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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