Negotiations for the sale of Ladgate Lane have now been finalised and documented.
The Sales Agreement is now ready for signature. The following documents need the PCCs approval and signature to enable the sale to take place: –
- Sale Agreement with Persimmon Homes Limited
- Licence for a Compound to be stored at the Site on Ladgate Lane
- Licence for Surveys
The authority to sign the documents is delegated to the Chief of Staff. Nonetheless, the PCC’s statutory officers and the Community Safety Hub Project Board considered it prudent and appropriate to seek the PCC’s authority to execute the agreement.
The sale of Ladgate Lane site represents a significant transaction for Cleveland Police, the PCC and fhe public.
The sale provides significant capital receipts to enable investments To be made in a more energy efficient estate. This will make it fit for purpose for the future of Cleveland policing and deliver ongoing reductions in running costs. This will match the PCC’s long term financial plans better.
In particular, the sale provides the basis for funding the Community Safety Hub. The hub is a major development, which will combine major elements of headquarters provision with flexible multi-agency accommodation. This is part of the PCC’s commitment to extending police and public sector co-operation and collaboration.
Persimmon Homes Ltd has advised that it will work closely with local communities, Middlesbrough Council and the PCC to identify opportunities for employment and investment in the local economy.
The PCC will also use the capital receipts to buy land and build the Community Safety Hub. The builder in which will be required to provide local employment and investment as part of the construction.
Sale Agreement with Persimmon Homes Limited
The price for the Sales Agreement is in line with the Business Case for the Community Safety Hub and tendered bid from Persimmon Homes Ltd.
The sales price for Ladgate Lane site will not be published within this Decision Record due to the commercial sensitivities relating to the timing of this sale and the timing of the tender process for the purchase of the Community Safety Hub.
It is recognised that the price will be placed on the public record by the Land Registry in accordance with their processes, following the completion of the transfer of the land.
The price will be made available by the PCC in accordance with the Community Safety Hub Project Publication Strategy.
In order to preserve the integrity of the procurement process (and therefore protect public funds,) publication not be before the conclusion of the tender and agreement for the Community Safety Hub.
The Sales Agreement allows for the sale of Ladgate Lane in six tranches, termed phases. The first Phase will transfer to Persimmon Homes Ltd once the conditions in the Sales Agreement are met.
Each Phase would then transfer to Persimmon Homes Ltd on each anniversary of the first Phase being achieved.
Payments, based on the size of each Phase, will be made by Persimmon Homes Ltd to the Office of the PCC for Cleveland. The land associated with each Phase is of relatively similar size.
The three main conditions that need to be met by Persimmon Homes Ltd to deliver Phase One completion are: –
- The Planning Condition – Securing of detailed planning permission from Middlesbrough Council. Note: Outline planning permission is already in place
- Procuring of Title Indemnity Insurance
- Agreeing of Easement for Northumbria Water Waterpipe
Once the Sales Agreement is signed, the PCC and Persimmon Homes Ltd will enter into a ‘conditional’ contract. The agreement will become ‘unconditional’ once the above Conditions are satisfied.
Currently, it is estimated that all conditions will take about six months to resolve. The main driver is the Planning Condition.
The Planning Condition needs to be concluded within a maximum of 18 months from signing the Sales Agreement.
If the Planning Condition is not met within this time, either party can terminate the Sales Agreement.
Both the PCC and Persimmon Homes Ltd are obliged to conclude matters within this timeframe. if matters are not concluded, the PCC can offer the land for sale to other organisations.
When the conditions are complete, the first Phase will be purchased by Persimmon Homes Ltd.
The first two Phases of the sale do not impact upon the operation of the current Police Headquarters building.
Phase Three (the transfer of ownership within two and half years of signing the Sales Agreement), requires the PCC and Chief Constable to ensure vacant possession.
When Phase Three is concluded, Phases Four, Five and Six can be transferred and paid for by Persimmon Homes Ltd. These will be paid on each anniversary – or brought forward should Persimmon Homes Ltd desire it.
The final phase would be complete on the fifth anniversary of Phase One. This is currently estimated to be Autumn 2020.