STRATEGY & RESOURCES COMMITTEE 5 APRIL 2005 ITEM 9 DISPOSAL OF PARK PROPERTIES - GIBRALTAR RECREATION GROUND LODGE Report of the: Corporate Property Officer Contact: Alex Williams Urgent Decision?(yes/no) No If yes, reason urgent decision required: No Annexes/Appendices (attached): Annexe 1 Plan of Court Recreation Ground Annexe 2 Plan of Gibraltar Recreation Ground Other available papers (not attached): Policy and Resources Report Staff Properties November 2000 The Committee is asked to agree to the release of the restrictive covenant on Gibraltar Recreation Lodge in order to facilitate the sale of the Lodge. In return, a National Playing Fields Covenant will be placed on Court Recreation Ground. This follows a similar format when the NPFA covenants were lifted from the Lodges at the two King George V Playing Fields (Auriol Park and Poole Road Recreation Ground) in exchange for imposition of a NPFA covenant on Long Grove Park. Notes RECOMMENDATION (1) 1 2 That the Committee agrees to the release of the restrictive covenant on Gibraltar Recreation Ground Lodge in exchange for a restrictive covenant and NPFA charitable status being conferred on Court Recreation Ground. Implications for Community Strategy and Council’s Key Priorities 1.1 The Council has an obligation to make best use of its property assets. 1.2 Gibraltar Recreation Ground Lodge has already been identified by the Leisure Committee as surplus to requirements and its disposal was approved by Policy & Resources Committee in November 2000. The sale of this property will contribute towards the continuing drive for more cost effective property portfolio. Implications for Committee’s Key Service Priorities 2.1 Page 1 of 3 The imposition of the restrictive covenant on Court Recreation Ground (excluding the Lodge at the Pound Lane entrance, which is also due for disposal) will ensure that this land will remain a park in perpetuity, thereby assisting in the protection of the Council’s open space policy STRATEGY & RESOURCES COMMITTEE 5 APRIL 2005 3 4 Introduction 3.1 Gibraltar Recreation Lodge is a three bedroomed house held within the Staff Properties portfolio. The property has been vacant since May 2003 and although regular inspections are carried out the property is very vulnerable to vandalism. 3.2 The property is built on land purchased with money donated by the Carnegie Trust and there is a restrictive covenant, which says that the recreation ground (including the lodge) is to be used for no other purpose than as a recreation ground. This covenant is enforceable by the National Playing Fields Association. Without the permission of the NPFA the Council cannot remove the restrictive covenant, which prohibits the sale of the property. The NPFA is a charitable body and must act within the scope of the charity. Proposals 4.1 5 6 Negotiations have commenced with the NPFA to ascertain whether the Council could obtain release of the covenant. Subject to an independent valuation undertaken by the Charities Commission they have agreed to release the covenant in exchange for an NPFA covenant on Court Recreation Ground which meets their criteria Financial and Manpower Implications 5.1 Once the restrictive covenant is released Gibraltar Recreation Lodge can be sold on the open market and the Council will achieve a significant capital receipt. The Council has set a target of generating £4 million capital receipts from the disposal of surplus property between 2004 and 2008 to help fund the approved capital programme. 5.2 If Court Recreation Ground obtains charitable status the park will remain a park in perpetuity. This carries with it tax benefits and a greater likelihood of securing funding from outside sources for the land in question. Human Rights and Other Legal Implications 6.1 7 ITEM 9 Due to the restrictive covenant the Council is prohibited from letting the property on a commercial basis or disposing of it for social housing. Should the proposals not find favour with the Committee then Gibraltar Recreation Ground Lodge cannot be sold or let for any purpose other than in connection with use of the recreation ground and the Council would continue to bear the maintenance costs liability. Social Well-being 7.1 Page 2 of 3 The Borough will benefit from Court Recreation Ground remaining an open space in perpetuity and the possible enhancement of its facilities at a future date through the possible funding and tax benefits referred to in paragraph 5 STRATEGY & RESOURCES COMMITTEE 5 APRIL 2005 8 Economic and Environmental Well-being 8.1 9 ITEM 9 Not applicable to this report Risk Assessment and Conclusions 9.1 At present the Council is unable to dispose of this property and its retention is contrary to the asset management plan. The arrangement proposed in this report would ensure that the Council could release the property for sale, obtain a capital receipt and assist in securing an open space in perpetuity. WARD(S) AFFECTED: EWELL,COURT,STAMFORD Page 3 of 3