PAPER D

Purpose : For Decision

Committee :    EXECUTIVE

Date :              8 OCTOBER 2002

Title :              PROPOSED RETAIL DEVELOPMENT SCHEME SOUTH STREET, NEWPORT AND RELOCATION OF NEWPORT FIRE STATION

PORTFOLIO HOLDERS RESOURCES AND FIRE EMERGENCY PLANNING AND CONSUMER PROTECTION

SUMMARY

The Council is in negotiations for the potential relocation of Newport Fire Station. These negotiations have now reached a critical point. The developer is asking the Council to make a financial contribution towards the replacement Station, and the Executive is being asked whether or not negotiations should continue on this basis,, with a detailed Report to come back in due course.

BACKGROUND

At the Executive meeting held on 27 November 2001 it was resolved that the Council enter into discussions with Buchanan Land Holdings Ltd for the grant of a Conditional Contract to acquire Newport Fire Station and that terms for a Contract should be the subject of a further Report to the Executive.

At that time the Executive were under the impression that it may be possible to settle terms by agreement with the proposed developer for the provision of a new Fire Station on land to be provided by the Council at no cost to the Council. At that time, the proposal was to relocate the Fire Station onto a site owned by the Council next to the Pan Allotments and since then a Working Party established by the Resources Select Committee, which was held on 1 March 2002 has recommended the appropriate relocation site be land at Shide.

Since these two Reports, discussions and negotiations with Buchanan Land Holdings Ltd have been ongoing in terms of both specification and cost. Independent valuation advice has also been sought as to the value of the Council's existing Fire Station site which has been put at a value of some £500,000-600,000. In advance of a Planning Application, Members have also received a presentation from the developer and his team for the land at South Street, Newport which is identified in the Unitary Development Plan for retail development. Briefly, the proposal is for a retail development involving some 1600sqm of mixed development including restaurant, retail, leisure, residential and car parking. An analysis of the benefits accruing from this development has been put forward by the developer. Planning Applications for the South Street proposal and relocation of the Fire Station to Shide have been submitted.

NEW STATION

At this stage, your Officers have worked on the following details for the replacement Fire Station:

Main Station Complex - Appliance Room (7 bays, Station Office, Community Fire Safety Area, Communications Room, Muster Bay, Personal Equipment Cleaning Room, Drying Room, Transport store/Workroom, Consumable Store, Breathing Apparatus Room, Compressor Room, Cleaners Store, Fitness Room, Lecture Room, Rest Room, Quiet Room, Recreation Room, Dining Facilities, Kitchen, Dormitory, Locker Room, Office Accommodation, Ablutions, Specialist Office.

Externals - Wash down/canopy, road, station forecourt, drill yard, drill tower, parking, smoke house, garages, Brigade workshop and Brigade stores.

Fire Control - A vital element which must function in advance of old closure.

General - Station security, traffic control, storage space, boiler room, dual use, room datasheets, IT/communications, community partnerships.

Officers are of the opinion that the cost of a replacement Fire Station is in excess of £2million. The developer is, however, of the view that an acceptable design and specification can be achieved for a replacement Fire Station on a like for like basis and is prepared to undertake a design and build project, at his risk, at an estimated cost of £1.6million. He is willing to continue to pursue this proposal provided the Council is prepared to make a financial contribution towards the costs. In carrying out this discussion with the developer, he has put forward his final counter-offer for a new Fire Station with the Council contributing £240,000 on commencement of the works and £240,000 on completion of the new Station that is a total of £480,000. The Council would also have the right to an overage on the retail development scheme of 10% over a sale of £20million in a scheme estimated to cost £15million. This is provided agreements can be completed this year. In addition to the required contribution of £480,000, the Council would be responsible for all infrastructure and relocation costs, none of which have yet been accurately estimated.

REQUEST

The developer has now asked whether or not the Council does wish to pursue this proposal and is agreeable to work towards a detailed agreement on the basis that this may be reached in the next two or three months. Such terms would clearly need to come back to the Executive for further consideration. On the basis that further negotiations may bring forward an agreement that can be recommended to the Executive then, in terms of the land transaction, three primary issues will need to be addressed, namely

           (i)        the agreed offer for the Council's property;

           (ii)       the design of the replacement Fire Station subject to the Chief Fire Officer being satisfied that operational requirements can be met,

           (iii)       the relocation site for the replacement Fire Station, subject to the Chief Fire Officer being satisfied that operational requirements can be met.

Members will also be aware that, running parallel with these negotiations for the Council's property, the developer is in negotiations with the Isle of Wight Health Trust in respect of the Newport Clinic site.

I believe that whilst it may be possible to improve upon this request marginally, the developer is not going to change his position significantly. I am also given to understand that as an alternative to this proposal the developer will consider bringing forward a different scheme for the development of the South Street area of Newport on that part owned by the developer, excluding the Newport Fire Station site.

PLANNING

The Planning Officer advises that the site situated between Lower Pyle Street, East Street and South Street is allocated for major shopping development under Policy R3(c) of the Unitary Development Plan ("UDP"). The supporting text to the Policy indicates that any redevelopment of the site as a whole will only be able to proceed following the relocation of the Fire Station to a new site to the satisfaction of the Council.

The allocation includes part of the Newport Conservation Area and any proposal will need to be carefully considered in respect of its impact on the character of the surrounding area in line with objectives Policy D1 and other detailed planning considerations including Highway matters.

CONSULTATION

To date Officers in Planning, Highways, the Fire Service, Economic Development, Finance, Legal Services and Property Services have been consulted. Officers are also liaising with the Health Care Trust. Planning consultations and public Committee papers open to question will be part of the requirements for consultation under the Fire Service Act.

Councillor Cunningham has made the following observations :

“          1.        I disagree that the Council should fund £480,000 towards a project that may yet have unforeseen additional cost. I have objected on strong grounds as to the suitability of site selected at Shide where there remains many unresolved issues. Consideration should now be given to new initiative not to pedestrianise Newport High Street and installation of new technology and bus contra-flow aimed at reducing congestion in town centre.

           2.        The Executive is aware that Bus Station may be as suitable, if not better, for retail development than Pyle Street because of the town’s current foot-fall. Members have discussed informally such an option over a long-term period (Policy R3(c)).

           3.        South Street is better suited to housing than car parking proposal for retail development. Such development at South Street could further impact on Coppins Bridge Gyratory and issues concerning Policy D1.

           4.        There needs further investigation because of B&Q’s move to the Isle of Wight College.

           5.        Financial and legal implications seem far from resolved.

           6.        Finally, there could be other opportunities relating to traffic improvements in Newport such as re-opening Furrlongs Road to benefit the current Fire Station.”

Age Concern have commented as follows :

“Age Concern Isle of Wight has a fully protected 15 year lease with the Isle of Wight Council, of which there are 12 years to run.

I am most concerned to learn of the implications this proposed redevelopment will have upon Age Concern Isle of Wight. At the very least, our access and car parking arrangements will be affected, and were the Isle of Wight Council to sell 14 Pyle Street to a commercial landlord, the potential for our rent to increase beyond the Charity’s means could be catastrophic.

I would also mention that at no time have we been consulted by the proposed developer.”

FINANCIAL IMPLICATIONS

Although the disposal of the Fire Station would represent a Capital Receipt, the Strategic Director of Finance and Information advises that there are no specific capital finance regulations that would apply to the envisaged proposals. Therefore, any sale of the site would generate a Capital Receipt which would be fully useable, but that any expenditure on a new Fire Station and associated infrastructure would have to be met from Capital Resources in the usual manner. There is no allocation or capital bid approved for this project at the present time.

LEGAL IMPLICATIONS

Head of Legal Services is currently working to perfect the title of the Council's property in and around the existing Fire Station and, if detailed terms are in the future approved, then it will be necessary to draw up a potentially complex Conditional Contact.

OPTIONS

1.        That the Council continue to press its negotiating position on the basis that no capital contribution from the Council can be allocated towards this scheme.

2.        That the Council considers it inappropriate to pursue this negotiation further and the developer is advised accordingly.

3.        That the Council commits to the concept of a capped contribution towards the scheme as set out in the paper, and that a further detailed report be brought back to the Executive for further consideration.

RECOMMENDATIONS

Option 1

BACKGROUND PAPERS

Executive Paper 27 November 2001.

Contact Point: Tony Flower, Head of Property Services, ☎ 823263 or George Bryson, Deputy Chief Fire Officer, ☎ 8189