OLD TRELAI LIBRARY, BISHOPSTON ROAD, CARDIFF OPTIONS REPORT CONSIDERING: COMMUNITY ASSET TRANSFER (CAT), DISPOSAL OF BUILDING OR COMMERCIAL LEASE
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1 CITY OF CARDIFF COUNCIL GYNGOR DINAS CAERDYDD CABINET MEETING: 17 JULY 2014 OLD TRELAI LIBRARY, BISHOPSTON ROAD, CARDIFF OPTIONS REPORT CONSIDERING: COMMUNITY ASSET TRANSFER (CAT), DISPOSAL OF BUILDING OR COMMERCIAL LEASE REPORT OF DIRECTOR COMMUNITIES, HOUSING AND CUSTOMER SERVICES AGENDA ITEM: 9 PORTFOLIO: EDUCATION AND SKILLS (COUNCILLOR JULIA MAGILL) Appendix 2 is not for publication as it contains exempt information of the description in paragraphs 14 and 21 of Schedule 12A to the Local Government Act 1972 Reason for Report 1. To enable Cabinet to determine the most appropriate option to adopt regarding the future of this property. Background 2. The site has not been used as an operational library for some years. Recent use has been by Age Connects who have been supported by grant funding. The funding previously available to support the use is no longer available which has led to the property being vacated. The site is shown edged red on the attached plan (Appendix 2). 3. As part of the review and restructure to the Adult Community Learning (ACL) Establishment in 2013, a full buildings review was undertaken to determine what buildings are surplus to service requirements. There was also a move for the ACL service to move away from the direct management of buildings where ACL delivery took place. 4. Age Connects delivered the Healthy Wealthy Wise Project at this location which seeks to enable and empower people in the fifty plus group, to participate in activities that stimulate, challenge and educate the participants. 5. Age Connects had a 3 year lease from 2008 with the rent subject to maintenance of grant funding ( 12,000 rent was paid to the Council). The formal lease agreement which Age Connects had with Cardiff Council expired in 2011 however the arrangement has continued since then on Page 1 of 5
2 an informal basis with an annual payment to the ACL Service of 9,000. The running costs of this building are in excess of 15,000 with the shortfall covered by the ACL grant from Welsh Government. This cannot continue as no ACL classes take place there and no grant funding can therefore be used to maintain this building. 6. Age Connects vacated the building at the end of March 2014 and now occupy the Trelai Youth Centre where they continue to deliver this project. This building is in close proximity to the original venue. 7. There was also a Communities First after school club that was taking place at this venue. It finished in February at half term because of concerns around lack of numbers. The news of Age Connect withdrawing was also a factor that influenced their decision. The volunteers that ran the after school club have linked into Glyn Derw after school provision. Communities First plan to run at least one after school club at the new hub in the Jasmine Centre. Issues 8. The building is now falling into a state of disrepair and has been deemed not suitable for future ACL related delivery. Although the last Property Condition Report was undertaken in 2011, Strategic Estates have revisited the property in recent weeks. 9. The building is now deemed surplus to requirements and the authority is to consider the following options. Disposal of Building 10. A market disposal would provide a capital receipt and has been valued by Strategic Estates. (See Appendix 2). 11. If the disposal was decided to be the best option, prior consideration would be given to include the site under the Housing Partnership Project (HPP). An initial assessment has indicated that the site would be suitable for residential development and inclusion in the HPP. Community Asset Transfer 12. This option would offer the Council a nil capital receipt, but would allow the property to be retained and used by the community. There is already some interest from local community to retain the property for community based uses. 13. If the property is approved as being suitable for a CAT the details will be advertised and expressions of interest will be sought in line with the specified criteria as outlined in the report. These criteria will be designed to identify the type of user; evidence of financial backing; parameters of use to be undertaken within the property; etc. The result of this process will be assessed and parties meeting the criteria will be asked to submit a formal bid. Page 2 of 5
3 14. A detailed evaluation of all the expressions of interest by officers, including business plans will be required for the Council to pursue a CAT with the preferred operator. 15. A CAT transfer would be a lengthy process, during which time the building will remain vacant. The building will be vulnerable and have associated security concerns; the Council will be liable for the security cost and any potential damage to the building in this time. 16. Any potential applicant will need to have a robust business case to ensure that their proposal is achievable, sustainable and achieve community benefit. They would also need to demonstrate the ability to provide the investment to carry out the necessary improvement works and maintain the building to a good state. Lease Option 17. A lease to a business or social organisation is a further consideration and dependant on demand could provide an option to get the building occupied within a shorter timescale. This option has the potential to secure ongoing rental from the asset and subject to the terms of the lease would enable the ongoing maintenance to transfer to the leaseholder. 18. Advice from Strategic Estates, due to the location and the poor state of the property (see Appendix 1), attracting a commercial tenant would prove difficult. If a suitable tenant was identified rental levels in the locality are low and a lease agreement would require a substantial rent free period to enable the tenant to reinstate the property into a condition fit for occupation. It is therefore considered that this option, if successful, would not provide the Council with a beneficial revenue income nor be likely to provide an end user that would benefit the community generally. Conclusion 19. The Council has to balance the need for Capital receipts, as well as the need to minimise expenditure on maintaining assets no longer required for Council purposes. Local Member Consultation 20. At the request of Councillors Simmons and Bradbury, it was suggested that options be considered that could include a possible Community Asset Transfer as interest has already being expressed by two external organisations. Reasons for Recommendations 21. In order to progress this matter a Cabinet decision is required to enable Strategic Estates to formally explore the potential for CAT or to further investigate the options of disposal of the building or a Commercial Lease Page 3 of 5
4 Legal Implications 22. The Council is required to obtain best consideration from its land disposals pursuant to s123 of the Local Government Act But pursuant to the General Disposal Consent (Wales) 2003 it can dispose at an undervalue of up to 2m if it is satisfied that the disposal is in the interests of the economic social or environmental well being of the whole or part of its area. This links to the power of the Council to promote wellbeing of its area under the Local Government Act If relying on such justification therefore it is vital that the decision maker identifies clearly that how the action will benefit its area and how the action accords with its community strategy. Financial Implications 23. The report proposes a number of options for this site and the financial implications will vary depending on the preferred outcome. 24. The financial challenge facing the Local Authority is of such a scale that any decision to forego income from a capital receipt must be considered as part of a wider Council strategy. If a decision is made to transfer the site to the Housing Revenue Account, it would need to be confirmed whether this was feasible to be undertaken as an appropriation and as part of the current Housing Partnership Project proposal, or options considered to develop the site in isolation. The Housing Revenue Account will need to bear the costs of the additional capital financing costs linked to any transfer. 24. Before a community asset transfer is identified as a preferred course of action for the future of a property it is important to consider any potential VAT issues, plus revenue and capital costs, that may be required in order to facilitate a transfer. As stated in the previous paragraph, the opportunity cost of any potential disposal proceeds must be considered in the context of savings, re investment in service delivery or to increase the affordability of the capital programme. 25. Where CAT is proposed, for either empty buildings or for buildings from which services are currently delivered, it should be noted that completion of a CAT is a lengthy process and there could be financial implications directly arising from holding the properties and from implementation of the process. Any such costs will need to be met from existing Directorate budgets 26. Due diligence on the suitability of the successful applicant and their business plan as well as their ability to raise investment needs to be undertaken in order to ensure that proposals are achievable, and where there is a requirement for council services to be delivered that this is able to continue in the long term. 27. Where the outcome of a review suggests significant risks in terms of sustainability and achievability alternative options such as open market disposal will need to be considered. Page 4 of 5
5 28. The terms and conditions of a CAT need to ensure the property is maintained in good condition with restrictions on unapproved alternative use. Any such agreements on transfer will need to be monitored, and should the terms and conditions of any transfer not be adhered to the property should be returned to the council for alternative use such as disposal. Any return of property could have capital and revenue implications for the council. RECOMMENDATIONS Cabinet is recommended to: 1) Authorise the Director of Communities, Housing and Customer Services in consultation with the Deputy Leader and the Cabinet Member for Education and Skills and the Corporate Property and Estates Manager to formally explore the options contained within this report 2) Delegate authority to the Director of Communities, Housing and Customer Services in consultation with the Deputy Leader and the Cabinet Member for Education and Skills and the Corporate Property and Estates Manager to proceed with the preferred option SARAH MCGILL Director 11 July 2014 The following Appendices are attached: Appendix 1: Appendix 2: Property Condition Report Trelai Valuation Report (Confidential) Page 5 of 5
6 Property Condition Report for TRELAI COMMUNITY CENTRE Cardiff County Council Strategies Estates Division
7 Introduction Limitations Condition Condition Priority Property Condition Report for TRELAI COMMUNITY CENTRE This report has been produced for the Service Areas as part of a Asset Management Plan, to give them details on the condition of the property to assist in programming for recurrent repairs and maintenance. The condition survey was carried out by the Strategic Estates Division of Cardiff County Council. This report has been compiled exercising all reasonable skill, care and diligence. It is based on a visual inspection of the property and as such, is limited in its scope. The survey is based on the DfEE guidance on a framework for assessing the condition of school premises for Asset Management Plans. The buildings have been sub divided into blocks, where necessary, based on separation and age of construction and assessed on a block by block and element by element basis. Elements and remedial works have been assessed and categorised as follows: GOOD (Performing as intended/operating efficiently) (Performing as intended but exhibiting minor deterioration) POOR (Exhibiting major defects/not operating as intended) BAD (Life expired/risk of imminent failure) 1 (Within 1 Year) 2 (Within 2 Years) 3 (Within 3-5 Years) The work identified in the Remedial Works has been prioritised in the year considered to be necessary by the Surveyor. However, due to limited financial budgets, some or all of the identified work may have to be postponed to later years. Remedial Cost The investment costs are an approximate guide and not actual costs for undertaking the remedial works. For the purposes of this exercise maintenance items below 1,000 have not been included in this report. Date Printed - 07/01/2014 Page 2 of 4
8 Site Elemental Condition Walls / Fences / Gates Roads / Carparks Property Condition Report for TRELAI COMMUNITY CENTRE Survey Date: Not Applicable 01/02/2011 Paths / Playgrounds / Paved Areas Soft Landscaping Drainage Ancilliary Premises / Outdoor Pools General Overall Condition Not Applicable Site Remedial Works Element Condition Works Priority Cost Paths / playgrounds / paved areas POOR lift level & repair paving slabs to front paved area leading from public footpath to main entrance & include bicycle parking area. Note, Tarmac would be cheaper. 2 1,000 Total Cost: 1,000 Notes Building s Block No Elemental Condition Roofs 1 External Walls / Doors /Windows Survey Date 01/02/2011 Internal Doors / Walls Floors / Stairs Ceilings Furniture / Fittings Sanitary Ware Redecoration Mechanical Services Electrical Services Overall Condition Block Remedial Works Element Condition Works Priority Cost Control gear POOR Repace main sitch board 2 4,500 EWWD - Doors POOR Replace upvc fire exit door from G04 1 1,300 Date Printed - 07/01/2014 Page 3 of 4
9 Property Condition Report for TRELAI COMMUNITY CENTRE with powder coated aluminium and renew teimber frame to door EWWD - Walls Replace plywood cladding between h/l windows with upvc EWWD - Windows Replace h/l metal singe glazed windows-inc scaffold access Fire Alarm POOR Uprgade to include automatic smoke and heat detection Floors & Stairs - Ground Floor Heating / distribution / controls Hot & Cold water services POOR Replace vinyl tiles with sheeting to G06, G10, G11, G12 & G13 Consider replacing electrical underfloor & storage heaters due to age 3 2, , , , ,000 POOR Replace water heater in Kitchen, G07 3 1,000 Lighting POOR Replace flourescent luminaires, ect bulkhead fittings and exit legend Redecorations - Internal 2 10,000 POOR Cyclical redecorations approx 30% 3 1,000 Roofs - Coverings Renewal of felt covering inc scaffold access Note 3 5,000 Total: 54, Surveyoer unable to inspect roof but no inherent defects identified Rainwater goods hidden internally and unable to inspect. Satisfactory: 18,800 Poor: 36,800 Report Total: 55,600 Date Printed - 07/01/2014 Page 4 of 4
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