Council staff are one step closer to moving out of the Municipal Offices as Cheltenham Borough Council reveals it has acquired new office accommodation at Delta Place, viagra 40mg 27 Bath Road, vialis 40mg Cheltenham.
The main driving force behind the relocation is the need to find a headquarters for the council that is more cost-effective and suited to modern needs than the Municipal Offices. The latter was originally a row of 13 houses which is increasingly unsuited to modern working conditions. It is expensive to maintain and provides more accommodation than the council currently needs. It has also proved to be very difficult to sub-let because of the way the space is configured.
Mark Sheldon, the council’s director of resources, said: “We have been looking to relocate to modern, more flexible office accommodation for many years, to improve customer experience and provide better value for money for the tax payers of Cheltenham.
“This option was one of many put forward to councillors – including remaining at the Municipal Offices and building new offices. Following a full appraisal, it was agreed that this move offers the greatest benefits. The relocation of the council and redevelopment of the Municipal Offices will attract even more businesses and visitors to our town and the council will be able to provide services from more accessible offices for its local residents and staff.”
Councillor John Rawson, deputy leader of the council and cabinet member for finance, adds: “I fully understand that many people will be sorry to see the council relocate from the Promenade. However, we face a drastic squeeze on our finances as a result of cuts in government core funding and we have to choose between cutting services or cutting overheads.
“We have been scrupulous in the way we have taken this decision, retaining not just one but two leading independent property advisers, both of whom have advised that it is a good deal for the town to buy Delta Place as our new home. It will deliver a big long-term benefit to the council’s finances and I am very hopeful that it will give the Municipal Offices the investment it needs and a whole new lease of life.”
Delta Place
Delta Place was built in 1992 and provides over 57,000 square foot/5,312 square metres of floor space over three floors with lifts. It is arranged on modern open plan principles, making for more efficient use of space. It benefits from 77 underground parking spaces and is opposite Bath Road car park, making it easily accessible to the public. It also meets the requirements of the Equalities Act for disabled access.
Of the total floor space of 57,177 square foot, the council currently anticipates requiring 27-30,000 square feet. The remainder will be sublet, helping to meet the growing demand in Cheltenham for modern, high quality office accommodation.
The building has a head lessee whose lease runs until 2023, but the council hopes to be able to negotiate to occupy part of the building before that time, allowing it to free up the Municipal Offices for a new use.
Municipal Offices
The council will be seeking to form a joint venture with a commercial partner to redevelop the Municipal Offices building sensitively for a mix of potential uses including retail, hotel, leisure and some residential. This could be achieved by reconfiguring the Municipal Offices at the rear and removing the unattractive additions to the original building. The council believes that the release and re-use of these offices will add significant value to the economic performance of the town.
Rather than sell the Municipal Offices for a one off capital sum and relinquish the ownership of an iconic building, the council’s aim is to secure a longer term annual income stream, through a ground rent or performance share, to help support its revenue budget.
Financial issues
Delta House has been acquired for £13.75m. Around £10m of that will be paid off in the first eight years in rents received from the current head lessee of the property. The relocation will include a number of major financial benefits to the council taxpayer over future years, including the following:
- Relocating to a new and more modern building will avoid the estimated £6.5m repair and maintenance costs of the Municipal Offices over the next 20 years.
- It will secure private capital to redevelop and renovate the Municipal Offices.
- It will generate an income by subletting surplus space in the new offices – estimated at £325k a year from 2023/4.
- It will generate an income from the redeveloped Municipal Offices, cautiously estimated at £175k a year from 2023/4.
- Occupying more modern offices organised on an open plan principle will make it easier to streamline the council’s administration, improve efficiency and cut costs.