Decision details

RESOLVED:

That the Cabinet approves a budget of up to £100,000 to undertake feasibility studies for a possible modernisation of Appletree Court as described in the report to inform the wider development of the Council’s accommodation requirements as part of its Transformation agenda.

REASONS FOR DECISION:

As set out in the report.

KEY DECISION:

Yes.

PORTFOLIO:

Finance and Corporate.

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST:

None.

DISCUSSION:

The Portfolio Holder for Finance and Corporate explained that, following the Covid pandemic, the way the District Council worked had fundamentally changed. The consequence of this change was that that there was greater flexibility for staff in their working arrangements but also that Appletree Court (ATC) was now underutilised, particularly in regards to office occupancy rates.

The Portfolio Holder acknowledged that there was a cost involved in undertaking the feasibility study, however the potential benefits of the annual rental and rates as well as building costs savings could be in the range of £400,000, giving a pay-back period of 4-5 years.

The Civic Buildings and Facilities Manager explained that this review formed part of the wider transformation agenda.  At present, peak occupancy saw 41% of staff working at ATC at any one time.  A search for alternative accommodation within the District had been undertaken, however no suitable alternative property or location had been identified.  A development appraisal received from leading property consultants in January 2023 showed the sale or redevelopment of Appletree Court for alternative use was unlikely to yield a capital sum sufficient to fund a relocation to alternative premises or the construction of new headquarters premises elsewhere in the District.

It was explained that the feasibility study would give the Council a better understanding of workspace potential and would ensure that Appletree Court was a vibrant and collaborative working environment.  The study would seek opportunities for third parties to use office space which would in turn enable the Council to foster new partnerships whilst developing those already in existence. 

Cabinet members agreed that the post-pandemic hybrid working arrangements lend themselves to new ways that office space is utilised.  The Leader confirmed that sustainability would be a factor in the evaluation of office space utilisation and that the ultimate aim was for the Council to be more cost-effective in the running of Appletree Court and to stand out as an employer of choice.