CYNGOR SIR CEREDIGION Adroddiad: I’r Pwyllgor Ymddiriedolwyr Elusennau

Dyddiad y cyfarfod: 22 Ebrill 2015 Testun: Cynnig i werthu tir a ddelir mewn ymddiriedolaeth yn

hen Ysgol Tregaron

Diben yr adroddiad: Ystyried adroddiad y Prisiwr Dosbarth a mynd ati drachefn i ystyried gwerthu tir yr ymddiriedolaeth neu’i osod ar brydles, a sefydlu cynllun elusennol newydd.

Ar gyfer:

Er penderfyniad

1. CEFNDIR

1.1 Caiff hen ysgol Tregaron a’r tir oddi amgylch (“Tir yr Ymddiriedolaeth”) ei dal

mewn ymddiriedolaeth elusennol gan y Cyngor yn rhinwedd Cynllun y Comisiwn Elusennau yn ddyddiedig 30 Ionawr 1935 at y diben o gynnal y safle fel ysgol sirol ar gyfer bechgyn a merched yn Nhregaron.

1.2 Yn ei gyfarfod a gynhaliwyd ar 11 Rhagfyr 2014, derbyniodd y Pwyllgor adroddiad (amgaeir copi yn Atodiad 1) a oedd a wnelo â chynnig i wneud cais i’r Comisiwn Elusennau am ganiatâd i werthu Tir yr Ymddiriedolaeth a sefydlu cynllun newydd gydag ymddiriedolwyr annibynnol a fyddai’n rheoli’r incwm a ddeuai yn sgil gwerthu’r eiddo.

1.3 Yn y cyfarfod uchod penderfynodd y Pwyllgor: i) geisio cyngor cyfreithiol annibynnol ar y mater a nodwyd ym mharagraff 2.6 o’r adroddiad, a chanfod a allai’r Ymddiriedolwr ddefnyddio’r elw o werthu’r ysgoldy i dalu am bethau fel adroddiad y Prisiwr Dosbarth a ffioedd cyfreithiol;

ii) awdurdodi swyddogion y Cyngor i weithredu ar ran yr Ymddiriedolwr wrth drafod y materion a grybwyllir ym mharagraffau 1.3, 1.4, 1.6 ac 1.7 o’r adroddiad hwn gyda’r Comisiwn. iii) trafod â’r Comisiwn i ganfod a fyddai’r Cyngor fel Ymddiriedolwr yn ymwneud mewn unrhyw ffordd â’r Pwyllgor Ymddiriedolwyr Annibynnol ar ôl ei ffurfio, a chadarnhau a fyddai Llywodraethwyr yn medru bod yn aelodau o’r Pwyllgor hwnnw; gofyn am gadarnhad a fyddai’r Ymddiriedolwr yn medru cynnig rhentu’r eiddo yn hytrach na’i werthu o dan unrhyw gynllun newydd; gofyn am gyngor o ran unrhyw elw o’r gwerthiant ac unrhyw fuddiant posib mewn perthynas â gwerthu’r ysgoldy, fel y bo’r angen ar ôl i’r swyddogion ymchwilio i hynt yr elw o’r gwerthiant; iv) awdurdodi swyddogion y Cyngor i roi cyfarwyddyd i’r Prisiwr Dosbarth ar ran yr Ymddiriedolwr, fel y gellid cael prisiant o Dir yr Ymddiriedolaeth yn

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ogystal â chyngor ar rent; v) cyflwyno’r wybodaeth uchod i’r Pwyllgor er ystyriaeth, fel y gallai’r Ymddiriedolwr benderfynu ynghylch y cynnig ar sail yr wybodaeth gyflawn.

2. Y SEFYLLFA SYDD OHONI

2.1 O ran yr hyn a benderfynodd y Pwyllgor ym mis Rhagfyr, gellir adrodd fel a ganlyn:

i) Darperir cyngor cyfreithiol annibynnol mewn adroddiad ar wahân ddiwrnod y cyfarfod. ii) Mae’r Comisiwn Elusennau wedi darparu cyngor ar y materion y cyfeirir atynt ym mharagraffau 1.3, 1.4, 1.6 ac 1.7 o’r adroddiad ym mis Rhagfyr: “Mewn achosion lle mae awdurdod lleol wedi meddiannu tir elusen gan gredu ar gam ei fod yn rhan o’i eiddo corfforaethol, byddem fel arfer yn disgwyl i’r ymddiriedolwr geisio iawndal i’r elusen am golli’r tir a sicrhau ei fod yn y fath sefyllfa ag y byddai wedi bod pe bai’r gwerthiant wedi’i gyflawni yn briodol. O ran y Briffordd, pe bai hwn yn rhywbeth y byddai’r Pwyllgor Priffyrdd wedi’i feddiannu drwy Orchymyn Prynu Gorfodol, yna byddai gwerth y Pryniant Gorfodol hwnnw’n llinyn mesur priodol wrth bennu swm yr iawndal i’r elusen. Ar fater ar wahân, os bydd y tir yn aros ym meddiant yr Ymddiriedolwr, yna efallai y bydd yn rhaid iddo wneud cais i’r Gofrestrfa Dir i ddiwygio unrhyw gyfyngiadau. Oherwydd y gwrthdaro buddiannau sy’n codi oherwydd mai’r Cyngor yw’r Ymddiriedolwr presennol hefyd, efallai y byddai’n werth aros hyd nes y sefydlir y corff ymddiriedol newydd, fel y gallai’r corff hwnnw ddod i delerau ynglŷn ag unrhyw iawndal mewn perthynas ag unrhyw werthiant.”

Bydd y Pwyllgor yn derbyn cyngor cyfreithiol annibynnol ar yr ymateb uchod mewn adroddiad ar wahân a gyflwynir yn y cyfarfod heddiw.

iii) Gan sôn i ba raddau y byddai’r Cyngor fel Ymddiriedolwr yn ymwneud ag unrhyw bwyllgor newydd o ymddiriedolwyr annibynnol, dywedodd y Comisiwn: “ni fyddem yn rhoi cyfarwyddyd o ran cyfansoddiad y corff ymddiriedol newydd. Serch hynny, mae’n beth gweddol gyffredin bod Cynghorau’n enwebu ymddiriedolwr i fod ar y bwrdd. Byddem hefyd yn disgwyl y byddai o leiaf rhai o lywodraethwyr yr ysgol yn rhan o’r corff ymddiriedol, gan gofio y bydd ein cynllun yn creu cronfa er budd disgyblion Ysgol Sirol Tregaron.” O ran y cynnig posib i osod yr eiddo ar rent, dywedodd y Comisiwn: “Mae’n ddyletswydd ar yr ymddiriedolwyr i gynhyrchu’r incwm mwyaf posibl at ddibenion yr elusen, ond hwy sydd i benderfynu a gyflawnir hyn drwy godi incwm drwy rent ynteu drwy werthu’r eiddo a buddsoddi neu wario’r elw. Ni fydd ein cynllun ond yn darparu’r pŵer i werthu, a gallai hynny olygu gwerthu’r eiddo neu’i osod ar brydles.” O ran gwerthu’r hen ysgoldy ym 1973, mae swyddogion cyllid y Cyngor wedi cadarnhau fod y £7,000 o elw o’r gwerthiant a £15,000 (sy’n cynnwys rhan o’r

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llog a gronnodd ar y £7,000 rhwng Chwefror 1973 a 31 Ionawr 1985, yn ogystal â £3,183.36c yr ymddengys ei fod wedi’i neilltuo ar gyfer lwfansau llety a chynhaliaeth i ddisgyblion a chynnal arddangosfeydd) wedi’i ddal ym meddiant y Cyngor fel Ymddiriedolwr ar ffurf bondiau Cynilion Cenedlaethol. Bydd y swyddog adrodd yn ymchwilio ymhellach i Gofnodion Pwyllgor Rheoli Cronfa Addysg Ganolradd a Thechnegol Sir Aberteifi ac yn ymgynghori â’r swyddogion cyllid perthnasol er mwyn cadarnhau’r balans gan gynnwys llog o 1985. iv a v) Rhoddodd y Cyngor fel yr Ymddiriedolwr gyfarwyddyd i’r Prisiwr Dosbarth, ac amgaeir adroddiad y Prisiwr Dosbarth yn Atodiad 2 i’r adroddiad hwn. Yn gryno, adroddodd y Prisiwr Dosbarth: - Gwerth y budd rhydd-ddaliadol yw £75,000; - Gwerth y budd prydlesol yw £2,400 y flwyddyn, gan dybio y gellid symud y llyfrgell i’r hen floc gwyddoniaeth.

3. GWEITHDREFN

3.1 Amgaeir yn Atodiad 1 yr adroddiad a gyflwynwyd i’r Pwyllgor ym mis Rhagfyr, ac ym mharagraffau 3 a 4 fe nodir y manylion ynghylch athrawiaeth cy-pres yn ogystal â’r weithdrefn ar gyfer gwneud cais i’r Comisiwn am gynllun newydd pe bai’r Pwyllgor yn penderfynu fod cy-pres yn berthnasol yn yr achos hwn.

3.2 Roedd yr adroddiad ym mis Rhagfyr yn canolbwyntio ar gynnig i werthu Tir yr

Ymddiriedolaeth, a dyna pam fod paragraff 4.8 yn cyfeirio at ddefnyddio’r incwm a ddeuai o unrhyw werthiant. Fodd bynnag, pe byddai’r Ymddiriedolwr yn penderfynu gosod y tir ar brydles yn hytrach na’i werthu, yna’r incwm o’r rhent a fyddai ar gael i gyflawni amcanion newydd yr elusen o dan y cynllun newydd. Fel y nodir ym mharagraff 2.1 (iii) uchod, mae’r Comisiwn wedi datgan y byddai’n mae’r Comisiwn wedi dweud y byddai’n caniatáu pŵer cyffredinol i waredu’r eiddo, ac felly byddai’r Ymddiriedolwr yn rhydd i benderfynu a ddymuna werthu’r eiddo neu’i osod ar brydles.

4. ER PENDERFYNIAD

4.1 Awgrymir fod yr Ymddiriedolwr yn penderfynu ynghylch y materion canlynol:

4.1.1 Ar sail cyngor cyfreithiol annibynnol, penderfynu a oes angen cymryd

camau gweithredu ar hyn o bryd o ran paragraffau 2.1 i) a ii).

4.1.2 Mewn perthynas â pharagraff 3 o’r adroddiad ym mis Rhagfyr, penderfynu a oes sefyllfa cy-pres wedi codi o dan adran 62(1)(e)(i) (neu unrhyw adran arall) o’r Ddeddf.

4.1.3 Os bydd yr Ymddiriedolwr yn penderfynu fod sefyllfa cy-pres wedi codi, bydd arno angen penderfynu mewn egwyddor i wneud cais i’r Comisiwn am gynllun a fydd yn caniatáu iddo waredu Tir yr Ymddiriedolaeth (p’un ai drwy werthiant neu brydles) a sefydlu pwyllgor newydd o ymddiriedolwyr annibynnol i reoli’r asedau a ddaw yn sgil y gwerthiant

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neu brydles. 4.1.4 Gwneud argymhellion cychwynnol o ran diben(ion) newydd yr elusen

(caiff yr argymhellion eu hailystyried mewn cyfarfod o’r Pwyllgor yn y dyfodol ar ôl derbyn ymatebion i’r ymgynghoriad, a gwneir penderfyniad terfynol ar ôl hynny).

4.1.5 Gwneud argymhellion cychwynnol o ran y diben y dylid defnyddio

asedau’r elusen newydd ar ei gyfer (caiff yr argymhellion eu hailystyried mewn cyfarfod o’r Pwyllgor yn y dyfodol ar ôl derbyn ymatebion i’r ymgynghoriad, a gwneir penderfyniad terfynol ar ôl hynny).

4.1.6 Penderfynu pa fath(au) o ymgynghoriad y dylai’r Ymddiriedolwr ei

gynnal, a phennu manylion yr ymgynghoriad hwnnw. 4.1.7 Pe byddai’r Ymddiriedolwr yn penderfynu y dymuna werthu Tir yr

Ymddiriedolaeth yn hytrach na’i osod ar brydles, gwneud argymhellion cychwynnol i ddynodi a yw’r Ymddiriedolwr yn dymuno gwario holl elw’r gwerthiant ac esbonio’i resymau yn unol â pharagraff 4.9 o’r adroddiad ym mis Rhagfyr (caiff yr argymhellion eu hailystyried mewn cyfarfod o’r Pwyllgor yn y dyfodol ar ôl derbyn ymatebion i’r ymgynghoriad, a gwneir penderfyniad terfynol ar ôl hynny).

Argymhellion: Bod yr Ymddiriedolwr yn penderfynu ynghylch y

materion a nodir ym mharagraff 4.1 o’r adroddiad hwn, ac yn awdurdodi swyddogion y Cyngor i weithredu’r penderfyniadau ar ran yr Ymddiriedolwr.

Rhesymau dros y penderfyniad:

Galluogi budd yr ymddiriedolaeth elusennol i barhau a galluogi defnydd effeithiol o Dir yr Ymddiriedolaeth, a chasglu ymatebion ymgynghori fel y gall yr Ymddiriedolwr benderfynu ar sail yr holl wybodaeth wrth ystyried y cynnig o gyflwyno cynllun newydd i’r Comisiwn Elusennau.

Papurau Cefndir: Dim. Atodiadau: Atodiad 1 – Adroddiad i’r Pwyllgor ar 11 Rhagfyr 2014

ar y mater dan sylw. Atodiad 2 – Adroddiad y Prisiwr Dosbarth yn ddyddiedig 25 Chwefror 2015.

Pennaeth y Gwasanaeth:

Claire N Jones

Swyddog Adrodd: Louise Parry Dyddiad: 18 Mawrth 2015

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CEREDIGION COUNTY COUNCIL Report to: Charity Trustee Committee

Date of meeting: 22nd April 2015 Title: Proposed disposal of land held in trust at the former

Tregaron School Purpose of the report: To consider the report of the District Valuer and to

further consider a sale/lease of the trust land and establishment of a new charitable scheme.

For: Decision 1. BACKGROUND

1.1 The former Tregaron school and associated land (“the Trust Land”) is held on

trust by the Council by virtue of a Charity Commission Scheme dated the 30th January 1935 for the purpose of maintaining the premises as a county school for boys and girls in Tregaron.

1.2 In its meeting on the 11th December 2014, the Committee received a report (copy attached at Appendix 1) relating to a proposal to apply to the Charity Commission to obtain permission to sell the Trust Land and to set up a new scheme with independent trustees who will manage the income from the proceeds of sale.

1.3 In the above meeting it was resolved by the Committee to: i) seek independent legal advice on the issue set out at paragraph 2.6 of the report and whether the Trustee can use the proceeds of sale of the schoolhouse to pay for items such as the District Valuer’s report and legal fees; ii) authorise Council officers on the Trustee’s behalf to discuss the issues referred to in paragraphs 1.3, 1.4, 1.6 and 1.7 of the report with the Commission; iii) to discuss with the Commission whether the Council as Trustee would be involved at all with the Committee of Independent Trustees once set up, whether Governors could be on the Committee of Independent Trustees; to seek clarification whether the Trustee could propose to rent the property rather than sell the land under a new scheme; to seek advice in relation to the sale proceeds and potential interest relating to the sale of the schoolhouse, if necessary, once the information on the whereabouts of the sale proceeds are known following officer investigations; iv) to instruct Council officers to instruct the District Valuer on the Trustee’s behalf to provide a valuation of the Trust Land as well as rental advice; v) present the above for consideration by the Committee, so that the Trustee

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can make a fully informed decision on the proposal.

2. CURRENT POSITION

2.1 In respect of the four items resolved by the Committee in December I can report as follows:

i) Independent legal advice will be provided via a separate report today. ii) The Charity Commission has provided guidance on the issues referred to in paragraphs 1.3, 1.4, 1.6 and 1.7 of December’s report in the following manner: “In cases where charity land has been appropriated by a local authority in mistaken belief that it was part of its corporate property, we would normally look to the trustee to seek compensation to the charity for loss of its land and to put it in the position it would have been if the disposal had been properly undertaken. In respect of the Highway, if this is something that could have been appropriated by the Highways Committee by Compulsory Purchase Order then the value of that CPO would be an appropriate measure in determining the recompense to the charity. Separately, if the land remains vested in the Trustee then they may need to apply to the Land Registry to amend any restrictions.

Because of the conflict of interest caused by the Council also being the current trustee it may be worth waiting until the new trustee body is in place and then the new trustee body could negotiate compensation in connection with the disposals.”

Independent legal advice will be provided to the Committee on the above response in a separate report today.

iii) In relation to how involved the Council as Trustee would be in any newly formed committee of independent trustees, the Commission have responded that “we would not direct how that new trustee body is constituted. However, it is quite common for Councils to have a nominated trustee on the board. We would also expect to see at least some of the school governors on the trustee body since the purpose of the fund being created by our scheme will be to benefit pupils at Tregaron County School.” In relation to the proposal to potentially rent the property, the Commission have said “The trustees' duty is to generate the greatest income possible for the charitable purposes but it is up to them to decide whether this is achieved through rental income or through sale and investment or expenditure of proceeds. Our scheme will simply provide a power of disposal which could include by sale or by lease.” In relation to the sale of the former school house in 1973 Council financial officers have confirmed that the £7,000 proceeds of sale and £15,000 (which comprises part of the interest generated by the £7,000 between February 1973 – 31st January 1985, the remainder of the interest of £3,183.36p

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appears to have been allocated to boarding and travelling allowances to pupils and providing exhibitions) are held by the Council as Trustee in National Savings Income Bonds. This reporting officer will be making further investigations in the Minutes of the Cardigan Intermediate and Technical Education Fund Management Committee and also with relevant financial officers in order to confirm to the Committee the balance held including interest from 1985. iv & v) The District Valuer has been instructed on behalf of the Council as Trustee and the District Valuer’s report is attached at Appendix 2 to this report. In summary, the District Valuer has reported that: - Freehold interest value is £75,000; - Leasehold interest value of £2,400 per annum, assuming that the library could be moved into the old science block.

3. PROCEDURE

3.1 Attached at Appendix 1 is the December report to Committee which sets out in paragraphs 3 and 4 details regarding the doctrine of cy-pres and also the procedure for applying to the Commission for a new scheme if the Committee decides that a cy-pres occasion has arisen.

3.2 December’s report focused on a proposal to sell the Trust Land which is why it

references use of the income derived from the proceeds of sale in paragraph 4.8, however if the Trustee instead decided to lease the land then it would be the rental income from the lease which would be available to further the new objects of the charity under the new scheme. As set out in paragraph 2.1 (iii) above, the Commission have stated that they would grant a general power of disposal and it would then therefore be up to the Trustee to decide which option (whether sale or lease) it wishes to utilise at that time.

4. FOR DECISION

4.1 The matters suggested for decision by the Trustee are:

4.1.1 Following independent legal advice, to decide whether any steps need to

be taken at this present time in relation to paragraphs 2.1 i) and ii).

4.1.2 Following paragraph 3 of December’s report, to decide whether a cy-pres occasion has arisen under s.62(1)(e)(i) (or other section) of the Act.

4.1.3 If the Trustee decides that a cy-pres occasion has arisen, to agree in principle to apply to the Commission for a scheme to enable the disposal of the Trust Land (either by sale or lease) and establish a new committee of independent trustees to manage the assets derived from the sale or lease.

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4.1.4 To make initial recommendations on what the proposed new purpose(s) of the charity should be (which will be reconsidered in light of consultation responses at a future meeting of the Committee before a final decision is made).

4.1.5 To make initial recommendations on what use the proposed new

charity’s assets should be put towards (which will be re-considered in light of consultation responses at a future meeting of the Committee before a final decision is made).

4.1.6 To decide on what form(s) of consultation the Trustee should undertake

and the details of that consultation. 4.1.7 Dependant on whether the Trustee decides at this stage that it wishes to

sell the Trust Land rather than lease it, to make initial recommendations on whether the Trustee wishes to spend the entire proceeds of sale and to explain its reasons as per paragraph 4.9 of the December report (which will be re-considered in light of consultation responses at a future meeting of the Committee before a final decision is made).

Recommendation(s): That the Trustee decide on the issues set out in

paragraph 4.1 of this report and authorise Council officers, on the Trustee’s behalf, to effect its decisions.

Reasons for decision: To enable the continued benefit of the charitable trust and effective use of Trust Land and to gather consultation responses so that the Trustee can make fully informed decisions on the future proposal of a new scheme to the Charity Commission.

Background Papers: None. Appendices: Appendix 1 – The report to Committee on 11th

December 2014 on this same issue. Appendix 2 – Report of the District Valuer dated 25th February 2015.

Head of Service: Claire N Jones Reporting Officer: Louise Parry Date: 18th March 2015

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CEREDIGION COUNTY COUNCIL

Report to: Charity Trustee Committee

Date of meeting: 11th December 2014

Title: Sale of land held in trust at the former Tregaron School

Purpose of the report: To consider a sale of the trust land at the former Tregaron School and establishment of a new charitable scheme

For: Decision

1. BACKGROUND

1.1 The former Tregaron school land was purchased by the Council's predecessors in title, the school governors, in 1897. By virtue of a Charity Commission Scheme dated the 30th January 1935 the existing premises of the county school at Tregaron became held on trust by the Council for the purpose of maintaining the premises as a county school for boys and girls in Tregaron.

1.2 The existing premises of the school in 1935 is believed to have comprised the land edged red and purple on the plan attached to this report at Appendix 1 (being the land originally purchased in 1897). The school house was subsequently sold in 1973 with the consent of the Secretary of State in accordance with the Charities Act 1960. Unfortunately a copy of the Conveyance is not held by the Trustee, Council's Archives Section or the Land Registry however Archives have stated that the Cardiganshire County Council Education Minutes record that the sale was for £7,000. Investigations are currently being made into historic financial records to ascertain what purpose this money was put towards and the outcome will be reported back to the next Charity Trustee Committee.

1.3 It has been noted from a memorandum endorsed on the original 1897 Conveyance held by the Trustee that in accordance with a resolution dated the 7th November 1978 the Education Committee of Dyfed County Council transferred a piece of land which formed part of the above land held on trust in 1978 measuring 50m2 to the Highways and Transportation Committee for a sum of £130. The Council's Archives Section have kindly found a copy of this resolution (attached as Appendix 2 - Minute 4.16) which was made by Dyfed County Council's Policy and Resources Committee.

1.4 Unfortunately neither the Minute nor the deeds held by the Trustee indicates that consent for the transfer, or how the proceeds of sale would be utilised, was obtained either from the Commission or the Secretary of State. Dyfed's legal file on the matter shows that the property was dealt with at the time as if it was part of Dyfed's corporate land holdings and the £130 transferred from the Highways and Transportation Committee to the Education Committee does not appear to have been held on trust for the charity but dealt with in the same way as any other internal corporate money transfer. A plan attached to the Dyfed file (shown

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at Appendix 3 - land coloured pale pink) indicates the extent of land appropriated in 1978.

1.5 The land held on trust currently is shown edged red on the plan attached at Appendix 1 ("the Trust Land"). The Trust Land still includes the land appropriated by the 1978 resolution of Dyfed County Council as no formal land transfer was undertaken in 1978 as Dyfed appears to have viewed the land as its corporate property and therefore a transfer between departments was not legally necessary.

1.6 The land coloured green on the plan attached at Appendix 1 is a footway and has been confirmed by Highways as adopted and therefore maintainable at public expense although the sub-soil is still part of the Trust Land.

1.7 It has also been noted that in 1986 an easement was granted by Dyfed County Council to the neighbouring property called "Lluest" over part of the Trust Land which is shown coloured blue on the plan attached at Appendix 1. The easement granted the owner of Lluest the right to access the land coloured blue via the school gate in order to repair and maintain Lluest. Again, unfortunately the deeds held by the Trustee do not contain any sign that consent was obtained to this grant of easement and the Dyfed legal file on the matter also confirms that there was no Charity Commission involvement.

1.8 In 1947 the site of the current Secondary School in Tregaron was purchased and a new school established. The buildings on the Trust Land continued to be used by the school up until June 2013 when it was decided to lessen use of the site following an accident involving a pupil crossing the road and an Estyn inspection. The Trust Land is still used currently for modules such as hairdressing and health and social care which have not been able to be re-accommodated in the school premises.

1.9 A library is also situated within the Trust Land which the school utilises along with the public.

1.10 A number of Council officers met with representatives of the Charity Commission including their legal adviser on the 30th July 2014 in order to discuss the future options of the Trustee in relation to the Trust Land.

2. CURRENT POSITION & PROPOSAL

2.1 As the Trustee will be aware, the use of the Trust Land as a school is decreasing therefore consideration must be given to the future of the Trust Land and how it can continue to be of benefit to the beneficiaries of the trust.

2.2 Discussions with the Commission regarding the Trustees' options were positive. The Commission stated that it would be difficult for them to agree to a transfer of trust from the Trust Land to the existing school land across the road as it would be difficult for the Trustee to demonstrate that a transfer of trusts is in the best interests of the charity since the Trust Land will no longer be needed and the Council has already provided alternative provision many years ago across the road.

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2.3 The Commission concluded that it would be easier to demonstrate that a oy-pres (oy-pres is explained in paragraph 3 below) occasion has arisen and therefore the Trust Land could be sold with the income from the proceeds of sale being put towards the charity's new purpose in certain ways, such as, a special benefits fund or bursaries for pupils at the school.

2.4 The Commission advised that in order to manage the Council's conflict of interest between local education authority and Trustee once the new scheme has been set up, that a committee of independent trustees be appointed to manage the new fund and how it is applied in the best interests of the beneficiaries.

2.5 Council officers did discuss with the Commission whether the Trustee would be able to use the above income or capital to provide additional or enhanced facilities at the school (bearing in mind that the Council intends to construct an extension to the school so that the site caters for 3-16 year aids). The Commission however stated that the charitable fund can only be used to provide facilities over and above what the local education authority has to provide (and has already planned to provide), it cannot be used to relieve the local authority of its statutory obligations.

2.6 The Commission did raise concerns that the library situated on the Trust Land is also open to the public and is therefore not purely for the benefit of the boys and girls of Tregaron however it is suggested that the charity would have benefitted from the presence of a public library at the site as the Library Service would have paid to stock the library with books (apart from £400-£500 which the school would have contributed), the Council paid to employ a full-time librarian (employed as a school librarian and public librarian in equal shares) and the school paid for maintaining the building. As such it is suggested that the charity has benefitted from the libraries presence rather than it being a detriment to the charity.

2.7 The Commission has advised that the Trustee needs to consider whether it believes it needs to obtain legal advice on the issue set out in paragraph 2.6 above.

2.8 The issues set out in paragraphs 1.3, 1.4, 1.6 and 1.7 of this report were not discussed during the meeting with the Commission as the facts were still being investigated at that time however it is suggested that the Commission's opinion be sought on these issues as it may have implications such as compensation being owed to the charity by the Council if Trust Land has been disposed of by transfer or grant of easement without the proper charitable law procedures being followed. The Trustee may also wish to seek independent legal advice on the matters fallowing a response from the Commission.

3. CY-PRES

3.1 The doctrine of oy-pres is a doctrine which enables charitable gifts, which would otherwise fail, to be diverted to another related charitable purpose. Section 62 of the Charities Act 2011 ("the Act") sets out the circumstances where a charitable

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gift can be altered by the Charity Commission so that it can be applied cy-pres.

3.2 The circumstances set out under s.62(1) of the Act are:

(a) where the original purposes, in whole or in part-

(i) have been as far as may be fulfilled, or

(ii) cannot be carried out, or not according to the directions given and to the spirit of the gift.

(b) where the original purposes provide a use for part only of the property available by virtue of the gift.

(c) where-

(i) the property available by virtue of the gift, and

(ii) other property applicable for similar purposes,

can be more effectively used in conjunction, and to that end can suitably, regard being had to the appropriate considerations, be made applicable to common purposes,

(d) where the original purposes were laid down by reference to-

(i) an area which then was but has since ceased to be a unit for some other purpose, or

(ii) a class of persons or an area which has for any reason since ceased to be suitable, regard being had to the appropriate considerations, or to be practical in administering the gift, or

(e) where the original purposes, in whole or in part, have, since they were laid down-

(i) been adequately provided for by other means,

(ii) ceased, as being useless or harmful to the community or for other reasons, to be in law charitable, or

(iii) ceased in any other way to provide a suitable and effective method of using the property available by virtue of the gift, regard being had to the appropriate considerations.

3.3 It is proposed that the applicable circumstance here would be (e)(i) as the provision of a county school for girls and boys has been adequately provided for across the road from the Trust Land.

4

3.4 Where a cy-pres occasion has been deemed to arise it is a duty of the Trustee under s.61 of the Act to secure the Trust Land's effective use for charity by taking steps to enable it to be applied cy-pres.

4. PROCEDURE

4.1 If the Trustee is in agreement that a cy-pres occasion has arisen then it can apply to the Commission to make a new scheme to provide new purposes of a similar nature. When deciding on new purposes, the Commission must consider:

- The spirit of the original gift; - The desirability of providing new purposes that are close to the original; and - The necessity for the new purposes to be suitable and effective in light of current social and economic circumstances.

4.2 The Trustee must consider what similar purpose(s) the charity should have following a sale of the Trust Land and what use the charity's assets (the income from the proceeds of sale) might then be put towards in light of the three considerations of the Charity Commission above.

4.3 In order to do this the Commission expects the Trustee to have carried out appropriate consultation to help inform its decision making regarding whether any of the criteria for making the scheme have been met and, if so, what new purposes the charity should have.

4.4 It is for the Trustee to decide what form the consultation should take, however where the proposed changes are significant, the Commission expects consultation to be vigorous, including some (or all) of the following:

• open days and exhibitions • publication of proposals on appropriate website and in local media (which

should clearly explain what is involved); • public meetings (open and accessible to the general public); • meetings with staff and volunteers and any beneficiaries who would be

directly affected by the proposals - such as the residents of almshouses, church members or users of the village hall;

• meetings (or focus groups) with user and other interest groups; • meetings (or focus groups) with people who have particular needs, such as

people with disabilities and people from minority ethnic groups; • questionnaire based surveys (postal or face to face); • local parish referenda; • formal written consultation exercises;

4.5 When applying for a scheme, the Trustee will have to provide details of consultation and a summary of responses received together with information as to how this has helped inform the Trustee's decision making.

5

4.6 If the Commission are satisfied that the criteria for making a scheme have been met they will consider drafting a scheme. The Commission may require public notice be made of its intention to make a scheme and they will inform the Trustee of this if they consider it appropriate.

4.7 As the scheme proposed involves the sale of the Trust Land, the scheme will need to include a power of sale and, as the land is designated charity land, the Trustee will need to give public notice of the sale and invite representations once the scheme is granted by the Commission.

4.8 The proceeds of sale will be a permanent endowment, meaning that only the income derived from the proceeds of sale will be available to further the new objects of the charity ..

4.9 If the Trustee wishes to spend the entire proceeds it will need to set out why the Trustee believes this would be expedient in the interests of the charity and:

- how spending the proceeds of sale is consistent with the spirit of the original gift; and

- why being able to spend the permanent endowment (rather than just the income) would allow the charity to carry out its new purposes more effectively.

4.10 The Commission does not require the Trustee to obtain a valuation of the Trust Land prior to undertaking consultation or applying to it for a scheme, however the Trustee may wish to consider whether it wishes to do so first as it will then have an estimate as to how much capital can be raised from a sale of the Trust Land and therefore how much income the charity may receive each year. This information may be useful to the Trustee and those it consults when considering what use the charity's assets could be put to under a new scheme.

4.11 If the Trustee does wish to obtain an initial valuation of the Trust Land it may need to obtain a more up-to-date valuation when looking to sell the property depending on the length of time since the initial valuation. Having spoken to the Commission on this point, the Commission have advised that whilst there is currently no conflict of interest between the Council in its corporate and Trustee role in this matter it would be advisable to obtain any valuation from the District Valuer rather than a Council surveyor in case any conflict arises in the future.

5. FOR DECISION

5.1 In summary, the matters for decision by the Trustee are:

5.1.1 That the Trustee decide whether it requires independent legal advice on the issue set out at paragraph 2.6 of this report.

5.1.2 To authorise Council officers on the Trustee's behalf to discuss the issues referred to in paragraphs 1.3, 1.4, 1.6 and 1.7 of this report with the Commission and to report back to the Committee.

5.1.3 That the Trustee decide whether a cy-pres occasion has arisen under 6

s.62(1 )(e)(i) (or other section) of the Act;

5.1.4 If so, to agree in principle to apply to the Commission for a scheme to enable the sale of the Trust Land and establish a new committee of independent trustees to manage the assets of that charity;

5.1.5 To make initial recommendations on what the proposed new purpose(s) of the charity should be (which will be re-considered in light of consultation responses at a future meeting before a final decision is made);

5.1.6 To make initial recommendations on what use the charity's assets should be put towards (which will be re-considered in light of consultation responses at a future meeting before a final decision is made);

5.1.7 To decide on what form(s) of consultation the Trustee should undertake and the details of that consultation;

5.1.8 To make initial recommendations on whether the Trustee wishes to spend the entire proceeds of sale and to explain its reasons as per paragraph 4.9 of this report (which will be re-considered in light of consultation responses at a future meeting before a final decision is made);

5.1.9 To decide whether to instruct Council officers to instruct the District Valuer on the Trustee's behalf to provide a valuation of the Trust Land prior to undertaking consultation.

Recommendation(s):

Reasons for decision:

Background Papers: Appendices:

Head of Service: Reporting Officer: Date:

That the Trustee decide on the issues set out in paragraph 5.1 of this report and authorise Council officers, on the Trustee's behalf, to effect its decisions. To enable the continued benefit of the charitable trust and effective use of Trust land and to gather consultation responses so that the Trustee can make fully informed decisions on the future proposal of a new scheme to the Charity Commission. None Appendix 1 - Plan of land held on trust Appendix 2 - Minutes of the Dyfed County Council's Policy and Resources Committee 7th November 1978 Appendix 3 - Plan of land appropriated in 1978 Claire N Jones louise Parry 19th November 2014

7

Ap~~~)( ~.

Valuation Report for Land at Llandysul New 3-19 yr School Llandysul Old School & Tregaron Former Secondary School I Library

Report for: Neil Hinchcliffe . Ceredigion County Council - Charity Trust Committee

Prepared by: Lisa Bryan BSc (Hans) MRICS Senior Surveyor RICS Registered Valuer DVS

Tel: 03000 506188

lisa.m.bryan@voa.gsi.gov.uk

Case Number: 1533032 LMB/JS

Client Reference: NH/MAlE04049/ E04046

Date: 25 February 2015

D;\ liS Property Specialists (. , V , for the Public Sector .

Contents

1. Introduction 1 2. Valuation Pararneters.. 1 3. Property Information 6 4. Valuation 8 5. General Information 17 6. Appendices : 18 6.1 Plans ; .

D~ :/IS Property Specialists , y , for the Public Sector

1. Introduction

I refer to your instructions dated 23 January 2015 and my terms of engagement dated 26 January 2015.

I have inspected all of the properties in question and valued them accordingly and I am pleased to report to you as follows.

2. Valuation Parameters

2.1 Identification of Client

Ceredigion County Council- Charity Trust Committee.

2.2 Purpose of Valuation

I am informed that Ceredigion County Council has recently established a Charity Trust Committee and their first meeting was held on 11 December 2014. It is my understanding-that Ceredigion County Council and the Charity Trust propose to do a exchange of assets as _identified within the minute of meetings dated Thursday, 11 December 2014 and also a disposal of the freehold interest within Tregaron Former Secondary Schooll Library.

Llandysul Old Former School

I understand from your meeting the following information is held with regard to the Charity Trust Estate. "By virtue of Charity Commission Scheme dated 30 January 1935 the existence of a school at Llandysul became held on trust by the Council for the purpose of maintaining the premises as a county school for boys and girls in Llandysul. It is believed that the existing premises of the school in 1935 comprised the land edged red on the plan attached at the rear of this report. It is therefore this land which is held on trust by the Council (the Trust land). Unfortunately, neither the Trustee nor the Council's archive section hold the original or a copy of the conveyance to this land.

The school premises (shown edged blue on the plan in the attached appendix) includes adjoining and nearby playing fields but these playing fields were purchased post-1935 and are therefore not held on trust but are held by the Council as landowners alongside its other corporate assets. The Trust land is also shown edged red on the plan at the rear of this report".

It is further understood that the land edged green within the Appendix which is at the west of the swimming pool which provides direct access to the site at the south also belongs to the Trust. Again, this title has never been registered.

"in 1974 a lease of part of the Trust land (shown edged and hatched purple on the attached plan) was granted by Dyfed County Council to the Trustees of Teifi Side Swimming Pool and Recreational Facility Association for a term of 21 years at an annual rent of £1". This lease is currently holding over on the existing terms. It is felt

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that the swimming pool has been held on trust for the benefit of the school and the public.

Llandysul New 3-19 School

I understand that Ceredigion County Council have acquired 29.5 acres to the north of Llandysul for the construction of the new 3-19 year school and the current proposal is for the school to replace the old Llandysul school site identified above as held by the trst. It is the construction of this new school which has brought about the question over the future of the land held by the Trust at the old Llandysul School.

" The Commission has concluded that it would be agreeable in principle, to authorise a transfer of the trust to take place whereby if agreeable to the Trustee and the Council, both parties would enter into a Deed of Exchange to exchange the Trust's land with the land of equitable value at the new school site which is owned by the Council. This would then mean that part of the new school site would be held by the Council on trust for the same purposes as the Trust's land is currently held". .

The purpose of this exchange would be to enable the Trust to have a continued presence within Llandysul and would ultimately allow Ceredigion County Council to bring the former Llandysul school site to the market as a development opportunity. I therefore understand that you require DVS to provide a valuation of both sites involved in the exchange at market value (in accordance with RICS Valuation Manual Practice Statement 3.2 and Guidance Note UK GN4) and having regard to the Charities (Qualified Surveyor's Report) Regulation 1992.

Former Tregaron School/Library

"The former Tregaron School land was purchased by the Council's predecessor in title, the school governors, in 1897. By virtue of the Charity Commission scheme dated 30 January 1935 the existing premises of the county school at Tregaron became held on trust by the Council for the purpose of maintaining the premises as a county school for boy and girls in Tregaron".

"The existing premises of the school in 1935 is believed to have comprised the land edged red and purple on the plan attached at the rear of this report (being the iand . originally purchased in 1897). The school house was subsequently sold in 1973 with the consent of the Secretary in accordance with the Charity Act 1960".

"The land coloured green on the plan attached at the rear of the report is a footway and has been confirmed by highways as adopted and therefore maintainable at the public's expense although the sub-soil is still part of the Trust's land.

"It has also been noted that in 1986 an easement was granted by Dyfed County Council to the neighbouring party called Lluest over part of the trust land which is shown coloured blue on the plan attached in the appendix. The easement granted to the owner of Lluest the right to access the land coloured blue by the school gate in order to repair and maintain Lluest. Again, unfortunately the deeds held by the trust did not contain any signs that consent was obtained to grant the easement and Dyfed legal file on the matter also confirmed that there was no Charity Commission involvemenr.

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''In'1947 the site of the current secondary school in Tregaron was purchased and a new school established. The building on the Trust land continued to be used by the school up until June 2013 when it was decided to lessen use of the site following an accident involving the people crossing the road at an Estyn inspection. The Trust found they still used currently for modules such as hairdressing and health and social care which has not been able to be reaccommodated in the school premises".

"A library is also situated within the trust land which the school utilise along with the public".

I am informed that the library is used three afternoons per week, however, the remainder of the main school building has not been used for the last 12 months.

"As with Llandysul old school site the trust land is decreasing in use and consideration has been given to the future of this land and how it can be continued to be of benefit to the beneficiaries of the Trust".

"Discussions with the Commission regarding the Trustee's options were positive. The Commission state that it would be difficult for them to agree to the transfer of the trust

, from the Trust's land to the existing school land across a road as it would be difficult for the Trust to demonstrate that the transfer of trusts is in the best interest of the charity since the Trust's land will no longer be needed and the Council has already provided alternative provisions many years ago across the road. The Commission concluded that it would be easier to demonstrate that its Cy-Press occasion has arisen and therefore the Trust's land could be sold with the income from the proceeds of the sale being put towards the charity's new purpose in certain ways, such as, a special benefit fund or bursaries for peoples at school."

It is therefore upon this basis that the Trust require a valuation of the former school site to establish the market value for disposal. I am further instructed to provide a rental valuation of the subject property in relation to the library.

2.3 Subject of the Valuation

Land at former Llandysul School. Land at new 3-19 year school, Llandysul. Market value of former Tregaron Secondary School/Library. Rental value of former Tregaron Secondary School/Library premises.

2.4 Date of Valuation

The date of valuation is 25 February 2015.

Please note that values change over time and that a valuation given on a particular date may not be valid on an earlier or later date.

2.5 Confirmation of Standards

The valuation has been prepared in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation - Professional Standards 2014 UK Edition, commonly known as the Red Book.

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Compliance with the RICS professional standards and valuation practice statements gives assurance also of compliance with the International Valuations Standards (IVS).

2.6 Agreed Departures from the RICS Professional Standards

There are no departures beyond those restrictions on the extent of investigations and survey, and the assumptions, stated below.

2.7 Basis of Value

The basis of value adopted is Market Value which is defined at VPS 4, para 1.2 as:

'The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. '

2.8 Special Assumptions

There are no special assumptions.

2.9 Nature and Source of Information Relied Upon

I have assumed that all Information provided by, or on behalf of you, in connection with this instruction is correct without further verification - for example, details of tenure, tenancies, planning consents, etc.

My advice is dependent upon the accuracy of this information and should it prove to be incorrect or inadequate, the accuracy of my valuation may be affected.

1. Agenda 2. Terms of reference of Charity Trust Committee 3. Minutes of Committee Meeting on 11 December 2014. 4. Report of Ceredigion County Council's Legal Services Section on matters relating to

Llandysul3-19 School to the Committee, which was considered at the meeting. 5. Report of Ceredigion County Council's Legal Service Section on matters relating to

Tregaron Secondary School to the Committee, which was considered at the meeting.

6. Plans

2.10 Date of Inspection

I can confirm the sites were inspected on 3 February 2015.

2.11 Extent of Investigations. Survey Restrictions and Assumptions

An assumption in this context is a limitation on the extent of the investigations or enquiries undertaken by the valuer. The following agreed assumptions have been applied in respect of your instruction, reflecting restrictions to the extent of our investigations.

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• Such inspection of the property and investigations as the Valuer considered professionally adequate and possible in the particular circumstance was undertaken. This comprised undertaking an internal inspection of both properties

• No detailed site survey, building surveyor inspection of covered, unexposed or inaccessible parts of the property was undertaken. The Valuer has had regard to the apparent state of repair and condition, and assumed that inspection of those parts not inspected would neither reveal defects nor cause material alteration to the vatuation, unless aware of indication to the contrary. The building services have not been tested and it is assumed that they are in working order and free from defect. No responsibility can therefore be accepted for identification or notification of property or services' defects that would only be apparent following such a detailed survey, testing or inspection.

• It has been assumed that good title can be shown and that the property is not subject to any unusual or onerous restrictions, encumbrances or outgoings.

• It has been assumed that the property and its value are unaffected by any statutory notice or proposal or by any matters that would be revealed by a local search and replies to the usual enquiries, and that neither the construction of the property nor its condition, use or intended use was, is or will be unlawful or in breach of any covenant.

• Valuations include that plant that is usually considered to be an integral part of the building or structure and essential for its effective use (for example building services installations), but exclude all machinery and business assets that comprise process plant, machinery and equipment unless otherwise stated and required.

• It has been assumed that no deleterious or hazardous materials or techniques were used in the construction of the property or have since been incorporated. However where an inspection was made and obvious signs of such materials or techniques were observed, this will be drawn to your attention and captured in this report.

• No access audit has been undertaken to ascertain compliance with the Equality Act 2010 and it has been assumed that the premises are compliant unless stated otherwise in this report.

• No environmental assessment of the property (including its site) and neighbouring properties has been provided to or by the VOA, nor is the VOA instructed to arrange consultants to investigate any matters with regard to flooding, contamination or the presence of radon gas or other hazardous substances. No search of contaminated land registers has been made. However, where an inspection was made and obvious signs of contamination or other adverse environmental impact were visible this will have been advised to you, further instructions requested and the observations captured in the report. Where such signs were not evident during any inspection made, it has been assumed that the property (including its site) and neighbouring properties are not contaminated and are free of radon gas, hazardous substances and other adverse environmental impacts. Where a risk of flooding is identified during any inspection made, or from knowledge of the locality, this will be reported to you. The absence of any such indication should not be taken as implying a guarantee that flooding can never occur.

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• No allowances have been made for any rights obligations or liabilities arising from the Defective Premises Act 1972.

3. Property Information

3.1 Situation I Description

Llandysul New School Site

The subject site extends to approximately 29.5 acres of land designated as educational use only. The site is situated to the north of Llandysul bordering Pare Menter, Llandysul Enterprise Park with direct access on to the A486 and 84624. The subject site is surrounded predominantly by agricultural land; however, to the east and west of the site there are limited residential properties with the majority of those situated within the heart of Llandysul itself.

Llandysul Old School Site

The subject site is situated to the west of Llandysul and surrounded predominantly.by residential accommodation, however, there is the swimming pool/leisure centre which is held on lease and adjoining county primary school. The site itself is sloping in a southerly direction which is relatively steep at the northern section of the site. There are approximately 15 buildings within the boundaries of the site varying between singie storey to three storeys and of a mixed construction including Portakabins to traditional Victorian style accommodation with pitched slate roof and stone walls. It is highly likely that the accommodation within the school comprises asbestos material.

Tregaron Former School and Library

Tregaron School/former Library is situated within the heart of Tregaron and fronting on to Lampeter Road directly opposite Tregaron Comprehensive ~chool. Tregaron is located approximately 34 miles north east of Carmarthen and 18 miles south east of Aberystwyth. The subject site comprises a large detached Victorian school with stone walls under a pitched slate roof which adjoins the residential property referred to as Lluest. To the rear of the subject site is a large retaining wall and embankment falling

. towards the river.

The subject site also comprises a detached science block which was constructed at a later date of approximately 1940. This accommodation is rendered walls under a pitched slate roof. Internally the Victorian school holds many original features including parquet flooring and single glazed windows. Whilst the majority of the property is vacant the library currently occupy the front classroom which is open to the public for three afternoons per week. I am informed that the heating system within the premises has now broken down and heating is provided by night storage heaters.

3.2 Tenure

Freehold with vacant possession.

3.4 Easements and Restrictions

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I am not aware of any easements or restrictions relating to the land at Llandysul new school or Llandysul old school.

I am however aware there is an easement in favour of the residents called Lluest at Tregaron former school which is to the southern boundary and provides the occupants with the right to maintain the boundary. It should be noted at the date of inspection this area is actually occupied by mature trees and it does not appear that they occupants of Lluest have done any maintenance or repair works for a considerable period of time. I have however taken this matter into consideration when applying my valuation.

3.4 Site Area

Llandysul new school site - 29.5 acres. Llandysul old school site - 4.48 acres. Tregaron former school- 0.75 acres. Tregaron former science block - approximately 93 square metres GEA.

3.5 Defects and Repair

It should be noted that the accommodation within Tregaron former secondary school is in a poor state of repair and requires considerable expenditure to bring it up to a water tight condition. The subject property would also benefit from a considerable refurbishment programme or conversion. In respect of Llandysul old school site there are a number of buildings within the boundaries a" of varying ages, however, they appear in a maintained condition.

3.6 Services

I understand that mains water and drainage are provided at both sites, however, mains gas is not available within the area and heating is provided by oil central heating.

3.7 Access and Highways

A" sites have access on to made up and adopted Toads and I have assumed that these are a" maintained at the public expense.

3.8 Energy Performance Certificate

At the time of my valuation report an Energy Performance Certificate was not required, however, should the properties be brought to the market at a future date then a certificate will be required particularly for Tregaron former secondary school.

3.9 Planning

I have made no formal enquiries with regard to the planning consent of the sites, however, I have considered that information held within your adopted LOP. Specifically it should be noted that the new Llandysul School is outside of the development boundary limit and I therefore consider any development potential for the site to be very limited. In respect of the former Llandysul School site this is within the development boundaries of Llandysul and it is unreasonable to think that planning consent would not be granted for residential development. It should be noted that the adjoining playing fields which are not in the ownership of the Trust and are held by Ceredigion County

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r · .

Councii on their asset register has been specifically designated within the LDP as social and community facilities under heading CER1.

There are specifically three areas within Llandysul which have already had a positive allocation within the LOP for residential development under headings H 1, H2 and H3. Whilst it would not be reasonable to dismiss this site as a residential development opportunity consideration must be taken as to the supply of such sites within the immediate area.

In respect of Tregaron former school, the site is located within the settlement boundaries of Tregaron and again whilst it is not specifically designated within the LOP for residential development, consent could be obtained. As you are undoubtedly aware Tregaron has future plans for the regeneration including a residential scheme.

3.10 Eguality Act 2010

Whilst I have had regard to the provisions of the Equality Act 2010 in making this report, I have not undertaken an access audit nor been provided with such a report. It is recommended that you commission an access audit to be undertaken by an appropriate specialist in order to determine the likely extent and cost of any alterations that might be required to be made to the premises or to your working practices in relation to the premises in order to comply with the Act.

3.11 Mineral Stability

The sites are not in an underground mining area and a Mining Subsidence Report has not been obtained.

3.12 Environmental Factors Observed or Identified

Asbestos may be present in the construction of the former Tregaron secondary school and the old Llandysul School buildings. While this material remains intact and in good condition the asbestos fibres are likely to be safe but specialist advice should be sought in the event of alteration, maintenance or demolition. .

4. Valuation

4.1 Valuation Methodology/Approach and Reasoning

Llandysul New School Site

The subject site comprises 29.5 acres of land designated as educational use only. The site was originally acquired on 19 April2013 for approximately £36,949 per acre. I am informed that approximately 6 acres of the site has a 10 year clawback agreement attached to it reiating to the deveiopmeni of anything other than community or educational use. This clawback is 50% of any uplift in value and the proposed school is for 3-19 year olds.

From inspection of the new school site is an area of formerly agricultural land which is relatively flat and appears to be in good condinon. The site Ifas g06d co-;'11~"TlUiiication links and adjoins the A486 bypass. Located to the north of Llandysul village the site is

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situated to the top of the hill with few residential properties at the western and eastern boundary. Having considered the site plan and location of the new buildings within the bcundarles of the development site there appears to be an area at the north west of the site which is not designated for any specific use (this as above the proposed football pitch). This area amounts to approximately 2.73 acres of land and if the proposed football pitch was removed this area would then extend to 4.67 acres. There is an area of land to the south of the football pitch which is not in the ownership of the Council and a combination of these three sites would extend to approximately 6.05 acres of land. This would then give this combined site direct frontage on to the adopted road and adjoining the adjacent business park.

It should be noted, however, within the previous UDP there was a proposal to change the development boundaries of the business park to adjoin this piece of land potentially giving hope for future development. Within the adopted LDP (20 April 2013) covering Periods 2007 - 2022 this proposed boundary extension has been removed and the site is not within the development boundaries and I therefore consider any potential development going forward to be limited. It is highly unlikely that this site would receive an allocation for housing given the number of development opportunities within Llandysul itself. Whilst I accept there is a remote possibility of development if all parties were agreeable to conglomerate all three sites I believe this is unlikely to be achieved inside of the next 10 years. I am therefore of the opinion the best reflection of market value for this site is within the actual price paid for the land for use as a school.

I have provided comparable evidence of school transactions throughout South Wales below and the acquisition price of £36,949 per acre is in line with that evidence. Within the comparable evidence it should be noted that the land acquired by St Davids University did have hope value for residential development as it was adjoining a recently allocated site. For the purpose of this valuation I adopted the comparable method of valuation.

Llandysul Old School Site

The subject site comprises 4.4 acres of land including the existing swimming pool and leisure centre at the south of the site. For the purpose of my valuation whilst I have considered comparable evidence of similar development opportunities I have relied upon a residual valuation approach taking into consideration a residential development opportunity.

Development land is normally valued using the residual method of valuation, and this approach has been used in this case testing inputs where possible against any market related evidence and using our knowledge of the inputs likely to be adopted by market participants.

A residual valuation is a simple equation, usually expressed in one or two principle forms.

(a) Gross Development Value less development costs (including land value) equals the residual profit

Or

(b) Gross Development Value less development costs (including profit requirements) equals the residual land value.

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Method liA" is adopted in most development appraisals, where the site has already been secured and the land cost is known, whereas Method "B" is a more traditional method (and used in some toolkits, ie Home and Community Agency Economic Appraisal Tools and Three Dragons toolkit) and often used by final land values yet to be determined as in this, case.

In addition to my appraisal of the site on a residential basis I have also taken account of likely alternative purchasers of the site and also considered the site within its existing use. These factors have been reflected in my opinion of value according with RICS Best Practice Guidance.

The site as a whole is steeply sloping with a number of mature trees and approximately 15 detached buildings arranging between two to three storeys of traditional stone and slate build. Some of the properties are Portakabin style buildings, the main school building was constructed in 1895 and is not a listed structure.

I understand that it would be the intention of Ceredigion County Council to continue with the occupation of the swimming pool and leisure centre to the south of the site and I have therefore assumed that the site will continue to have a right of access to the rear of the swimming pool which extends to the current bus lane. For the purpose of my development appraisal this area would amount to a deduction of approximately 1.3 acres. In order to arrive at a net developable area I have considered the site total which is 4.48 acres, deducted the swimming pool site at 1.3 acres and deducted 20% for undevelopable areas, ie roads and gardens at 0.63 acres. This provides a total developable area of 2.55 acres and at 35 dwellings per hectare this is equivalent to 36 dwellings.

Within my appraisal I have allocated 20% to affordable home which is the equivalent of 7 units. I have adopted a mix of 25%,50% and 25% for the housing mix of two, three and four bed homes. Within my appraisal I have adopted a capital value of £115,000 for the two bed homes, £140,000 for the three bed homes and £175,000 for the four bed homes. I have engaged with our internal as for a cost of the demolition to the existing school buildings and the clearance of the site including asbestos and macadamia. The cost of such demolitions would amount to approximately £336,000 and this has been included within my appraisal.

It should be noted that I have ran three different options within the appraisals as the sensitivity of such valuations can be the difference between a positive and negative land value. Within my first appraisal I adopted a medium build cost at £981 to £997 per square metre, this resulted in a negative land value of minus £600,000. I then considered a lower quartile figure at £893 to £867 per square metre which resulted in a negative land value of £144,000. As a final measure I considered the lowest figures quoted within BCIS at £781 to £747 per square metre and increased the developer's profit to 20% on gross development value to reflect any increased risk of the developer not being able to complete the scheme within such a price range and this produced a positive land value of £267,000 (£104,706 per net acre).

It is this point I have then considered the availability of alternative development sites within the area and have deferred this valuation figure for five years with an application of 85% for hope. My valuation has concluded the land value of this subject site to be £140,000 which is lower than the comparable evidence provided below, however, this

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does take into consideration the demolition costs and the risk of a delayed development due to over supply of accommodation.

Specifically it should be noted that a site of this size within Llandysul is unlikely to attract a national house builder such as Barratt Homes or Persimmon and demand from registered social landlords is also likely to be limited in this area. In particular there is a development site opposite the subject school which has a positive planning consent for seven units including affordable development within an asking price of £210,000. This site has been on the market for a number of months with limited interest.

Tregaron Former Secondary School

When arriving at my valuation for the freehold interest of the Tregaron former secondary school/library I have not only considered a comparable basis but I have also considered '8 residual for a potential conversion to a residential dwelling. As can be 'seen from the comparable below detached Victorian school buildings have been achieving values between £70,000 to £233,000 depending on their development potential.

As mentioned earlier within this report Tregaron is set to see a major development which would potentially bring a number of sites to the market. It should also be noted within the adopted LDP there is already a positive allocation within Tregaron for residential development opportunities. I therefore consider the best and most realistic market value of this site to be the sale of the premises as existing use with the potential for a residential conversion. It should be noted that there is a large retaining wall to the rear of the site and additional information could not be obtained regarding any load bearing or construction details. Any developer would consider this to be a risk and a potential significant cost.

The school itself extends to approximately 790 square metres GIA and is of a single storey with rendered elevations and a slate roof property with single glazed windows. Internally there are parquet floorings, suspended ceiling tiles, strip lighting and cast iron radiators. Generally the internal condition of the school is very poor with damp penetration coming in from the roof. During my inspection I was informed the heating of the property is oil and is past its economic life and is currently provided by electric storage heaters.

To the north east of the main school building is a science block which is approximately 93 square metres GEA. This does have the potential for conversion to a single dwelling, possibly a two bed detached bungalow or more realistically could provide a stand alone library. This would enable the disposal of the main Tregaron former school building as well as maintaining the presence of the library for community use. I have considered this within my valuation and after discussion with our internal as believe that a cost of converting the building would be in the region of £350 to £500 per square metre depending upon the level of works undertaken. I have assumed an end value in the region of £450,000 to £475,000 for the school as a residential conversion (highly dependent upon the quality of the conversion) and then deducted a further 20% for risk of extended costs. Using an average cost of £425 per square metre this would amount to £331,500 and at ?O% risk a further £66,300. I am therefore content that a figure of £75,000 reflects a realistic price for the school in its existing condition and is in line with those com parables as identified below.

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in respect of the library lunderstand you require a rental figure and I deem the continued occupation of the library within the main heart of the former school building to effectively sterilise the value of the property at the present date. The majority of the property is vacant and continually deteriorating and does require considerable expenditure. It would be my recommendation to move the library into the former science block which is in better condition and could easily be segregated from the main school building. I am of the opinion that the rental of this space would be reasonable at £2,400 which is the equivalent of £3 per square foot for office accommodation. Again, evidence of office rental information is provided below within the comparable table.

4.2 Comparable Evidence

:;'t!~" ;'\ _"CC' ",." , -t, e ,,!:;,J!;:&; ';0 'h T,,-n~aqtión'~y Price ;:,~,::tI " Address Land'Tvpe'''' I!~" Area' " Tenure I~ ., R~~ark!i! ",,"'," "x', . " s.: ~,f-

" ' Date- . £ 1 _ Ysgol Gynradd, School NIa Freehold 04/0712010 £97,610 CDB comparable of Gymraeg, Ammanford traditional Victorian

school building in its own grounds

2 _ Primary School, School NIa Freehold 02/0312011 £250,000 CDB comparable of bryn Road, Lampter traditional Victorian

school building in its own grounds

3 _ Brynherbert County School NIa Freehold 20/06/2011 £145,000 CDB comparable of Primary School, traditional Victorian Llanrhystud school building in its

own crounds 4 _ Birchgrove primary School N/a Freehold 0704/2010 £160,000 CDB comparable of ! School, Swansea traditional Victorian

I school building in its I own qrounds 5 _ County primary School NIa Freehold 08/0412010 £140,000 CDB comparable of school, Glndwr, traditional Victorian whitland school building in its

own arounds 6 _ Trap County School N/a Freehold 05/07/2011· £75,000 CDB comparable of Primary School traditional Victorian

school building in its own orounds

7 _' Penmorfa, Sarnau, School N/a Freehold 08/11/2011 £180,000 CDB comparable of llandysul traditional Victorian

school building in its own orounds

8 _ Herbrandston School N/a Freehold 06/012/2011 £135,000 CDB comparable of County Primary school, traditional Victorian Milford Haven school building in its

OWn orounds 9 _ Caehopkin County School Nia Freehold 20/0512013 £141,000 CDB comparable of Primary School traditional Victorian

school building in its own orounds

10 _ Cwmgwilli primary School NIa Freehold 2510612013 £140,000 Under offer for School residential

development of 4 units, looking over the motorway with substantial buildings to be removed from the site and retaining wall issues the same of the subject

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r~ D~'IiS Property Specialists ry, for the Public Sector

I property - similar internal condition but worse location

11 - Tregroes Primary School N/a Freehold 25/06/2013 £120,000 Valued on behalf of School, tregroes Ceredigion County

Council for disposal purposes.

12 - coelbren CP School 1.39 Freehold 01/0412013 £70,000 Sold at public School, Heol Eglwys, acres auction. Site within ystradgynlais development limits

but no consent for . change of use at

present, adjacent potential contamination issues with former landfill site. Victorian school house

13 - County primary School NIa Freehold 01/04/2013 £233,000 Sold at Public school, Pen - y Cae, auction. Sale price ystradgynlais reflects perceived

redevelopment vale. Planning consent subsequently applied for.

14 - Caehopkin CP School N/a Freehold 01/05/2013 £141,000 Redevelopment site School, Abercrave sold by private treaty.

Negotiations between 3 parties, outside development limits but planning consent subsequently granted.

15 - Ysgol Gymraeg, School NIa Freehold 01/0812013 £100,000 Redevelopment site Heol Twrch, lower 1960s section school Cwmtwrch, building on site. Ystradgynlais Situated in main

village and frontage onto main road.

l[¢ómmulill!Y.Ii~~Dimlf~ ,"_ •• x, ,.;.1 ~," ".",,'.' <""':ll!"'1!' ,.,." --'"t.!' s: "L . '{(fJ" !@'l'';'';.~.<£ ' ~ .. % ..... L . .;:··. ·té .* •• , Ferwig, Cardigan School N/K leasehold 01/09/2007 £3,000 pa Community use - no

information relating to floor areas. 21 year lease

I Pennant, Aberaeron School N/K leasehold 01/03/2014 £3,000 pa Community use - no information relating to floor areas. Holdinq over

Tregroes CP School, School N/K Leasehold 09/0812011 £2,400 pa Community use - no Llandysul information relating

to floor areas. Holdina over

Cross Inn, Llanon Day N/K leasehold 18/1212012 £2,000 pa Community use - no nursery information relating

to floor areas.

1 - Yelverton House, St 347.61 NIA 01/0612013 £8,100 £2.16 less desirable Johns Street, Whitland location than the

subject property and reflected in the overall rent oer saft.

2 - Office at BMA 137 NIA 16/04/2013 £9,000 pa £6.00 The orooertv

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Dl ~S· Property Specialists , y.,. for the Public Sector

Trading Estate, comprise a detached Carmarthen second hand office

building located within the centre of Carmarthen industrial estate, much better location.

3 - Suite C first floor, 3 69.2 NIA 23/02/2012 £4,200 £5.63 Town centre location, Red Street, Carmarthen significantly better

than the subject property.

'le_ij",c~tiôiiil[8nd'ia:om os r j( .", ~,' . '~. iO< - ,," ~,,; ''o " /l;L ."" " .,,2·1i1l"" ~"'o' .Ii"' 's

Land at Llandysul new School 29.5 19/04/2013 , £1,090,000 £36,949/ Subject site acquired school acres acre for the .new 3/19

school within uandveut.

Land at Brongest, University 8.73 18/09/2013 £475,000 £54,410/ This land was Llanfair Road, Lampeter playing acres acre acquired with hope

fields value for residential development and within the development boundaries. Adjoining the main Lamoeter camous.

Land at Llandeilo - Bro School 29 acres November £840,000 £28,965/ This sale included Dynefwr 2012 acre the acquisition of

I fishing rights and diminution in value to the main residence.

Furness Primary School land £40 - New primary school School; £45,000 per for 300 pupil just Carmarthenshire acre completed on

development. ~Ili Ol .0 '"

'" Residential deveiobment'land 1 -Land at Maes 1 acre GEA 05/03/2010 £110,000 Residential development land sold to Amlwg, Tregaron Cantref for affordable housing at

£110,000 Der acre. 2 - Land at Bro Henleys 1.7 acres GEA Ongoing £210,000 Forced sale with Ceredigion council Felinfach expected to Cantref for development of 23

August affordable units and analyses back at 2014 £123,529 per acre. I valued the site

at £350.000 (£205,000 per acre) 3 -land at 2.2 acres GEA Ongoing £250,000 Forced sale with Ceredigion council Rhydypennau,Bow expected to Cantref for development of 27 Street August affordable units and analyses back at

2014 £113,636 per acre. I valued the site at £565,000 (£257,000 oer acre)

4 - Land at Llysonnen 2.45 acres GEA 31/07/2010 £425;000 Residential development site in a Road,Carmarthen better location than the SUbject site

and analyses back to £173,;469 per acre although unknown details regarding abnormals etc

5- Land at 0.67 acres GEA 23/07/2013 £300,000 Much better location than the subject Penralltydre, st site and development proposed for 4 Dogmaeis residential units. Analyses back to

£447,761 Der acre 6 - Land at Penbryn, 0.471 acres GEA 27/0212012 £100,000 Residential development site COB parcllyn, Cardigan comp analyses back to £212,314 per

acre.

7 -land at perc y waun, 0.867 acres GEA 15/0212010 £250,000 COB comp in better location than the St doarnaels road, subject site and sold for residential

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D~ #IS Property Specialists , y , for the Public Sector

cardigan development analysing back to £288,350 per acre.

8 - Land at Y Ffawydd, 1 acres GEA Available £210,000 This site is available with planning Llyn Y Fran Road, consent for 7 dwellings with 2 Llandysul, SM4 4HP affordable units. This site has been

on the market for a considerable period of time with little interest. I would have expected an RSL to . consider this site given its positive allocation with the LDP and size. £210,000 per acre

I 9 - Land at Glanrhyd, 0.67 acres GEA 23/07/2013 £100;000 Residential development site for 7 llandysul affordable dwellings - analyses back

at £149,253 oer acre. .

• .Residentialj.PfODëi:ti ~Gomosl' . ... , .•.. - ., -'- .. <

1 - Plot adjacent 100 NIA UlO June £112,000 2 bed semi detached 'new build with Maescarrog, 2014 Morgan and Davis - affordable L1anrhvstud dwellina. Original value is £160,000. 2 - plot 3 Land at. 80 NIA UlO June £108,500 & Two plots under offer in this site plot Dolwyre,lIangwyryfron, 2014 £101,500 3 & 6 both end terraced houses and Aberystwyth being offered as affordable dwellings

and 3 beds. Original price is £155,000. Similar location to LLandsul site

3 - Heol Y fedwen, Cilia 80 NIA UfO June £108,500 2 bed semi detached house being aeron, lIangwyryfron 2014 sold as an affordable dwelling.

Original value is £155,000. Similar location to LLandvsul site

4- 2 Heol Y fedwen, 110 NIA 06/01/2012 £170,000 4 bed semi detached house with Cilia aeron, integral single garage. New build lIangwyryfron property no sold as affordable.

Similar location to subject site. 5 :- 34 Heol Isfoel, - NIA 14/0912012 £125,000 3 Bed semi detached sold as an llanrhystud affordable dwelling full value being

£178,500. 6 - 33 Heol Isfoel, - NIA 26/03/2012 £170,000 3 bed semi detached house being llanrhystud sold at full value. Similar location to

L1andvsul site 7 - 21 Heollsfoel, 80 NIA 18/0512012 £99,750 2 bed mid terraced house being sold llanrhystud as an affordable dwelling. Original

value is £142,500. Similar location to LLandvsulsite

8 - 21 Stad Craig Ddu, 83 NIA 23/08/2013 £120,750 2 bed semi detached house being lIanon sold as an affordable dwelling.

Original value is £155,000. much better location to LLandysul site

9 - 21 Stad Craig Ddu, 83 NIA 28/06/2013 £130,000 2 bed semi detached house being lIanon sold at full value. Much better

location to Llandysul site 10 - 21 Stad Craig Ddu, 100 NIA 01/05/2013 £154,000 3 bed semi detached house being lIanon sold at full value. Much better

location to Llandysul site 11 - 32 Stad Craig Ddu, 179 NIA 03/03/2011 £249,000 4 bed detached house being sold at lIanon full value. Much better location to

Llandysul site 12 - 33 Stad Cr~ig Ddu, 179 NIA 22/07/2011 £265,000 4 bed detached house being sold at Ilanon full value. Much better location to

LLandysul site 13 -21 The Beeches, 3beds NIA Available £97,500 3 bed semi detached opposite the Llandysul subject site which is ex local

authority housing. 14 - 1 Springcroft, High 2 beds NIA Under offer £~~9,500 Town centre location, end of terrace, Street, Llandysul popular oosltlon

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4.3 Opinion of Value

I am of the opinion that the market value of the following freehold I leasehold interests to be:

o Llandysul new school site at £36,949 per acre (thirty six thousand nine hundred and forty nine pounds per acre)

o Llandysul former school site at £140,000 (one hundred and forty thousand pounds).

o Tregaron former secondary school at £75,000 (seventy five thousand pounds).

o Tregaron library at £2,400 (two thousand four hundred pounds per annum).

4.4 Currency

All prices or values are stated in pounds sterling.

4.5 VAT

I understand that VAT does not apply to this transaction and my opinion of value reflects this. In the event that my understanding is found to be inaccurate, my valuation should be referred back for reconsideration.

4.6 Costs of Sale or Acquisition and Taxation

I have assumed that each party to any proposed transaction would bear their own proper legal costs and surveyor's fees.

4.7 Market Commentary

All valuations are opinions of the price that would be achieved in the transaction at the valuation date based on the stated assumptions. Like all opinions, the degree of subjectivity involved can vary, as can the degree of certainty (ie the probability that the valuer opinion would be the same as the price achieved by an actual sale at the valuation date).

Valuations can arise as a result of the inherent features 'of the property, the market place or other information available to the valuer. In the case of this report it is necessary to note that any significant macro economic or political crises can have a sudden and dramatic affect on markets. This could manifest itself in either panic buying or selling, or simply disinclination to sell until it is clear how prices in the market will be affected in the long term.

The UK has been one of many countries significantly affected by the global economic downturn and this has been visible in many areas, business, property markets, credit markets and stock market activity. The UK is still currently experiencing a prolonged realignment of its market, which is not unexpected in the context of economic cycles.

However, global economic trends and cycles are not always easy to-forecast as was discovered by many at the start of the last downturn. It should be noted that the UK has

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D~ liS Property Specialists , y , for the Public Sector

seen a recent upturn in market activity and housing stock is expected to rise within the future.

5. General Information

5.1 Status of Valuer

It is confirmed that the valuation has been carried out by Lisa M Bryan, a RICS Registered Valuer, acting in the capacity of an external valuer, who has the appropriate knowledge and skills and understanding necessary to undertake the valuation competently, and is in a position to provide an objective and unbiased valuation.

5.2 Conflict of Interest

Checks have been undertaken in accordance with the requirements of the RICS standards and have revealed no conflict of interest. DVS has had no previous material involvement with the property.

5.3 Restrictions on Disclosure and Publication

The client will neither make available to any third party or reproduce the whole or any part of the report, nor make reference to it, in any publication without our prior written approval of the form and context in which such disclosure may be made.

You may wish to consider whether this report contains Exempt Information within the terms of paragraph 9 of Schedule 12A to the Local Government Act 1972 (section 1 and Part 1 of Schedule 1 to the Local Government (Access to Information Act 1985) as amended by the Local Government (access to Information) (Variation) Order 2006.

5.4 Limits or Exclusions of Liability

The report should .only be used for the stated purpose and for the sole use of your organisation and your professional advisers. No responsibility whatsoever is accepted to any Third Party who may seek to rely on the content of the report unless previously agreed.

5.5 Validity

This report remains valid for 6 (six) months from its date unless market circumstances change or further or better information comes to light, which would cause me to revise my opinion.

I trust that the above report is satisfactory for your purposes. However, should you require clarification of any point do not hesitate to contact me further.

Lisa Bryan BSc (Hons) MRICS Senior Surveyor RICS Registered Valuer, DVS

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6. Appendices

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o

rty Specialists ~IiS Prope Dy, for the Public Sector .

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Dale: 26/212015 OM sequence no: I Scale: nia

Plan title: Land at LLandsyul New School Site , i Copyright (c) 2003 Ordnance Survey

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DlliS Property Specialists . ry, for the Public Sector

Plan title Land at LLandysul Old School Site, SA44 4HP

Date: 26/212015 OM sequence no: i Scale: nia !

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D~ ~S· Property. Specialists I V , for the Public Sector

.____]

7 \ LT",,.

\\--.. ,

I , . Pool I Leisure Centre . . I dl'ng SWimming --- d laid School Site Inc u _ Pian title: Land at LLan ysu Dale: 26/212015 OM sequence no:

I Copyng . ht (c) 2003 Ordnance Survey Scale: n/á

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D~ liS Property Specialists I y , for the Public Sector

regaron Penrodyn

! ~P.L\:1C~

~O \ \ \

I Plan title: Tregaron Fromer School I Library, Lampeter Road, Tregaron

Copyright (c) 2003 Ordnance Survey Dale: 26/212015 OM sequence no: Scale: nia

LDG20 (24.2.14) Private Page 23

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