Agenda item

Report of the Director of Regeneration and Planning.

Mark Langridge Kemp, Head of Property - Delivery and Compliance, presented the report regarding a proposal for rationalisation of office space and for future customer contact facilities. 

The Committee considered the report and its recommendations.

Following comments and questions from Members, Officers clarified that:

·       Charleston’s lease of Southover House would be for up to 5 years and Charleston required use of the whole building.  If Charleston offered to purchase Southover House in the future, a separate proposal would be brought to Cabinet and this Committee for consideration.

·       The Heads of Terms of the lease arrangement had not yet been agreed. It was likely that the Council would retain responsibility for aspects of external building maintenance, that there would be an initial rent free period, as Charleston would have internal works to complete, and that a rent would become payable once Charleston had grown its business.

·       Savings to Lewes District Council on overheads and utilities would likely offset the basic rental costs at County Hall.

·       The rental value of Southover House had not been market-tested, although a valuation had been carried out for disposal.

·       A lease with County Hall would be for 5 years and would be for the same number of bookable desk spaces as at Southover House (30) plus fixed desks (5) a small meeting room and kitchen.  It would include a break clause of no longer than 6 months notice. Extra costs would be incurred for hiring additional meeting room space including for Committee meetings, but no costings were currently available for this or the cost of the move in and out of County Hall.

·       Staff contracts had now changed to allow for hybrid working, and most staff were now working from home regularly, depending on service needs.

·       A lease with County Hall would not be finalised until the lease of Southover House had been agreed.

During the discussion a number of areas of concern were raised:

·       Regarding arrangements for the customer-facing space - There was concern that there would be confusion for residents as a result of moving between different locations over a relatively short space of time.  It was important that the reception space was sited centrally in Lewes, and was accessible, and included provision of a suitable mix of private spaces. In conclusion, there was general agreement that more work was needed to get clarity and costings for the customer facing space, which was a priority aspect of any proposal to vacate Southover House. 

·       Regarding a lack of financial information on various aspects of the proposal - including market valuations, moving costs, additional costs for meeting rooms on top of basic rent at County Hall and, predicted overhead costs at UTC. Without this information it was hard to properly evaluate and determine ‘best value’ of the proposal.

·       Securing the Newhaven Site - That the old University Technical College (UTC) building, which was the proposed permanent office space solution for the Council, was as yet unsecured. Mark Langridge-Kemp confirmed that the Council would not dispose of Southover House until an alternative site had been fully agreed.

·       Impact on Lewes Town Centre - That there was a potential negative impact on the town centre of extra visitors by car, as it was unclear how Charleston planned to realise its transport policy aspirations.  Mark Langridge-Kemp confirmed that a requirement for travel plan would be included in the negotiations with Charleston.

In conclusion, there was general agreement that the report had come too early and that there was not enough of the relevant information needed before an informed decision could be taken.

Resolved (unanimously):  To not support the recommendations in the report at this time, for the following reasons:

·       The Committee agreed its support in principle to vacating Southover House in recognition of its underuse, but that additional information was required before the decision could be made.

·       It is recommended that a report be brought back to Policy and Performance Advisory Committee and Cabinet to include a full and detailed business case for:

o   A full and clear proposal for a suitable customer-facing space in central Lewes (to include a space for private meetings between residents, councillors and officers);

o   A rental market appraisal of Southover House, and Charleston rental agreement proposal details, to assess the best value of the proposal;

o   The costs to the Council of moving locations both to County Hall and to the former University Technical College, Newhaven; and

o   The additional costs associated with leasing space at County Hall (including for Committees and Officer/Councillor meetings) in addition to the basic rental cost.