Stoke Asset Reports released

King Sturge was appointed by Stoke on Trent City Council to review the 40 administrative buildings in Council occupation

a qucik summary of the reports finding was

Prefferred Option 3a – Consolidate into city centre CBD project, core operational property plus such administrative buildings as required to include the Civic Centre

This option scores well across all categories, showing that it fits in well with the Council’s objectives. By taking a pre-let of the CBD scheme, the Council use its occupation to enable new development in the central business district that otherwise would not be viable. This in turn should see spin-off benefits to wider regeneration in the locality. By disposing of older stock and taking occupation of new BREEAM Excellent office space, the Council will improve the overall sustainability of its occupational estate. Retaining the Civic Centre maintains a presence in Stoke and is considered to be more appropriate politically

Current Proposal Option 4 – Consolidate into the CBD project

This option scores well in terms of achieving the Council’s strategic and economy and efficiency objectives, in particular for promoting city centre development, improving the sustainability of the Council’s operation and the economic position of the Council’s operation. However, the option scores poorly in terms of deliverability since it is considered to be too significant an operational change, and the single location is considered to provide a business continuity risk to the Council. Disposal of the current civic centre would also be problematic.

The Proposed  Capital Investment

The councils current 40 buildings have a backlog maintenanace budget of £5.4M the proposed disposal of 30 building will save just £873,390, leaving the council still needing to spend £4.5M on backlog maintenanace on the retained buildings, The 10 retained building would also see an outlay of £11M on refurbishment, so on top of the £59M for the construction of the new civic will give the Tax payers a grand total of £74.5M

save/investment

note future capital outlay and revenue costs of CBD were not included

The Proposed Capital Sales

Option 3a was, in principle, accepted by the Council. Hence Option 3a is the basis for the proposed Phase One relocation and entails a reduction in the number of buildings occupied from 40 to 10, the report anticaptees capital reciepts of £6.68m from the sales of these 30 buildings see below even though redacted £14.64M – £7.9M = £6.68M

6.2.4 In addition, a total backlog maintenance and refurbishment cost of £10.16 million would also be avoided to leave an outstanding refurbishment and backlog maintenance liability of £14.64 million. If the capital receipt of £(redacted) is deducted from this figure, the revenue savings alone could fund the outstanding capital amount of £7.96 million in 4 years at the latest

Revenue Savings

Even revenue savings look unlikly as the Savills report finds there is likely to be an increase

If it is assumed that the Council procure BREEAM Excellent buildings then on a pure revenue basis there is an overall increase in annual cost of c. £(redcated) per annum.

Conclusion

Maintence £0.8M saved £4.5M required

Refurbishment £9M saved £11M required (+ £59M for new building)

Revenue costs to increase

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