DMFD6 Former Mitcham Fire Station

The former Mitcham Fire Station was declared surplus to operational requirements, in March 2015, as part of the Private Finance Initiative (PFI) project. The Property was subject to a right in favour of the London Borough of Merton, having the right to purchase the Property. The London Fire Commissioner completed a Deed of Release in June 2016, giving the Commissioner the right to dispose the property on the open market.

After an open process, nine unconditional offers and two conditional offers were received for the property by the Commissioner.

The Commissioner is preparing the detailed heads of terms and legal documentation for the transaction with the highest advantageous offer. In the event of any unacceptable delays or attempts to renegotiate the commercial terms of the transaction by the highest bidders, then the transaction will be aborted and an alternative disposal with one of the other interested parties will be progressed.

The London Fire Commissioner has a statutory duty under the Local Government Act to achieve the best consideration which is reasonably obtainable on all property transactions. Disposing of the former Mitcham Fire Station in compliance with the Commissioner’s Code of Practice on the Disposal of Land and an open market process meets that requirement.

More information is set out in the attached Report to the London Fire Commissioner dated 20 June 2018 (LFC-0035) and its confidential appendix (contained within the Part 2 section of this decision).

The Public Sector Equality Duty – and the potential impacts of this decision on those with protected characteristics (age, disability, gender reassignment, pregnancy and maternity, race, gender, religion or belief, sexual orientation) – has been considered by the London Fire Commissioner and the Deputy Mayor for Fire and Resilience. No impacts have been identified.

The capital receipt will be used by the Commissioner to fund future capital expenditure, reducing borrowing requirements. There are no direct implications for the GLA.

Under section 9 of the Policing and Crime Act 2017, the London Fire Commissioner (the "Commissioner") is established as a corporation sole with the mayor appointing the occupant of that office. Under section 327D of the GLA Act 1999, as amended by the Policing and Crime Act 2017, the Mayor may issue to the Commissioner specific or general directions as to the manner in which the holder of that office is to exercise his or her functions.

By direction dated 1 April 2018, the Mayor set out those matters, for which the Commissioner would require the prior approval of either the Mayor or the Deputy Mayor for Fire and Resilience (the "Deputy Mayor").

Paragraph a of Part 2 of the said direction requires the Commissioner to seek the prior approval of the Deputy Mayor before “…[the] acquisition or disposal of any freehold interest or leasehold interest in land…”.

This decision seeks the Deputy Mayor's approval for the Commissioner to accept the best consideration for the former Mitcham Fire station and to progress the agreed transaction to contract completion.