Metropolitan Police Warren Sports Club Lease

In order to enable the Warren Sports Club to operate on an improved and independent financial basis this proposal recommends termination of the existing lease, the grant of a new, longer lease at a lower rent, and a reduction in the Employer Grant payable to the club. Over a ten year period there is a net nil effect on the MPS budget, and after that period a net benefit.

The Deputy Mayor for Policing and Crime is recommended to:

1. Agree to terminate the existing lease and grant a new lease to The Warren terminating in 2050 reducing the rent from £68,750 to £22,650 per year. The terms will match those of the Imber Court Sports Club lease, where relevant, including sub-let provisions;

2. Agree a reduction in the Employer’s Contribution Deed (ECD) reducing to zero by 2029.

1. Introduction and background

1.1. The Met has a rich history of sporting and social support for officers and staff, including through the facilities offered by four sports clubs. The clubs continue to provide a ‘Met-family’ social home for some current and former officers and staff, a ‘Met-family’ venue for important ‘job-family’ events (funeral wakes, weddings etc), as well as commendation events and some training.

1.2. MOPAC is the freeholder of The Warren Sports Club facility. In 2013, a separate limited company was established to run the Sports Club, the Directors of which are current and former police officers. The Club is run for the benefit of the Metropolitan Police Service (MPS) officers and staff, both current and retired.

1.3. The MPS is actively encouraging the Club to be able to operate without an ‘Employer’s Contribution’ grant and become sustainable based on its own income.

2. Issues for consideration

2.1. The Club has presented a business plan which shows that it could create additional sustainable income with minimum impact to the existing users through: (a) converting some of the unused out-buildings on the site into offices and then letting them out; (b) letting out parts of the facility for third party events; and (c) applying for grants from sports bodies that require a longer lease term.

2.2. The Club has eight years remaining on its current lease, which is not long enough in terms of pay back to make worthwhile the investment to support the revenue generation. Hence, it has requested a lease extension.

2.3. Following extensive discussions with the Club and a detailed review of their business plan, the MPS has recommended to MOPAC to extend the lease to 2050 whilst also ensuring a reduction in the Employer’s Contribution to zero by 2029.

3. Financial Comments

3.1. Over a ten year period reducing the rent payable over the extended lease period and reducing the Employers Grant has the effect of a net nil impact on the MPS budget. After the ten year period there is a net benefit to MPS. Further detail is in Part 2.

4. Legal Comments

4.1. In carrying out its functions, MOPAC may, under paragraph 7, Schedule 3 of the Police Reform and Social Responsibility Act 2011 “do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of the Office”.

4.2. Under the MOPAC Scheme of Consent and Delegation 4.16 the DMPC must approve “All requests to grant or surrender a lease”.

5. Commercial Issues

5.1. See Part 2

6. GDPR and Data Privacy

6.1. This report does not use personally identifiable data of members of the public therefore there are no GDPR issues to be considered

7. Equality Comments

7.1. There are no equality implications arising from this proposal.

8. Background/supporting papers

8.1. Appendix 1 MPS Report