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CONTAMINATED-LAND-STRATEGIES  November 2016

CONTAMINATED-LAND-STRATEGIES November 2016

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Subject:

Re: Part IIA liability

From:

Nattalie Kennedy/CEXEC/STHMBC <[log in to unmask]>

Reply-To:

Nattalie Kennedy/CEXEC/STHMBC <[log in to unmask]>

Date:

Fri, 25 Nov 2016 15:39:16 +0000

Content-Type:

text/plain

Parts/Attachments:

Parts/Attachments

text/plain (1 lines)

My two penneth -



Enforcing authorities should seek to use Part 2A only where NO appropriate

alternative solution exists. It took St Helens 3/4 years to establish SPOSH

for a residential estate.



Is there a Contaminant-Pathway-Receptor "contaminated land".

Is there hard standing coverage? or grassed communal areas that are well

maintained, therefore, no possibility of a pathway to receptors from

contamination??? This would be considered as breaking, removing or

disrupting the pathway parts of the linkage (e.g. removing or reducing the

chance of exposure of receptor to contaminants i.e. sealing land with

paving, tarmac, concrete, well maintained grassed areas).



If there is no Contaminant-Pathway-Receptor in its current state then the

LA should put together a written statement. The statement should be written

in accordance with sections 5.2 – 5.4 of the Contaminated Land Statutory

Guidance (April 2012).





Kind regards Nattalie



Nattalie Kennedy

Public Health Programmes and Commissioning Manager



Public Health & Wellbeing

St Helens Council

2nd Floor, Atlas House

Corporations Street

St Helens

Merseyside

WA9 1LD

01744 671056 office

07795 591837 mobile











From:	"Ivens, Rob" <[log in to unmask]>

To:	[log in to unmask]

Date:	25/11/2016 15:02

Subject:	Re: Part IIA liability

Sent by:	Contaminated Land Management Discussion List

            <[log in to unmask]>





My point is



Even before we get to this



* Who says its part 2a?- and who pays. :)

* Not the Council I would suggest unless there is a reasonable possibility

of unacceptable risks



We have yet to establish that there is...





Ooh goody other than a trip to the radio station, the usual headline in the

press Council tenants on toxic tip all is well and good.



In all seriousness though  generally we find people are quite responsive to

a self help solution and if this is a real case I would urge the council to

offer a strong contribution to help people afford the work.



Also ned a good hardship policy to think about affordability of the

contribution and or relief against the costs



Its all do able and as David says a surveyor could help.



Equally loss adjusters in free and fair mode are quite helpful.







Cheers and thanks



Rob Ivens

Scientific Officer/Contaminated Land

DD 01306 879232





-----Original Message-----

From: Contaminated Land Management Discussion List [

mailto:[log in to unmask]] On Behalf Of David E

Jackson

Sent: 25 November 2016 14:53

To: [log in to unmask]

Subject: Re: Part IIA liability



Dear List,

For a Friday afternoon, and in case anybody suggested that I do not offer

the List anything constructive, I thought I would turn by hand at

hypothetically attempting to assign Class B liability in Danielle's

case....



 Statutory Guidance (2012) section 7.8+

7.81 Where the whole or part of a remediation action for which a Class B

liability group is responsible clearly relates to a particular area within

the land to which the significant contaminant linkage as a whole relates,

liability for the whole, or the relevant part, of that action should be

apportioned amongst those members of the liability group who own or occupy

that particular area of land.



7.83 Where the enforcing authority is apportioning liability amongst some

or all of the members of a Class B liability group, it should do so in

proportion to the capital values of the interests in the land in question,

which include those of any buildings or structures on the land:



(b) where different members of the liability group have an interest in the

same area of land, each such member should bear responsibility in the

proportion which the capital value of their interest bears to the aggregate

of the capital values of all those interests;



i.e.		Value of the freehold Interest (Council)/  	          X

  Total Cost of Clean-Up

  (Total Value of all freehold/leasehold interests)



A Freehold interest in a property subject to long leases is normally valued

on an investment basis. In that the freehold interest has no intrinsic

value other than,

•	the rental income (the term)

•	the eventual repossession of the property at the end of the term (the

reversion)

so, its value at a given moment is based on a calculated present value of

the future income.



This is best illustrated by example:



i) calculating the term

Total Ground rent of £50 x 10 flats = £500 pa for the block This ground

rent figure is multiplied by the Years Purchase, a multiplier calculated by

the valuer or, more usually, taken from valuation tables. To obtain the

Years Purchase multiplier, the valuer must make an assumption of a Yield

Rate. In this example the yield is taken as 8%; the Years Purchase figure

is then looked up in the tables.

Years Purchase for 68 years @ 8% is 12.433 So, £500 x 12.433 = £6,216



ii) calculating the reversion

Current value of the flats = £150,000 x 10 flats = £1,500,000 (the

leaseholders’ present interest).

Again a multiplier is taken from the tables to provide an investment value

– what is the promise of the future £1.5m worth today? The multiplier, the

Present Value of £1 is taken at the same yield rate, 8%, as previously.

Present value £1 deferred 68 years @ 8% is 0.00534 So, £1,500,000 x 0.00534

= £8,011



The investment value of the freehold – the freeholder’s interest – is

therefore represented by the sum of the values of the term and the

reversion:

£6,216 + £8,811 = £15,027



Hence the Council’s portion of any liability will be: 	£15,027/

 (0.01) x  Total Clean-Up Cost

 (£1.5M + £15027)



And each Lessee’s portion of liability will be: 	£150,000/ 	(0.1) x

Total Clean-Up Cost

(£1.5M + £15027)



And that is all there is to it!!!



In doing so I draw on all my experience as a Mineral Valuation Officer with

the Inland Revenue (c. 1993-2000).  I have no doubt there is another

Chartered Environmental Surveyor who may be able to advise better than I.



Best wishes, David



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