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Delegated Decisions by Cabinet Member for Finance
Tuesday, 18 December 2007

 

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Division(s): Leys & Lye

 

ITEM CMDF2

 

 

CABINET MEMBER FOR FINANCE – 18 DECEMBER 2007

 

Land at Orchard Meadow Primary School

 

Report by Head of Property Services

 

Introduction

 

1.                  In January 2002 terms were negotiated to lease an area of surplus land at Orchard Meadow School to Oxford City Council (‘the City Council’) for a term of 7 years at nil rent.  The proposed lease allowed the City Council to sub-let to the Blackbird Leys Adventure Playground Management Committee. 

 

2.                  As the lease was for not more than 7 years there was no requirement for any formal Cabinet approval to a disposal at less than full market value.

 

3.                  The City Council decided not to proceed with the transaction.

 

4.                  Subsequently the City Council approached the County Council with a request to extend the original 7 year term to 12 years at nil rent to enable the Blackbird Leys Adventure Playgroup Management Committee to apply for Lottery funding. 

 

5.                  The Lottery funding body require there to be a leasehold interest for longer than 7 years.

 

6.                  Following consultation, Children, Young People & Families (CYP&F) have confirmed that they have no objection to the grant of a 12 year lease at nil rent.

 

Policy Context

 

7.                  Partnership working with the City Council and the Playgroup Management Committee contributes to the Sustainable Communities Strategy.

 

8.                  By extending the term from 7 years to 12 years there is more likelihood that the Blackbird Leys Adventure Playgroup Management Committee will be successful in their Lottery funding bid, which in turn will improve the facility for the local community.

 

Financial Implications

 

9.                  Should Orchard Meadow School close in the future the land would have considerable value for redevelopment with the remainder of the school site.  The shape and size of the land to be leased means that it does not have development value other than in conjunction with the remainder of the school site.  The terms of the lease will include provision for the County Council to terminate in the event that the school closes.

 

10.             In order to protect the County Council’s interest in the retained Orchard Meadow School site, the lease will be subject to a covenant restricting use to that of an adventure playground.

 

11.             Market rental value of the land to be leased, subject to such a covenant, would be in the region of £250 - £500 per annum.  The grant of the lease at less than full rental value can be justified as it will assist the playground management committee to secure grant funding and will be in the economic, social or environmental interests of the community.

 

RECOMMENDATION

 

12.             The Cabinet Member for Finance is RECOMMENDED to approve the temporary disposal of surplus land at Orchard Meadow School, Blackbird Leys to Oxford City Council by way of a 12 year lease at less than market rental value.

 

NEIL MONAGHAN

Head of Property Services

Environment & Economy

 

Background Papers:            Plan attached (download as .doc file)

 

Contact Officer:                     Crawford Thomson  (Tel:  01865 815893)

 

November 2007

 

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