Decision details

Payment of air space levy to the Crown Estate for the St Philips Footbridge, funded by Temple Island Enabling Works.

Decision Maker: Director: Property, Assets and Infrastructure

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

The Council must pay the Crown Estate (TCE) for the Right of Air being granted over TCE land in order to provide the St Philips Footbridge connection between Temple Island and Albert Road. The Valuation Report produced for BCC relies on comparable transactions for rights acquired from TCE for similar bridges/crossings of their land to assess the value of this levy charge. The proposed sum includes for back payments of rent plus a final capex lump sum for 999 year/in perpetuity lease. This has been in discussion between TCE and BCC since 2018. It is recommended that now is the right time to finalise the negotiation, as more construction work begins the TQ area.
TCE originally requested £300,000 in 2021. In August 2023 TCE agreed to a sum of £117,500 plus costs, based on a £/m2 as agreed for their Cardiff bridge and making a 50% discount for our bridge.

Decision:

Approval to make payment of air space levy and associated legal and professional surveyors costs to the Crown Estate for the St Philips Footbridge using the Temple Island Enabling Works project contingency budget.

Alternative options considered:

Option 1 - Not pay the Crown Estate and the risk remains like that a levy could be imposed or BCC could be fined at any time for a charge of up to £300K or requirement to remove the bridge.
Option 2 - Apply for budget from Property or Highways and Bridges for the levy – As St Philips Footbridge project is closed we believe there is no budget for this elsewhere in the Council. Previous requests have been made to Highways and Transport directors who have rejected the requests.
Option 3 -

Publication date: 11/09/2023

Date of decision: 07/09/2023