Agenda item

This report provides an update on the progress of the Accommodation Project, seeks endorsement of the property exit strategy to vacate De Grey House and 1A and B Swinegate Court East in 2011, and seeks approval for an increase in the use of the Venture Fund to fund the Early Years Deficit.

RESOLVED: (i)         That the report be noted.

                        (ii)        That the ongoing communication with the public, through the Council’s website, Your City and e-mail, be noted.

                        (iii)       That it be requested that the business case for the financial benefit of the project be included in future communication.

REASON:      To ensure that the benefits of the project, particularly in terms of long-term financial savings, can be clearly communicated to the public.

                        (iv)       That the property exit strategy, and the release of De Grey House and 1A & B Swinegate Court East on the first break clause dates of March and May 2011, with affected staff to be relocated to within the existing accommodation portfolio, be endorsed, and that an updated report be brought to Executive within three months detailing the break clause in leases, tendering process for dilapidation works and the minimisation of the period of time between departure from office and the end of the Council’s lease on the building.

REASON:      In order to vacate the premises and re-locate staff within the project’s financial model and with minimal disruption and risk to Council services.

                        (v)        That the Director of City Strategy detail to the Leader any costs arising from the objection by the Victorian Society.

REASON:      To assess the financial effect on the project of this late intervention in the planning process by a statutory consultee.

[See also under Part B Minutes]

Members considered a report which provided an update on the progress of the Accommodation Project and sought endorsement of a property exit strategy to vacate De Grey House and 1A and B Swinegate Court East in 2011 and approval for an increase in the use of the Venture Fund to cover the Early Years Deficit.

On 24 June 2010, the Planning Committee had approved plans for the new Headquarters building.  Subject to listed building consent and the developer satisfying the terms of the Conditional Sale and Development Agreement, work was scheduled to start on site in early November.  An indicative timetable for completion of the project was set out in paragraph 33 of the report.  On 25 June 2010, the Accommodation Project Board had considered three options for a property exit strategy, as set out in paragraph 16.  The option approved, Option C, was to vacate De Grey House and Swinegate Court East, exercise lease break dates in March and May 2011 respectively, retain existing premises and where applicable renegotiate leases in line with the HQ completion date, and relocate displaced staff within the Council’s existing accommodation portfolio.  The exit strategy would remain under constant review in consultation with the ‘More for York’ efficiency programme.  Officers confirmed at the meeting that the owners of the buildings to be vacated were actively engaged with the Council with regard to the issues of planning and future use.

It was reported that the Early Years deficit figure of £1.93m reported in December 2009 had now risen to £2.25m.  This was due to a number of amendments and corrections to the project model, the inclusion of 2009/10 actual revenue costs and 2010/11 budget estimates and a further adjustment to reflect the fall in interest rates.  It was suggested that Members recommend to Council an increase in the use of the Venture Fund to cover this sum. 

RESOLVED: (i)         That the report be noted.

                        (ii)        That the ongoing communication with the public, through the Council’s website, Your City and e-mail, be noted.

                        (iii)       That it be requested that the business case for the financial benefit of the project be included in future communication.¹

REASON:      To ensure that the benefits of the project, particularly in terms of long-term financial savings, can be clearly communicated to the public.

                        (iv)       That the property exit strategy, and the release of De Grey House and 1A & B Swinegate Court East on the first break clause dates of March and May 2011, with affected staff to be relocated to within the existing accommodation portfolio, be endorsed, and that an updated report be brought to Executive within three months detailing the break clause in leases, tendering process for dilapidation works and the minimisation of the period of time between departure from office and the end of the Council’s lease on the building. ²

REASON:      In order to vacate the premises and re-locate staff within the project’s financial model and with minimal disruption and risk to Council services.

                        (v)        That the Director of City Strategy detail to the Leader any costs arising from the objection by the Victorian Society. ³

REASON:      To assess the financial effect on the project of this late intervention in the planning process by a statutory consultee.