Rating Manual section 6 part 3: valuation of all property classes

Section 181: bus stations and park and ride

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

This instruction applies to all bus stations and park and ride facilities.

2. List Description and Special Category Code

Bus Stations

List Description: Bus Station and Premises

Scat Code 036, Suffix S

Park and Ride

List Description: Park and Ride and Premises

Scat Code 040 Suffix S

3. Responsible Teams

This is a specialist class and responsibility for valuation will lie with the specialist teams within the business units. Queries of a complex nature arising from the valuation of individual properties should be referred to the NSU class facilitator via the class co-ordination team (CCT).

4. Co-ordination

The Civics Team (NSU) has overall responsibility for the co-ordination of this class. The team are responsible for the approach to and accuracy and consistency of valuations for bus stations/park and ride facilities. The team will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating list. Caseworkers have a responsibility to:

*follow the advice given at all times

*not depart from the guidance given on appeals or maintenance work without approval from the co-ordination team

*seek advice from the co-ordination team should any issues arise that are not covered in this instruction.

Scottish and Newcastle (Retail) Limited v Williams (VO) 2000 RA 119 and the subsequent Court of Appeal decision - Williams (VO) v Scottish and Newcastle Retail and Allied Domecq 2001 - rebus sic stantibus

Dawkins (VO) v Royal Leamington Spa BC and Warwickshire County Council [1961] RVR 291 - Per Sir William-Fitz-Gerald “To assess land as a school as if it were land used for some other purpose would be a violation of the principle of rebus sic stantibus

Westminster City Council v Southern Railway Co [1936] AC511 - Unit of assessment

6. Survey Requirements

6.1 Basis of Measurement

The basis of measurement to be adopted for bus stations and park and ride facilities is Gross Internal Area (GIA) of all buildings/shelters and canopies (see VO Code of Measuring Practice for Rating Purposes), plus the area of all hard surfacing and total site area.

7. Survey Capture

7.1 Bus stations

All buildings (offices/concourses) to be measured GIA. It is important the specification of the concourse is noted, especially where the structure incorporates a high proportion of glass and/or it is of irregular shape – here it of particular importance to capture the extent and profile of curved or “shaped” walls.

Concourse buildings will typically include: passenger waiting and seating area, public toilets, stairwell/s and lift/s, staff WC’s and showers, information desks, travel shop, offices, stores, plant room, internal walkways, drivers’ mess room/canteen and kitchen, attached cantilever (but not any other type) canopies. These should all be measured to one GIA (noting the presence or not of attached cantilever canopies).

Other canopies, such as umbrella, standalone and those not attached or linked to the main building should be measured separately to GIA. The presence of lighting, passenger seating and notice boards should be noted.

With regard to bus shelters the survey should record whether they are open or enclosed and specify the nature of construction (including whether they are of steel, aluminium or other construction and whether the roof is flat or domed) and make reference to provision of seating and artificial lighting.

All the bus station hard-standing should be identified and the total site area obtained (including landscaping). The survey should record whether the surfacing is tarmac or paved. It is likely it may be combination of the two.

Plant and machinery - record lighting columns, any CCTV and the presence and type of site boundaries/barriers.

7.2 Park and Rides

All buildings to be measured GIA with a description of building specification. All car parking land should be recorded and this split where part of the parking consists of “Grasscrete” or “Grassprotecta” and the remainder tarmac, concrete or block paving.

For park and rides it will also assist if occupancy rates can be obtained throughout the year to show average occupancy and peaks. Local Councils (often the operator) are a good source of information for occupancy rates and in many cases will have daily usage figures.

Plant and Machinery - Record all lighting columns, drainage lagoons, CCTV and the presence and type of site boundaries/barriers.

8. Valuation Approach

Rental Method. It is rare for the assessment of either bus stations or park and rides to be derived solely from rental evidence because:

a.bus stations vary so much in physical type; and

b.they are chiefly of value to local authorities and are very rarely let. Even where this occurs, the local authority only seek a nominal rent in order that buses will use them in preference to on street facilities; or in the case of park and rides to remove cars from the town centre to ease congestion.

Receipts and expenditure - this is rarely appropriate (if ever) for bus stations and park and rides, since neither are operated for profit. The value of occupation to the local authority lies in the socio-economic benefits.

Contractors Basis - Bus Stations and Park and Rides

Bus Stations

In the absence of reliable rental evidence the contractor’s basis should be adopted. It will, of course, be necessary to carefully examine the value derived from this basis in order to be satisfied that it reasonably represents the rental value of the bus station having regard to the concept of rebus sic stantibus. Building cost information is provided in the 2017 Cost Guide and Practice Note but evidence of actual costs should not be disregarded. Site value must be determined on the basis that the site is restricted to use only as a bus station. Site value must be determined on the basis that the site is restricted to use only as a bus station. In the absence of direct evidence the site value of town centre bus stations should be based upon the value of the prevailing land use in the locality less a discount of 20% (see Dawkins (VO) v Royal Leamington Spa Borough Council and Warwickshire County Council (1961) 1 RVR 291. )But this is not expected to be below the value of car parking in the locality.

It may also be appropriate to make allowance for physical, economic and functional obsolescence and any superfluity which may exist in the bus station area. This must be determined on the facts as they existed at the AVD. See Rating Manual Volume 5 Section 7 for guidance on maximum percentage allowances. Special features which may need to be considered for end allowances include the levels of the site and the means of access for buses of all types including large modern coaches and advantages/disadvantages of the actual site in terms of shape and layout.

Park and Ride Facilities

Due to the scarcity of reliable rental evidence relating to park and ride facilities the contractor’s basis is to be adopted. The buildings at park and ride facilities tend to incorporate finishes such as glass and timber. This may reflect a planning requirement for them to blend with their neighbouring environment – they are often located on former agricultural land. A basic modern substitute building rather than the actual building should not be envisaged at stage 1 of the contractor’s basis unless there is evidence that the occupier could and would have provided a cheaper alternative at the antecedent valuation date( AVD) if given the opportunity to replace the current structure.

Superfluity allowance is not appropriate for perceived under-utilisation where peak periods are only met at certain times of the year. For example a park and ride facility may only be full during the run up to Christmas. Nevertheless this peak period should be reflected at stage 1 when considering the size of the substitute hereditament. It should also be noted that few park and ride facilities operate at peak capacity other than for short periods of the year.

Where new park and ride schemes opened around the AVD, superfluity allowances are not appropriate even when subsequent records are indicative of significant under-performance The under performance in these instances is only identified with the benefit of hindsight and would not have been envisaged by the landlord and tenant when negotiating the rent. Superfluity can be reflected at future revaluations.

9. Valuation Support

All valuations should be entered on the non-bulk server under the respective headings of Bus Stations and Park and Ride Stations.

Practice note: 2017: Bus stations and park and ride facilities

1. Market Appraisal

Bus Stations continue to be a crucial mainstay of local authorities’ transport policy, providing a central hub for both bus operators and the public alike. In recent years many bus stations have been built or modernised, often incorporating concourses with a high percentage of glass panels as part of the specification. Where possible the design of the bus station restricts passengers to the concourse, thereby reducing the risk of accident to passengers from vehicle impact.

The provision of park and ride schemes by local authorities has become more widespread as attempts to tackle traffic congestion and environmental problems have intensified. The success of a park and ride scheme is dependent upon on its location, the supply of parking spaces within a city centre and the charging policy of the local authority.

2. Changes from the last practice note

There are no changes (other than costs) from the broad principles followed for the 2010 List and the approach therefore remains the same as for the last list.

3. Ratepayer Discussions

None at present.

4. Valuation Scheme

The costs shown in this section are for ease of reference. In all cases where a cost guide code is shown that must be input into the Non Bulk Server (NBS) template, not the costs shown here. Where the cost guide code shows options, the costs shown in the practice note should be used to aid selection. Should the cost guide show differing costs to those shown in the current version of this practice note, please refer to the Class Co-ordination Team (CCT).

Bus Stations

4.1 Building cost guidance is provided in the Rating Cost Guide.

4.2 Where the bus station is situated beneath another structure, Stage 1 of the contractors basis should assume a substantive open bus station featuring only such buildings and structures as would be necessary in such a context. The advantage or disadvantage of a bus station situated beneath another hereditament is a matter for consideration at Stage 5.

4.3 Open Stations

The costs quoted for the buildings are all inclusive and may reflect all or some of the facilities of a concourse as referred to in paragraph 7 of the Rating Manual section concerned with this class.

Open Stations should be cost by applying the appropriate figures from the Cost Guide:

Description VO Cost Guide Code Cost Remarks
Roads, & hard standings & passenger paving 60P00H £85/m2
Areas of shale/hardcore hard standings(not drained) 60P00K £12/m2
Bus Shelters
Enclosed galvanised steel 60P10G £742/m2
Enclosed anodised aluminium 60P10K £2007/m2
Enclosed barrel vault roof 60P10P £2582/m2
Open fronted galvanised steel 60P10A £1377/m2
Open fronted anodised aluminium 60P10D £1769/m2
Bus Stations
Bus station medium size 60P00E £1990/m2 Standard quality. 2 storey
Bus station medium size 60P00A £2052/m2 Standard quality single storey
Bus station small 60P00C £3900/m2 High quality
Canopy(To concourse bus station) 60P00F £475-£760/m2 Include bases in concourse lighting and seating but not paving
Canopy (cantilever) 60P00J £220/m2
Customer/Public Toilet Block 63F00A –Z and 63F01A-E £1850 to £4,300/m2 Stand-alone-Select from Cost guide in accordance with size and specification
Office and Staff Toilets (Amenity Bldg.) 40500A £ 928/m2 Stand-alone(single storey)
Office and Staff Toilets (Amenity Bldg.) 40500P £ 896/m2 Stand-alone(two storey)

4.4 Obsolescence

The non-industrial age-based scale as provided in the Rating Manual section 4 part 3 should be applied.

4.5 Location factor

The factors set out in VO Cost Guide for the 2017 Revaluation should be applied to the above costs.

4.6 External works

An addition of 5% should be made for external works. This reflects connection to mains services, lighting, CCTV and landscaping.

4.7 Contract size adjustment

The aggregate of location adjusted building costs and external costs should be subject to contract size adjustment as set out in for the 2017 VOA Cost Guide.

4.8 Professional fees

Fees as set out in the 2017 VOA Cost Guide should be applied.

4.9 Land value

Site value must be determined on the basis that the site is restricted to use only as a bus station. In the absence of direct evidence the site value of town centre bus stations should be based upon the value of the prevailing land use in the locality less a discount of 20% but this is not expected to be below the value of car parking land as stated in the 2017 Land Value Practice Note.

4.10 Park and Rides

As the generation of profit is not the motive for occupation and rental evidence is unlikely to be available, in all cases the contractor’s basis should be adopted for valuation purposes.

4.11 The costs to be applied at stage 1 of the contractor’s basis valuation are as follows.

Description VO Cost Guide Code Cost Remarks
Roads, & hard standings & passenger paving 60P00H £85/m2
Amenity building 60P00G £1650-2250/m2 To include w/c, information centre, waiting rooms etc
Grasscrete/Grassprotecta 60P00F £56/m2

4.12 The external works addition, the age and obsolescence allowance, location allowance, contract size adjustment and fees addition are to be applied in accordance with paragraphs 4.4 to 4.8 above.

4.12 Land Value

The land values given in the 2017 Land Value Practice Note as appropriate for car parking land within the locality are to be applied. The exception to this will be in respect of those park and ride facilities located on the periphery of urban areas where it is considered appropriate to apply amenity land values.

The Bus Industry and De-Regulation

In 1986 Britain’s bus industry was de-regulated. The 1985 Transport Act abolished the highly restrictive licensing system which had operated for 50 years.

De-regulation permits anyone to run a bus service anywhere except in London. Efficiency, since de-regulation, has increased. Department of Transport figures show that the average operating costs per vehicular mile have fallen by 36% in real terms since de-regulation (largely through reductions in wages costs). Local authority subsidies for bus services have more than halved from £465 million a year to £219 million at 1991 prices. High frequency mini bus services have replaced less frequent double deckers. Total annual bus mileage has risen by 19% since de-regulation, reversing a long period of decline. The number of passengers has declined, but this can be partly attributed to a reduction in the number of concessionary/free passenger journeys granted by local authorities. Outside London, the annual number of journeys has fallen by 19% since de-regulation. In the metropolitan areas, it has fallen by 26%.

In London, the routes are still regulated but London buses have to compete with the private sector for the exclusive right to operate them. More radical deregulation is awaited in London, where in spite of severe traffic congestion, bus use has actually risen since 1986.

Low levels of profit have generally left operators unable to replace old buses. The proportion of vehicles more than 12 years old has grown from 19% before de-regulation to 34% in 1992.

The competition legislation introduced by section 115 of the Transport Act 1985, which came into effect on 26 July 1986, also affects bus stations. Under this legislation it can be deemed to be an anti-competitive practice to operate a bus station in such a way as to deliberately exclude a particular operator with a view to reducing or preventing competition. The usual practice is for the predominant operator to admit other operators to its bus station where spare capacity exists and to apply a departure charge on these operators. These charges rarely cover the costs of operations at these locations but do make a contribution to offset the main operators’ overheads.

As a result of the privatisation of the National Bus Company and de-regulation, the organisation of the industry has changed from a preponderance of large operators, many of which were controlled by local authorities to a much larger number of mutually competitive smaller operators. This transformation had, outside London, already taken place by 1 April 1988. The re-organised industry has inherited garages/depots which were built to suit the requirements of pre-1985. As a result there have been marked tendencies:-

a. to closure of superfluous garages/depots. In Greater Manchester 24% of space has been closed since 1985. Some of those which have been closed have been completed relatively recently eg. Tameside (beacon No. 1 in VO Cost Guide), constructed mid-70s, closed November 1991

b. to smaller substitute buildings, often on industrial estates. Some of these premises have such little adaptation from basic sheds that they should not be regarded as sui generis and can be valued on a rental/comparative basis. But in some cases these newer garages retain the inspection pits and kerbs which justify sui generis status and in some instances planning considerations will also prevent the VO from using industrial/warehouse rental evidence. One particular feature emerges from the design of more modern garages/depots: it is no longer necessary to provide roofed space for parked vehicles. A well fenced, surfaced, drained and illuminated yard is adequate for this purpose. There are exceptions, for example, in built-up areas where planning restraints relating to noise etc could result in a continued requirement for roofed garage space.

Practice Note 1: 2010: Bus Stations and Park & Ride

1. Co-ordination Arrangements

This is an SRU Class. Responsibility for ensuring effective co-ordination lies with SRUs. For further information see Rating Manual - section 6 part 1: Practice Note: 2010.

The Special Category Code 036 should be used. As a SRU Class the appropriate suffix letter should be S.

2. Approach to the Valuation

Valuers should have regard to the contents of RM 5: Section 180 in carrying out valuations for the 2010 Lists subject to the following.

3. Basis of Valuation

3.1 Rental evidence

A request for rental evidence across the network has resulted in a few rents being reported. Any rents that do exist need to be looked at carefully to test their true ‘at arms length status’ particularly in cases where located close to a major Shopping Centre with the same Landlord or in Local Authority ownership where there may be commercial incentives other than rent on the Station. In considering any useful rents care needs to be applied in the analysis to ensure the correct demise is identified as the rent may only include parts of the hereditament, i.e, building/s only and not the hardstanding (and other areas) or vice versa where any building may be a Tenant improvement. Any clean rents particularly in this latter scenario may prove useful in supporting the Land Value adopted in the Contractors Basis.

3.2 Receipts Basis

A receipts basis is not normally appropriate for this type of hereditament since bus stations are not generally operated for profit.

3.3 Contractors Basis

3.3.1 Building cost guidance is provided in the Rating Cost Guide and within the Bus Station Master R2010 Valuation Sheet.

3.3.2 Where the bus station is situated beneath another structure, Stage 1 of the contractors basis should assume a substantive open bus station featuring only such buildings and structures as would be necessary in such a context. The advantage or disadvantage of a bus station situated beneath another hereditament is a matter for consideration at Stage 5.

3.3.3 Open Stations

Open Stations should be costed by applying the costs shown in the Cost Guide:

Roads, Hardstandings & Passenger paving £70 per sq m
Areas of shale/hardcore hardstandings £15 per sq m assumes no drainage (if present add further £15/m2)
Bus Shelters Costs as indicated in Cost Guide and Valuation Sheet: Cantilever, open front, part glazed, £1500 psm Enclosed full glazed shelter, £1480 psm Barrel roof, £1900 psm
Buildings See Cost Guide Beacon and Valuation Sheet, range £1800 - £2400 psm: The price of £1800 per sq m should be applied to older basic/standard substantial buildings within a Bus Station. The most modern/superior buildings should adopt a price of £2400 psm
Basic cantilever type - £250 Superior, steel column supports including paving and lighting - £550 -£870
Public WCs See Cost Guide Beacon and Valuation Sheet, range for the average quality WCs is £1850-£2300 psm
Office & Waiting Rooms Adopt £920 psm

3.3.4 Obsolescence

The non-industrial age-based scale should be applied to buildings, but no age-based allowance should be applied to roads or shelters.

3.3.5 Location factor

The factors set out in VO Cost Guide for the 2010 Revaluation should be applied to the above costs.

3.3.6 External works

An addition of 5% should be made for external works

3.3.7 Contract size adjustment

The aggregate of locationally adjusted building costs and external costs should be subject to contract size adjustment as set out in VO Cost Guide for the 2010 Revaluation.

3.3.8 Professional fees

Fees as set out in VO Cost Guide for the 2010 Revaluation should be applied.

3.3.9 Land value

Site value must be determined on the basis that the site is restricted to use only as a bus station. In the absence of direct evidence it may be argued that the site value of town centre bus stations should be based upon the value of car parking land in the locality.

It is anticipated that the maximum figures appropriate for sites (such as Park & Ride) on the outskirts of any town will be the local amenity land value.

This property is valued using the non-bulk server. The manual can be accessed here.

4. Park & Ride

This advice is confined to those where buses pick up or set down passengers within the hereditament. Non multi-storey park-and-ride car parks will be valued on the contractor’s basis as Bus Stations above and Scat-ed according to this practice note.

Practice Note 1 : 2005 : Bus Stations

1. Co-ordination Arrangements

This is a SRU Class. Responsibility for ensuring effective co-ordination lies with SRUs. For further information see Rating Manual - section 6 part 1: Practice Note 1: 2005.

The Special Category Code 036 should be used. As a SRU Class the appropriate suffix letter should be S.

2. Approach to the Valuation

Valuers should have regard to the contents of RM 5: Section 180 in carrying out valuations for the 2005 Lists subject to the following.

3. Basis of Valuation

3.1 Rental evidence

No rental evidence has been reported.

3.2 Receipts Basis

A receipts basis is not normally appropriate for this type of hereditament since bus stations are not generally operated for profit.

3.3 Contractors Basis

3.3.1 Building cost guidance is provided in the Rating Cost Guide and within the Bus Station Master R2005 Valuation Sheet.

*3.3.2 Where the bus station is situated beneath another structure, Stage 1 of the contractors basis should assume a substantive open bus station featuring only such buildings and structures as would be necessary in such a context. The advantage or disadvantage of a bus station situated beneath another hereditament is a matter for consideration at Stage 5.

3.3.3 Open Stations

Open Stations should be costed by applying the costs shown in the Cost Guide:

Roads

£43 per sq m

Bus Shelters

apply costs as indicated in Cost Guide and Valuation Sheet

Buildings

See Cost Guide Beacon and Valuation Sheet

The Beacon ( Code 60P00A ) price of £1588 per sq m should only be used for modern (post 2000) Bus Stations. The Beacon ( 60P00E ) price of £1166 per sq m (with range of £950 - £2700 per sq m) should be applied to older substantial buildings within a Bus Station. The presence of covered areas (which are excluded from GIA) will tend to increase building costs, within the above range.

3.3.4 Obsolescence

The non-industrial age-based scale should be applied to buildings, but no age-based allowance should be applied to roads or shelters.

Practice Note 2: 2005 List: Bus Garages (Sui Generis)

1. Co-ordination Arrangements

The responsibility for this Class is split between Groups and SRUs. Responsibility for ensuring effective co-ordination lies with SRUs.

Technical Advisors are charged with facilitating co-ordination at the Group/SRU interface. (For more information see Rating Manual - section 6 part 1: Practice Note 1: 2005).

The R 2005 Special Category Code 406 should be used. As a split Class the appropriate suffix letter should be either G or S.

2. Approach to the Valuation

Valuers should have regard to the contents of RM 5: Section 180 in carrying out valuations for the 2005 Lists.

The following guidance relates to the valuation for rating purposes of sui generis bus garages/depots, which can be valued only by the contractor’s basis. (sui generis means: of its own kind, uniquely - in this case uniquely bus garages/depots)

3. Draft Memorandum

This Memorandum provides guidance on the method of valuation for rating purposes of sui generis bus depots. It has been discussed between the Chief Executive’s Office of the Valuation Office Agency and representatives of the Bus Industry. This Memorandum has been drawn up with reference to current legislation and relevant case law.

3.1 General

The Memorandum is in respect of sui generis bus garages. It deals with the question of changes, which have taken place in the design of bus garages/depots. The significance of classifying a bus garage as sui generis is that it cannot be compared with other hereditaments for which rental evidence is likely to be available.

The Memorandum is to be applied to sui generis garages only. Sui generis garages are those for which rebus sic stantibus, no adequate rental evidence exists, and/or which cannot rebus sic stantibus be valued by comparison with other hereditaments for which adequate rental evidence exists. For the avoidance of doubt the Memorandum is not relevant and should not be applied to hereditaments where the contractors basis is not the principal method of valuation. It is not relevant to Bus Stations.

3.2 Definition of the Sui Generis Bus Garages

Sui generis bus garages are, subject to the exclusion in paragraph 8, as follows: -

The larger purpose built bus garages constructed prior to deregulation, which tend to have facilities for washing, garaging and day to day maintenance of single and double-decker buses under cover. The main area is used for garaging and a lesser area is equipped with inspection pits and workshops for bus maintenance. There are other areas used as canteens and administrative offices. The garage and workshops typically may have wide clear spans up to 30 metres and a clear height up to 6 metres. Large steel shutter doors/timber sliding doors provide easy access in and out of the buildings for double-decker buses. The buildings are usually heated with arrangements to clear exhaust fumes. All the floors of the garage are built to fall throughout their length, with cambers across the fall to facilitate drainage. There are often areas of raised pavements to keep buses away from structural supports. There tends to be adequate space for the circulation of buses in and out of the buildings - but usually no extensive external parking arrangements for buses or cars.

The main bus service and maintenance area tend to be of:

Semi basement construction approximately 1.4m deep with columns supporting the bus runways, and designed to allow simultaneous servicing of a number of buses, or have individual inspection pits.

3.3 The Substitute Hereditament

Where the bus garage consistent with the above definition, a substitute bus garage, in accordance with the rates per square metre and formula listed below, is to be costed for Stage 1 of the contractor’s basis. For the purposes of costing the substitute hereditament, it is to be assumed that it will normally consist of only such buildings as are necessary for maintenance and cleaning of vehicles, accommodation for administrative purposes, staff amenities, storage and housing of plant. It should normally be assumed that in the substitute hereditament vehicles will not be garaged, but parked on hardstanding of appropriate specification with kerbs, drainage, illumination, security fencing and gates. Planning requirements may dictate that within certain localities buses must be garaged within enclosed buildings: in such cases the substitute hereditament to be costed will include an enclosed garage.

For the avoidance of doubt, all new bus garages (built post 1995) are to be valued on the actual GIA areas and not on the basis of a Substitute Hereditament.

4. Components of the Substitute Bus Garage

4.1 Calculation of the areas to be used for the substitute hereditament are to GIA and are to be as follows:

4.1.1 Parking Space (used for the Parking of Buses)

This is to be calculated on the basis of fleet footprint x 4. Fleet footprint is defined as the aggregate area of the total number of buses regularly stationed at each garage. A standard bus being 24m2.

The relevant date for the calculation is 1 April 2003, subject to Material Change of Circumstances.

4.1.2 Workshop

This is calculated by multiplying the fleet number at the relevant date x 8.5m2. The fleet number is the total number of standard buses regularly maintained at the garage. Buses smaller or larger than the standard 24m2 are to be counted as a percentage of a standard bus size.

The relevant date for the calculation is 1 April 2003 (AVD), subject to Material Change of Circumstances.

4.1.3 Ancillary Space

Ancillary space is taken to mean stores, plant rooms, amenity space (canteens, toilets), workshop, offices, paint shop, tyre fitting and body shop areas. The amount of ancillary accommodation required by the substitute hereditaments is determined by the size m2 of the ancillary accommodation (all floors totalled) actually found in use at the sui generis bus depot.

The basis of measurement of the ancillary space is to be GIA (Gross Internal Area).

4.1.4 Office Space

For the purposes of this Memorandum office means space within a purpose-built office block, within the curtilage of the sui generis bus depot. The ground and first floor areas in m2 within the sui generis bus depot are to be added together. (Such office accommodation is often used as a regional or headquarters office).

The basis of measurement of the office space is to be GIA (Gross Internal Area).

4.1.5 Land

The land area of the substitute bus depot is the total in m2 of 4.1.1, 4.1.2, 4.1.3 and 4.1.4 (ground floor only).

5. Substitute Bus Garages - Valuation

5.1 The substitute bus garage will be costed using the following rates: -

5.1.1 Surface Costs

Bus Parking (refer to 4.1.1 above): £43 per m2 is to be applied.

5.1.2 Workshop Space

The workshop rate is £650m2.

5.1.3 Ancillary Space

The ancillary space rate is to be at the same level applied to the workshop space, i.e. £650m2.

5.1.4 Office Space

The office rate is £650m2.

5.1.5 Bus Wash

It is assumed that the substitute bus garage will have one new bus wash, except in London, where 2 bus washes are the norm and hence two are to be included. £50,000 is to be applied for a bus wash. Please note this is for a freestanding bus wash, any buildings are to be costed separately.

5.1.6 Compressors

It is assumed that the substitute bus garage will have 2 new compressors each worth £15,000 where bus numbers exceed 50 buses. Bus depots with less than 50 buses, one compressor £15,000 is to be assumed.

5.1.7 Refuelling Bay

It is assumed that there will be an area of 40m2 available for refuelling. £7,000 cost is to be applied.

5.1.8 External Works

7.5% is to be added to the total cost in 5.1.2 to 5.1.8 above.

5.1.9 Location Factors

For the purposes of this Memorandum, location factors are to be applied as shown in the VOA R2000 Cost Guide.

5.2 Fees

For the purposes of this Memorandum fees are to be applied as follows:

Sums up to £500,000

13%

£500,000 to £2,000,000

11%

over £2,000,000

9%

5.3 Stage 2: Age Related Allowances

Age related allowances will have regard to the scale for industrial buildings in the R2005 Cost Guide. Rating Manual section 4 part 3 provides guidance on the application of age related allowances and whether Stage 2 allowances applied to buildings should also be applied to the land value at Stage 3.

Age related allowances that apply to the substitute bus garage at Stage 2 will reflect the physical and functional obsolescence of the actual building. Stage 2 allowances which are appropriate for the actual buildings may be less for open areas, which are used for parking: the facts have to be considered in each case. Where the modern substitute for actual building comprises open parking area, it is appropriate to apply the age related industrial buildings allowances to the substitute building open parking area, to reflect the obsolescence of the actual building(s). It is recognised that some of the older bus garages will have increased functional obsolescence - this can be dealt with by increasing the age & obsolescence allowance at Stage 2.

5.4 Land Values

Land value should be determined on the basis of judgement in individual cases. The site area calculated at 4.1.5 is the acreage to be considered. Judgement on the amount per acre to be applied is based on the site area calculated for the substitute bus depot assuming the substitute bus depot is built within the general/immediate locality of the sui generis bus depot.

Industrial land values prevailing at 1 April 2003 are to be considered.

5.5 Decapitalisation Rate

The adjusted replacement cost will be decapitalised at the prescribed statutory rate.

6. Material Changes

6.1 Where there are demolitions of neighbouring garages resulting in an increase in bus numbers the Valuation Officer should review the assessment - the material date being the demolition of the neighbouring depot. Similarly where there is the construction/acquisition and redevelopment of a new bus depot within the immediate locality resulting in a fall in bus numbers the Valuation Officer will duly reconsider the situation.

6.2 Falls or increases in bus numbers due to route changes, bus company acquisitions or as a result of financial considerations are not normally considered to be a Material Change in Circumstances, and are not normally a trigger for the VO to increase or reduce assessments.

7. Special Cases

7.1 Closed Hereditaments

These should be treated as follows: Closure on 1/4/03 or earlier:

The valuation should take into account that no demand exists from the previous operator and should reflect only such other demand (if any), which may exist within the same mode or category of occupation.

7.2 New hereditaments created post 31/3/03

No superfluity allowance is normally applicable and the ARC adopted should be the full cost of providing the hereditament at AVD levels. Exceptions to this rule apply if superfluity is created by the coming into use of newer hereditaments.

7.3 Physical alterations post 31/3/03

Where there is an increase in the operational capacity of the hereditament, no superfluity allowance is appropriate. Where physical alterations result in a reduction in the operational capacity below the actual Fleet Number as at 31/3/03, the assessment should be reduced to a level consistent with the new operational capacity. Where the operational capacity is reduced to a level at or above the Fleet Number as at 31/3/03, the RV will not be altered.

8. Exclusions

8.1 This Memorandum does not apply to non sui generis bus depots - which are defined as follows:

8.1.1 Purpose built garages with open parking - garages with uncovered bus parking space, covered maintenance and workshops area usually of steel frame construction, staff accommodation and ancillary offices and stores, diesel tanks and plant and machinery. The maintenance and workshops area would not be built to fall throughout their length and there would be no cambers across the fall to facilitate drainage. The hard surfaced parking area would be drained, illuminated and fenced.

8.1.2 Bus garages of the adapted shed type - these non sui generis bus garages may be simply defined as small garages, often situated on industrial estates, in units, which have undergone little special adaptation.

These garages are likely to consist of an open area for parking of buses and employees’ cars, offices, staff accommodation, covered maintenance area with inspection pits, bus wash, tyre and general stores, diesel tanks and plant and machinery.

8.1.3 Smaller purpose built bus garages - constructed prior to deregulation - which contain a few pits and can be valued by comparison with other properties.

8.1.4 Depots or garages of any description for which adequate rental evidence exists.

8.1.5 Purpose built maintenance depots - from which no buses actually operate.

9. End Allowances

Any advantage or disadvantage, which might affect the value of the occupation of the hereditament as a whole, should be reflected at this last stage. An adjustment under this head should not duplicate adjustments made elsewhere. In cases where the actual hereditament features an enclosed garage but the hereditament costed features open parking land, it is appropriate to consider at this stage whether any addition should be made for the benefit of enclosed parking, and whether any deduction should be made for additional burdens in maintaining that structure.