Issue - meetings

This report provides a progress update of the Council’s corporate accommodation project. It includes the targets and achievements for Stage 1, details of the sale and leaseback of St Leonard’s Place and 2 – 4 Museum Street, the revised timetable for the completion of the project, targets for the next stage and the top ten risks. It also seeks Members agreement to a revised financial model for the delivery of the project.

Members considered a report which provided an update on progress with the Council’s corporate accommodation project and sought approval for a revised financial model for delivery of the project.

RESOLVED: (i)         That the progress of the accommodation project to date, as set out in paragraphs 4-25 of the report, be noted.

REASON:      In accordance with the Executive’s role in monitoring the project.

                        (ii)        That the revised financial model for the project, set out in paragraphs 5-21, be approved.

REASON:      To take account of further work carried out as part of the business case.

Members considered a report which provided an update on progress with the Council’s corporate accommodation project and sought approval for a revised financial model for delivery of the project.

The report provided details of progress on Stage 1 of the project (April-August 2006) , for which the targets and achievements comprised:

• Purchase of the ambulance station site
• Approval to relocate the Peaseholme Centre
• Sale and leaseback of St Leonard’s Place / 2-4 Museum Street
• Extension of leases at 10-12 George Hudson St and Swinegate Court
• Publication of the OJEU Notice for design and construction partners
• User brief for the new building at Hungate
• Review of Facilities Management Services

In respect of the financial model developed as part of the business case for the project, further work had revealed that the headline figures originally reported to the Executive had been oversimplified and omitted some costs.  A revised and updated model had been developed which adopted a more efficient approach to the financing of the project and explicitly included all costs necessary for its completion.  It was noted that, overall, the financial position had improved since last reported to the Executive.  The report outlined the current position and key changes to the figures previously reported, further details of which were provided in Annex A.  It was noted that the timetable for occupation of the new building at Hungate was currently June 2010.  Key dates towards occupation were set out in paragraph 23 of the report and key targets for Stage 2 of the project in paragraph 25.

Members commented on the importance of the scheme as an investment in the City’s future as well as providing improved working conditions for staff.  It was noted that the outline brief now included enhanced sustainability targets.

RESOLVED: (i)         That the progress of the accommodation project to date, as set out in paragraphs 4-25 of the report, be noted.

REASON:      In accordance with the Executive’s role in monitoring the project.

                        (ii)        That the revised financial model for the project, set out in paragraphs 5-21, be approved.

REASON:      To take account of further work carried out as part of the business case.