Agenda item

This report provides an update on the Barham Park Strategic Property Review, including the position regarding the restrictive covenant relating to 776-778 Harrow Road.

RESOLVED to:

(1)    To note the outcomes from the architect’s feasibility study commissioned by the Council on behalf of the Trust, as detailed within the report.

(2)    To delegate authority to the Director for Environment and Leisure Services in consultation with the Chair of the Trust Committee to:

(a)    Obtain detailed costings of the preferred option presented in the architect’s report including a cost/benefit analysis and financial appraisal of the proposed scheme.

(b)    Undertake detailed analysis of the legal risks associated with the proposed scheme and the means as to their mitigation and management.

(c)    Prepare a draft investment strategy to establish the Council’s ability to fund the refurbishment proposal and prepare an outline delivery plan for consideration by the Trust.

(3)    To agree for the Director for Environment and Leisure Services in consultation with the Chair of the Trust Committee to report back the findings and recommendations to the next available Trust Committee, outlining the suggested interventions, the amount of funding required to deliver the whole Estate option being recommended by RLB, and the potential financial options that would enable delivery of the scheme.

(4)    To agree to hold in abeyance the letting/lease renewal of units 2, 7 and 8 until such time as the Director for Environment and Leisure Services has considered the viability of progressing the proposed scheme, with an update being provided at the next available Trust Committee.

(5)    Agree for the Director for Environment and Leisure Services in consultation with the Chair of the Trust Committee to negotiate in principle the variation of the restrictive covenant in respect of 776 and 778 Harrow Road for the best terms that can reasonably be obtained, subject to final approval by the Trust Committee, and any approval required by the Charity Commission under the Charities Act 2022 and 2011.

Chris Whyte (Director of Environment & Leisure) supported by Denish Patel (Head of Property) introduced a report providing an update on the Barham Park Strategic Property Review, including the position regarding the restrictive covenant relating to 776-778 Harrow Road.  In introducing the report, the Trust Committee noted:

·             The appointment, following the Trust meeting on 27 January 2022, of an architect, Rider Levett Bucknall (RLB), who had been commissioned to prepare a feasibility study on design options to address the issues identified in relation to the infrastructure and condition of the Barham Park Estate.  The study had been commissioned in order to provide a more holistic review of options towards the Estate’s infrastructure & maintenance given the wider impact on its effective operation and running costs.

The report detailed the outcome of the feasibility study, including the key elements of the initial concept, proposed design and high-level cost estimates with the options designed to focus on the renovation and potential reconfiguration of the existing old court buildings.  The Trust Committee were advised that in undertaking the study the aim had been to look at options that whilst cost-effective would not only preserve the historically significant parts of the structure but also enhance the overall relationship between the building and park and enable the development of upgraded and adaptable facilities, new spaces and modern facilities to reflect market demand and trends with respect to a wide variety of sustainable community uses.  In recognising the current position relating to the configuration and maintenance of the existing building, the Trust Committee were advised that the feasibility study had resulted in three different design options being identified, as summarised in section 3 of the report.  Whilst the bronze option had been discounted early in the design process due to the insufficient value identified, details on the Silver and Gold feasibility options had been set out within Appendices 2 and 3 of the report, which at this stage it was noted had been provided for initial feedback and to show what might be possible.

In considering the update provided the Trust Committee was advised of the additional work that would be required to develop the options for further consideration, which would include identification of the necessary capital investment required (estimated at between £300-400k) and consultation and engagement with both statutory and non-statutory consultees, including existing tenants and other relevant stakeholders in the park.  In supporting the need for a full engagement and consultation process, the Trust Committee were advised this would be undertaken once the necessary investment strategy had been identified and that pending this, there would be no impact on the occupation of existing tenants arising from the feasibility study.

·             The details provided within Appendix 3 of the report (classified as containing exempt information) on the independent valuation that had been commissioned on behalf of the Trust (following the decision taken by the Trust Committee on 1 September 2021) as part of the process in seeking to explore the possibility of reaching an agreement to vary the restrictive covenant relating to redevelopment of the site of the two residential dwellings at 776 and 778 Harrow Road which was owned by a single private owner on a freehold basis.  The independent valuation had been obtained in order to establish the market value opinion of varying the covenant for the benefit of the Trust, with the owner seeking an amendment to the terms of the restrictive covenants having obtained planning permission to develop the site involving the demolition of the two existing dwellings and construction of 4 new three storey dwellinghouses on the same site.  In recognising the level of concern on the proposed development, The Trust Committee were advised that any final decision relating to the varying of the restrictive covenant would be a matter for the Trust to consider having taken account of the wider considerations alongside the potential value of any financial benefit and opportunity provided to reinvest the proceeds back into the Estate (as a permanent endowment) that could be used to support the development of a multi-faceted investment strategy for the wider refurbishment project.  The Trust Committee were therefore being asked, at this stage, only to consider the way forward in order to progress consideration of the matter.

·             As a final update, the Trust Committee were provided with an update on the decision made at its meeting on 27 January 2022 not to enter new leases in respect of Units 2, 7 and 8 of the Estate pending the completion and consideration of the strategic property options appraisal.  In recognising the varying nature of the existing tenancy arrangements for those tenants in occupation the Trust Committee were advised of the need to work through the feasibility and design options identified in order to consider their potential impact on the current occupation, uses, leases and tenancies of the Estate, prior to the Trust being in a position to offer any new tenancies or lease renewals.  Officers were therefore recommending that the current status quo be maintained, with the letting/lease renewal of units 2, 7 and 8 being held in abeyance pending the viability in progressing the design options identified as part of the feasibility study having been further assessed and developed alongside a detailed Business Case to support any whole Estate development.

Having thanked officers for the updates provided the Chair then invited comments and questions from members of the Trust Committee, with the following issues raised:

·             In relation to the outcome of the strategic property feasibility study and design options identified further details were sought on the potential mix of units and uses that had been referred to as possible recommended interventions for any remodelled mixed-use Estate along with the plans to ensure current tenants were included as part of future consultation and engagement as the proposals were assessed and developed.

In response, Chris Whyte (Director of Environment & Leisure) assured the Trust Committee of the plans to engage and consult tenants in seeking to develop the proposals but advised this would need to be undertaken once a further and more detailed assessment on the viability in progressing the options had been completed and the necessary investment had been identified as available to support a meaningful Business Plan and scheme.  In terms of the potential mix of units, The Trust Committee were advised this would need to be consistent with the aims of the Trust and overall fabric of the building, including supporting the financial sustainability of the Estate with the initial concept focussed around smaller independent socio-economic and enterprise units.

·             In seeking to further clarify the extent of the development proposals for which planning permission had been granted in relation to the two residential dwelling on the site at 776 and 778 Harrow Road, confirmation was provided that the permission granted did not extend beyond the boundary of the existing combined site.  Further clarification was provided that the restrictive covenant also related to development on the same site with the existing owner, having obtained planning permission, now seeking the consent required to amend that restrictive covenants to enable the development of the combined plot to progress.

·             In view of the security concerns highlighted during the representations made by tenant organisations at the start of the meeting, further details were sought on the measures in place to address the specific issues identified.  In response Amin Soorma (Estate Surveyor, Property Services) and Leslie Williams (Project Manager) outlined the measures being taken to engage with the individual identified as causing the issues and also with the police and Council’s Community Safety Team in order to ensure a co-ordinated multi-agency approach was developed towards tackling and preventing the ongoing nuisance, disturbance and harassment being experienced.  Whilst measures had been taken to prevent access and deter the individual, problems were still being experienced, with further security enhancements being considered including the use of security bars on windows and possible extension of CCTV coverage, although it was recognised that these additional measures would require the identification of the necessary funding.

As no further issues were raised the Chair thanked officers for the update and it was RESOLVED, having noted the exempt information contained in Appendix 3 of the report and on the basis of the discussion at the meeting:

(1)    To note the outcomes from the architect’s feasibility study commissioned by the Council on behalf of the Trust, as detailed within the report.

(2)    To delegate authority to the Director for Environment and Leisure Services in consultation with the Chair of the Trust Committee to:

(a)    Obtain detailed costings of the preferred option presented in the architect’s report including a cost/benefit analysis and financial appraisal of the proposed scheme.

(b)    Undertake detailed analysis of the legal risks associated with the proposed scheme and the means as to their mitigation and management.

(c)    Prepare a draft investment strategy to establish the Council’s ability to fund the refurbishment proposal and prepare an outline delivery plan for consideration by the Trust.

(3)    To agree for the Director for Environment and Leisure Services in consultation with the Chair of the Trust Committee to report back the findings and recommendations to the next available Trust Committee (following the additional meeting being arranged to consider the Trust Accounts), outlining the suggested interventions, the amount of funding required to deliver the whole Estate option being recommended by RLB, and the potential financial options that would enable delivery of the scheme. 

(4)    To agree to hold in abeyance the letting/lease renewal of units 2, 7 and 8 until such time as the Director for Environment and Leisure Services has considered the viability of progressing the proposed scheme, with an update being provided at the next available Trust Committee.

(5)    Agree for the Director for Environment and Leisure Services in consultation with the Chair of the Trust Committee to negotiate in principle the variation of the restrictive covenant in respect of 776 and 778 Harrow Road for the best terms that can reasonably be obtained, subject to final approval by the Trust Committee, and any approval required by the Charity Commission under the Charities Act 2022 and 2011.