Agenda item

Report of the Cabinet Member Finance, Councillor John Rawson
(if Members wish to discuss any exempt information in the appendices the Cabinet will need to pass the resolution in the following agenda item and consider these in exempt session)

The Cabinet Member Finance introduced the report on the Accommodation Strategy which had been circulated with the agenda.

The report explained that the council had had a long-term aspiration to relocate to modern, more flexible office accommodation which would meet both existing and future needs, improve the customer experience and provide better value for money to the taxpayers of Cheltenham.  This had been restated at the Council meeting of 31 March 2014 and the report and the supporting business case now outlined the case for relocation and considered how each option met the Council's desired outcomes. An amended cost benefit analysis for option 2 including inflation had been circulated in Members’ places at the start of the meeting together with corresponding amendments to the summary. This had been done at the request of members. He highlighted that this information did not relate to the figures for the proposed acquisition nor the recommendations in the report.

In his introduction the Cabinet Member highlighted that the Municipal Offices were unsuitable for modern office accommodation but he was passionate to secure the building’s long-term survival. The accommodation strategy was also a critical part of the ongoing process to achieve budget savings without the need to cut critical services.  He acknowledged that it was a huge decision but it was the opportunity of a lifetime for the town.  The council had a successful history of purchasing property for investment and the Regent Arcade was a good example where the council had secured a long term income through this joint-venture. A recent review from Cipfa had also urged the council to invest in property to secure future income. In acquiring the property, the council would be purchasing grade A office accommodation in the centre of the town which was fully accessible, provided modern office accommodation, underground car parking and would attract prospective tenants. CBH had indicated they were keen to relocate with the council.  The council had been conservative in the rental estimates but the rental income stream in the next 8 years would cover 71% of the purchase price and stamp duty. Acquiring the building would also give the council flexibility for the future in terms of accommodating its future workforce.  In conclusion he thanked officers, in particular the Director Resources, the Head of Property and Asset Management, the Managing Director of Cheltenham Development Task Force and the Head of Finance for all their hard work.   He also thanked Members who had engaged and influenced the way that the information had been presented.

Finally the Leader paid tribute to the huge amount of work which had been undertaken in looking at all the options for future accommodation. He thanked officers and in particular the Cabinet Member Finance for his valuable contributions. He believed this was the right time and the right decision.

RESOLVED THAT

1.     It be acknowledged that remaining in the Municipal Offices is not a viable option for the future.

2.     The freehold interest in the property described in Appendix 3 be acquired, at a price not exceeding the budgets set out in Appendix 3, and subject thereto the Head of Property and Asset Management be authorised to negotiate terms for the acquisition and the Borough Solicitor prepares such documents as she considers necessary or appropriate to conclude the acquisition.

3.     Officers be authorised to investigate options for the future of the Municipal Offices, including the process for securing a partner to enter into a joint venture for the redevelopment of the Municipal Offices as per section 5 of the report.

Council be recommended to :

4.     Allocate the budgets for financing the acquisition and refurbishment as detailed in Appendix 2 and 3.