Development Agreement in relation to Great North Leisure Park and Finchley Leisure Centre

Concepts

• non-residential real estate
• finchley leisure centre
• leisure centre
• great north leisure park
• great north leisure park and finchley leisure centre
• finchley lido leisure centre - development agreement
• the current finchley leisure centre
• the current leisure centre
• development agreement decision - great north leisure park
• the leisure centre

Location

Barnet

Description

II.1.4) Short Description: The project is for the development of the site to the north of the Great North Leisure Park, Finchley, London. The London Borough of Barnet (LBB) intend to enter into a development agreement with Regal GNLP Limited. LBB is the freeholder of a large area of land including the Great North Leisure Park (“GNLP”) and the Developer owns a long headlease of GNLP and a headlease of land to the north of GNLP (known as Glebelands). Part of the land comprised within the Headlease, is subject to an underlease back to LBB of the current Finchley Leisure Centre. The developer intends to develop a residential led mixed-use scheme on the GNLP site, including the plot occupied by the current Finchley Leisure Centre. LBB has identified that the site to the north of GNLP can accommodate a replacement leisure centre to the current Finchley Leisure Centre and is attracted by this opportunity to refresh facilities and make a step-change in local leisure provision.

Total Quantity or Scope

The project is for the development of the site to the north of GNLP. Under the development agreement the parties will vary the Headleases to accommodate a proposed development on the Developer’s site. The Developer will surrender a strip of land to facilitate the development of a Leisure Centre and build the Leisure Centre on the former bowling green site owned by the Council to the north of GNLP. The estimated value of the Leisure Centre is £45MexcVAT. The Leisure Centre will be part funded up to £29M by the developer through land receipts. An alternative scheme in contemplation is a smaller leisure centre with fewer facilities offering a lower cost option in the range of £29–45M. The development is subject to various conditions (planning, funding and ground investigation) and will contain protections if the development of the Leisure Centre does not proceed. This may include a smaller leisure centre or surrender of the lease and retaining the site of the current Leisure Centre. Additional information: Authorisation to proceed with Development Agreement Decision - Great North Leisure Park (GNLP) and Finchley Lido Leisure Centre - Development Agreement (DA) can be accessed by copy and pasting the following into web brower search https://barnet.moderngov.co.uk/ieDecisionDetails.aspx?ID=9506

Award Detail

Renewal Options

Subject to performance and budget there is a contractual price review mechanism, and an alternative option for a smaller leisure centre at the same site.

Award Criteria

CPV Codes

• 70112000 - Development of non-residential real estate

Indicators

• Options are available.

Legal Justification

This VEAT Notice sets out the Council’s intention to directly contract with Regal GNLP Limited (the “Developer”) to develop a New Leisure Centre in North Finchley. There is an anticipated target completion date of January 2029 and an overall long stop date of 5 years from completion. The Council intends to observe a period of at least 10 days from the date of publication of this VEAT and will not enter into the contract during that period. The Council considers that the award of the Development Agreement is permitted pursuant to Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 (PCR) which permits the use of negotiated procedure without prior publication for public works contracts, public supply contracts and public service contracts where the works, supplies or services can be supplied only by a particular economic operator on the basis of the protection of exclusive rights, and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement. The Council’s view is that the development can only be delivered by the Developer because the Developer has exclusive rights under a long leasehold interest in the land and no reasonable alternative or substitute exists. The Council’s view is that because the Developer has a leasehold interest over land which encroaches on the proposed site of the New Leisure Centre and therefore has control of access to the new site, and because Regal would need to surrender part of its current lease on the existing leisure centre to make the entire footprint of the New Leisure Centre available for development, to deliver this project, the Council must enter into contract directly with the Developer. If the Council does not develop the New Leisure Centre, it will be retaining an ageing, inefficient and increasingly expensive asset. No alternative provider could undertake the Development Agreement to develop the New Leisure Centre because the Developer controls access to the land and will need to surrender part of its current lease to the Council to make the New Leisure Centre available for development and there is no alternative suitable site. This absence of competition is not the result of an artificial narrowing down of the parameters of the procurement

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** To view this notice, please click here: https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=915670246 GO Reference: GO-2025115-PRO-29138472