Joint Report of the Executive Director, Development, Environment and Leisure and the Executive Director, Neighbourhoods and Community Care to the Cabinet on 10th September, 2008

1.1 The outcome of this report is to facilitate the provision of a state of the art hospice for the people of Sheffield.

1.2 The development of a new purpose built hospice will enable the highest standards of sustainable development to be achieved.

2.1 To seek approval of Cabinet for the disposal of the former Bluestone School site on Norfolk Park to the Trustees of St. Luke's Hospice for the provision of a world class hospice for the City of Sheffield.

3.1 For over 34 years St. Luke's Hospice has cared for people in the Sheffield region who have palliative care needs. The hospice was opened as the U.K.'s first provincial hospice on the 1st October, 1971.

3.2 The hospice provides an important service for Sheffield both in terms of specialist day care, medical advice, and support for patients living at home and in-patient services for those in the later stages of terminal illness. Since its opening in 1971 the hospice has been based on its current site on Little Common Lane, Abbey Lane, Sheffield.

3.3 It is also an important centre for education and research into palliative care and has included an education department since 1977.

3.4 The current site however is recognised to be no longer adequate to meet the vision of the trustees to provide a world class facility for the people of Sheffield and its region. Accordingly the hospice has been seeking to secure a site to relocate and to provide a state of the art world class facility.

3.5 The hospice is only part funded by the National Health Service and relies on volunteers and fund raising to enable it to provide the full range of activities. In order to develop its new vision the hospice has sought to find a site which is both affordable, given the need to raise extensive funds to build a new hospice, but is also well connected and located to the existing communities.

3.6 The hospice had made an application to the Council to purchase the current Street Force/Parks Nurseries Depot at Norton. This however has proved an extremely controversial and divisive proposal and consequently officers were instructed to work with theTrustees to try and come up with an alternative site which could be supported by the majority of Sheffield citizens.

3.7 Extensive discussions have taken place over the last few months between Council officers and representatives of St. Lukes. This has included a review of sites previously examined by the Trustees but also additional sites identified by City Council officers. This resulted in an assessment of 12 sites and against the site development criteria for the hospice (see attached) and consideration by Council officers of the implications of any such disposal for the City Council.

3.8 From the early stages it became clear it would not be practical for the hospice to acquire a site on the open market due to their limited funds and the need to raise substantial capital to provide the new hospice itself. Clearly substantial capital expenditure on a site itself would delay and impact upon plans for a new hospice. Therefore any site needed to be capable of a cost effective solution which also protected the public interest duties of the Council.

4.1 As a result of these extensive discussions it is proposed that the former Bluestone School site at Norfolk Park be disposed of for the creation of the new hospice.

4.2 The site falls within the Norfolk Park area, which has an agreed masterplan and regeneration strategy, led by the Neighbourhoods and Community Care Directorate. The relocation of the Hospice to the Bluestone site would make a positive contribution to the regeneration of the area. The vision for the area is for a new and sustainable neighbourhood. Its strengths are its hillside location and dramatic views, its proximity to the city centre and accessible transport connections, and its proximity to exceptional quality green space in the Heritage Park. Much of the existing obsolete housing has already been demolished, or refurbished. Three sites of new mixed tenure housing are complete or near completion, with others awaiting release. In all around 1200 new homes will be built.

4.3 In June 2008, following the development of a design framework for the new neighbourhood centre, Cabinet agreed disposal of a site at the heart of the area to provide a new health care facility and shops for the area, close to the new school and extra care housing scheme. A demonstrator scheme of 48 'green' homes is near completion.

4.4 With the help of the Government's regeneration agencies, English Partnerships (EP) and Transform South Yorkshire (TSY), the City Council has assembled sites on either side of Park Grange Road at the gateway to the area, close to the Bluestone school site. Working with the other agencies, strategic and controlled residential development of this gateway will help consolidate and sustain the scale of housing market change that has been achieved in this neighbourhood. The Council's long term strategy for change at Norfolk Park has been implemented slowly over the last 10 years and the residential redevelopment at the gateway sites is critical to success of the whole scheme. This development will deliver the planned density of housing to support local facilities and services, and increase the attractiveness of the neighbourhood as a place to live. It is important to ensure that the Council's strategic and financial interests in the redevelopment of this area are protected, and that commitments made to both TSY and EP in terms of regeneration of the area are able to be delivered. The regeneration has also benefited from long standing involvement of local people and stakeholders.

4.5 Discussions with the hospice and Council officers have resulted in a proposal that the Council would dispose of the Bluestone site to the hospice for their exclusive use on a long leasehold at a annual rental which reflects the value of the site at a value commensurate with its use for health and associated purposes.

4.6 The terms proposed by Council officers were set out in a letter to the Hospice Trustees on 30th July 2008 and agreed at a meeting on 3rd August 2008. These are:

1. The sale will be to St. Luke's Charitable Trust or a charitable trust that is yet to be formed by the present Trust.

2. The lease will be a term of 250 years. The current valuation is based on a disposal to a charitable trust for health purposes and the annual rental would be in the region of £40,000 per annum subject to further negotiation between the City Council and the Trust.

3. The lease would have a stepped restrictive use e.g. 25 years for a specific use as a hospice and the subsequent 25 years on the basis of what we would consider to be acceptable in terms of a hospice type use. Thereafter, the restriction would remain as such hospice type use but the Trust would be free to approach the City Council to negotiate a change to this use on a basis to be agreed with the City Council.

4. The user clause will be as follows but subject to further clarification. The land known as the former Bluestone School can only be used as a hospice and ancillary uses thereof.

5. If the tenants wish to request a change of use of the property and develop it for other uses that are ancillary to the main use then any uplift in value is to be shared on a basis to be agreed.

6. There will be a strict absolute user clause with no rights of assignment subject to further discussions with the funding bodies not withstanding the instrument of non assignment is not prejudiced.

7. The Trustees may wish to have an option to purchase the site subject to the Charitable Trust.

4.7 If Members are agreeable to the terms outlined in this paper the Trustees of the hospice have agreed to withdraw their interest in the Norton Nursery site and to work with the Council to develop a new hospice on the Bluestones school site.

Detailed negotiations on the Heads of Terms will be completed if Members agree to this proposal and will be signed off with the delegated authority by the Executive Director, NCC and the Assistant Chief Executive, Legal and Governance in consultation with the Leader of the City Council.

5.1 There has been extensive consultation in the past on the Masterplan for the Norfolk Park area and on the closure of the Bluestone School and the construction of a new school on the new site on Guildford Avenue. There has not been any specific consultation on the proposal to dispose of this site and to use this land for a hospice with gardens and incidental open space and the initial response has been positive. The initial views of community representatives have been sought and the initial response has been positive.

5.2 It is considered important that a full programme of local consultation is carried out to ensure that the design of the new development is consistent with the aspirations for the regeneration of the Norfolk Park area and the views of the local community. Such a consultation will also satisfy the requirements for obtaining the consent of the Secretary of State for disposal.

6.1 It is the shared objective of the Council and the Trustees to provide a world class facility with the highest standard of design and environmental sustainability for the building. The development will comprise a main building itself together with ancillary educational facilities, car parking, landscape gardens for the use of patients and visitors and incidental open space.

6.2 The plan attached shows the boundary of the site which members will see is immediately adjacent to a number of current regeneration proposals in Norfolk Park and also immediately adjacent to the Norfolk Heritage Park. The site is well located next to the Supertram, local bus services. It has superb views across the City and the City Centre and for this reason it is felt to be an ideal location for a facility which will be of benefit to the all communities in the City.

6.3 The Norfolk Park Regeneration Plan, which was adopted as supplementary planning guidance in April 2000, did not contain specific development proposals for this site because it was assumed that the school would continue for the foreseeable future. However, the Proposals Map for the statutory Unitary Development Plan (1998), which NPRP supplements for this neighbourhood, designates the footprint of the school buildings as part of a wider Housing Policy Area with the associated playing fields being identified as an Open Space Area.

6.4 Given that there was no specific designation available for existing schools in the UDP, this type of formulation was the norm where such premises adjoin residential areas. Where unanticipated changes take place to the pattern of schools, such policy designations allow for a preference to be considered for residential class uses (C3) on previously developed school footprint areas and for the recreational value of attached playing fields to be considered as part of any reconfiguration or redevelopment of sites.

The relevant UDP policy H10 also lists a further 10 uses, including residential institutions (Class C2) like hospices, that would be considered acceptable in principle in Housing Areas on the basis that they are likely to be compatible in primarily residential areas. All but 7 of the current UDP policies, including H10, will remain in force until they are formally replaced by new policies and proposals in adopted development plan documents forming part of the Sheffield Development Framework.

6.5 In order to ensure that the hospice is designed and developed in a way which is compatible with, and supportive of, the redevelopment of the remaining residential sites and surrounding areas of Norfolk Park and also that the hospice itself is protected from inappropriate developments in the future, it is proposed to prepare a masterplan for the hospice and the immediate surrounding area. The principles upon which this masterplan are to be based are attached.

7.1 Local Authorities are normally under a duty to dispose of land at the best consideration which can reasonably be obtained, unless the Secretary of State gives consent to disposal at less than this. There is a general disposal consent given in the Local Government Act 1972: General Disposal Consent (England) 2003 which gives authority for the Council to dispose at an undervalue in the following circumstances:-

a) where the difference between the unrestricted value of the land to be disposed of and the consideration for the disposal does not exceed £2,000,000; and

(b) the disposing authority considers the disposal is likely to contribute to the achievement of the promotion or improvement of the economic, social or environmental well-being of the whole or any part of its area, or all or any persons resident or present in its area.

7.2 ODPM Circular 06/03: Disposal of Land for Less than Best Consideration suggests that the disposing authority should have regard to its community strategy (in the Council's case this is the Sheffield City Strategy) in making the decision. The City Strategy has been considered in the preparation of this report. This proposal is consistent with the guidance and City Strategy. A formal decision of Cabinet is needed to confirm that the Council is satisfied that it is appropriate to dispose of the site at an undervalue in these circumstances. Officers recommend that it is appropriate to do so in these circumstances.

7.3 Since the proposed disposal involves land and playing fields which were a former community school, which was closed in August 2002, there is an additional procedural step which will be needed to comply with education legislation. The specific consent of the Secretary of State for Education will be required. Once Cabinet approval for the disposal has been given, immediate steps can be taken to undertake further consultation about the proposals and then submit the necessary applications to the Secretary of State for consent to dispose of the former school site.

8.1 It is recommended that the sale be at less than best consideration. Section 123 of the Local Government Act 1972 as amended allows Cabinet/ City Council to dispose of land at less than the maximum market value, if it is valued at less than £2m and there is statutory justification for doing so.

8.2 As part of the strategic regeneration of the Norfolk Park area, and the strategy for provision of Primary education in the area, both Bluestone School and Norfolk School were closed, and a single new school - Norfolk Park Community primary school - was provided in a central location at Guildford Avenue (previously a Housing site).

8.3 Investment in the area, including the site adjacent to the Bluestone site, by English Partnerships and Transform South Yorkshire has helped the City Council assemble sites to ensure development can be controlled and delivered in keeping with the vision for the area.

8.4 The Head of Corporate Property Services has estimated that the Bluestone site has a market value for health and associated facilities of approximately £900,000, which when translated into a long lease for 250 years, based on the Draft Heads of Terms set out in 4.6 above gives an approximate annual rental value of up to £40,000 per annum, subject to a rent review every 10 years to be negotiated.

It is also estimated that if the site were disposed of free of encumbrances, then the value would be £1,500,000. This value reflects a market for residential land although in current market conditions there is bound to be some uncertainty on whether this sale price could be achieved.

9.1 The provision of this facility and location is well served by accessible public transport, and is close to the City Centre. In keeping with the principles for regeneration of the neighbourhood, good urban design of the building and surrounding area will seek to ensure ease of pedestrian movement is a promoted, with strong connections to the park, public transport and local facilities. The facility will be fully accessible.

The grounds and gardens will provide high quality palliative environment for patients and their families. All developments at Norfolk Park are designed in consultation with local people. The new Neighbourhood centre benefited from the contribution of local people through a community walkabout, to help inform how people use the area.

10.1 There are not thought to be any human right implications arising from these proposals.

11.1 The masterplan to be prepared for the development of the site and the adjacent area will ensure highest levels of environmental sustainability and the building itself will be designed to the highest possible standards of sustainable building design through consultations between the Trustees, their Agents, Director of Housing, and the Director of Development Services.

12.1 That approval be given to the proposed disposal of the former Bluestones School site at Norfolk Park, as shown in the attached plan, which covers a total area of some 1.9 hectares, to the Trustees of St. Luke's Hospice for the express and sole purpose of the provision of a new hospice facility for the City of Sheffield.

12.2 That consultation takes place about the proposed disposal of the former Bluestone School playing fields with the local community and all those likely to be affected and the outcome of the consultation is submitted to the Secretary of State with the application for consent to the disposal.

12.3 That the Head of Corporate Property be authorised to negotiate terms for the disposal based on the principles set out in paragraph 4.6.

12.4 That delegated authority be given to the Executive Director, NCC and the Assistant Chief Executive, Legal and Governance in consultation with the Leader of the Council, to finalise the terms of the disposal.

David Curtis Cath Roff,

Executive Director Executive Director,

DEL NCC

1st September 2008