Issue - meetings

The Executive Member for Regeneration and the Director of Regeneration and Culture submitted a report for the Executive’s consideration. The purpose of the report was to provide information on the building options that had been explored for the future accommodation of Council Staff and request approval for:

a)     a departure from Centre North East (CNE) being considered the preferred option due to changing circumstances;

b)     Fountains Court being the preferred option for the future accommodation of staff;

c)      the purchase of Fountains Court; and

d)     a delegated decision to the Director of Regeneration and Culture, Richard Horniman, and the Director of Finance, Ian Wright, with regard to expending the £200,000 contingency set aside in the investment strategy, should it be required.

Fountains Court was proposed as the preferred option, the key benefits of the option being that:

a)     The building had recently been vacated by Firstsource, therefore purchasing and occupying the building would prevent long-term vacancy, thus helping to meet the Council’s regeneration objectives.

b)     It offered the space and layouts required for staff. At approximately 38,000 sq. ft it could accommodate approximately 335 desks (5 per 10 people) and all previously assumed services, with the exception of the Customer Centre which would remain on the ground floor of Middlesbrough House. Furthermore, the building offered the flexibility to extend with modular space if required in the future.

c)      As the building would be fully occupied by the Council, there was no requirement for the Council to let the vacant space. That in contrast to the CNE option whereby the Council would be taking a commercial risk on vacant space needing to be let.

d)     A recent building survey had confirmed the building was in sound condition and although it required refurbishment, it would be possible to achieve a very high standard of fit out and an excellent working environment for staff. As it was by far the most economical option to purchase, a good proportion of the investment could be allocated to ensuring a high internal specification.

e)     It was by far the most economically advantageous option. Further due diligence and survey work needed to be undertaken to fully understand the costs, but it was anticipated that the cost of the purchase and fit out of the building could be accommodated within the original fit out budget for One Centre Square. If the detailed due diligence subsequently identified that could not be achieved, a request for an additional allocation of funding would be made prior to work starting. A saving of up to £6.8m would be made when comparing Fountains Court to a generic new build option of the same net internal area.

f)       Moving to Fountains Court would be achieved in a shorter timescale than the other options, particularly any new build options. It was estimated staff could begin to relocate there in autumn 2022.

If approved, the next steps would be:

·        design work and staff consultation to firm up the requirements;

·        tendering and a mobilisation period for the  ...  view the full minutes text for item 128