Report to Cabinet 29 April 2014 Subject: Black Dam Roundabout, Basingstoke:Land required for proposed Highway Improvements Status: Open Report Ref: Ward(s): All Key Decision: No Key Decision Ref: Report Of: Contact: Appendices: Papers relied on to produce this report Head of Resources Jason Christou Asset Surveyor Ext 2295 or 01256 845295 Jason.christou@basingstoke.gov.uk 1 Plan of Junction Improvements 2 Council owned land to be included in the scheme Cabinet report 26 June 2012 SUMMARY 1 This Report 1.1 The purpose of this report is to seek authority to the dedication of council owned land in Hampshire County Council as the highway authority, by way of a deed of dedication. This will enable land within the ownership of the council to be incorporated into the scheme as public highway, to facilitate highway improvements to the Black Dam roundabout. This report is in accordance with the council’s disposal procedure for land and property. 1.2 Hampshire County Council (HCC), as highway authority, has requested that the council dedicates to HCC, council owned land at nil value. This report details the matters to be taken into account when considering such a request, which should be treated as an off market disposal in accordance with the disposal procedures. This report also provides details of the proposed scheme, and a summary of the intended benefits that would result from this comprehensive highway improvement project within the town. 1.3 This report also seeks authority to the release of capital budget from the Leader Portfolio to Hampshire County Council, as part of the match funding approach taken to secure Pinch Point Funding, in partnership with HCC and the Local Enterprise Partnership (LEP) as approved under decision 775/PL in June 2012. 1 2 Recommendation 2.1 It is recommended that Cabinet: 2.1.1 Note the contents of this report 2.1.2 Approves the dedication of council owned land at and in the vicinity of the Black Dam roundabout, Basingstoke, to Hampshire County Council at nil value for incorporation into the public highway, to support the implementation of the highway improvements detailed in this report. 2.1.3 Delegate the detailed terms and conditions associated with the dedication of the land, the deed of dedication and related documentation, and any other supplementary legal or other agreements that may be required to facilitate the highway improvements to the Head of Resources (S151 officer), and the Head of Governance and Monitoring Officer, in consultation with the Portfolio Holder for Property, Finance and Commissioning and the Portfolio Holder for Planning. 2.14 Delegates to the Portfolio Holder for Property, Finance and Commissioning the consideration of any objection received in relation to the notice of dedication of open space under S123 of the Local Government Act 1972 for him to decide whether or not Cabinet should re-consider its decision in light of any objections received. 2.1.5 Approves the release of the £500,000 capital budget within the Leader Portfolio to Hampshire County Council, in order to support the implementation of the highway improvements detailed in this report. 2 CONTRIBUTION TO COUNCIL PRIORITIES This report accords with the council’s Budget and Policy Framework and directly supports Council Plan priorities and proposals of improving economic viability, and ‘getting connected’ by working with partners on the delivery of road improvements which include those within the vicinity of Junction 6 of the M3. GLOSSARY OF TERMS Term Definition HCC Hampshire County Council HA Highways Agency DfT Department for Transport M3 (J6) M3 Junction 6 TAP Basingstoke Town Access Plan LTP3 Hampshire’s Local Transport Plan 3 LEP Local Enterprise Partnership DETAIL/MAIN CONSIDERATIONS 3 Background 3.1 In June 2012 Cabinet approved (decision 775/PL) a budget of £500,000 to be taken from the Community Infrastructure Reserve, to support the project costs for the delivery of highway improvements at the Black Dam Roundabout. The pinch point funding bid to the DfT has been successful, and will now enable improvement works of a total value of about £10m to be undertaken to the roundabout. These works are intended to commence in July 2014 and with an estimated completion date of March 2015. 3.2 The council own areas of land in the proximity of the roundabout or adjoining the existing public highway. These areas are currently outside of the public highway (not subject to highway rights) but have been identified as being required for inclusion into the scheme. These areas comprise grassland, verge areas, the edge of tree belts and a small area of grazing land owned by the council. The approximate extent of this land is outlined red on the plan at Appendix 2 and extends in total to about 0.2 ha (0.49 acre). 3.3 The land required includes:-the edge of a wooded belt and grassed area along the south western edge of the existing roundabout and carriageway, in the vicinity of Black Dam pond, extending to about 1044 sqm -a landscaping and tree belt and grassed area along the south eastern edge of the existing roundabout and carriageway, extending to about 227 sq m -a landscaping and tree belt and grassed area, and subject to some minor details of the scheme being determined, a small area of council owned grazing land, extending to about 750 sq m. 3 4 Summary of Scheme 4.1 In 2010 the Highways Agency commissioned a study looking at potential junction improvements that could be undertaken at Black Dam. In 2012, the council and County Council commissioned some additional work to build upon that produced by the Highways Agency and to support a bid by the Enterprise M3 Local Enterprise Partnership for Pinch Point Funding. 4.2 The studies identified that morning and evening congestion and queuing upon exiting junction 6 of the M3, was one of the key priorities along the M3 corridor requiring improvement. The highway studies examined how journey times and safety between the M3 and the town might be improved. By improving transport links into the town, it is anticipated that there will be economic benefits and additional road capacity ahead of proposals for growth over the next 15 years, including supporting the infrastructure needed for the regeneration of Basing View and the growth in housing in the town. 4.3 In June 2012, it was announced that the Black Dam improvement scheme had been included in the Pinch Point Programme and following this award detailed modelling and design of a preferred option was completed and a final design was subsequently agreed by both the Highways Agency and Hampshire County Council. 4.4 In summary, the final junction design involves the construction of a four-lane northbound through carriageway through Black Dam roundabout to the A339, realignment and widening of all approaches, installation of safety barriers, new traffic signs, signals and streetlights. The principle of the scheme is shown on the Plans at Appendix 1. There may be some minor modifications to this plan, as minor details of the scheme are finalised. 4.5 This junction arrangement will increase the capacity and reduce congestion at this strategic road junction and improve access to the Town Centre and Basing View. 4.6 The council owned land required for the scheme will be utilised for carriageway widening, visibility splays, service infrastructure and drainage facilities. These elements form a vital component of the overall scheme. 5 Project Timetable 5.1 Work has already commenced to enable the delivery of the scheme, notably surveys and trial holes have been undertaken to identify what utilities infrastructure lies beneath the roundabout. The clearance of vegetation in the centre of the roundabout has also recently commenced and following the completion of this, utilities providers will be undertaking statutory diversions before the main construction works commence in July 2014. Surveys and trial holes Complete Vegetation and site clearance Commenced 4 Statutory diversions April – July 2014 Start of construction July 2014 Completion March 2015 6 Corporate implications and Council Policy 6.1 This highway improvement scheme accords with a number of the council’s policies and corporate objectives, including those within the Council Plan (2013-2017). Specifically, the Council Plan, under its directive of ‘getting connected’ refers to ‘working with partners to deliver and capitalise on the improvement of the M3 junction 6’. Further, these improvements are inherent within other parts of the Council Plan, such as ensuring economic vitality is improved and investment is made in Basingstoke, to ensure it is considered by business as a premier location along the M3 corridor. These improvements will also have a direct impact on development proposals such as the regeneration of Basing View which is specifically referred to within the Council Plan. 6.2 The Local Plan (1996-2011) also refers to the implementation of these highway improvements in accordance with Policy A3, which states that these improvements are required to ease congestion and improve safety. Going forward, these objectives are supported within the council’s Pre submission Local Plan (2011-2029). Within the Plan, there is specific reference to HCC’s Local Transport Plan 3 (LTP3) which includes as a component, the Basingstoke Town Access Plan (TAP). The TAP identifies the Black Dam roundabout improvements as a targeted measure to improve capacity at identified bottlenecks, with such measures intended to improve access to the town, ahead of proposals for growth for the next 15 years. 6.3 The dedication of council owned land needed to help facilitate the Black Dam roundabout improvements will thus support a range of council objectives and policies. The financial issues around dedicating council owned land are dealt with in Part 8 of this report. 7 Consultation and Communication 7.1 There have been county member and officer meetings and further borough councillor meetings, as part of an open invite to all members to receive an update on the project scheme design and discuss the proposals with project partners. Ward members have also confirmed their support in principle. In summary, it is understood members who have attended these consultation events and / or provided comments are supportive of the principle of this project, and consider that it is a good example of infrastructure investment. As detailed within this report, the principle of undertaking junction improvements at Black Dam and committing council funds to support the delivery of this project was approved by Cabinet in June 2012. 7.2 The Borough Council has continued to work in partnership with the HA and HCC to publicise the works being undertaken, and to date has facilitated: • A briefing session for all Borough Councillors on 17 December 2013. • A briefing session for Parish Councils on 3 March 2014. 5 • A briefing at the Borough Business Partnership on 20 March 2014. 7.3 In addition, a web-page has been set up on the Borough Council’s website to provide information on the scheme, with links to more detailed information on the HA’s website. 7.4 More recent discussions have taken place with HCC as both landowner (who also own land in the vicinity of the roundabout) and as highway authority. HCC have confirmed their continuing commitment to the project and are anxious that the highway improvements commence in accordance with the July 2014 target start date. Discussions have also taken place with the Highway Agency who will be undertaking the works, and both HCC and council officers will remain on the Highway Authority’s project team until completion of the works. 7.5 It should be noted that the Highways Agency, who are to undertake the scheme works in consultation with HCC and the council, do not require planning permission to implement the scheme. Nonetheless, both the council and HCC will continue to input into the Highway Agency’s project programme and to ensure, as far as possible, that proper traffic and construction management is undertaken during the works programme. Any works undertaken should comply with any existing legislation, such as ensuring the welfare of protected species which are understood to be present in the vicinity of the roundabout. 7.6 As part of the council’s disposal procedure, ward members will be consulted to establish whether they have any objections about council owned land being dedicated as highway. 7.7 Under S123 of the Local Government Act 1972, should any of the council’s land required for the scheme be identified as public open space, the dedication of the land would be deemed to be a disposal for the purposes of the Act, and it would thus need to be advertised in the local press, and any objections given due consideration. 8 Financial issues around vesting of land 8.1 In order to facilitate the construction of the scheme, Hampshire County Council has requested that the land outlined red on the Plan at Appendix 2 be dedicated to HCC as Highway Authority. The land would then become public highway, and thus subject to public highway rights. Whilst the council would retain ownership of the land, dedication of highway rights is considered to be a disposal, falling within the auspices of the council’s disposal procedure. 8.2 Hampshire County Council has requested that the land be dedicated to it at nil value. In accordance with the Disposals Procedure, there are a number of considerations that have to be taken into account in considering such a request, as detailed at 8.3 below. 8.3 The council’s Disposal Procedure 8.3.1 The council’s adopted Disposal Procedure for Land and Property, includes a general presumption that land disposals (and in this case, dedication of land) should follow competitive marketing, and the need to obtain best value under S123 of the Local Government Act 1972. The vesting of the land to Hampshire County Council would amount to a disposal by negotiation with one party, without any marketing. 6 8.3.2 However, the council’s Standing Orders: - ‘Disposal of Land’ state that negotiations with one party may be justified where: a) the land is small in size/value b) the purchaser is an adjoining or closely located landowner, and the only potential or likely purchaser c) the nature of the council’s land ownership is such that the land must be sold to adjoining or surrounding land owners if best consideration is to be obtained d) where there is a special purchaser for whom the land has a higher value than anyone else e.g. ransom strips, or where there is marriage value e) where council objectives would be best met by undertaking private treaty negotiations with a single party who would bring social environmental or economic benefit f) where the proposed transaction involves a party who already has a property interest in the land in question. 8.3.3 Officers consider that the principle of dedication of the land to HCC as highway authority is justified in the context of the Standing Orders described above, satisfying ground (e), in whole or in part, given the substantial economic benefit that would result from the scheme. However, the dedication would still need to satisfy other parts of the disposal procedure where it is anticipated that less than full market value might be obtained, as detailed below. 8.3.4 The disposal procedure also states that “the council will consider the contribution of a disposal to the furtherance of council priorities or the promotion or improvement of the economic, social or environmental well being of the area”, and the council’s Standing Orders - Disposal of Land state that – “In certain circumstances, the council may dispose of land (in this case dedication) for less than the full market value. Those circumstances are clearly defined by law and in any other cases specific consent is needed from the Secretary of State. General Disposal Consents have been given by the Secretary of State for certain transactions.” 8.3.5 This General Disposal Consent makes provision for the council to dispose of land at less than full market value. Specified circumstances must apply as follows: The council considers that the purpose for which the land is to be disposed of (in this case vesting) is likely to contribute to the promotion or improvement of the economic, social or environmental wellbeing of the whole or part of its area, or any person resident or present in its area. The difference between the unrestricted or market value of the land to be disposed of and the consideration for the disposal does not exceed £2million. 7 The proposed dedication of the land to HCC, fall within the terms of that Consent. 8.3.6 Further, all disposals (in this case dedication of land) covered by the definition of these Standing Orders at less than best consideration must be referred to Cabinet for approval. 8.3.7 Thus, to satisfy the disposal procedures and the standing orders detailed above, and to support the dedication of land, the council must be satisfied that the proposed scheme is not viable without the dedication of council land and that there are clear economic, social and environmental objectives that would result from the scheme. 8.3.8 Included within this report, are summary details of the considerable economic benefits that will result from implementation of this scheme. The council are also committing funds of £500,000 from the Community Infrastructure Reserve in support of this DfT project, which has an overall cost of £10M. In the absence of the land being dedicated in HCC, the project could be compromised or require modification at considerable cost, with resultant delays to the project. 8.3.9 The land, which constitutes in the main landscaping, trees and grassed areas, has little or no value, given its use as grass verge or landscaping in the immediate vicinity of the existing roundabout. The land could not realistically be developed in isolation in the absence of the highway scheme, and it is unlikely that it would attract any market interest given its position next to the carriageway. Further, its need for upkeep represents a maintenance liability. Given the location of the land and it being used for landscape and grassed verge, it is considered to have a nil or negligible land value. 8.3.10 Whilst there will be a small loss of council owned grazing land to the north east of the roundabout, the impact on the remaining grazing land will be negligible. Ongoing discussions with the Highway’s Agency’s design team have indicated that the loss of any grazing land might be reduced still further subject to ensuring that the highway design is not compromised. It is considered that the grazing land lost would have a rental value of not more than £100pa in isolation, which is considered to be a negligible sum considering the overall the scheme cost of £10m and considering the council’s contributions detailed at 9.2. 8.3.11 It is therefore considered that dedication of council owned land to HCC as highway authority is justified in terms of the council’s disposal procedure. Basingstoke will gain considerable economic benefit from these highway improvements, and the dedication of the land (which has little or no value to the council) to HCC will help facilitate scheme implementation accordingly. 9 Financial Implications Dedication of land 9.1 The council would receive no capital receipt from the dedication of the land, which is assigned a nil value in the council’s accounts. There would be a minimal (c.£100pa) loss of annual rental income as a result of the slight reduction in grazing land required for the scheme. The remaining land 8 comprises grassed areas and landscaping, which is currently maintained by the council. Costs of Black Dam Roundabout Improvement 9.2 The total estimated costs of the work are approximately £10m and the funding for the improvements is as follows:BEST S106 contributions Basingstoke and Deane Borough Council* Hampshire County Council Highway Agency (pinch point funds) Total £574,000 £500,000 £400,000 £8,526,000 £10,000,000 *The revised capital programme for 2014/15, which was approved by Council in February 2014, includes a budget of £500,000 within the Leader Portfolio for Black Dam roundabout improvements. In order that the work can commence in July 2014 and be completed in 2014/15, it is recommended that Cabinet gives approval for the release of the budget. The council is not committing any other funds towards the project. VAT and Stamp Duty 9.3 There are no VAT or stamp duty costs as the land is being dedicated to HCC at nil value. The council and HCC will be responsible for their respective legal and surveyors costs associated with the preparation of legal documentation to complete the dedication. This council’s costs will be met from within existing budgets. 10 Legal Issues 10.1 Dedicating the council’s land to Hampshire County Council by way of a deed of dedication is considered to be the most appropriate, cost effective and quickest method by which the council owned land can be incorporated into the public highway, thus enabling the highway works to be undertaken. The land (ie the sub soil) will however remain in the freehold ownership of the council, although it will be maintainable in future by HCC, as highway authority. 10.2 Should the council not agree to dedicating the land in Hampshire County Council, HCC could use compulsory purchase powers under the Highways Act 1980 to acquire the land necessary for the scheme. This would be an inappropriate and unnecessary procedure, given that both councils wish to ensure the implementation of these improvements at the earliest opportunity. 10.3 Should any of the land be identified as public open space, there is a requirement under S123 of the Local Government Act 1972 to advertise the dedication and consider any objections received. 10.4 As detailed within this report, a small portion of the land owned by the council is subject to an annual grazing licence. Whilst the licence does not represent any legal interest in the council’s land, nonetheless the licensee has been consulted and has agreed in principle that the area required for the highway 9 improvements shall be excluded from the licence. The council will require that the works programme include the replacement of any stock proof fencing. 10.5 Other licences, easements and working agreements may be required to help facilitate the works programme. This includes inter alia the granting of highway drainage easements to HCC and the granting of licences to the Highway Agency and/or HCC to enter onto other areas of council owned land to install habitat for protected species, licences to undertake surveys or to store materials. It is anticipated however that such agreements would only involve council owned land within the immediate vicinity of the roundabout. Where any retained council owned land is to be subject to the grant of licences or easements, the land would be made good by the Highways Agency upon completion of the works. 10.6 It should be noted that whilst the plan at Appendix 2 shows the approximate area of council owned land to be included in the scheme, small additional areas of council owned land may subsequently be required for inclusion in the deed of dedication, to ensure implementation of the most practical and cost effective highway improvement solution. However any additional land required will have no bearing on the financial and legal issues detailed within this report. Only that additional land as is absolutely necessary for the completion of the highway improvements will be included in the deed of dedication. 10.7 It is proposed that Cabinet approve the principles of the proposed dedication of council owned land that is required, to Hampshire County Council by way of a deed of dedication, to enable implementation the Black Dam highway improvements by the Highways Agency in consultation with HCC and the council. Further, Cabinet is requested to delegate authority to the Head of Resources (S151 officer) and the Head of Governance and Monitoring Officer, in consultation with the Portfolio Holder for Property, Finance and Commissioning and the Portfolio Holder for Planning to decide the detailed terms and the exact area of land to be included in the deed of dedication, and any other supplementary agreements, easements or licences required to facilitate the implementation of the works programme and completion of the scheme. 11 Conclusion 11.1 This report seeks authority to the dedication of council owned land to Hampshire County Council. This will help to facilitate much needed highway improvements to the Black Dam roundabout, which will help ease congestion and improve safety on this major route into Basingstoke. This will have far reaching economic benefits for the town, and accords with the aims and objectives detailed within the Council Plan. 11.2 This report also seeks authority to release of capital budget to HCC as part of the match funding approach taken to secure Pinch Point Funding, in partnership with HCC and the LEP as approved under decision 775/PL in 2012. 10 Black Dam Roundabout Junction Improvements Appendix 1 Local highways network 11 Proposed Scheme 12 13