Key information
Decision type: Mayor
Reference code: MD1554
Date signed:
Decision by: Boris Johnson, Former Mayor of London (May 2008 - May 2016)
Executive summary
MOPAC/MPS needs to make better use of the facilities currently at Hammersmith Police Station and is planning a significant redevelopment of the site.
In order to develop the plan, there has been consideration of the use of the police estate in the borough, allowing for an underused site in the borough to be released.
The Education Funding Agency (EFA) are looking to secure a site in Fulham for Fulham Boys School.
Following an independent valuation terms have been agreed for an off market sale of Fulham Police Station site. MOPAC will retain a front counter facility therefore maintaining the commitment as set out in the Local Police Estate and Public Access strategy. The site will be disposed of to the Education Funding Agency (EFA) for educational purposes with a retained front counter facility
Decision
The Mayor approves the disposal of Fulham Police Station site to the Education Funding Agency on the terms set out in Part 2 confidential section
Part 1: Non-confidential facts and advice
1.1. The Hammersmith and Fulham Borough Police function is currently supported by 3 key sites under the Local Police Estate and Public Access arrangements:
• Hammersmith – the borough’s 24/7 front counter site, a deployment base, cell custody and stables block
• Fulham – front counter (Tuesday - Friday 9am - 5pm, and Saturday 12 noon - 8pm) and deployment base
• Shepherds Bush – neighbourhood policing and Safer Transport deployment base
1.2. All of these sites are currently underused. The proposal is to dispose of the Fulham Police Station site, which has a utilisation rate of 35%, and retain a front counter facility in the redeveloped site.
2.1. By retaining a front counter facility in the redeveloped site the commitment to maintaining public access as set out in the Local Police Estate and Public Access strategy is maintained with the same offer to the community as the current front counter
2.2. The disposal generates capital receipts to re-invest in front line policing, and generates annual revenue saving of circa £400k.
3.1. No equality and diversity impacts have been identified.
4.1. MOPAC proposes a significant redevelopment at Hammersmith Police Station providing the opportunity to release underused sites. Separately the EFA are looking to secure a site in Fulham for Fulham Boys School.
4.2. MOPAC will retain a front counter facility at the site throughout the redevelopment, therefore maintaining the commitment in the Local Police Estate and Public Access strategy. There is also a potential for the site to be used for deployment of operational teams to support events at Chelsea, Fulham and QPR football clubs. The neighbourhood policing teams will be found space to enable them to continue to operate locally.
4.3. In order to progress negotiations and to ensure value for money in an off market sale, independent advisors Cushman and Wakefield were commissioned on behalf of MOPAC in August 2015 to undertake a formal market valuation on the basis of vacant possession. The market value is set out in Part 2. The market value provided is defined as “The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.” Cushman and Wakefield have confirmed that in arriving at the opinion of Market Value for the subject property they have sought to reflect the approach that prospective buyers would adopt. The valuation takes account of potential purchasers who would seek to add value either through refurbishment or redevelopment.
4.4. The valuation has been shared with the EFA and terms have now been agreed for EFA to acquire the property unconditionally at the valuation figure provided by Cushman and Wakefield.
4.5. The sale contract will include MOPAC’s standard forward sale clawback awarding 50% of any uplift to be paid to MOPAC if any individual part or parts, or the site as a whole, (but not any individual residential units) is sold within 5 years.
5.1. The sale proceeds will support the MOPAC 2016-17 capital programme. In addition, the disposal will generate net annual revenue savings of circa £400,000.
6.1. Section 6 of the Police Reform and Social Responsibility Act 2011 (the Act) provides the MOPAC must secure the maintenance of the Metropolitan Police Service, and secure that the Metropolitan Police is efficient and effective.
6.2. In carrying out its functions, the MOPAC may, under paragraph 7, Schedule 3 of the Act “do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of the Office”. This includes, entering into contracts and other agreements, in addition to acquiring and disposing of property (including land). The MOPAC has the power to dispose of surplus properties (including land) under paragraph 7 (2) (b) of Schedule 3 of the the Act.
6.3. The Commissioner may also do anything which is calculated to facilitate, or is conducive or incidental to acquiring and disposing of property (apart from land) but only with the consent of MOPAC under paragraph 4 (2) (b) of Schedule 4 of the Act.
6.4. Further legal advice is set out in Part 2 of this decision form.
7.1. Solicitors will be appointed to act on behalf of MOPAC in agreeing a sale contract which will include a development agreement and lease back of a front counter facility. Detailed specification and design of the front counter facility to be agreed. The development agreement will provide for the front counter facility to move within the site during the redevelopment period.
7.2. The target date for delivering vacant possession of the site, excepting the front counter facility, is June 2016. The sale contract would complete on the date that vacant possession is delivered.
Signed decision document
MD1554 Disposal of Fulham Police Station (signed) PDF