PCD 1849 Kentish Town OBC

Executive Summary:  

In March 2022, the OBC for the redevelopment of the Kentish Town site was approved (PCD1152). This paper seeks approval for MPS to refurbish the Kentish Town Section House and dispose of the existing Police Station, annex building and part of the car parking area. The refurbishment of this key MPS site will also include provision of DPS Hearing Rooms. The proposal is dependent on the off-market sale of the existing Police Station, annex building and part of the car parking area. The site is adjacent to the Regus Road Development Area which Camden Borough Council are developing and so this proposal will support Camden Borough Council’s aspirations to redevelop the area to provide new homes and jobs and supports the wider regeneration of the Regus Road area as well as provide a solution to the MPS for the redevelopment of this geographically well positioned site to meet the operational needs of the Central North BCU. 

Recommendation:  

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve the progression of the refurbishment of the existing Kentish Town Section House building at a total cost of £32.732m (including £1.222m already spent under previous approvals) as set out in Table 2.  This proposal is funded from the previously approved Capital Budget of £22.732m (including OB of £4.291m) and the sale receipt of £10.000m from the sale of the old Police Station, annex and part of the car park.  

2. Approve the provision of the DPS Hearing Rooms facility into this scheme to replace the facility currently at Palestra; 

3. Approve the entering into of a sale agreement to sell the existing Police Station, Annex building and a part of the car parking area to Yoo Capital in the sum of £10.000m, in accordance with the Sale Agreement that has been agreed in principle and is included at Annex C.   

4. Approve delegated authority to the Director of Commercial Services to award MPS Design, Project and Cost Management Framework appointments up to £0.500m to facilitate the development and implementation of final designs for RIBA Stages 2 – 7.   

5. Approve delegated authority to the Director of Commercial Services to award a design and construct pre-construction services agreement (PCSA) up to £1.500m for Concept, Detailed & Technical Design, Specialist Surveys, Planning Application & Tendering during the preconstruction phase. This appointment will use an existing approved MOPAC framework.  

6. Approve delegated authority to the Director of Commercial Services to award the construction works contract to the appointed Design and Construct Framework contractor upon receipt of a 

7. lump sum price, subject to a maximum total construction cost of £22.345m. This appointment will use an approved MOPAC framework for construction works. 

8. Approve delegated authority to the Director of Commercial Services to award other related project costs to a total of £8.387m incl. Optimism Bias allowance.  

9. Approve delegated authority to the Director of Property Services to progress with the agreement of Heads of Terms and a Sale Agreement to sell part of the MPS demise including the Listed Police Station, Annex building and part of the existing operational parking facility.   

10. Approve that the proceeds of the sale are to be used to support the above investment at Kentish Town. 

PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC 

1. Introduction and background  

1. Since OBC approval in March 2022, Camden Borough Council have entered into a development agreement with a private sector partner - Yoo Capital, to redevelop the adjacent Regus Road Development Area, which comprises the land immediately adjacent to the Police Station to the North and West. The Council’s wider redevelopment plans have meant that the MPS has encountered significant problems with their initial planning application.  

2. To move forward, the MPS entered into discussions with Yoo Capital to try and identify a mutually beneficial scheme. 

3. A refurbishment proposal has recently been developed with Yoo Capital which provides for the MPS to fully refurbish the existing Section House building to provide the full suite of MPS requirements. This scheme allows the disposal of part of the existing site that would no longer be required; initial cost reviews indicate that the scheme is affordable provided the sale proceeds are used to supplement the existing approved budget (this principle was approved for the OBC approved scheme). 

4. Initial engagement with the local Planning Authority indicates that the revised proposal will be supported as it retains and reuses the existing Section House building, it assists their wider development and growth plans and can provide their desired urban masterplan including the cycle/pedestrian link. The proposal enables the sale of the existing, poor quality and Grade 2 listed Police Station and Annex to Yoo Capital, along with a portion of the existing car park. This provides Yoo Capital with significant benefits; the price negotiated for the sale of the land of £10.0m enables the MPS to fully fund the refurbishment of the Kentish Town Section House.  

2. Issues for consideration 

1. The sale of the Police Station, Annex and a portion of the existing car park to Yoo Capital would be an off-market disposal as the site would not be put up for sale on the open market. MPS sought legal advice which concluded that an off market disposal is potentially acceptable provided that MOPAC have robust evidence that:- 

1. it has complied with its statutory obligations to achieve value for money 

1. MPS have received advice from independent property valuation experts that confirms that the value offered to MOPAC is considerably in excess of the market value of the site on an open market basis. 

2. it has complied with its obligations in the relevant Codes and Guides in informing its decision-making on its disposal strategy. 

1. MPS sought further legal advice which confirmed that MOPAC are compliant with its obligations in the relevant Codes and Guides in making this decision.   

3. Financial Comments  

1. The estimated cost of this refurbishment of Kentish Town is £32.732M inclusive of all costs including construction costs and costs relating to Digital Policing, Furniture and Security. £2.000m is allocated for the costs of full design and Project and Cost Management professional services, and £22.345m is allocated for the cost of construction works. In addition, as the agreed proposal is at Feasibility Design (Stage 1), optimism bias of 20% (£4.323M) has been applied.  The £1.222m previously approved was expended to date.  

2. The current approved capital budget is £22.732m. The new Capital Budget is £32.732M, funded by the previously approved funds plus the value of site sale at £10.000M.  

4. Legal Comments 

1. The Mayor’s Office for Policing and Crime (“MOPAC”) is a contracting authority as defined in the Procurement Act 2023 (“the Act”).  All awards of public contracts for goods and/or services valued at £0.215m or above and all awards of public contracts for works valued at £5.373m or above must be procured in accordance with the Regulations and Act.  This Report confirms the associated professional services and construction works shall be procured compliantly. 

2. Paragraph 4.8 of the MOPAC Scheme of Delegation and Consent provides that the Deputy Mayor for Policing and Crime (DMPC) has delegated authority to approve business cases for revenue or capital expenditure of £500,000 or above. 

3. Paragraph 4.13 of the MOPAC Scheme of Delegation and Consent provides that the Deputy Mayor for Policing and Crime (DMPC) has delegated authority to approve all requests to go out to tender for contracts of £500,000 or above.   

4. Regulation 72 permits MOPAC to modify a contract in limited circumstances where certain conditions are met. MPS assure that the conditions have been met. 

5. Commercial Issues  

1. The MPS assure the procurement of these frameworks will be procured compliantly under the new Procurement Act 2023.  

2. The Frameworks will be procured with regard to the Government’s new National Procurement Policy Statement (upon publication in 2025), social value procurement policy notices and key ambitions within the London Mayor’s Responsible Procurement Policy 2022-2024. 

3. MOPAC’s strategy to consider collaborative arrangements with the rest of the GLA family will be supported as the new frameworks will be procured on the basis that they are ‘open’ to the wider GLA authority family.  

6. GDPR and Data Privacy  

1. MOPAC will adhere to the Data Protection Act (DPA) 2018 and ensure that any organisations who are commissioned to do work with or on behalf of MOPAC are fully compliant with the policy and understand their GDPR responsibilities.   

2. Further issues for consideration are contained in the restricted section of the report. 

7. Equality Comments    

8. MOPAC is required to comply with the public sector equality duty set out in section 149(1) of the Equality Act 2010. This requires MOPAC to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations by reference to people with protected characteristics. The protected characteristics are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. 

9. Background/supporting papers 

• Appendix 1 MPS Report – Kentish Town OBC Update Paper