Purpose

The purpose of this decision is to accept the freehold land transfer at nil consideration from master developer of Phase 1, L&Q, to South Cambridgeshire District Council (SCDC) of the sports pitches within the Western Park at Northstowe, comprising of the following facilities:

·       1 floodlit synthetic pitch (suitable for rugby and football);

·       1 adult rugby grass pitch;

·       1 adult football grass pitch;

·       2 junior football grass pitches;

·       2 mini football grass pitches;

·       1 outdoor bowling green;

·       1x 2 court floodlit MUGA

·       An area of land sufficient to install 1x 22’ shipping container for equipment storage.

The area of land transferred shall include the pitches plus their run-off areas, with the freehold of all other areas of the Western Park not previously transferred to SCDC remaining with L&Q. The freehold of the sports pavilion and car park land was transferred earlier in 2023 and the allotment and community orchard land previously transferred to SCDC in 2019.

The s106 agreement for Phase 1 permitted transfer of the Western Park open space to SCDC at nil consideration, although at a later point (on expiry of the contract between L&Q and its appointed Land Management company, Greenbelt in approximately seven years’ time). However, the decision taken by L&Q to pass construction of the Sports Pavilion and car park to SCDC means that in order to operate the pitches and pavilion as a single entity, this freehold transfer is required now. This will subsequently enable SCDC to offer a leasehold to an external operator (subject to a separate decision) of the pavilion, car park and sports pitches to operate as a unified facility.

The red book valuation of the land undertaken as part of due diligence suggests a land value for the land to be transferred above the threshold required for a key decision, irrespective of the land being transferred at nil consideration. An evaluation of the liabilities likely to result from the transfer suggest that the benefits of transfer (i.e. the ability to operate the sports and pavilion as one viable unit) outweigh those imposed by acceptance of the land transfer.

Decision

Accept the freehold transfer of the Sports Pitches from L&Q at nil consideration.

Reasons for the decision

Securing the freehold of the land provides SCDC with full control of the land, enables the facilities to be unified with the sports pavilion and car park which serve them, and will subsequently allow for more straightforward disposals as a single, viable unit. 

Alternative options considered

Option 1: The landowner was approached to consider whether they might offer the district council a licence to occupy the land in question, which they were willing to consider. 

Reason for rejection: legal advice suggested that a licence to occupy could not be novated to the sports operator if appointed as a licence cannot be assigned,requiring any licence agreement to be renegotiated once an operator was procured; moreover, the licence agreement would simply offer permission to use land, it is a personal right or permission that offers no security and does not create an estate in land. A licensee's occupation is intrinsically precarious.

Option 2: Securing the leasehold could provide more security but would result in the same liabilities regarding maintenance as would the freehold. Acquiring the freehold of the Sports Pitches will facilitate full control of the land and provides the simplest pathway to subsequent arrangements with the external sports operator when procured, and also puts the district council in a clear position to dispose of the pitches and pavilion (through, for example, its Asset Transfer Policy) at some future point, as a single, viable unit.