceed. The land comprises a prominent site on the built fringe. It is potentially vulnerable to fly-tipping and unauthorised occupation. The club has independently identified the site as suitable, and the proposed use is seen as beneficial to the local community. 3. Relevant Council Policy/Strategies/Budgetary Documents This proposal supports the council's Corporate Plan aim to contribute to the good health of local people. 4. Consultation planned or undertaken Consultation has taken place with Sport England, the Kent FA and the Football Foundation who are all supportive of the club's plans. There is an existing commitment of 50,000 funding from Sport England for the club, which cannot be released until a lease is in place. 5. Options available with reasons for suitability (a) The recommended option is to adopt a staged lease approach for separate parts of the land in line with the three phase development proposal submitted by the club. The Football Foundation and Sport England are expected to finance the majority of the works but the funding will only be granted in stages so this option

4 allows the club to secure the necessary funding and the council to only lease land for which development is assured. Phase 1 Grant a 30 year lease of this part of the site with development conditions to build the site entrance, relocate reptiles to the conservation area and clear the land to form 1 full size pitch with 2/3 junior pitches. Phase 2 Grant an Agreement for Lease to enable the conservation part of site to be developed with a co-terminus 30 year lease being granted on satisfactory completion of that stage. Phase 3 - Grant an Agreement for Lease in the same way as phase 2 allowing the club to complete the development by building the remaining football pitches and clubhouse. (b) Grant a 30 year lease for the whole site. Whilst this would avoid the additional work and cost of a phased project it offers the council no certainty that any of the proposed phases will be completed and could sterilise the land for a long period leaving the council powerless to intervene. (c) Dispose of the council s freehold interest. This offers the simplest form of disposal but would remove all means of council control for all time NB The council could consider a freehold disposal or a surrender and grant of a single lease for the whole site once all 3 phases of the project have been satisfactorily completed. 6. Reasons for supporting option recommended, with risk assessment Option (a) offers the best assurance of the site being developed for the intended use and is seen as logical and beneficial in asset management terms, and as highly desirable in local amenity terms. The risks to the Council are perceived as minimal, with hopefully sufficient safeguards being incorporated in the lease(s) to protect the Council s interests. Potential for alternative use is limited: the grant of planning consent to the club is seen as an exception to the normal policy of resisting development in the green gap between Herne Bay and Whitstable. The site was included within Policies R8 and TC26 of the Canterbury District Local Plan (July 2006), which stated that under certain conditions development would be permitted on sites within the green gap, for leisure or education, open sports and recreational uses. The site is currently allocated under Policy OS3 of the Canterbury District Local Plan (Preferred Option Consultation Draft June 2013) for junior football pitches. 7. Implications (a) Financial Implications.

5 Whilst the Council will not be in receipt of revenue in the initial stages, and will incur legal costs in preparation of the legal documentation, once the club is in possession the Council will no longer be responsible for maintenance and management of the site, and associated costs. (b) (c) Legal Implications. The legal matters will be handled by the Council s in-house legal team. Equalities The club caters for over 350 boys and girls with ages ranging from 5 to 18 years old. Other implications (d) (e) (f) (g) Staffing/resource Negotiation of terms and agreeing the lease are within the normal workload and expertise of the Council s in-house Property Services and Legal teams. Property Portfolio The proposal is considered to be a logical use of this site. Environmental Sustainability The club has a mitigation policy for protected species. Part of the proposal is to create a conservation area that interested groups will be able to visit on a permissive basis. Planning/Building Regulations The club has obtained planning consent for the proposal. The club will be responsible for obtaining any necessary Building Regulations consents. 8. Conclusions Tankerton Football Club is a thriving sports organisation with plans to build on what is already a very impressive community programme. The granting of the lease will enable the club to do this to the benefit of the wider community. Contact Officers: David Ford (Head of Commissioning), Direct Dial: Rebecca Booth (Senior Environment Officer), Direct Dial: Peter Riley (Principal Property Asset Surveyor) James Ross, Direct Dial: Appendices Appendix 1 Phased site layout plan Appendix 2 Draft heads of terms for lease Appendix 3 Location plan