Ref: PCC/D/2024/01
Executive Summary
The PCC West Mercia purchased a 2.8-acre plot of land off Holmer Road, Hereford HR4 9SW, in December 2018 with the intention of developing a joint police and fire station for West Mercia Police and Hereford and Worcester Fire and Rescue Service. However, in 2023, the partners officially decided not to proceed with this project. Thus, the land is now deemed surplus to requirement and is earmarked for disposal.
Various interested parties contacted the PCC, via the OPCC West Mercia Estates office. Following due diligence and negotiations, a proposal and bid from Wye Valley NHS Trust, to acquire the land for a new medical facility was deemed the most viable proposition for the PCC to pursue.
After the necessary due diligence and valuation of the land and terms, a sale price of £l .2m was negotiated and agreed between the two parties. This was confirmed in the Decision Notice Ref: PCC/D/2023/30 dated 19th October 2023.
However, since that decision was made, Wye Valley NHS Trust undertook further due diligence, which identified several issues relating to land drainage, utilities restrictions and easements, which required rectification at cost, by the purchaser, thus impacting on the ability of the NHS to afford the proposed building. On the basis of these issues, the Trust instructed the District Valuer to update their valuation given the new findings information and they returned a revised valuation of £950,000 for the PCC’s consideration.
This revised offer was rejected by the PCC as being too low and the Trust were informed accordingly. Following further negotiations with the OPCC Estates Team, on 2nd February 2024, Wye Valley NHS Trust submitted their final offer of £1,075,000.
This revised and final offer is considered by the PCC, to be more appropriate, offering best value for money and therefore acceptable.
Proposal
For the PCC to;
Dispose of the freehold of the land off Holmer Rd, Hereford, HR4 9SW to the interested party (Wye Valley NHS Trust) for the value of £1,075,000 as per the conditions stated in this Report.
As each party is to bear their own legal cost, approval for the PCC to incur estimated costs of £3,500-£7,000 for the conveyance of this asset.
For the PCC to allow the completion of a RX4 Land Registry form – with a third party covering the PCC’s legal costs in connection with this piece of work, capped at £1 ,250 excluding VAT.
Approval Of
West Mercia Police and Crime Commissioner
I hereby approve the above proposals.
Signed: John Campion
Part 1 – Non-Confidential/Exempt Facts and Figures
Since the previous Decision Notice Ref. PCC/D/2023/30 and following Wye Valley NHS undertaking further Site Investigations, the Trust has come across a significant issue related to the ground conditions which make the drainage much more challenging than anticipated, which would Increase the cost of delivering their proposed new facility
The Trust therefore Instructed the District Valuer to update their valuation given the new, significant, information and they returned a revised valuation of £950,000
Given the District Valuer report and revised valuation, on 8th December 2023, Wye Valley NHS made a formal offer of £950k to the PCC for the sale of the land
This offer was deemed to be too low by both the OPCC Estates Team and the PCC and therefore rejected
Following negotiations, a revised offer of £1,075,000 was agreed by all parties, this
is considered to represent value for money given all of the considerations for the site.
Following the sale of the land, the PCC will not be required to await the outcomes of any planning permissions submitted by the Purchaser nor any need to Invest any funds into the completion of this transaction, apart from covering the legal costs of the conveyancing process. The NHS Trust has agreed to bear their own legal costs
After the completion of the sale, the PCC will retain no interest in the asset
Strategic Considerations
This decision supports the following element(s) of the Safer West Mercia Plan
- Reforming West Mercia
- Reassuring West Mercia’s Communities
The decision supports the above listed objectives through the following
- Obtaining capital receipt from the sale of the asset, which can be reinvested to support delivery of policing services
- Ensuring better resource management by maximising value, effectiveness, efficiency to meet demand
Benefits and their Realisation
Benefits include
- Supporting a One Public Estate partner in realising the provision of a brand new facility for the local members of the public
- Maxmised capital receipt from the disposal of the asset
- Mitigation of risk from liability clams in connection With unauthorised members of the public using the land
- Due to the lack of daily presence on Site, there is a higher risk of people trespassing, vandalislng, or squatting on the land
- By completing the RX4 Land Registry process, thereby ensuring the Land Registry title register of an asset owned by the PCC IS bang kept up to date and contains only covenants relevant to It directly
Legal Considerations
By virtue of schedule 11, paragraph 14 of the Police Reform and Social Responsibility Act 2011 the Police and Crime Commissioner may do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of commissioner. That includes entering into contracts and other agreements (whether legally binding or not) and acquiring and disposing of property (including land).
Public Access to Information
Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Part 1 of this form will be made available on the West Mercia Commissioner’s website. Any facts and advice that should not be made automatically available on request are not included in Part 1 but instead in a separate Part 2 report.
Officer Approval
Signed
Deputy Chief Executive Officer
Date 08/02/2024
