Disposal of Beck Road Chapel
1.0 Background
1.1 The church known as Beck Road Chapel (see appendix 1) has been disused since 2002. In 2004 SCC acquired it for £65,000, using funds provided by English Partnerships (EP) for purchasing properties in Housing Market Renewal areas.
1.2 The original intention was to provide a multifunctional community asset in the Shiregreen area. A Beck Road Chapel Steering Group was set up in July 2004 to investigate ways of bringing the building back into use with the proposed end users being Sheffield Boxing Club (relocating from their premises in Hillsborough) and the local community. A draft business plan was drawn up.
1.3 In the process of drawing up the business plans a feasibility study revealed extensive dry rot in the building, which ultimately concluded that demolition and new build was the most appropriate and economically viable course of action.
1.4 The Beck Road Chapel Trust was set up in April 2005 by the key stakeholders with the aim of delivering the project. Other options were explored, utilising the services of Sheffield Community Enterprise Development Unit (who have been acting on behalf of Community North Forum, the primary community organisation in the area). SCEDU undertook financial modelling to assess the feasibility and viability of the business plan based on similar schemes in north Sheffield.
1.5 Changes in external circumstances led to the withdrawal of interest in the development of the site by the original partners (Sheffield Boxing Club and Community North Forum). The Beck Road Chapel Trust, although registered, remained a company in name only. The three trustees have now applied to remove the trust from the companies register.
2.0 Brightside / Shiregreen Neighbourhood Strategies
2.1 The Neighbourhood Strategies process is an approach to developing more successful neighbourhoods and sustainable communities in Sheffield’s Housing Market Renewal (HMR) areas.
2.2 In the Brightside and Shiregreen area the Neighbourhood Strategies method is being used to support the development of a Neighbourhood Development Framework. The Neighbourhood Strategies process aims to develop excellent partnership working and communication between the local community and the other area stakeholders.
2.3 The role of the Neighbourhood Strategies in Shiregreen is to work with Sanctuary Housing Association (the social landlord who have taken over management of the Council’s housing stock in Shiregreen) to take the lead role on developing proposals for the neighbourhood beyond planned improvements to the housing stock.
2.4 Within the draft Shiregreen Neighbourhood Strategy Area Report March 2006, the redevelopment of the Beck Road Chapel is seen as a way of improving local services and community facilities in the area.
3.0 Current position
3.1 In May 2005 Sanctuary HA expressed an interest in purchasing the site or coming in as a potential anchor tenant for the project. After further discussions it became clear that the only viable option to deliver the project would be for Sanctuary HA to invest their capital into a new building, which could provide both a base for Sanctuary HA in Shiregreen and a community facility. The alternative would have been open market disposal, which would not provide any community facilities, nor assist Sanctuary in managing and improving the area.
3.2 Further meetings have taken place between the City Council, Sanctuary HA and SCEDU. In March 2006 a paper was produced for the purpose of informing English Partnerships and local members of the current situation and proposals. This redevelopment would accord with the Brightside Shiregreen Neighbourhood Strategies and secure the presence of a Sanctuary HA base in the Shiregreen area. This will greatly contribute to the delivery of their regeneration objectives and ongoing management on the estate.
3.3 On the 6th March 2006, at the Brightside Shiregreen Area Panel Members Meeting the Development Proposals for Beck Road were discussed; there was an agreement to pursue the option of Sanctuary HA redeveloping the site. At a meeting with English Partnerships on the 13th March 2006 EP also agreed to the proposal put forward in the paper. Under the Funding Agreement with EP their permission is required before the site can be disposed of.
3.4 Given the positive feedback from Area Panel members and EP, detailed discussions are now taking place between Sanctuary and the Council, to move the project forward. Until members approve the recommendations in this report Sanctuary HA are carrying out all work at their own risk.
4.0 Proposals
4.1 The proposal is to negotiate the disposal of the building to Sanctuary HA, who are in a position to redevelop the site utilising their own finances and within a timescale that could see the project delivered in 18 months to 2 years of submitting a planning application. Sanctuary HA advise that they will progress the planning application once the Cabinet Report has been agreed.
4.2 The disposal of the building to Sanctuary HA for use as an area housing office, containing some ancillary community space, presents a pragmatic development solution for a site, which has remained mothballed and decaying for approximately two years now. The community space will be provided by Sanctuary HA giving access to their meeting room(s), under a rental agreement. In addition the shared use nature of the proposal provides the community element with extra sustainability that other community buildings frequently lack.
4.3 Subject to approval, it is expected that the building will be a minimum of 2 storeys with office space to accommodate around 25 Sanctuary HA staff to manage the Shiregreen estate, including reception / waiting areas, interview rooms, meeting rooms etc.
5.0 Design Standards
5.1 The full specification is still being drawn up, however, it is proposed that planning officers will be involved in the detailed design of the building to ensure that the new building meets with the high standards that are being set on all developments across housing market renewal areas.
5.2 In addition, EP requires that any development on the site must accord to high quality design principles (EP’s ‘Quality & Price’ standards); these apply to all developments that are in receipt of their funds.
6.0 Financial Implications
6.1 The purchase of the property was funded wholly by English Partnerships at a cost of £65k plus associated fees. The terms of the English Partnership Funding Agreement state that on disposal of the property Sheffield City Council and English Partnerships are entitled to a proportion of any capital receipt equivalent to the respective investment Sheffield City Council and/ or English Partnerships have made in relation to the total investment.
6.2 In the case of Beck Road Chapel this would mean that on the face of it, any income from the sale of the site would solely result in a capital receipt for English Partnerships as they have fully funded the acquisition. However, the acquisition value reflected the fact that the site is subject to a restrictive covenant (use for religious worship) to the benefit of Sheffield City Council and if Sheffield City Council were to release the restrictive covenant for a sale on the open market then there would inevitably be a significant increase in the market value. It is the Council’s intention to dispose of the freehold at current market value free of this restriction. SCC and EP are negotiating about how this increase in value should be apportioned. The proportion of the development value released and accruing to the City Council will be a receipt to the General Fund.
6.3 Sanctuary HA will meet the City Council’s Legal & Governance and Corporate Property Division’s costs of the disposal of the site.
7.0 Personnel Implications
7.1 There are no personnel implications contained within this report.
8.0 Equalities Implications
8.1 An Equality impact assessment has been carried out for this project. An action plan has been agreed to maximise the positive implications of the project and limit/avoid any potentially negative implications. This will include ensuring that the building is fully DDA compliant, and the Area Panel and community representatives working with Sanctuary HA to monitor use of the facilities by as wide a cross-section of the local community as possible.
9.0 Recommendations
R.1 That members agree to the disposal of Beck Road Chapel site for the development of a purpose built building to provide an office base for Sanctuary Housing Association, from which they will manage the Shiregreen Estate and deliver the Decent Homes improvement work to the Shiregreen Area.
R.2 That the Head of Corporate Property be authorised to enter into negotiations with Sanctuary Housing Association to dispose of the site at current market value taking into account EP’s design quality requirements.
R.3 That the Head of Property Corporate Property instruct the Head of Legal & Governance to complete all the necessary legal documentation to secure the disposal of Beck Road Chapel.
Downloads
This is a document which contains Appendix 1 to the Beck Road Chapel report (189 KB)