London Borough of Barnet: Development Agreement in relation to Great North Leisure Park and Finchley Leisure Centre

UK-London: Development of non-residential real estate.

Preliminary Questions
   This notice is published by:
   Directive 2014/24/EU

Section I: Contracting authority/entity

I.1) Name and addresses
       London Borough of Barnet
       2 Bristol Avenue, London, NW9 4EW, United Kingdom
       Tel. +44 2083592397, Email: cassie.bridger@barnet.gov.uk
       Contact: Cassie Bridger
       Main Address: www.barnet.gov.uk, Address of the buyer profile: https://londonbarnet.delta-esourcing.com/
       NUTS Code: UKI71

I.4) Type of the contracting authority (in the case of a notice published by a contracting authority)
      Regional or local authority

I.5) Main Activity (in the case of a notice published by a contracting authority)
      General public services


Section II: Object

II.1) Scope of the procurement
   
   II.1.1) Title: Development Agreement in relation to Great North Leisure Park and Finchley Leisure Centre.
      Reference number: Not Provided
      
   II.1.2) Main CPV code:
      70112000 - Development of non-residential real estate.
   
   II.1.3) Type of contract: SERVICES
   
   II.1.4) Short Description: II.1.4) Short Description: The project is for the development of the site to the north of the Great North Leisure Park, Finchley, London. The London Borough of Barnet (LBB) intend to enter into a development agreement with Regal GNLP Limited. LBB is the freeholder of a large area of land including the Great North Leisure Park (“GNLP”) and the Developer owns a long headlease of GNLP and a headlease of land to the north of GNLP (known as Glebelands). Part of the land comprised within the Headlease, is subject to an underlease back to LBB of the current Finchley Leisure Centre. The developer intends to develop a residential led mixed-use scheme on the GNLP site, including the plot occupied by the current Finchley Leisure Centre. LBB has identified that the site to the north of GNLP can accommodate a replacement leisure centre to the current Finchley Leisure Centre and is attracted by this opportunity to refresh facilities and make a step-change in local leisure provision.
   
   II.1.6) Information about lots
      This contract is divided into lots: No

   II.1.7) Total value of the procurement (excluding VAT)
      Value: 45,000,000      
      Currency: GBP


II.2) Description

   II.2.2) Additional CPV codes:
      Not provided

   II.2.3) Place of performance:
      UKI71 Barnet
   
   
   II.2.4) Description of the procurement:
    The project is for the development of the site to the north of GNLP. Under the development agreement the parties will vary the Headleases to accommodate a proposed development on the Developer’s site. The Developer will surrender a strip of land to facilitate the development of a Leisure Centre and build the Leisure Centre on the former bowling green site owned by the Council to the north of GNLP. The estimated value of the Leisure Centre is £45MexcVAT. The Leisure Centre will be part funded up to £29M by the developer through land receipts. An alternative scheme in contemplation is a smaller leisure centre with fewer facilities offering a lower cost option in the range of £29–45M. The development is subject to various conditions (planning, funding and ground investigation) and will contain protections if the development of the Leisure Centre does not proceed. This may include a smaller leisure centre or surrender of the lease and retaining the site of the current Leisure Centre.    
   
   II.2.5) Award criteria
   (Directive 2014/24/EU / Directive 2014/25/EU)
               
   Price - Weighting: 100
         
      
      
   II.2.11) Information about options:
      Options:    Yes
      If yes, description of these options: Subject to performance and budget there is a contractual price review mechanism, and an alternative option for a smaller leisure centre at the same site.
             
   
   II.2.13) Information about European Union funds:
      The procurement is related to a project and/or programme financed by European Union funds:    No

   II.2.14) Additional information:
    Authorisation to proceed with Development Agreement Decision - Great North Leisure Park (GNLP) and Finchley Lido Leisure Centre - Development Agreement (DA) can be accessed by copy and pasting the following into web brower search https://barnet.moderngov.co.uk/ieDecisionDetails.aspx?ID=9506    
      
Section IV: Procedure

IV.1) Description
   
   IV.1.1) Type of procedure: Negotiated procedure without prior publication (in accordance with Article 32 of Directive 2014/24/EU)          
   
   IV.1.3) Information about framework agreement
         The procurement involves the establishment of a framework agreement: No    
   
   IV.1.8) Information about the Government Procurement Agreement (GPA)
         The procurement is covered by the Government Procurement Agreement:Yes
         
IV.2)Administrative Information

   IV.2.1) Previous publication concerning this procedure:
      Notice number in OJ S: Not provided       
   
Section V: Award Of Contract/Concession
      
Award of Contract/Concession No: 1
Contract No: Not Provided    Lot Number: Not Provided    Title: Development Agreement in relation to Great North Leisure Park and Finchley Leisure Centre

V.2) Award of contract/concession
      
      V.2.1) Date of contract award decision: 20/12/2024.
      
      V.2.2) Information about tenders
      The contract has been awarded to a group of economic operators: No .

      V.2.3) Name and address of the contractor/concessionaire, No. 1:
          Regal GNLP Limited, 14147094
       NW6 3QH, London, NW6 3QH, United Kingdom
       NUTS Code: UKI
   The contractor/concessionaire will be an SME: No    
   
         
      V.2.4) Information on value of the contract/lot/concession:
         Initial estimated total value of the contract: 45,000,000          
         Total value of the contract/lot/concession 45,000,000         
         Currency: GBP

      V.2.5) Information about subcontracting:
         The contract is likely to be subcontracted: Yes          
         Value or proportion of the contract likely to be sub-contracted to third parties
         Value excluding VAT: Not provided          
         Currency: Not provided          
         Proportion: Not provided          
         Short description of the value/proportion of the contract to be sub-contracted:
          Not provided



Section VI: Complementary Information

   VI.3) Additional Information:
      To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=915670246
GO-2025115-PRO-29138472 TKR-2025115-PRO-29138471   
   VI.4) Procedures for review
   
      VI.4.1) Review Body
          Royal Courts of Justice
       Strand, London, WC2A 2LL, United Kingdom
   
      V1.4.2) Body responsible for mediation procedures:
         Not Provided .

      VI.4.3) Review procedure
      Not Provided    
      
      VI.4.4) Service from which information about the review procedure may be obtained
         Not Provided
   
   VI.5) Date of dispatch of this notice: 15/01/2025


Annex D1 - General Procurement
Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union
Directive 2014/24/EU

1. Justification for the choice of the negotiated procedure without prior publication of a call for competition in accordance with Article 32 of Directive 2014/24/EU

   No tenders or no suitable tenders/requests to participate in response to: Open procedure

   
   
   The works, supplies or services can be provided only by a particular economic operator for the following reason: protection of exclusive rights, including intellectual property rights
   
   Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the directive: No
   
   Additional deliveries by the original supplier ordered under the strict conditions stated in the directive: No

   New works/services, constituting a repetition of existing works/services and ordered in accordance with the strict conditions stated in the directive: No

   Service contract to be awarded to the winner or one of winners under the rules of a design contest: No

   

   Purchase of supplies or services on particularly advantageous terms: Not Provided



3. Explanation

   Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union is
   lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive: (500 words maximum)
   This VEAT Notice sets out the Council’s intention to directly contract with Regal GNLP Limited (the “Developer”) to develop a New Leisure Centre in North Finchley. There is an anticipated target completion date of January 2029 and an overall long stop date of 5 years from completion. The Council intends to observe a period of at least 10 days from the date of publication of this VEAT and will not enter into the contract during that period. The Council considers that the award of the Development Agreement is permitted pursuant to Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 (PCR) which permits the use of negotiated procedure without prior publication for public works contracts, public supply contracts and public service contracts where the works, supplies or services can be supplied only by a particular economic operator on the basis of the protection of exclusive rights, and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement. The Council’s view is that the development can only be delivered by the Developer because the Developer has exclusive rights under a long leasehold interest in the land and no reasonable alternative or substitute exists. The Council’s view is that because the Developer has a leasehold interest over land which encroaches on the proposed site of the New Leisure Centre and therefore has control of access to the new site, and because Regal would need to surrender part of its current lease on the existing leisure centre to make the entire footprint of the New Leisure Centre available for development, to deliver this project, the Council must enter into contract directly with the Developer. If the Council does not develop the New Leisure Centre, it will be retaining an ageing, inefficient and increasingly expensive asset. No alternative provider could undertake the Development Agreement to develop the New Leisure Centre because the Developer controls access to the land and will need to surrender part of its current lease to the Council to make the New Leisure Centre available for development and there is no alternative suitable site. This absence of competition is not the result of an artificial narrowing down of the parameters of the procurement