Agenda item

School Modernisation Mutual Investment Model and land at Plas Morlais

Minutes:

The Corporate Director Education and Family Support sought approval to submit the Mutual Investment Model (MIM) Stage 1 application to the

Welsh Education Partnership Co (WEPco); and proceed with the required land transactions in order to facilitate the development of schools in this location.  He informed Cabinet that this would include the completion of an option agreement with Valleys to Coast (V2C) in respect of the intended use of the former Glan-yr-Afon Resource Centre; together with instructing solicitors to commence proceedings to acquire the Plas Morlais site from V2C; and to prepare contract documents for the disposal of Afon-Y-Felin Primary School site to V2C at an agreed price at a future date.

 

The Corporate Director Education and Family Support reported that the Welsh Government in November 2020 approved the Strategic Outline Case for two Bridgend West schemes and, in December, Council approval was received to include funding in the capital programme for the purchase of land at Plas Morlais in order to support the English-medium element of the project.  Following a statutory consultation process which took place in June 2021, under the School Organisation Code in respect of the two Bridgend West proposals, Cabinet determined to approve the two proposals (to discontinue Afon Y Felin and Corneli Primary Schools and establish a new two form-entry English-medium primary school on the Plas Morlais site, and to enlarge Ysgol Y Ferch O’r Sgêr to a two form-entry FE, to be located on the Corneli Primary School/Ysgol Y Ferch O’r Sgêr site).  He stated that in respect of the associated land transactions, Cabinet and Council approval

was given in December 2020 for the inclusion within the Capital Programme of the amounts required for the acquisition of the Plas Morlais site from V2C within 2021-2022.  Approval was also received to include the future sale of the Afon Y-Felin primary school site to V2C and Glan-yr-Afon as part of this three property transaction.  V2C had confirmed a commitment to these transactions and are working with officers to bring them forward.  

 

He reported that formal approval to proceed to deliver any new project and to enter into associated legal documentation to facilitate the same, including a Project Agreement (Stage 1), required Cabinet approval.  He stated that the schemes are now at the stage where a Stage 1 application to WEPco needs to be submitted.  Following receipt WEPco will consider the application and determine whether it can be accepted as a ‘new project’.  If accepted, the design development process for the new schools will commence.

 

The Corporate Director Education and Family Support also reported that following an extensive site search and feasibility exercise for the proposed

replacement schools in the West, neighbouring land at Plas Morlais, owned by V2C, had been identified for development of one of the new Schools, with the existing site shared by Corneli Primary School and Ysgol Y Ferch O’r Sgêr as the other.  He stated that the principle of the land transaction is based upon a ‘swap’ deal with V2C, whereby the Council would exchange the Afon-Y Felin Primary School site for V2C’s Plas Morlais site, however the sequencing and payments related to the two elements of the ‘swap’ were unable to be aligned as the Afon-Y-Felin Primary School site

cannot be sold until the completion of the new school development, and the

new school site has to be acquired ahead of the new school development. The Council would acquire the Plas Morlais site upfront, ahead of realisation of the capital receipt for the Afon-Y-Felin Primary School site.  He stated that a jointly instructed valuation of both sites had been undertaken by the District Valuer who has returned values for both sites.  The reported values indicate a difference in value in favour of the Plas Morlais site, being valued higher based on size and anticipated development densities.  In order to account for the difference in values, Cabinet has agreed that Glan-yr-Afon, Ynysawdre could be incorporated into the ‘land swap’.  The District

Valuer has valued this site in its current condition and agreement has been

reached with V2C that will see them take an immediate option agreement on Glan-Yr-Afon at the District Valuer valuation, whilst the acquisition agreement for Plas Morlais is concluded.  This would allow V2C to bring forward redevelopment plans for the Glan-yr-Afon site forthwith.

 

The Cabinet Education and Regeneration stated that the land transaction was a highly technical matter but was necessary to take the development of the new schools forward which was the largest education investment ever in the Cornelly area, delivering 21st century schools and regenerating the area.  He stated that the project would be phased in such a way that no child would be affected by construction works or educated in temporary classrooms, which would see the English medium school being developed first, followed by the Welsh medium school. 

 

The Cabinet Member Communities stated that although the transaction was described as a land swap, the authority would still be purchasing the land to facilitate the development of the new schools.  The Leader stated that land values would be assessed by the District Valuer and it was essential that the authority acquires the land to construct the new schools as it did not have suitable land in its ownership.  The Corporate Director Communities informed Cabinet that the availability of land was crucial to the development going ahead in order to deliver the schools and that the District Valuer would assess land values at agreed prices.

 

RESOLVED:           That Cabinet:

· approved the Stage 1 submission to WEPco; and

· approved the option agreement of Glan-Yr-Afon to V2C as part of the overall ‘land swap’ agreement and to authorise officers to progress contracts for the acquisition of the land at Plas Morlais from V2C and the future sale of Afon-Y-Felin Primary School to V2C at the agreed values, ensuring the Council obtains best consideration in line with section 123 of the Local Government Act 1972 in line with Land Transaction Protocols.              

Supporting documents: