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REPORT OF THE STRATEGIC DIRECTOR OF HOUSING AND PLANNING
& THE MANAGING DIRECTOR OF URBAN VISION PARTNERSHIP LIMITED
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TO THE LEAD MEMBER FOR PLANNING ON
TO THE LEAD MEMBER FOR HOUSING ON
TO THE LEAD MEMBER FOR THE ENVIRONMENT ON
18 SEPTEMBER 2006
18 SEPTEMBER 2006
18 SEPTEMBER 2006
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TITLE: Newlands project – Proposed lease of City Council land to the Secretary of State for
Environment, Food and Rural Affairs (Forestry Commission).
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RECOMMENDATIONS:
1. That Lead Members note the issues raised in relation to the proposed lease;
2. That Lead Members approve the lease of this council land to the Forestry Commission.
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EXECUTIVE SUMMARY: It is proposed to lease various areas of land in the Clifton and
Pendlebury areas to the Forestry Commission for 99 years to allow them to access funding under
the Newlands Programme to carry out environmental improvements to the land and deal with its
long term future management including public access and the intended creation of a major
recreation / landscape resource. The report outlines the key issues taken into account in drawing
up the lease and seeks approval for entering into the lease. A plan of the land to go in the lease is
attached as file ‘Newlands lease boundary’.
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BACKGROUND DOCUMENTS:
Correspondence and background documents to the Newlands Programme are available for public
inspection.
Previous Report by the Managing Director of Urban Vision Partnership Limited to Lead Member for
Planning on 26 September 2005 and Lead Member for Housing on 20 October 2005.
Previous Report by the Strategic Director for Housing and Planning to Lead Member for Planning
on 12 December 2005.
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ASSESSMENT OF RISK: High. If the lease is not agreed it will prejudice the £4.75m allocation of
funding by NWDA and will prevent any expenditure of the £365k allocated to be spent this year.
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SOURCE OF FUNDING: Newlands Programme – North West Development Agency
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LEGAL IMPLICATIONS: The legal implications of this report have been fully considered and
agreed. Provided by Ian Coupe
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FINANCIAL IMPLICATIONS; Provided by Nigel Dickens
a) Leasing City Council land to the FC under the Newlands programme will secure a minimum
of £4.75m to be spent in the LIVIA area, including a first phase of funding of £365,000 for
2006/07.
b) £25,000 is required to bring the site into a ‘clean and tidy’ condition to FC satisfaction. This
funding will be secured from existing resources.
c) £25,000 p.a. of revenue funding currently with Environmental Services Directorate for
management and maintenance to be handed over to the FC as match funding for LIVIA - in
return for guaranteed delivery contracts for at least two years up to and possibly exceeding
this value. FC will be responsible for M&M on this land for 99 years and this is seen as an
opportunity to position the council to take advantage of long-term maintenance contracts.
COMMUNICATION IMPLICATIONS: The Newlands funding will secure long-term benefits for
the Lower Irwell Valley with significant benefits in terms of a new partnership with the
Forestry Commission. Significant positive publicity will be generated for the City.
VALUE FOR MONEY IMPLICATIONS: Newlands funding includes revenue funding for
management and maintenance. Funding of this magnitude has not been available for this area in
the past. Responsibility for managing the land will lie with the Forestry Commission but they have
agreed to secure management and maintenance services for at least the first two years of the
lease period from the council.
CLIENT IMPLICATIONS: N/A
PROPERTY: The report concerns transfer by lease of council land assets to the Forestry
Commission.
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HUMAN RESOURCES: N/A
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CONTACT OFFICERS: Peter Smith 779 6080 and Tim Jones 793 3655
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WARD(S) TO WHICH REPORT RELATE(S): Pendlebury and Swinton North
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KEY COUNCIL POLICIES:
1. Unitary Development Plan:
 Policy R4 Key Recreation Areas (Slack Brook Country Park)
 Policy R3 Regional Park
 EN5 Irwell Valley
2. Contributes to a number of council pledges and themes in the Community Plan for Salford
particularly ‘ A city that’s good to live in’, ‘ A healthy city’ and others.
3. Neighbourhood Renewal Strategy
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DETAILS:
1.0
Background
1.1
£4.75 Million has been secured by The Forestry Commission from the NWDA for the LIVIA
site under the Newlands Programme. This funding is entirely dependent on landowners in
the area agreeing to lease their land to the Forestry Commission. The Forestry Commission
will also be approaching other landowners in the area e.g. GMWDA, BIFFA, Bury MBC and
others in the future which could result in total funding of up to £10m being secured.
1.2
In September 2005 Lead Members gave their approval for relevant officers to complete legal
formalities in relation to the lease of council land to the Forestry Commission (FC) for this
purpose.
1.3
Legal formalities have now almost been completed and this note is to inform Lead Members
of the outcome of negotiations with the Forestry Commission to achieve this.
1.4
The plan attached as file ‘Newlands lease boundary’, indicates the extent of council owned
land to be leased to the FC. There are some minor discrepancies between deed parcels and
registered title but well over 90% of the land is now agreed. The lease can be entered into
on the basis of this plan and registration in relation to the small outstanding areas will not
affect the terms of the lease.
2.0
Terms of the Lease
2.1
The following are standard terms of the lease: Landlord : Salford City Council
Tenant : Secretary of State for Environment Food and Rural Affairs ( Forestry Commission)
Term : 99 years from a date to be agreed
Rent : One peppercorn if demanded
Area : Various plots of land within the LIVIA area situated in Clifton and Pendlebury but to
include only the surface of the land to a depth of 2.0 metres.
Use :For all purposes of the tenant acting under the powers of the Forestry Acts including the
management of public access and the construction of any facilities required in connection
with such use.
Landlord’s right of re-entry : Subject to 48 hours notice in order to check the tenant’s
compliance with lease terms. Subject to a notice period to be agreed if any of the land is
required for redevelopment under the ‘option to surrender’ clause as discussed below.
Indemnity : The tenant to indemnify the landlord against any claims resulting from the
negligent actions of the tenant over the demised land and in respect of the landlords retained
land (below the 2.0 metres demised to the tenant)
Public Access : The demised area to be dedicated as permanent open space under part 1 of
the Countryside Rights of Way Act 2000 following completion of the capital works on site.
Alienation : No assignment or sub – letting without the consent of the landlord (not to be
unreasonably withheld) except to a successor body to the tenant.
Other conditions : As normally included in a lease of this nature by the Strategic Director of
Customer and Support Services.
2.2
In addition to the above, the following issues are drawn to the attention of Lead Members as
a result of protracted negotiations on the terms of the lease and legal formalities, concluding
in agreements between the City Council and the Forestry Commission.
2.3
Deed of Surrender:- In relation to a standard clause on such lease agreements, the landlord
(the council) has a contractual right to seek to surrender land from the lease if required for
other purposes, e.g. operational requirements to deliver our responsibilities as a local
authority. This means we can take back, or remove land from the lease if so desired. This
option is subject to a ‘percentage’ of the hectarage of the site under lease to the tenant (the
Forestry Commission). Any built development on this site would be very difficult under the
planning policy framework as most of the land in question is protected by a range of
Environmental Protection & Improvement and Recreation policies in the UDP, including the
Green Belt. It has also been council policy for many years to seek funding, such as this
Newlands Programme, to create a major recreational asset in the LIVIA area. It has
therefore been agreed with the Forestry Commission (FC) that the Council’s ‘Option to
Surrender’ land be set at 10%. Any decision to surrender land from the lease would require
formal agreement by relevant Lead Members and serving of a period of notice to the FC.
Any surrender of land would also be subject to standard agreements on cost recovery
provision in relation to grant aided schemes and /or forestry commission expenditure.
2.4
Management and Maintenance:- In relation to both existing and future management and
maintenance of the site the following agreements have been reached with FC: 
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The FC agree that Environmental Services Directorate continue with existing
management and maintenance programmes on the site until the end of this financial
year (2006/07), utilising existing funding (currently £25k p.a.).
The existing £25k currently utilised by Environmental Services to maintain this land
will be transferred to the Forestry Commission as they will take responsibility for the
future Management and maintenance of that land.
However, from the beginning of the financial year 2007/08, the FC agree to
commission the City Council to deliver management and maintenance on the land for
a further two years up to a minimum value of £25,000, and possibly up to £50,000.
This will provide two and a half years for the council to demonstrate to the FC that it
can deliver the required services in a Value for Money manner and to their
satisfaction.
Following this period, that is from the financial year 2009/10 onwards, the Forestry
Commission will be free to appoint any delivery agent it chooses. It is hoped that the
working relationship that will have developed between the council and the FC will be
such that we are well positioned to secure these contracts for the foreseeable future.
2.5
Site Handover: - The site must be handed over to the FC in a ‘clean and tidy’ state under the
terms of the lease. A great deal of rubbish requires removal to achieve this, much of it flytipped from adjacent houses. The council will be responsible for funding all costs associated
with this one-off clean up and current best estimates suggest that it will cost around £25,000.
Due to the nature and scale of works required to achieve this, the council has negotiated and
agreed with FC on a ‘phased approach’ to the clean up, so as not to delay signing of the
lease. If the council cannot meet this obligation the council will end up retaining liability for
keeping the site in a clean and tidy condition at all times for the 99 year lease period.
Funding for this will therefore be found within existing resources.
3.0
Conclusions
3.1
After a long period of ground investigations and consultations, the bid to the NWDA by the
Newlands Partnership for funding has been successful. £4.75 million is now available to take
forward the LIVIA Masterplan, but subject to the signing of the lease between City Council
and the Forestry Commission.
3.2
No funding, including this years allocation of £365k, will be available to take the project
forward until the leases are signed.
3.3
After protracted discussions between the parties, the terms of the lease have been agreed
and are ready for signing, subject to approval by Lead Members.
4.0
Recommendations
4.1
1. That Lead Members note the issues raised in relation to the proposed lease;
2. That Lead Members approve the lease of this council land to the Forestry Commission.
Malcolm Sykes
Strategic Director of Housing and Planning
Bill Taylor
Managing Director of Urban Vision Partnership Ltd
D:\Tim Jones\Tim\Lead Member Reports\Newlands Leases Sept 06.doc