Issue - meetings

Councillor Twomey presented an update report on the Civic Centre and Roycraft House elements of the corporate office portfolio rationalisation project approved by the Cabinet under Minute 78 (16 December 2014).

With regard to the Civic Centre, Councillor Twomey explained that in order to expand the scope for opportunities and contribute to the objective of raising educational attainment in the community, it was proposed to extend the potential future use of the Civic Centre from the originally stated objective of secondary school use to a wider educational use.  It was also the intention that any negotiations with potential future users of the building would include a requirement that part of the building would continue to be available for civic purposes, such as Council meetings.

In respect of Roycraft House, Councillor Twomey advised that the ongoing discussions with Agilisys had identified an alternative preferred option under which the Council would retain ownership of Roycraft House, as opposed to selling the building to Agilisys as was originally proposed.  As part of the new arrangement, Agilisys would lease the whole building and the Council would lease back two floors to accommodate staff.  The new arrangement would provide the Council with an ongoing revenue stream from the main lease with Agilisys, which was now considered to be more advantageous to the Council than a one-off capital receipt had the original sale option progressed, and would provide both parties with greater flexibility and options when the lease arrangement was due to end in 2020.

Cabinet Members spoke in support of the proposals and particularly welcomed the retention of the Civic Centre building for use as an educational establishment and for wider community and civic purposes.

Cabinet resolved to:

(i)  Agree to extend the potential future use of the Civic Centre from secondary school use to a wider educational use and seek to retain some use of the building for civic purposes;

(ii)  Agree that the Council retains ownership of Roycraft House and leases the whole building to Agilisys at market rent, co-terminus with the Elevate contract due to expire in 2020, and the leasing back by the Council of two of the floors for office accommodation;

(iii)  Delegate authority to the Strategic Director of Finance and Investment, in consultation with the Director of Law and Governance and the Cabinet Members for Finance and Regeneration, to negotiate final terms and agree the contract documents to fully implement the arrangements in respect of Roycraft House and the Civic Centre at a market rent; and

(iv)  Authorise the Director of Law and Governance, or an authorised delegate on their behalf, to execute all of the legal agreements, contracts and other documents on behalf of the Council.