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Wednesday 5 April 2017

Knowle relocation project: "District Council are being advised to go ahead with their relocation from Sidmouth, despite not having a buyer for their current Knowle HQ"

This evening, the District Council's Cabinet discussed the options to go forward with its relocation project:
Futures Forum: Knowle relocation project: Cabinet to consider 'options' as costs spiral even further: part two >>> Weds 5th March

The first option was always going to be the political leadership's preferred option - despite the risks:
Futures Forum: Knowle relocation project: selling, borrowing, speculating

And this is indeed what happened this evening. 
Now the decision will be taken to full Council later this month.

Here is a blow-by-blow report from the Devon Live/WMN blog:



  Relocation of the HQ next on the agenda

East Devon District Council are being advised to go ahead with their relocation from Sidmouth, despite not having a buyer for their current Knowle HQ. The council decided to relocate its headquarters in March 2015 to new offices in Honiton and Exmouth and to finance the move, East Devon District Council had agreed to sell its Knowle headquarters to Pegasus Life Ltd for £7.5m.
East Devon District Council's cabinet on Wednesday are being recommended to sign off nearly £9m to press ahead with the building work at Honiton's Heathpark. This is in addition to the £1.7m already approved for the refurbishment of Exmouth Town Hall.
If a budget is agreed of £8,692,000 to provide a new HQ building at Honiton Heathpark by the cabinet on Wednesday night, which when added to the approved Exmouth Town Hall refurbishment budget of £1,669,000 gives a total gross budget of £10,361,000 for the scheme.
The cabinet are being recommended that they should recommend to full council that they proceeds with the construction of a new HQ building at Honiton Heathpark – one of three options that are outlined.
Option one is to take forward the construction of a new Honiton HQ in anticipation of an acceptable combination of capital receipt and prudential borrowing, which would see work completed as soon as December 2018.
Option two is to delay relocation from the Knowle pending the resolution of appeal into plans for the Knowle and/or new site marketing to secure a new development proposal and planning permission, but would not see a move occur until August 2020.
Option three is to complete the Exmouth Town Hall refurbishment and invest in essential repair and modernisation of a reduced area of Knowle office space, which would cost around £1.9m.
Members of the cabinet are being advised to choose the 'go-now' option that would commit the funds to the construction of the new Honiton H, despite the uncertain future as the council no longer has the £7.5m from the sale of the Knowle guaranteed.
Recommendations
Cabinet recommends to Full Council that; i. Option 1, as detailed in the report, is adopted and that the Council proceeds with the construction of a new HQ building at Honiton Heathpark, and ii. The Deputy Chief Executive – Development, Regeneration and Partnerships is delegated authority, in consultation with the Office Accommodation Executive Group, to commence works and deliver the new HQ building.
A budget is agreed of £8,692,000 to provide a new HQ building at Honiton Heathpark, which when added to the approved Exmouth Town Hall refurbishment budget of £1,669,000 gives a total gross budget of £10,361,000.
Option 1 Take forward the construction of a new Honiton HQ in anticipation of an acceptable combination of capital receipt and prudential borrowing. This would involve either a successful appeal or remarketing the Knowle for sale as a Local Plan compliant development or better.
Option 2 Delay relocation from the Knowle for a period of 12-24 months or more pending resolution of appeal and/or new site marketing to secure a new development proposal and planning permission.
Option 3 Complete Exmouth Town Hall refurbishment and invest in repair and modernisation of a reduced area of Knowle office space.
Option one where the council move move is the one that is being proposed
Council told the financial Implications of option one are: 
Best case scenario; Pegasus obtain their permission on appeal and the Council receives the agreed receipt of £7.505m, this represents a positive cash saving of £1.405m (or positive NPV of £4.551m) and a benefit of £5.937m overall compared to the ‘Do Minimum’ option. 
Worst case scenario; Remarketing and obtaining the value of a local plan compliant scheme, this represents a cost to the Council of £4.238m overall, however it still presents a £294k saving (or positive NPV of £2.147m) when compared to the costs of the ‘Do Minimum’ option.
Delaying for 18 months before moving would cost the council £1m, the meeting hears
Option three - the do minimum option - would see the council have a net loss of £4.5m over 20 years, while going now, option one, sees the council have a net gain of £1.4m
relocation now is the most viable and cost effective option, the meeting hears
Cathy Gardner says it is ludicrous to say that option 1 is the least risking - says surely more in control when you know the outcome of the pegasus life appeal on the knowle
Marianne Rixson says that she cannot believe the cavalier approach to spending public money and says that it is reckless in the extreme
Tom Wright wants to talk about certainties - that are this building is not fit for purpose. He says staying at the Knowle is pouring money down the drain and the move to Honiton is not a vanity project, and that the Knowle site is included in the local plan as a development site. He says that woud be totally wrong to pour more money into this as it is a liability
Phil Twiss say that if EDDC was a business, you wouldnt consider anything other than option 1
Cllr Twiss proposes the go now option one and says he cannot see why we are even discussing this again
Andrew Moulding says that he we need to decouple this issue from planning issues and that at some point we will get planning approach for the site as it is a very valuable site.
he says that the whole issue is about being able to provide a modern office to give the best possible service for the residents of east devon 
Cabinet vote to approve that the option 1, 'go now' option, is recommended to full council
Option one is to take forward the construction of a new Honiton HQ in anticipation of an acceptable combination of capital receipt and prudential borrowing, which would see work completed as soon as December 2018.


Major decisions have been made in East Devon - recap | Devon Live
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