EDDC consider combined office sites

Now that firm bids have been secured for the council’s Knowle site, detailed plans will be drawn up to move East Devon District Council’s offices to two council-owned sites in Honiton and Exmouth, but not to Skypark.

Tonight, (3 December) cabinet was updated on significant changes to the preferred location of new council offices - due to changing market conditions - which mean that SkyPark is no longer a financially viable option.

Now, the option of retaining the council-owned site in Honiton and maintaining the existing East Devon Business Centre alongside a new headquarters will be pursued, as well as making use of existing office space at Exmouth Town Hall, recently vacated by Devon

County Council. This will allow for a smaller building in Honiton and existing tenants to remain at both East Devon Business Centre and Exmouth Town Hall.

Council leader, Councillor Paul Diviani, said: “Relocation of the council remains a priority and a means to face the future and deliver the best for our residents. Skypark represented an ambitious move to the district’s re-eminent business growth location but market trends have not met our expectations of land value.  When we agreed to pursue SkyPark it was on the proviso that capital receipts from the sale of parts of Knowle, Manstone and the council’s site at Heathpark Honiton, would be invested in the new headquarters so that we could keep our commitment not to place any extra burden on council tax payers. We made it clear we would not commit funding unless we were absolutely sure it was affordable.

“However, what we do know is that remaining at Knowle is not an option. The squeeze on public expenditure is set to continue and if we carry on as we are the council will be faced with a budget deficit of £2.7 million by 2020. East Devon has not been treated differently to other councils as far as funding is concerned but our long term planning and robust financial management have put us in a stronger position than those in many other areas. We are however, required to make year on year savings to release money for frontline services and as such have explored opportunities for savings from all assets including our property portfolio.

“The reasons behind our decision to move offices are well-established. Remaining at Knowle keeps us tied to old and inefficient buildings and fails to make best use of this valuable council owned asset. At present, the council is struggling to maintain an oversized, inefficient and low-value headquarters on a site that has significant capital value as well as continued amenity value. Relocation offers a better and stronger future.”

Marketing of Heathpark began last year and the highest value commercial interest came from a supermarket operator. The offer price negotiated at that time was attractive as part of the funding package to relocate to SkyPark but the supermarket subsequently reduced its offer in line with a new business sector model. The reduced offer makes a sale of the site no longer attractive.

Councillor Diviani added: “A combined Honiton and Exmouth office base offers a different approach involving new or modernised offices in two locations. A smaller headquarters and an accessible presence around the district has been the council’s aim throughout this process.

“In principle, sites in two of East Devon’s major towns provide an ideal opportunity for us to respond to the demand for the range of our services. We know there is a need to increase service provision for housing benefits, council tax, housing and debt advice in both

Exmouth and Honiton and we would also be responding locally to significant demand led presences in Sidmouth and Axminster. The council will also provide surgeries in other towns as they do for example in Cranbrook, Seaton and Axminster.”

Cabinet also agreed that the council should enter negotiations with a preferred bidder for the sale of Knowle.

A mix of proposals were received, which contained variations on residential, retirement and/or care and extra care communities whilst retaining the public park. A range of matters still need to be explored but once a preferred bidder is selected, it will be for the developer to enter into discussions with the planning authority to explore proposals.

“The fact that no interest has been shown in retaining and refurbishing any of the existing buildings at Knowle reinforces our view that Knowle, in its current state, is not our future. As we know, the refurbishment of  Knowle would cost up to £15.9 million and even after repairs energy costs would still be around £62,000. That’s almost double the predicted energy cost for the Honiton/Exmouth alternative.”

Among the bids are proposals to develop Knowle only which leaves Manstone to continue operating as a depot for the foreseeable future. The depot functions currently provided at Knowle Depot would be transferred across to Manstone.

New build at Honiton and refurbishment of Exmouth Town Hall will be funded by capital receipts and prudential borrowing. Over a 20 year period the spend will at least pay for itself with savings accruing after then. This would allow the council to remove itself from a costly, uncertain and increasingly impractical future at Knowle.

Cabinet’s decision will be considered by full council on Wednesday, 17 December.

A decision to sell Knowle will be brought to a future cabinet following further negotiation.