Agenda item

[Report of the interim  Assistant Director for  Economic Development  and Growth. To be introduced by the Cabinet  Member for Adults and Health.]

The report requests approval for the acquisition of the freehold interest in the former Health Centre in Canning Crescent and contains proposals for its future use.

The Cabinet Member for Adults and Health introduced this report which sought approval for the acquisition of the freehold interest in the former Health Centre in Canning Crescent and contained proposals for its future use. The Canning Crescent Health Centre, 276-292 High Road (“Property”), was a former mental health centre located in Wood Green which had been advertised for disposal by Barnet Enfield and Haringey Mental Health National Health Service Trust. This report set out a proposal to acquire the Property and repurpose the existing building for community use relating to adults with mental health issues. The Cabinet Member commented that a large number of individuals were affected by mental illness at some point in their lives and this was a rare chance for the Council, working in partnership with the NHS, to offer a mix of provision on a single site to enable local residents with poor mental health to enjoy better outcomes.

Further to considering exempt material pertaining to the report at agenda item 23,

RESOLVED:

1. To the acquisition of the property known as Canning Crescent Health Centre, 276-292 High Road, Wood Green (as shown edged in red on the plan in Appendix 1) from the Barnet Enfield and Haringey Mental Health National Health Service Trust for a sum of £2.4m and based on the Heads of Terms attached at Appendix 3 of this report. The property is to be acquired for general fund purposes; and

2. To give delegated authority to the Director of Housing, Regeneration and Planning after consultation with the Director of Finance and the Cabinet Member for Adults and Health, to agree the final terms of the contract.

3. That the total cost of acquisition (£2.4m plus transaction costs as set out in 6.27) and the costs for the initial development of the project of c£0.3m are met from the Strategic Acquisitions budget within the approved capital programme.

4. To note that, subject to further due diligence and development planning, officers intend to return to Cabinet in 2019 for approval of the Detailed Design and Detailed Costs (capital and revenue) and approval to procure.

Reasons for decision

The acquisition will benefit the Council by enabling the delivery of supported housing units to serve the need of residents in the Borough and by providing a new improved facility for the Council’s Clarendon Recovery College. The proposal will deliver revenue savings for the Council and release land elsewhere in Wood Green for housing delivery.

The revenue savings will be achieved by stepping existing clients down from residential care and/or supported living with a care team into purpose built supported housing on a single site. There are also positive benefits for residents of a supported living scheme within the borough, rather than having to move out of borough to receive the support they need, especially given the proposal to co-locate other provision on the same site.

This is an opportunity for joint working and a fully joined up approach with the Clinical Commissioning Group (CCG) for revenue costs and contribution and also an opportunity for the Council to work closely with a future care provider. This scheme will be a key part of implementing the Council’s agreed Supported Housing Transformation Plan and our joint commissioning intentions with the CCG to improve the lives of people with severe mental illness.

The relocation of the Clarendon Recovery College will improve the usage and footfall to this facility, with improved outcomes and greater chance of recovery. Savings may be made by moving the Clarendon Recovery College to a new property as there is potential to increase the income for the Clarendon Recovery College, to improve its outcomes in terms of independence and thereby to reduce Council subsidy.

The release of the existing Clarendon Recovery College site will contribute to the Council’s housing targets. Housing is in high demand in the borough with over 3,000 families in Temporary Accommodation and over 9,000 households on the waiting list.

Should Cabinet approve the acquisition of the site there will follow a period of design development, options appraisal, cost planning and development planning. Officers will return to Cabinet for approval of the final development plan. The development plan will include detailed designs and costs for the preferred development option and a funding, delivery and operation strategy.

Alternative options considered

The alternative option is not to acquire the property. This would mean that the opportunity to provide 21 units for supported housing within one site will be lost.

Disregarding any hospital care, if provision is not found for the new units, residents will continue to use the alternative residential and other care services in place now from the independent sector, at an annual cost of £690,601 to the Council, with a further contribution of £172,650 from the CCG in joint funding.

In addition to the above, should the project not go ahead, a suitable alternative location would have to be identified for the Clarendon Recovery College before the redevelopment of the Clarendon Road South site could take place.

The Council is in a position to acquire the freehold of the Canning Crescent building prior to market. Should the Council not acquire the property at this stage the site will be sold on the open market. In the event that the Council acquires the property but the project does not go ahead the Council could then sell the site with overage payable to NHS Trust as set out in the draft Heads of Terms.