PAPER C

Purpose : For Decision

REPORT TO THE EXECUTIVE

Date : 26 JANUARY 2005

Title : PROPOSED DOCTORS' SURGERY AND PHARMACY ADJACENT THE HEIGHTS, LAKE HILL, SANDOWN

REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

IMPLEMENTATION DATE : 7 February 2005

1. SUMMARY/PURPOSE

To recommend lease arrangement for the development of a new doctors surgery on Council property at Lake Hill Sandown.

2. BACKGROUND

Since February 2002 the Council has been in detailed discussions with Sapphire Primary Care Developments (SPCD) about a scheme to develop a new medical centre at Sandown. Sapphire is a development company wanting to provide new facilities for local doctors. This new building is to replace the existing premises used by the Sandown Medical Practise. Various site options have been considered and the preferred option is on Council land next to the Heights.

The site being proposed is shown on the sketch plan below it is approximately 0.23 hectares in size and currently comprises some 28 parking spaces together with grass and planting areas. The proposal is to build a new multi million pound facility on two floors with 913 square metres for the surgery and 120 square metres for the pharmacy. Access to the new centre will be via the existing vehicular and pedestrian routes. The site already has good bus service connections.

It is proposed that subject to the outcome of a detailed planning application that SPCD be granted a long lease to enable this development with the Council retaining management control through its freehold. Independent consulting surveyors have negotiated the terms for the lease now being recommended to the Council as best consideration and these terms are set out below.

In working up this proposal many Council services and particularly Social Services have been in detailed discussions with the Primary Care Trust (PCT) to evolve and bring forward an acceptable proposal. As members of the Executive will appreciate it is important to manage public aspirations that are dependent on scarce public resource investment. The PCT is supporting this scheme through a bid for the full allocation of resources and agrees the timing is now appropriate for SPCD to submit the full planning application.

There is synergy between the Heights Leisure Centre and Surgery both in terms of hours of use (the Leisure Centre being busiest in the evenings when the Surgery

would be closed) and in relation to Health, Fitness and wellbeing aims and objectives.

The design allows for future sustainability of both the Surgery and the Leisure Centre, with areas for expansion clearly identified.

Building the surgery next to a busy road has been examined and noise tests show that standard double glazing will resolve the impact of noise. SPCD has also carried out a parking survey and prepared drawings of potentially improved parking layout arrangements.

The title of this site has been verified as freehold and is subject to a covenant service in doing noxious or offensive trade or business or nuisance damage or annoyance.

3. PROPOSED TERMS

The principle terms are:

· The ground lease to be for 125 years at a premium of £173,000 plus an indexed ground rent of £100 per annum.

· The use to be D1 planning use as a medical centre for the provision of general medical services, primary and social care including related uses such as retail pharmacy, dentist, optician and ancillary offices.

· Assignment and subletting to be allowed subject to the Council’s reasonable approval.

· The Council can vary the access route if required in the future.

· SPCD to remark the existing car park.

4. STRATEGIC CONTEXT

By supporting and enabling the provision of land for a new medical centre the Council will be fulfilling key aims of the Council’s Corporate Plan and the Community Strategy. The standard of Health Care and available services will be improved to local residents. A new facility will no doubt also bring increased accessibility and diversity of services to the community.

There are no discernable crime and disorder issues thought significant to impact in this case.

The Government’s recent white paper choosing health, sets out five key actions which it proposes to undertake nationally and have undertaken locally, in order to achieve an improvement in the nation’s health. These are:

· Regulation

· Resourcing delivery

· Joining up action

· Aligning planning and performance assessment

· Building partnerships and inviting engagement

By positioning the Medical Centre next to the Heights the Council will be able to work in partnership by encouraging proactive care in the local community through healthier lifestyles. As part of next year’s capital programme, the Leisure Centre will again bid to improve facilities to receive more referrals from the Medical Centre.

5. CONSULTATION

Council Managers of the Civic Centre, the Heights, Social Services, Car Parks, Highways and Planning Policy have been widely consulted about this scheme. The local member has been given details of the scheme as have Lake Parish Council and Sandown Town Council.

No objections to this scheme have come forward.

In bringing forward this scheme, SPCD has agreed to display the scheme at the Heights to engage with both staff and the community.

6. FINANCIAL/BUDGET IMPLICATIONS

The Council will be able to reduce its running costs for this site over all by reduced insurance and rates liabilities. The potential capital receipt of £173,000 will help support the Council’s capital programme. The valuation, confirmed by two independent values, represents best consideration.

Loss of parking will be balanced by a revised layout which reduces the loss to 14 spaces and it is anticipated there will be an uplift in income due to increased use from surgery users.

7. LEGAL IMPLICATIONS

This transaction will require the documentation of a building agreement with draft lease annexed which is conditional upon an acceptable planning permission being granted. Should the developer decide not to proceed for some reason in the future then the Council will have incurred abortive legal and surveying costs.

The Council may dispose of this land under the Local Government Act 1972, and the terms being proposed are best consideration as recommended by independent advisor. There are no discernable adverse human rights implications.

The details of this case were reported to the Resources Select Committee on 6 December 2004 as a special purchaser case and the Select Committee recommended the decision whether or not to approve the transaction shall be taken by the Executive.

8. OPTIONS

1. To determine to treat the proposed developer as a special purchaser.

2. Subject to funding being secured by Health Partners to grant a building agreement with draft lease annexed conditional on planning consent being granted.

3. That the Council does nothing or to negotiate further options to facilitate the development.

9. EVALUATION/RISK MANAGEMENT

a. The medical practice wishes to remain in the immediate vicinity to meet the existing local needs of patients. Alternative sites have been explored and this is the preferred option. It has the support of the PCT.

b. The proposed development will increase the generation of land use in and around the Civic Offices and the Heights and this can be managed to benefit a merge of public services on one site.

c. The creation of the Medical Centre with its own dedicated parking will result in the loss of 28 staff car parking spaces. One way to re-provide these staff spaces would be to reallocate 28 existing public spaces most adjacent to the Council offices as staff car parking spaces. The loss of 28 public spaces is a concern and the existing car parking can be laid out in a more efficient manner to increase the overall number of spaces on site by 15.

d. The Heights should enjoy increased business through the intended joint campaign by the Leisure Centre and CP Practice, it should be reasonably expected that there will be increased use of the fitness facilities and therefore, of the car park because of the relocation of the Health Centre.

e. Also it is worth noting that the 12 patient spaces will be very well used and it is more than likely that patients will often have to use the public car park and pay for it because the 12 spaces may be full.

f. By increasing the use and utilisation of a Council land asset this will free up the existing medical centre to be released for some other valuable redevelopment such as housing.

g. There will be a potential disruption to the operation of the Civic Offices and the Heights Leisure Centre during building works and both parties will need to manage this impact. The possible interim disturbance to the Heights and its cash flow will also need monitoring. In the longer term given the synergy of use it is hoped that new health usage of the Leisure Centre will increase its business turn over.

h. The Council has not undertaken an environmental audit or survey of the property area to be developed and it is assumed the property is free of such liabilities. It is also assumed that the capacity of service infra structure from public utilities in this area is sufficient and has no bearing on terms agreed.

i. The Council could decide to do nothing in which case the developer would need to consider whether to build on another site or not proceed with the scheme.

j. The detailed planning application is prepared and ready for submission.

10. RECOMMENDATIONS

1. To determine to treat the proposed developer as a special purchaser.

2. Subject to funding being secured by health partners to grant a building agreement with a draft lease conditional on planning consent being granted.

2. BACKGROUND PAPERS

None.

Contact Point : Tony Flower, Head of Property Services ' 823263, e-mail [email protected]

TONY FLOWER Head of Property Services

REG BARRY Portfolio Holder for Resources