EXECUTIVE SUMMARY
The Youth Justice Service (YJS) provides support to their clients in Hereford from 1-3 Daws Road, HR1 2JJ. However, the landlord of the property, Herefordshire Council, has expressed their intent to terminate this arrangement via a ‘Notice to Quit’ to the PCC West Mercia. Therefore, an alternative location is required.
In March 2023, an alternative location at 1a St Owen Street, HR1 2JB was offered to OPCC Estates by Herefordshire Council, with both parties agreeing this to be a more suitable and viable alternative premises for YJS. This alternative location fulfils the needs of YJS as well as offering a more convenient location to their clients. It is also more economical and affordable from a financial perspective.
Terms for a Lease have been agreed between PCC and Landlord, with the agreed annual rent of £10k for 1a St Owen Street being £10k lower than the £20k annual rent paid for Daws Road.
Herefordshire Council have agreed to carry out and cover the costs for essential building remedial works to 1a St Owen Street, prior to YJS taking occupation.
Not retaining a permanent presence in Hereford would have a devastating effect on the work of YJS. OPCC Estates fully explored the very limited premises available in the marketplace, to include private and commercial landlords, but determined that the best solution was via the One Public Estate (OPE) Herefordshire Council, at their premises located at 1a St Owen Street.
PROPOSAL
For the PCC to:
- Approve the relocation of Youth Justice Service Hereford from its current location at 1-3 Daws Road to the new location at 1a St Owen Street.
- Approve the completion of a 5-year (with the option to extend) Lease for the 1a St Owen Street premises with a rent of £10,000 per annum. The proposed Lease has full repairing and insuring terms.
- Agree to covering the costs for legal advice on the Lease – estimated at between £1,500-£3,000 (excl. VAT).
APPROVAL OF
West Mercia Police and Crime Commissioner
I hereby approve the above proposal.
PART 1 – NON-CONFIDENTIAL/EXEMPT FACTS AND FIGURES
SUPPORTING REPORT
West Mercia Youth Justice Service (YJS) works with young people (clients) aged 10 – 17 years old to assist the young through the justice system with the aim to deter repeat offending. It is a partnership between four local authorities (Herefordshire, Shropshire, Telford and Wrekin and Worcestershire Councils) as well as three Clinical Commissioning Groups (Herefordshire and Worcestershire, Shropshire, and Telford and Wrekin CCGs) plus the National Probation Service, West Mercia Police and the PCC for West Mercia.
The YJS are currently located in two semi-detached houses at 1-3 Daws Road, which were converted into office space to provide necessary support for their clients. They have been in occupation since 2001 whilst it was still under the local authority umbrella. In 2017 the YJS came under the Local Police Force umbrella. The passing rent at this property is £20,000 per annum, payable quarterly in advance, consisting of all outgoings and insurance.
Since the Covid-19 pandemic, the requirement for office space in YJS has become significantly less, with many staff switching to hybrid working.
In January 2023, Herefordshire Council notified OPCC Estates that they had reviewed a number of their assets as space was required for their Children Services Department. At this time, the two houses at 1-3 Daws Road were deemed to be their preferred option to accommodate their Children Services Department.
Based upon this position, OPCC Estates undertook due diligence and a number of site visits with YJS, to the building known as 1a St Owen Street with the YJS, which both parties agreed would meet the requirements of the YJS and their clients. Herefordshire Council own this building.
As part of the due diligence activities undertaken by OPCC Estates, a building condition survey identified a list of remedial work of varying degrees of urgency that needed to be undertaken prior to occupation by YJS. The works included urgent, extensive repairs to internal and external building fabric and glazing. All works were agreed to be undertaken and financed by Herefordshire Council at no cost to YJS or the PCC West Mercia.
On 22nd January 2024, Herefordshire Council served the YJS a Notice to Quit the premises at Daws Road.
The remedial works were due to be completed by March 2024. However, Herefordshire Council have experienced delays, with completion now projected for end of October 2024.
The agreed terms of the new Lease at 1a St Owen Street are:
- Rent of £10,000 per annum, payable quarterly in advance
- Full repair and insure terms, except for latent defects and defective workmanship
- 5-year terms but with the opportunity to extend
- Tenant would be responsible for the payment of all outgoings, including utility costs, insurance, security, maintenance, rates and taxes for the premises. (Current outgoings are £24,000, the projected outgoings at new location are estimated at £17,250 showing a potential saving of up to £6,750)
- The tenant is allowed to carry out a specific list of works to the building.
STRATEGIC CONSIDERATIONS
This decision supports the following element(s) of the Safer West Mercia Plan:
☐ Putting Victims and Survivors First ☐ Building a More Secure West Mercia
☒ Reforming West Mercia ☒ Reassuring West Mercia’s Communities
The decision supports the above listed objectives through the following:
- Reducing the revenue costs (Rent & Rates) for Youth Justice Service by relocating to a property in a better condition
- Continuing to provide a facility that is required for the communities of West Mercia to those who need the assistance of the Youth Justice Service
- Ensuring better resource management by maximising value, effectiveness, efficiency to meet demand for Youth Justice Service
BENEFITS AND THEIR REALISATION
Benefits include:
- Annual revenue (rent) cost saving of £10k.
- Annual revenue operating estimated costs savings of £6,750
- Supporting the One Public Estate partnership ethos.
- Retaining the required presence of Youth Justice Service in Hereford.
- Mitigation of risk and avoidance of costs associated with future maintenance to the sub-standard condition and deteriorating fabric of 1-3 Daws Road.
- Obtaining a mid/long-term security of tenure by having a completed Lease for 1a St Owen Street.
FINANCIAL AND TREASURER COMMENTS
YJS currently pay rent of £20,000 per annum for the premises at 1-3 Daws Road. However, the building’s fabric is deteriorating, and the backlog of works is estimated at over £78,000. Therefore, it represents value for money and demonstrates best practice in risk mitigation and management, by vacating these premises. There is no financial liability to the PCC relating to the backlog maintenance on termination of the lease for Daws Road.
Terms for a Lease at 1a St Owen Street have been agreed between PCC and Landlord, with the agreed annual rent (based on open market rent comparable evidence) of £10,000. The estimate is that there would also be a year on year operating cost savings of £6,750.
The building at 1a St Owen Street is in a better condition and, following due diligence being undertaken via an extensive building condition survey, has not presented any significant defects which the landlord has not already addressed in their works. Future maintenance / minor improvement works to the estimated costs of £16,000 have been identified as a potential liability over the life of the lease.
The saving on the annual rent and operating costs of £16,750 represents value for money. Whilst it is recognised that there are ongoing maintenance costs it is significantly less than the identified liability for 1-3 Daws road and represents further cost avoidance.
The projected costs for legal advice on this Lease is estimated at between £1,500-£3,000 (excl. VAT) and depends on time spent and disbursements incurred to complete the Lease.
On this basis the proposal is supported
Treasurer Date: 11/10/24
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
Deputy Chief Executive Officer 14 October 2024
