Part 1 (Open to the Public) ITEM NO. REPORT OF THE MANAGING DIRECTOR OF URBAN VISION LIMITED TO THE LEAD MEMBER FOR PLANNING ON 6 JUNE 2005 TITLE : Former Police Station, Stanwell Road, Swinton RECOMMENDATIONS : (1) The former Stanwell Road, Swinton Police Station be acquired subject to the provisionally agreed terms and conditions. (2) To invite tenders for the demolition of the building including site treatment to a standard which is suitable for temporary car parking. (3) The Strategic Director for Customer and Support Services be instructed to complete the legal formalities. EXECUTIVE SUMMARY : The report details the reasons for acquisition together with provisionally agreed terms and conditions. BACKGROUND DOCUMENTS : (Available for public inspection) N/A ASSESSMENT OF RISK: Medium THE SOURCE OF FUNDING: Unsupported borrowing if capital receipts or supported borrowing does not become available during 2005/06 in the capital programme COMMENTS OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT SERVICES (or his representative) 1. LEGAL IMPLICATIONS r:\rpt\gen\940 IEP Provided by: Ian Sheard 2. FINANCIAL IMPLICATIONS Provided by: PROPERTY (if applicable): N/A HUMAN RESOURCES (if applicable): N/A CLIENT CONSULTED Yes CONTACT OFFICER : Trevor James (Urban Vision) Ext: 3696 WARD(S) TO WHICH REPORT RELATE(S): Swinton South KEY COUNCIL POLICIES: N/A DETAILS (Continued Overleaf) r:\rpt\gen\940 IEP Nigel Dickens TITLE : FORMER POLICE STATION, STANWELL ROAD, SWINTON. 1.0 Details 1.1 Further to the joint report of the Director of Development Services and the Director of Corporate Services to Cabinet Briefing on 8 th June 2004 approval was given for officers to pursue the acquisition of the above premises when vacated by the Police Authority. 1.2 Police operations have since been relocated to the new station on Chorley Road and the Stanwell Road premises are now surplus to the Police Authority`s requirements. Consequently the City Council registered its interest in acquiring the property and to progress matters the District Valuer was appointed jointly by the parties to provide a market valuation. 1.3 This has now been completed and in accordance with the District Valuer’s valuation the following terms and conditions have been provisionally agreed :Purchaser : Salford City Council Vendor : Greater Manchester Police Authority Description : Former Police Station, Stanwell Road, Swinton comprising 0.43 ha (0.70 acres) or thereabouts. Consideration : £685,000 (six hundred and eighty five thousand pounds) Costs : Each party responsible for its own surveyors fees and legal costs. Use : The consideration represents full market value and for this reason the Police Authority have not restricted the use of the property. 1.4 As previously reported to the Cabinet Briefing on 8 th June 2004, the Magistrates Court proposals provide the opportunity to consider wider possibilities for town centre improvements and one of the topics listed referred to the acquisition of the current Swinton police station and the clinic following their relocation to new premises. 1.5 The availability of these two properties provides the City Council with the opportunity to extend the Civic Centre campus to fulfil the objectives of addressing the problems of car parking, seeking improvements to the public realm around the Civic Centre and focussing its office accommodation on the four core sites. The clinic will be relocating as part of the LIFT project but the new accommodation will not completed until at least mid 2007. Consequently the City Council has registered its interest and hopefully can secure an Option to Purchase. r:\rpt\gen\940 IEP 1.6 It is intended to demolish the police station soon after purchase and in the short term it is envisaged that the cleared site will be used to provide additional staff car parking until longer term plans are developed for Swinton Town Centre and the Civic Centre which could include new office accommodation for Urban Vision staff. The details of this proposal along with other options will be the subject of future reports but further reference is made under Financial Implications. 2.0 Financial Implications 2.1 As mentioned above this opportunity purchase assists the City Council to fulfil its objective of focusing its office accommodation on the four core sites. The development of new office accommodation for Urban Vision staff would release office accommodation both in the Civic Centre and the Phase 3 building which in the longer term could be taken up by outstationed staff. The consolidation of this office accommodation will enable the release of certain satellite buildings currently occupied by the Council. These will be determined as part of the overall office accommodation strategy and whilst a precise series of moves is yet to determined and agreed there will be opportunities to generate capital receipts, currently estimated at £1m, from the disposal of surplus office buildings. 2.2 However, consideration needs to be given to the funding of this acquisition which together with the estimated costs of demolition will be in the region of £735,000. Taking the above into consideration the acquisition should be cost neutral in the long term and therefore it is recommended that the acquisition of the former police station be added to the 2005/06 Capital Programme for short term funding using available supported borrowing or capital receipts. If not available and as a fall back position it would be appropriate for the City Council to use unsupported borrowing and find funding corporately from the revenue budget to meet the financing costs of that borrowing until the capital receipts from the sale of the satellite buildings have been realised. Bill Taylor Managing Director of Urban Vision Limited r:\rpt\gen\940 IEP