Elderly Home Care Contract Agreement

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Elderly Home Care Contract Agreement Powered By Docstoc
					HERTFORDSHIRE COUNTY COUNCIL
                                                                    Agenda Item No.
CABINET
WEDNESDAY 19 NOVEMBER 2008 AT 2.00 p.m.
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LAND AT BERICOT WAY, WELWYN GARDEN CITY & HYDE VALLEY
HOUSE ELDERLY PERSONS HOME

Report of the Corporate Director (People and Property)

Author: Colin Cooper     Tel: 01992 588114

Executive Members:          David Lloyd and Sally Newton

Local Members:       Bob Mays and Sue Jones


1.     Purpose of report

       To consider the future of land at Bericot Way, Welwyn Garden City and
       the reprovision of Hyde Valley House, Elderly Persons Home.

2.     Summary

2.1    The County Council owns the freehold of the land at Bericot Way,
       Welwyn Garden City, having a total approximate area of some 1.43
       hectares (3.53 acres) as shown edged red and blue on drawing
       number EM12799

2.2    The land has potential to provide a site to replace Hyde Valley House
       elderly persons’ home on part of the site and to produce a capital
       receipt from the sale of the remainder.

2.3    The principle of the reprovision of Hyde Valley House has already been
       agreed by Cabinet and approval is now being sought to re-use County
       Council owned land, to dispose of the existing site following the
       provision of the new home in partnership with Quantum Care and to
       dispose of the surplus land at Bericot Way

2.9    The capital receipt that would be generated from the sale of the
       surplus Bericot Way land would be in the order of £1.7m and for the
       Hyde Valley site on the order of £500k.

3.     Recommendations

3.1    That the County Council allocates part of the land at Bericot Way,
       Welwyn Garden City, as indicated by blue edging on plan number


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       EM12799 for the provision of a new care home to replace Hyde Valley
       House.

3.2    That the County Council declares surplus to requirements and
       available for disposal, the land in Bericot Way indicated by red edging
       on drawing number EM12799

3.3    That the site of the existing Hyde Valley House Elderly Persons Home,
       as shown edged red on drawing no HP0170, be declared surplus to
       requirements and available for disposal following the reprovision of the
       care home to the alternative site.

4.     Background

4.1    The County Council owns the freehold of land in Bericot Way, Welwyn
       Garden City, having a total area of approximately 1.43 hectares (3.53
       acres) as shown edged red and blue on drawing number EM12799

4.2    The site is flat and undeveloped with road frontage to all four sides.

4.3    The land was held as a reserve site for a new primary school for North
       East Welwyn Garden City but this reservation was released by Cabinet
       in November 2005.

4.4    The November 2005 Cabinet report made no decision in respect of the
       future of the Bericot Way land.

4.5    In February 2005, Cabinet received a report in respect of a strategy for
       the review of the County Council’s residential care homes, proposed
       reprovision and additional care home places.

4.6    Hyde Valley Elderly Persons Home, with a capacity of 46 bedrooms, is
       included as one of the homes identified in the strategy as requiring
       reprovision in partnership with Quantum Care.

4.7    The Corporate Director, (People and Property )was authorised to
       allocate sufficient sites to meet the needs of the replacement
       programme.

4.8    Development feasibility work has been undertaken, which has shown
       that a new 90 bedded care home can be accommodated on part of the
       Bericot Way land (0.73 hectares/1.8 acres of the site) leaving the
       remainder of the land (0.69 hectares/1.7 acres) available for disposal
       for residential development.

4.9    It is proposed that Quantum Care would take a long lease of the care
       home site, raise finance and construct a new home to the County
       Council’s approval. The County Council would give a rent abatement
       over an agreed period, probably 25 years, to cover the financing costs
       of the new home. This process is in accordance with the proposals

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       agreed by Cabinet on 14th April 2008, when approval was given for
       arrangements to move forward on a new property agreement and care
       contract with Quantum Care.

4.10 Development of the new home would show a net increase of 46 bed
     spaces

4.10   The Care Contract which the County Council has with Quantum Care
       sets out the basis on which the County Council places clients the
       homes run by Quantum Care.

4.11 Quantum Care will surrender its lease of the existing Hyde Valley
     House Elderly Persons Home, once the new home is operational.

4.12   The current Hyde Valley House is located in the established residential
       neighbourhood of Woodhall in Welwyn Garden City.

4.13   The current site is indicated by red edging on drawing number HP0170
       having an approximate area of 0.19 hectares (0.47 acres).

4.14   The site would be available for disposal once the new home opens.


5.0    Town Planning

5.1    The land in Bericot Way is identified in the current approved Local Plan
       to lie within the Welwyn Garden City urban area but is not identified for
       any particular purpose.

5.2    Development feasibility has been undertaken, which demonstrates that
       a 90 bedded care home on three storeys can be accommodated on the
       land identified by blue edging on drawing number EM12799 with
       residential on the remainder of the site shown edged red on the plan.

5.3    It is considered that planning permission for these two uses without
       onerous conditions would be forthcoming subject to detailed design
       and layout.

5.4    Hyde Valley House is located in an existing residential area. The most
       appropriate alternative use would be for residential development.

5.5    The site is not an allocated housing site in the approved Local Plan
       and therefore the redevelopment would have to comply with policies in
       the local plan in relation to windfall sites and the retention of
       community facilities.

5.6    On the basis that the site would only become available once the new
       home is operational, it is anticipated that any policy considerations can
       be overcome to allow planning permission for residential development
       to be achieved.

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6.0    Financial Implications

6.1    If the whole of the Bericot Way site was available for disposal, the
       estimated capital receipt is in the order of £3.5m

6.2    By reserving the site for a care home, the surplus land would realise in
       the order of £1.7m

6.3    The capital receipt estimated from the disposal of Hyde Valley House
       is in the order of £500k

6.4    The opportunity cost therefore of allocating part of the Bericot Way site
       for a new care home is in the order of £1.3m

6.5    The capital cost of the new home (estimated at approximately £6.5m)
       would be borne by Quantum Care with the County Council giving
       Quantum a rent abatement, probably over 25 years, to cover the cost.

6.6    At the end of the rent abatement period, Quantum Care would be liable
       to pay a full rent for the property.




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