The plan was/is a land swap - council give Bath St to the Fire Brigade, who demolish it for a PFI station-by-numbers, council take Fire Station and, in a stroke of brilliance and originality, demolish it for … a car park. Really, I'm not joking. We're paying senior officers millions of pounds for this sort of radical strategic thinking. More fool us.
Yes, the FB is not answerable to the Council. It does have to comply with statutory legislation though (such as planning law) unlike Crown property.