Decision details

To consider a report of the Cabinet Member for Resources, Leisure and Culture seeking approval to spend on demolition of Town Depot following decision to be made by Full Council on 14 September on the Capital Programme Update.

(i)  To approve in accordance with Financial Procedure Rules capital expenditure of £550,000 phased approx. £250,000 in 2011/12 and approx. £300,000 in 2012/13.

(ii)  That the Head of Property and Procurement is granted Delegated Powers to vary the scope and programme of the work following consultation with the Cabinet Member for Resources, Leisure and Culture within the overall budget parameters of the scheme.

(iii)  To delegate authority to the Chief Financial Officer, following consultation with the Cabinet Member for Resources, Leisure and Culture to approve additional expenditure of £100,000 for the demolition and associated costs, bringing the total scheme up to a maximum of £650,000.

The Council’s approved Capital Programme for 2010/11 to 2013/14 includes a scheme for the demolition of surplus redundant buildings at the old Town Depot.  Cabinet authority is required for the approval to spend.  This report is the vehicle for obtaining the necessary approval.  Demolition of all redundant buildings at the Town Depot plus enhanced perimeter site security is a significantly more cost effective alternative to retention of the buildings over an assumed five year void period.

The Options Appraisal considered retention of all buildings, and retention of permanent building structures whilst removing temporary structures.  The clear business case favoured demolition of all buildings which are poor quality, with the sole exception of the former window factory which has potential to be let out and generate rental income.  Retention of all buildings would not be cost effective over the assumed 5 year void period as the cost of boarding up, enhanced security costs and empty rates liability would exceed the initial outlay on demolition by approx £65,000 over an assumed 5 year void period.  Demolition will have the added benefit of enhancing the capital receipt on eventual disposal and provides more opportunities for storage or lorry parking income to off-set costs.