8.14 The following criteria should be used to evaluate suitability:
• before commencing a PPP test, NHS Bodies should explicitly review what parcel(s) of land/buildings might be associated with a particular scheme and ascertain into which of the following categories it/they would fall:
(i) land/buildings that would remain in operational use within the proposed development;
(ii) land/buildings that would become surplus to requirements as a consequence of the proposed development (and by implication would not become surplus if the proposed development did not proceed);
(iii) land/buildings with the potential to release development gain (i.e. enhanced value or more valuable planning consent) on either itself/themselves or other land/buildings if they were to be disposed of by the NHS;
• in the case of (i) then such land/buildings are clearly integral to the overall deal and the economic assessment of the overall PPP scheme would also suffice for the economic assessment of any such land transactions (paras 50 to 64). In the case of (ii) and (iii) two tests of value for money would be required (paras 29 to 48):
- the economic assessment of the overall PPP scheme, and
- the economic assessment of the land disposal;
• surplus land should only be considered for inclusion within a PPP test if the Board considers that the alternative of conventional sale and reinvestment of the proceeds in another scheme that has not secured private finance would not command a higher priority. Boards should agree explicitly what proportion of the proceeds arising from the disposal of surplus land can be included in the PPP Scheme in order that any implications for affordability can be assessed early. NHS Bodies should also consider whether improved value for money and affordability can be achieved by reinvestment of the proceeds in equipment or in publicly funding the refurbished elements of the scheme;
• consideration should be given to whether the inclusion of any surplus land would facilitate achievement of other national/local priorities and objectives;
• reference should be made to the Board's estate strategy in making decisions on whether to associate surplus land with a PPP scheme. The absence of an estate strategy would tend to favour a decision not to associate land with a PPP scheme;
• in assessing both the relative returns and relative priority between inclusion in a PPP scheme and conventional disposal, Boards should also take into account:
- the levels of risk and ease of disposal;
- the potential timing of disposal;
- the opportunities for securing planning permission;
- the holding costs of the land (eg continuing capital charges, security, essential health and safety expenditure etc) prior to its disposal; and
- the impact of any delay and/or uncertainty in realising disposal values arising from inclusion within the PPP scheme that would be associated with each option;
• if more than one NHSScotland body could make a claim for the inclusion of a piece of retained estate, the Board would need to assess whether there was a prior/better claim on the land;
• in assessing which might be the "best" claim on a piece of surplus land, an alternative or continued operational requirement would tend to take precedence over disposal (within a PPP scheme). The Board would need to ascertain whether a better solution might be secured by meeting the operational need elsewhere;
• in the cases of both the retained estate and NHSScotland body-vested land, legal advice should be obtained to ensure that proper title to the land exists and that there are no impediments or reversionary clauses (e.g. the Crichel Down rules) that would prevent the proposed disposal route or impose restrictions on the future use of the land. The Crichel Down rules, for example, require that the original owner of land acquired under compulsory purchase should be given the first option if the land is to be sold. Particular care should be taken where the actual conveyancing of the land to the NHSScotland body, although intended, is not complete.
Disposal of Surplus Land