Wards Affected:
ITEM 13
Olney
CABINET
7 FEBRUARY 2017
DISPOSAL OF LAND OFF A509 NEAR NEWPORT PAGNELL
Responsible Cabinet Member:
Councillor Marland (Leader of the Council)
Councillor Middleton (Cabinet member for
Resources and Innovation)
Report Sponsor:
Duncan Sharkey (Corporate Director - Place)
Author and contact:
Ed Palmieri (Interim Head of Property and Facilities
Management) - Tel: 01908 254967
Executive Summary:
To give approval to grant Milton Keynes Dons Ltd (Milton Keynes Dons Football
Club) an option to purchase the freehold interest of up to 96 acres (39 ha) of
Council land in Newport Pagnell adjoining the A509 for use as an international
standard training facility to support Milton Keynes Dons Football Club. The
disposal will be for Best Consideration in accordance with s.123 of the Local
Government Act 1972.
Using a major site for this purpose is supported by the adopted Core Strategy
July 2013 which provides for the Council to develop Milton Keynes into an
International Sporting City. The International Sports City Report January 2011
also supports this aspiration and was adopted by Cabinet on 20 December
2011.
1.
Recommendation(s)
1.1
That the disposal of the freehold interest in 96 acres of land
in Newport
Pagnell adjoining the A509 (edged red on the plan at
Annex A) to Milton
Keynes Dons Ltd be agreed for use as an international standard training
facility to support Milton Keynes Dons Football Club with complimentary
ancillary uses.
1.2
That disposal of the land be by the Council granting Milton Keynes Dons Ltd
an option to purchase the 96 acres in whole or part, subject to planning
consent based on the Heads of Terms at
Annex B.
1.3
That the Interim Head of Property and Facilities Management, in consultation
with the Corporate Director Place and the Cabinet member for Resources and
Innovation, be authorised to agree variations to the terms of disposal outlined
in this report as reasonably necessary to secure the Council’s objectives of
disposing of the land so as to facilitate the development of the training facility
for Milton Keynes Dons Ltd.
2.
Issues
2.1
Milton Keynes Dons Football Club have approached the Council to request an
option agreement which will enable them to purchase on receipt of planning
7 February 2017
consent up to 96 acres (39 ha) of countryside which they will develop into a
training base for the Milton Keynes Dons Football Club.
2.2
The Heads of Terms for the disposal provide for the Council to receive best
consideration for the value of the land as required by s.123 of the Local
Government Act (LGA) 1972. The land can be purchased in whole or part
within the life of the option agreement which is 5 years. The use of the land is
to be subject to a formal restriction limiting its use to training pitches and
training academy facilities only. Should Milton Keynes Dons Football Club
subsequently change the use of the land for a more valuable use, the Council
is protected by a clawback provision which will enable the Council to receive
full payment for any resulting increase in land value, as determined by an
independent valuation in accordance with s.123 of the LGA 1972.
2.3
The adopted Core Strategy July 2013 highlights the ambition to develop the
International Sporting City (ISC) concept in Milton Keynes as set out in
Objective 14. That objective lists one of the actions as the need to prioritise
developing key ISC facilities. This disposal will assist in facilitating Objective
14.
2.4
The ISC is focussed on major sites and facilities with links to community
sports facilities to support high level, elite sport and major events. The
intention is that it would manifest in existing, enhanced and new facilities in
venues across the Borough. The land in question for disposal is a major site
which if planning consent is forthcoming for the training facility will support the
activities of Milton Keynes Dons in holding high level, elite sport and major
events in the Borough.
2.5
The Core Strategy set one of the targets to achieving Objective 14 as early
delivery of a team training base by 2013/14. This disposal will facilitate
development of a team training base assuming planning consent is granted.
2.6
A key cornerstone of the ISC proposal is to develop a football team training
base in Milton Keynes. This would be to support teams when playing
international matches at the Stadium:MK and also be the Milton Keynes Dons
Football Club training base. It goes on to say that with the Milton Keynes Dons
Football Club managing, using and preferably owning the facility there would
be a more financially viable and sustainable long-term future for it and a
sponsor with experience, ability and drive to be able to deliver this facility.
2.7
The ISC Report considered some sites for the training base however none of
which have materialised. Using the land adjoining the A509 will meet the
aspirations of the ISC proposal if planning consent is forthcoming and the
training base is developed and managed by Milton Keynes Dons Football Club
2.8
The ISC Report considered the land requirement for the training base to be
15 ha although the land in question is somewhat larger at 39 ha. The Report
states the venue needs to not only cater for the Milton Keynes Dons Football
Club day to day training requirements but also have the flexibility to enable it
to host visiting professional/international teams and matches form other sports
such as rugby and American football. Milton Keynes Dons Football Club have
indicated 39 ha is needed to accommodate the requirements of a training
base.
2.9
The adopted Core Strategy confirms the ISC Report is a material
consideration in planning terms The site sits outside of any current
7 February 2017
development plan and is not covered in the recent Newport Pagnell
Neighbourhood Plan. At present there is little potential for large scale
development in this location.
2.10
Working with partners to ensure Milton Keynes becomes a premier European
Destination City is a key priority of the Council Plan 2016 - 2020. A decision to
dispose of the land for a new training facility for MK Dons will support this
priority.
2.11
The land is currently let on a farm business tenancy from 18 August 2009 to
28 September 2018 at a current rent of £43,100 p.a. The tenancy allows the
Council to end the tenancy and obtain possession of the land subject to
payment of compensation to the tenant which is to be paid by Milton Keynes
Dons Football Club as part of the purchase.
2.12
Newport Pagnell Town Council and the local Council Ward members have
been consulted in advance of the publication of this report and the farm tenant
has been advised.
3.
Options
3.1
There are two options:
(a)
Not to Dispose. This option would not deliver the ISC concept, nor the
aspiration set out in the Council Plan to become a premier European
Destination City, and is therefore not recommended.
(b)
To grant Milton Keynes Dons Football Club the option to purchase the
land on the terms set out in this report. This option is recommended as
it will achieve the Council’s aspirations and is supported by policy.
4.
Implications
4.1
Policy
The disposal is supported by Council policy namely the adopted Core Strategy
July 2013, the ISC report January 2011 which was adopted by Cabinet and
the Council Plan 2016- 2020.
4.2
Resources and Risk
The use of the land as a training base requires planning consent which if not
forthcoming will mean the delivery of the training base for Milton Keynes Dons
Football Club will not happen.
The disposal is by way of option agreement and there is a risk this is not
exercised by Milton Keynes Dons Football Club which also means the training
base will not be developed.
The value of the land will be independently assessed to ensure the Council
has complied with s.123 of the Local Government Act 1972 in making a lawful
disposal for Best Consideration for the whole or part(s). The receipt for the
whole is likely to be in the region of plus c£0.675m.Any increase in value of
the land after disposal will be captured by the inclusion of a 100% clawback
provision in the disposal contract.
This proposal will result in a reduction in income of £0.043m pa which will
need to be addressed in the budget for 2018/19 once the option is exercised.
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The MK Dons are a core part of the City ‘offer’ and are a driver of economic
spend and investment. Enabling this training facility will support both
performance and economic impact.
Y
Capital
N
Revenue
N
Accommodation
N
IT
Y
Medium Term Plan
Y
Asset Management
4.3
Carbon and Energy Management
There are no known carbon and energy management implications associated
with the proposed disposal.
4.4
Legal
The Council is required under section 123 of the Local Government Act 1972
to dispose of its estate or interest in any land, for not less than the best price
reasonably obtainable, Best Consideration.
It is recommended if the land is unregistered an application is made to the
Land Registry to register the land before a disposal although this is not a
requirement.
If the land is registered it is recommended a title check is made to ascertain if
there are any covenants or restrictions to the disposal and or proposed use of
the land. If there are such covenants or restrictions and it is not possible for
these to be easily removed it is usual to overcome this by title indemnity
insurance.
4.5
Other Implications
N
Equalities/Diversity
N
Sustainability
N
Human Rights
N
E-Government
Y
Stakeholders
N
Crime and Disorder
Background Papers:
None
Annex A
Plan of Area
Annex B
Draft Heads of Terms for the Grant of Option
7 February 2017