DD2049 Disposal of the Greenwich Coaling Jetty

Type of decision: 
Director's decision
Code: 
DD2049
Date signed: 
28 September 2016
Decision by: 
David Lunts, Executive Director Housing and Land

Executive summary

GLAP is seeking to dispose of the Greenwich Coaling Jetty (the Jetty) as a chattel (with the benefit of a licence granted by the freeholder, the Port of London Authority) to Knight Dragon for a consideration.  The transfer will reduce GLAP’s insuring and maintenance liability.  Knight Dragon proposes to use the Jetty for entertainment space, building on the previous two summers’ theatre productions.

This request for a delegated decision follows Mayoral Decision MD1111 which records the Mayor’s decision to delegate his decision-making powers with relation to development decisions in respect of the GLAP land holdings at Greenwich Peninsula to the Executive Director of Housing and Land and the Executive Director of Resources, in order to provide a clear separation between the Mayor’s planning decision-making powers and his ability to make decisions affecting development.
 

Decision

The Executive Director of Housing and Land and the Executive Director of Resources approves disposal of the Greenwich Coaling Jetty to Knight Dragon as a chattel (with the benefit of a licence granted by the freeholder, the Port of London Authority) 

 

Part 1: Non-confidential facts and advice

Introduction and background

1.1.    GLAP inherited the Greenwich Coaling Jetty as part of the Greenwich Peninsula assets from Homes and Communities Agency (HCA) in 2012.  Since the transfer the Jetty has been maintained at the expense of GLAP.  The Jetty is a chattel and GLAP does not hold the freehold of the land upon which the Jetty sits, being the river bed the freehold of which is held by the Port of London Authority (PLA).
1.2.    GLAP is the successor to the HCA’s licence for use of the Jetty, although this use is explicitly limited to the maintenance of the Thames Water Outfall Sewer and any other use is strictly prohibited.  HCA paid £100,000 to the PLA for the 25 year licence which expires in 2025 (the “Licence”).
1.3.    In summer 2014 Knight Dragon sought a licence from the PLA to use the Jetty for an outdoor theatre production with associated food and beverage provision, which was held for a number of months.  Again in summer 2015 Knight Dragon installed a theatre with associated food and beverage provision which was subject to a licence from the PLA (with GLAP’s consent).  The Licence has now lapsed and Knight Dragon’s equipment remains on the Jetty, despite requests from GLAP to remove it.  The equipment extends to a number of shipping containers.
 

Objectives and expected outcomes

2.1.    Whilst in principle GLAP support the entertainment provision and the activity seeking to generate visitors to the Peninsula; building the character and reputation of the location as a new cultural focus for London, GLAP is seeking to regularise the situation by transferring the responsibility of insurance and maintenance of the Jetty to Knight Dragon. This is to ensure GLAP is not held liable for any accidents or occurrences on the Jetty while Knight Dragon’s equipment remains in situ. 
2.2.    GLAP has sought independent valuation advice for the Jetty which is detailed in Part 2 and formed the basis of the commercial negotiations for the sale.

 

Equality comments

3.1.    Knight Dragon will use the Jetty for entertainment processes and will therefore be subject to appropriate access requirements.

 

Other considerations

4.1.    Key Risks
The key risk to GLAP remains whilst it is the owner of the Jetty and Knight Dragon’s equipment remains upon it.  If it remains without an appropriate indemnity from Knight Dragon holding GLAP harmless GLAP could be liable for any accidents or occurrences.  Once the transfer is completed the risk to GLAP falls away.

4.2.    Links to Mayoral priorities
The Mayor’s Cultural Strategy supports arts and interventions across the capital to bring culture to a wider audience.
 

Financial comments

5.1.    Finance comments are contained in Part 2.

 

Planned delivery approach and next steps

Activity

Timeline

Agreement of sale contract

September 2016

Completion of sale contract

September 2016

Knight Dragon takes possession

October 2016