Content

Salford
City Council - Record of Decision
 

I, Councillor
Tracy Kelly, Deputy City Mayor, in exercise of the powers contained
within the City Council constitution do hereby:

 
1.   
Agree to the request from Northern Care Alliance
(NCA) that the Council (SCC) fund the additional proposed remedial
works at the Bevan Unit on the basis that NCA will on completion of
the associated lease agreement make a premium payment to the
Council.
 

2.   
Agree to the variation of the initially approved
lease arrangements with NCA to accommodate the NCA proposal to make
a premium payment to the Council under the lease and to incorporate
a condition within the lease to obligate the council to undertake
the additional works.

3.   
Agree to the variation of the initially approved
lease to obligate the NCA to cover the cost of any VAT obligations
arising out of the proposals that relate to expenditure on
non-fixed fittings within the buildings .

4.   
Agree to a variation of the initially approved lease
arrangements to NCA to incorporate an option to purchase in favour
of NCA on the terms ,and in the circumstances, outlined within the
report.
5.   
Authorise the Shared Legal Service to progress and
complete the associated legal formalities and the taking of all
steps required to give effect to the above
recommendation.
 
The
Reasons are:
 
The Bevan Intermediate Care
Unit opened on Stott Lane in November 2021, to provide “step
down” beds to support patients moving out of clinical spaces
but who are not yet well enough to return to their homes. The
building was funded by Salford City Council (SCC) but is operated
by the Northern Care Alliance (NCA).
 
On completion of the scheme NCA
were, initially, to take a 25-year lease of the building paying a
rental that represented the Capital recovery costs of the Council
over the 25-year term of the lease. Subsequently, and as a result
of specialist VAT advice, NCA determined that it would be
preferable to make a one-off capital payment to repay, in full,
their obligation to the Council.
 
Whilst the lease has yet to be
completed, remedial works have been identified to resolve
overheating issues that have been evident since the facility became
operational. The remedial works will be funded by the Council but
recovered from NCA by way of a single premium payment, to cover the
initial Capital build contract and remedial works.
At NCA’s request the
lease will also incorporate an option to purchase the site should
intermediate care services no longer be required to be delivered
from the site by Salford Intermediate Care Board during the lease
term.
 
 

Assessment of Risk: Low

 

The source of funding:  Adults Capital
Programme 2023/24

 
Legal Advice
obtained: Yes - Gaynor
Corfe, Shared Legal Service
 
Financial Advice obtained:
Yes -
Tony Thompstone and David Mills, Strategic Finance
Managers
 
Procurement Advice obtained:
n/a
 
HR Advice obtained:
n/a
 
Climate Change Advice
obtained:
Yes - Mike Hemingway, Principal
Officer Climate Change

 
The
following documents have been used to assist the decision
process.
Public briefing report submitted to
Property/Regeneration Briefing on 24 April 2023
 
Contact Officer:  
Peter
Openshaw - Asst Director, Environment and Community
Safety                    
Tel
No:  07766550136

 
This
decision is not subject to consideration by another Lead Member
/Strategic Director

The
appropriate scrutiny committee to call-in the decision is the
Growth and Prosperity Scrutiny
Panel.

 

Signed:
Councillor Tracy
Kelly
Deputy City Mayor
Date: 24 April
2023
 
 

*          
This decision was published on Monday 24 April 2023.

*          
This decision will come in force at 4.00 pm on Tuesday 2 May
2023 unless it is called-in in
accordance with the Decision Making Process Rules.