Agenda item

[Report of the Assistant Director for  Commissioning and the Assistant Director for Economic Regeneration. To be introduced by the Cabinet Member for Corporate Resources.]The Laurels Healthy Living Centre was purchased as part of the DCLG's New Deal for Communities. The purchase was designed to ensure the legacy of the healthy living centre in Seven Sisters. This report proposes that the head lease for the building is transferred to the Bridge Renewal Trust, the NDC legacy organisation.

The Cabinet Member for Corporate Resources introduced the report which sought approval to the transfer of the Laurels building to the Bridge Renewal Trust. This proposed decision represented an important point in carrying forward the legacy of the NDC. Over the last 8 years the Bridge Renewal Trust have demonstrated that they are a strong and sustainable voluntary and community organisation well equipped to put into effect the original intentions of the NDC and to ensure a continued contribution to the health and wellbeing of the borough. The transfer of the Laurels building would safeguard its future as an integrated healthcare centre, support the delivery of the NDC legacy and ensure that this valuable asset remains available for community use, benefiting local residents directly.

RESOLVED

1.    To approve the disposal of the 125-year head lease in ground and first floors premises at 250-266 St Ann’s Road London N15 known as the Laurels Healthy Living Centre to the Bridge Renewal Trust for the sum of £1.00 (subject to the consent of the Secretary of State and Circle 33 Homes Ltd).

2.    To give delegated authority to the Strategic Director for Regeneration, Planning and Development to agree the final terms of the disposal.

3.    To note that the Council will continue to be able to nominate two representatives, one Councillor and one officer, onto the Board of the Bridge Renewal Trust.

Reasons for decision

The Council has a leasehold interest in the property known as 250-266 St Ann’s Road, London, N15 (“Laurels”). The transfer of the 125-year lease of the Laurels from the Council to the Trust as the NDC’s successor body was always intended in order to secure the legacy of the NDC for local residents. The transfer was considered in 2009 but was not taken forward at that time since the successor body was untested and it was too early for the Council to realistically assess its capacity to successfully own and manage the asset. The 10-year funding agreement was put in place at that time specifically to allow the Trust to develop and to have the opportunity to demonstrate their longer term sustainability and reach. It is considered that the Trust have now established themselves as both a key community organisation in the borough and as a viable voluntary sector operation and, with a strong board and management, have demonstrated that they have the capacity to own and manage the asset and deliver the NDC legacy.

This decision is needed now as there are less than four years left to run on the Funding Agreement. Audit stipulations require any capital investment to be depreciated over the lifetime of the Funding Agreement. The very short depreciation period hinders the Trust from making long term decisions which would improve and expand health service provision and realise the NDC’s original vision – which the Trust maintains - of a holistic healthy living centre with a range of services. This includes bids to external funding agencies for capital investment. Examples of work that are required imminently include improvements to configure internal space on the ground floor to deliver a healthy living pharmacy to meet NHS England requirements.

The Trust have also been affected by the high annual depreciation costs as a result of the short funding agreement. In 2013-2014, the Trust invested £136,000 to refurbish parts of the underused Laurels ground floor space to create two modern therapies and consulting rooms. These facilities are currently used to provide popular and affordable complementary therapies including podiatry, osteopathy and deep tissue massage. In line with relevant audit stipulations, this substantial capital investment has had to be depreciated over the lifetime of the funding agreement. This short depreciation period has greatly burdened the Trust with higher than necessary annual depreciation costs which have negatively impacted on its ability to fundraise.

The transfer of the Laurels will enable business planning and provide long term financial stability as it will enable the Trust to develop new and innovative means of creating lasting change in the local neighbourhood in particular and Haringey in general. It will empower the Trust and local residents to achieve better management of the asset and to enable long term funding of capital projects and planned maintenance. Crucially, long term ownership will also help the Trust attract external grants and other funding as investors have confidence in the long term future of the organisation.

Finally, the transfer – which has been anticipated since the initial legacy plans for the NDC were drawn up – will ensure that this valuable asset remains available for community use, benefiting local residents directly.

Alternative options considered

a)    Do nothing – doing nothing for now and waiting until March 2019, 2 years before the funding agreement is due to expire, has been considered and discounted due to the financial impact that the remaining period is having on the Trust’s ability to invest and undertake much needed capital improvement works and more widely to invest and plan for future service delivery.

b)   As is but with new, longer funding agreement – this has been considered, however the NDC was designed with the intention of providing a legacy and for this to be delivered by a successor organisation, in this instance the Trust. The Council have been holding the asset in trust until it could assess whether the organisation had the capacity to own and manage the asset and deliver the legacy.