Section one: Contracting authority
one.1) Name and addresses
Hastings Borough Council
Muriel Matters House, Breeds Place
HASTINGS
TN343UY
Contact
Estates Manager
Telephone
+44 14242451640
Country
United Kingdom
NUTS code
UKJ22 - East Sussex CC
Internet address(es)
Main address
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
Housing and community amenities
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
West Marina Land Disposal and Development
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.1.4) Short description
A developmant agreement for commercial and residential development of land at West Marina, Seaside Road, St Leonards on sea and associated grant of leases and transfers of freehold properties
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £35,000,000
two.2) Description
two.2.2) Additional CPV code(s)
- 45000000 - Construction work
two.2.3) Place of performance
NUTS codes
- UKJ22 - East Sussex CC
Main site or place of performance
West Marina, Seaside Road, St Leonards on sea
two.2.4) Description of the procurement
Hastings Borough Council ("the Council") has entered into an agreement with West Marina St Leonards Limited ("WMSLL") for the development and disposal of land at West Marina, Seaside Road, St Leonards-on-sea ("West Marina"). West Marina has been largely vacant for over 30 years following the closure of the former lido. The site represents an opportunity for land to be developed to create a high quality development which can help regenerate the area. Development of the site includes a mix of residential units (including some affordable housing) as well as commercial units, beach huts and "glamping spaces".
The arrangements entails a minimum of 1,500 sqm of buildings comprising workshops / live works space within sui generis use class, 50 beach huts and 12 glamping huts as well as a minimum of 125 residential buildings and a car park.
The Council invited proposals from two bidders, from which its preferred partner has been selected.
two.2.5) Award criteria
Quality criterion - Name: Deliverability / Weighting: 40
Quality criterion - Name: Experience , Track Record / Weighting: 10
Cost criterion - Name: Financial offer / Weighting: 50
two.2.11) Information about options
Options: No
two.2.14) Additional information
The Council has entered into a contract to WMSLL which is wholly owned by County Gate Properties Holdings Limited ("County Gate"). County Gate's bid is guaranteed by the Generator Group Holdings Limited who replaced County Gate's original proposed guarantor Sunley Holdings Limited.
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Award of a contract without prior publication of a call for competition in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
The Council considers that the contract entered into between the Council and WMSLL for the West Marina Development and Land Disposal falls outside the scope of Public Contract Regulations 2015 (PCR) as the main object of the transaction is a land transaction and not a public works contract. Therefore the Council relies on Regulation 10(1)(a) PCR, alternatively that the definition of a public works contract is not met.
The Council considers that the contractual arrangements with WMSSL do not fall within the definition of a public works contract for the following reasons:
(1) In respect of the land intended for residential use, the freehold will be transferred to WMSLL for a nominal value. Whilst the Council has stipulated the minimum number of residential units (125) and will be able to request variations to the plans and specifications for the construction of the residential units, WMSLL retain the absolute discretion to approve such variations. In relation to the land intended for the commercial use, the Council will dispose of this by way of a 250 year lease.
The Council has specified a minimum number of 1,500 sqm of buildings comprising workshops / live works space within sui generis use class, 50 beach huts and 12 glamping huts. The Council has the right to approve the planning application in so far as it relates to the commercial development. The Council may (before the development commences) request variations to the plans and specifications for the construction of the commercial developments and WSMLL must not unreasonably withhold its approval of any such variation (although it may do so if the variation would, in WSMLL's reasonable opinion, have a significant adverse financial consequence to WSMLL).
There is no absolute obligation on WMSLL to carry out the works as it has a right to issue a notice of unsatisfactory survey and subsequently terminate the agreement.
(2) In terms of economic benefit, as said above, the freehold of the residential units will be transferred to WMSLL following completion of the development albeit that the Council will have pre-emption rights over fifteen residential units for purchase at market value with a 5% discount if the Council purchases six or more units. The Council will not retain nomination rights in relation to the affordable housing units. For the commercial units, in consideration of the grant of the 250 year lease the Council will derive a rent. The rent is fixed at a minimum amount. There is an additional rent paid in the form of 50% of the profits generated by the commercial units once the commercial development has been completed. Given the length of the lease, the Council does not anticipate to obtain an economic benefit from the development itself as by the time the land reverts back to the Council the works are likely to no longer exist.
The Council therefore considers that the contract is outside the scope of the PCR.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2021/S 076-195838
Section five. Award of contract
Title
West Marina Development
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
8 October 2021
five.2.2) Information about tenders
Number of tenders received: 2
Number of tenders received from SMEs: 2
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
West Marina St Leonards Limited
The St Botolph Building, 138 Houndsditch
London
EC3A 7AR
Telephone
+44 1444224780
Country
United Kingdom
NUTS code
- UKI31 - Camden and City of London
Internet address
www.countygateproperties.co.uk
The contractor is an SME
Yes
five.2.4) Information on value of contract/lot (excluding VAT)
Initial estimated total value of the contract/lot: £35,000,000
Total value of the contract/lot: £35,000,000
Section six. Complementary information
six.3) Additional information
Contract Award Value: The total value encapsulates the potential redevelopment of the West Marina site based on its capacity for both commercial and residential redevelopment and represents the gross development value prior to any redevelopment costs.
six.4) Procedures for review
six.4.1) Review body
High Court - Royal Courts of Justice
Strand , Holborn
London
WC2A 2LL
Country
United Kingdom