22 APRIL 2015 PROPERTY AND ESTATE RATIONALISATION

EAST AYRSHIRE COUNCIL
CABINET – 22 APRIL 2015
PROPERTY AND ESTATE RATIONALISATION - COMMUNITY ASSET TRANSFER
UPDATE
Report by the Depute Chief Executive: Economy and Skills and Chief Financial
Officer and Acting Depute Chief Executive (Safer Communities)
INTRODUCTION
1.
The purpose of this report is to:
a. seek authority for a further community asset transfer request for the site of the
Ochiltree Community Centre and library; and
b. seek authority for a further community based solution.
BACKGROUND
2.
The Property and Estate Rationalisation workstream, established as part of the
Council’s Transformation Strategy, aims to reduce the number of operational
buildings by 25%. The work undertaken by the Community Asset Transfer (CAT)
team will contribute to the overall Property and Estate Rationalisation workstream
and the 25% target.
3.
Following recommendations from the Leisure Trust on 10 September 2013, Cabinet
at its meeting on 25 September 2013 agreed:
i.
ii.
4.
To authorise officers to pursue asset transfer of those facilities listed in the
appendix report, with proposals being presented to Cabinet for approval; and
To pursue a separate review and asset transfer of pitch and pavilion provision
with proposals being presented to Cabinet for approval.
This list was amended by Cabinet on 18 June 2014, reducing the number of Trust
facilities for which asset transfer was to be sought to 81. Council at its meeting on
12 March 2015 further amended the list and the revised baseline of properties is 45
as shown below:
Trust
facilities
Baseline
ADD additional facilities
LESS proposed CATs
LESS proposed Community based
solutions / Capital project
developments
/
declared
surplus
LESS remove from CAT list
Baseline
1
3
12
65
66
63
51
6
45
REQUEST FOR APPROVAL FOR ASSET TRANSFER
5.
The Community Asset Transfer Group have considered the following detailed
application and now recommend to Cabinet approval of the following proposed asset
transfer of a Trust facility:
Property
Group
Ochiltree
Ochiltree
Community Community
Centre and Hub
Library
Proposal
Group wish to acquire the
cleared site following
demolition of the buildings
by EAC. Thereafter they
propose to erect a new
multi-purpose
environmentally friendly
community facility. The
group aim to attract a
range of external funding
to the value of £1.7m to
support the build costs
and initial running costs.
Transfer terms
Proposed disposal terms have
been agreed at a price of
£29,000 subject to the group
obtaining planning consent for
the
proposed
use
and
evidence of the sufficient
funding being secured.
The group anticipate being in
a position to commence
building in January 2017 and,
therefore it is proposed that
the existing facilities will be run
by East Ayrshire Leisure Trust
until 31st March 2016 and
thereafter
the
demolition
process will begin.
COMMUNITY BASED SOLUTIONS
6.
Community based solutions have now been approved in New Cumnock, Dalrymple,
Drongan and Mauchline. Further flexible community based solutions are emerging,
some of which are within the context of Community Led Action Plans. Whilst there
will be overall savings in terms of a reduction in the numbers of facilities in specific
communities, discussions are leading to the consolidation of some services into one
building. The resultant solutions may be suitable for management either via asset
transfer, by East Ayrshire Leisure Trust or, where related to a school, by the Council’s
Facilities Management Team.
7.
A detailed project has now been developed at Kilmaurs and other projects are in
development in Patna and Rankinston. Details of the solution developed for Kilmaurs
is as follows:
Current Provision at Kilmaurs
8.
The community centre, library and pitch and pavilion were all on the list approved by
Cabinet for asset transfer.
Council at its meeting on 12 March 2015 agreed to
declare the pavilion surplus to requirements to facilitate demolition and the
reinstatement of the site.
9.
An independent building survey obtained for the community centre highlighted that
costs of £0.654m are required to the property and this equates to £1,194 per sq.m.
The building comprises of a mixture of a single storey large steel framed structure
and single storey brick built extension. The roof, brick work, windows, render,
external areas, and floor coverings are in poor condition. This property is therefore
deemed to be unsustainable to pass to a community group for asset transfer.
10.
Extensive discussions and engagement about sustainable future facilities and
solutions have taken place with the local community. This has led to an application
being received for the library building from the Community Association who wish to
relocate lets from the community centre to the library building.
Proposed provision at Kilmaurs
11.
In terms of community facilities, in order to relocate the lets from the community
centre in the library building, re-configuration is required. The CAT applicants have
been involved in the re-design of the building to ensure the maximisation of the
transfer of lets from the community centre. Investment is now required to enable this
to proceed and once complete the existing community centre would be surplus to
requirements and demolished.
Financial position at Kilmaurs
12.
It is proposed that the costs associated with the relocation of the Community Facilities
into the library building, estimated at £0.154m be funded from the Transformation
Strategy Capital Fund. These costs represent value for money when considered in
relation to the revenue savings associated with the closure of the existing community
centre and library which are currently estimated at approximately £0.092m per
annum, including staff, energy and running costs. The reconfigured property would
then be asset transferred to the community group following completion of a
successful detailed application which would be presented to Cabinet in due course.
13.
Following finalisation of the asset transfer position the community centre would be
demolished. In this regard a one off investment is required from the Transformation
Strategy Capital Fund of £0.035m.
PROGRESS AGAINST BASELINE
14.
If all the recommendations within this report are approved by Council then the
baseline of 45 properties would reduce as follows:
Trust
facilities
Baseline
LESS proposed CAT at Ochiltree
2
Baseline
45
43
FINANCIAL IMPLICATIONS
15.
In respect of the proposed CAT transfer of the site of Ochiltree Community Centre
and library, the estimated annual revenue savings will be £49,806 and will secure a
capital receipt of £29,000 for the Council. Ochiltree Community Hub Limited
anticipates attracting external capital funding up to a total of £1.7m to support both
the build and early years running costs of the project. A one-off investment is required
from the Transformation Strategy Capital Fund of £0.070m for the proposed
demolition of Ochiltree Community Centre and Library.
16.
Capital investment of £0.154m is required from the Transformation Strategy Capital
Fund in connection with the investment in respect of the Kilmaurs community based
solution and a further £0.035m for the demolition of the Kilmaurs Community Centre.
This will result in recurring annual revenue savings of £0.092m.
17.
The financial implications arising from this report affect the anticipated savings from
the Energy Efficiency, Property and Estate Rationalisation and Alternative Delivery
Model workstreams. These would be apportioned against 3 workstreams as follows:
Workstream
Energy efficiency
Alternative
Delivery
Model – East Ayrshire
Leisure
Property and Estate
Rationalisation
TOTAL
Savings
target (£)
£2.135m
£2.094m
Ochiltree
Kilmaurs
TOTAL
£12,640
£18,583
£9,639
£41,325
£22,279
£59,908
£2.222m
£18,583
£41,325
£59,908
£49,806
£92,289
£142,095
LEGAL IMPLICATIONS
18.
The application recommended for transfer has been assessed against the statutory
criteria specified in the Disposal of Land by Local Authorities (Scotland) Regulations
2010 as, in order to be eligible for transfer, the proposal must contribute to one of the
purposes set out at paragraph 4 (2) of the Regulations being (a) economic
development or regeneration (b) health (c) social well-being or (d) environmental
well-being.
19.
It is considered that the proposed transfer contributes to the purposes as follows:
Contribution
Disposal
of
Regulations
to Comments
Land
(b) health
(c) social well-being
20.
This proposal contributes to local priorities set out in the
new community plan in terms of ‘Wellbeing’ in particular
the groups commitment to support community based
activity, training and enhance community cohesion.
The facility will provide a focal point for the community
to come together to access a range of services and
opportunities, provide opportunities for local people to
volunteer and contribute to the health and social
wellbeing of the community.
It will be a specific condition of the disposal that the site will be used for the proposed
community hub. In order to protect the Council’s position an economic development
burden in favour of the Council restricting the future use of the site for the approved
purpose for a period of 40 years will be incorporated in terms of Section 45 of the
Title Conditions (Scotland) Act 2003 in the disposition to be granted at settlement
and/or an appropriate claw back security will be entered into allowing for recovery of
the discounted element or part thereof in the event of the property being sold or an
alternative planning use being authorised by the Council or its successors as
planning authority.
21.
The disposal will be subject to the group obtaining planning permission for the
proposed development and securing the requisite external funding.
22.
The Solicitor to the Council will include any other conditions which may be deemed
necessary to protect the interests of the Council in respect of the proposed disposal.
POLICY / COMMUNITY PLANNING IMPLICATIONS
23.
The proposed asset transfer is in accordance with the Council’s Community Asset
Transfer Policy as approved by Cabinet at the meeting on 24 October 2012.
24.
The proposed asset transfer contributes toward the Council’s Community Planning
themes of Economy and Skills, Safer Communities and Wellbeing.
25.
In accordance with the Council’s Transformation Strategy, the development of this
work is essential in enabling the Council to transform its relationship with
communities thus strengthening and enabling our local people to work with us to
deliver sustainable services and jointly respond to challenges in the future. This in
turn will lead to an increase and widening of scope of asset based programmes which
will result in a further reduction in resources over time.
HUMAN RESOURCES IMPLICATIONS
26.
Whilst there are no direct Human Resources implications arising from the proposals
in this report, if a property is transferred to a voluntary or community organisation,
there will be implications for employees of both the Leisure Trust and East Ayrshire
Council. A canvass of employees for interest in voluntary severance has been
carried out and a number of employees have indicated that they would be interested
in opting for voluntary severance.
27.
Work has been carried out on reconciling those employees who have expressed an
interest in voluntary severance against the likely future services and related premises
and this exercise will continue throughout the asset transfer process. The enhanced
redundancy scheme has subsequently been extended to run in parallel with CAT
programme until March 2016. In addition the Council’s redeployment policy will
assist in reducing employee numbers in line with the reduced property portfolio.
28.
Discussions have taken place with the Trade Unions in respect of the overall canvass
for voluntary severance and the Council and Leisure Trust remain committed to
continue to engage with employees within the reconfigured service.
RISK IMPLICATIONS
29.
Managing Risks in Asset Transfer, a guide (Department for Communities and Local
Government, June 2008) includes common risks identified by the Quirk Review
(“Making Assets Work - The Quirk Review of community management and ownership
of public assets”). Cognisance has been taken in respect of each of the risks
identified whilst developing our transparent application and assessment process in
order to mitigate any risk to the Council.
30.
The proposed asset transfer to Ochiltree Community Hub is heavily dependent on
initial capital and revenue grant funding. It is therefore proposed that the asset
transfer is subject to the company securing and demonstrating this initial grant
funding.
31.
In the event that there was no transfer of the site to the community group, year 4 of
the Strategic Housing Investment Plan Programme allows for development of the site
at Main Street, Ochiltree.
RECOMMENDATIONS
32.
Cabinet are asked to:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Approve the asset transfer to of the site of the Ochiltree Community
Centre and library to Ochiltree Community Hub;
Approve the funding for the demolition of Ochiltree Community Centre
and library as outlined at 15. above;
Approve that East Ayrshire Leisure Trust continue to operate the
facilities until 31st March 2016, that thereafter, the facility will be
demolished and only then will it be transferred, subject to funding having
been secured;
Approve the proposed investment at Kilmaurs outlined at 16. above
subject to a successful detailed application being received from the
community group in respect of the library building;
Approve the funding for the demolition of Kilmaurs Community Centre
which will be progressed when the asset transfer position is finalised.
Otherwise note the contents of this report.
Alex McPhee
Depute Chief Executive
(Strategic Lead: Economy and Skills)
Chris McAleavey
Acting Depute Chief Executive
(Strategic Lead: Safer Communities)
15 April 2015
BACKGROUND PAPERS
1. Report to Cabinet on Property and Estate Rationalisation Proposals dated 25 Sept
2013
2. Report to Cabinet on Property and Estate Rationalisation Proposals dated 18 June
2014
3. Report to Council on Property and Estate Rationalisation Proposals dated 12 March
2015
For further information on the content of this report contact: Katie Kelly, Strategic Manager
– Vibrant Communities on 01563 578120 or Angela Graham, Senior Estates Surveyor on
01563 503475
Implementation Officer: Katie Kelly, Strategic Manager – Vibrant Communities