ITEM CA6
CABINET– 15 APRIL 2008
SUPPLEMENTARY OUTLINE PROJECT APPRAISAL– OXFORD ACADEMY
Report by Head of Property, Director for Children Young People & Families and Assistant Chief Executive & Chief Finance Officer
Introduction
1. Cabinet considered the Outline Business Case and Outline Project Appraisal Oxford Academy on 15 January 2008. The decisions were to:
(a) approve the Outline Project Appraisal & Outline Business Case subject to recommendation (g);
(b) declare permanently surplus the entire Peers School site at closure on 31 August 2008;
(c) approve the disposal on a 125 year lease at a peppercorn rent of those parts of the site required for the establishment of the Oxford Academy;
(d) approve the disposal ‘off market’ to the Oxford Academy Sponsors;
(e) authorise officers to undertake all necessary steps including affixing the common seal for the grant of a 125 year lease to the Oxford Academy Sponsors;
(f) agree to retain the Mabel Pritchard School within the Academy facility; and
(g) authorise the Head of Property and the Assistant Chief Executive & Chief Finance Officer to finalise the funding details of the proposed Oxford Academy on the basis that the Authority’s capital contribution to the scheme is no more than £4.730m, and that the funding gap described in this Report is bridged by one of the three options described as A, B or C in the supplementary report.
This defined A – Partnership for Schools agree additional funding B - Reference scheme is adjusted C - Combination of A and B
Current Position
2. Partnership for Schools (PfS) have concluded the funding allocation model which has increased funding to the necessary level but they now require that the project must have assured levels of certainty before being presented to the market.
3. They are concerned that the reliance of the County upon disposal of land will give rise to unacceptable levels of uncertainty. The Initial Expression of Interest submitted to PfS did however indicate that county funding would be generated from such disposals.
4. Consequently work has been done to provide a solution to demonstrate that a viable solution is still possible should the land sale not proceed although it does lead to the creation of much larger areas of hard surface play area immediately around the proposed buildings.
5. This is now possible due to:
· saving the costs of the land sale; · PfS funding of demolition and asbestos removal on land identified for disposal; · identified funding dedicated for 2010/11 for post 16 accommodation upgrading SEN provisions of £650,000 from the targeted capital fund allocation for SEN accommodation (the size of the special needs school has been increased to reflect this); and · the Mabel Prichard School having agreed to commit £34,000 from devolved formula capital funding.
6. This resolves the shortfall in funding to enable the scheme to be taken to the market place without the need for a capital receipt.
Land Sale
7. A scheme which is not reliant upon funding from the sale of land has resulted in a request from the Academy sponsors to reconsider the sale, as it is considered likely to lead to an improved design solution.
8. The total site area being put forward is larger than the minimum standard for a seven form entry secondary school. Whilst playing field areas for team games can be identified to meet statutory minimum standards, by supplementing the grassed area with hard and porous surfaces (porous surfaces count double), the Academy are keen to ensure that the playing fields areas are maximized; particularly as the Academy has a sports specialism.
9. There have been some objections, including from a local member, to the sale of any part of the site. However, should DCSF and planning consent be secured to enable a site, then the development would provide at least 50% affordable housing. This could be an opportunity for a joint scheme with the City Council to provide improvement to the adjoining existing housing and pedestrian/cycle access to the school site.
Financial and Staff Implications
10. Financial implications that would arise through not selling the land would be:
· The loss of potential funding for an artificial turf pitch – The Academy have stated that they would prefer the increase in site area and will seek to provide the ATP through non LA sources.
· The loss of funding to increase the size of the Academy Library – The Academy have stated that they are fully committed to providing a joint library within the Academy space at hours similar to the existing arrangements and will work with the Library Service to develop an effective facility that enables full community access.
· The loss of potential surplus receipts (possibly for use to enhance end solutions or mitigate any unforeseen costs arising from the Academy) that could then impact upon the Council’s Capital Programme – The form of procurement does require that the contractor builds within the funding available, but there is risk of increase in professional fees for management of the contract which would remain a risk to the Council.
Option Appraisal
11. Options available to the Council are:
1. the sale of the land identified in the Outline Business Case; 2. the sale of a reduced area of land; or 3. to transfer the whole area of the current school site to the Academy.
The risks are:
· the City Council would be the planning authority for the disposal site and initial feedback via their South East Area Committee meeting on 4 Feb 2008 suggests that they may be opposed to housing development; · there is likely to be local opposition to such a planning application; · there is recognition that resolution of access and highways issues will be complex and could have affect upon land value; and · Sport England’s support of any planning application, DCSF consent for disposal and consideration of planning could be affected by any Academy opposition to sale of land.
RECOMMENDATION
12. The Cabinet is RECOMMENDED to approve as amendments to recommendations (a) and (g) approved at the meeting on 15 January 2008:
(a) the transfer of the full site area of the existing Peers School to the Oxford Academy; and
(b) the Council’s additional capital contribution to the Oxford Academy outlined in the report.
NEIL MONAGHAN JANET TOMLINSON SUE SCANE Head of Property Director for Children Assistant Chief Executive Environment & Economy Young People & Families & Chief Finance Officer
Background papers: None
Contact Officers: Nigel Cunning Tel: (01865) 810457 John Phipps Tel: (01865) 816455 Shannon Moore Tel: (01865) 428116
April 2008
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