Issue - decisions

35.1     The Lead Member considered a report by the Chief Operating Officer.

DECICIONS

35.2     The Lead Member RESOLVED to:

1) Note the report, including the Scrutiny Committee comments and the detailed asset review in Appendix 1 of the report;

2) Approve that the Council proceed on a phased partnership approach set out in section 4 of the report reflecting the key milestones in the next few months;

3) Receive a report in July 2025 to review progress on the approach set out in this paper; and

4) Note, as detailed at paragraph 2.1 of the report, the current valuation of the site, even with planning permission for a mixed development, would deliver a capital receipt of less than £10m.

REASONS

35.3     At the moment, there are no standout re-development options (2-4) in the report due to viability. The cost of providing a suitable new County Hall exceeds the market value for the sale of the site if sold, assuming planning permission was secured. Given the Council’s financial constraints and the uncertainties noted in paragraphs 3.10 to 3.16 of the report, a phased approach means that the Council would look to remain at County Hall in the short term until alternative Council owned accommodation becomes available in the medium term at Sackville House, Lewes, at which point the Council would consider relocation (see Option 6 in the report). In the intervening period certain milestones are likely to occur (as outlined in paragraph 4.5 of the report) which could provide greater certainty over the variables noted within the report, and therefore greater knowledge of the viability of any potential development.

35.4     The Council will take immediate steps to ensure utilisation of County Hall improves, to boost rental income opportunities and to reduce property running costs. These would include:

·            Relocating teams based in other locations in leasehold premises (other than Eastbourne and Hastings) to move to County Hall to reduce rental costs elsewhere.

·            Mothballing a significant section of County Hall to reduce running costs. The Property team will work with directorates to consider how best to reduce the number of blocks that will remain open with the intention of finalising plans by December 2024.

·            Appointing an office agent to pursue the medium term letting of spare space and working with business forums in Lewes to explore short term lettings.

35.5        Ahead of this work, a public sector partner has already agreed to take one floor of one of the blocks and this occupation will take place by the end of November 2024.

35.6        The intervening period will also enable the Council to obtain more information which would increase the certainty in any assessment of development viability. Key dates and information include:

·            Adoption of the South Down National Park Authority (SDNPA) Local plan – Spring 2026.

·            There may be another round of the Brownfield Land Release Fund which might provide grant funding for the site – Potentially by 2026.

·            Any precedent being set on factors such as housing density, housing specification and levels of affordable housing coming from other planning applications in the SDNPA area – Ongoing.

·            Central government policy changes or changes to the planning system given their commitment to housing delivery – 12-18 months.

·            Changing nature of the property market, economic context, falling interest rates etc – Ongoing.

35.7     It will also allow close working with SDNPA and also further adopt partnership working with Lewes District Council, Lewes Town Council and other stakeholders to consider a wider master planning of County Hall alongside the statutory process in SDNPA process to develop their new Local Plan. This recognises the strategic importance of the site in the area.

35.8     A further report presented to the Lead Member in July 2025 will provide the new Council more information, and progress on this approach.