Agenda item

1.    That the formal marketing of the Guildhall and Abbey House to  secure an offer for an occupational lease be approved as combined and separate lots.

2.    That a budget of £ 97k for the reolocation of the Walton Suite and other Guildhall offices into City Offices as well as other one off costs be agreed.

3.    That a further report will be presented on the outcome of the marketing exercise before the Council enters into the lease.

Councillor Thompson introduced the report which sought approval for the marketing of the Guildhall and Abbey House for the purpose of securing an operating partner with the aim of ensuring both buildings long term future. 

 At the invitation of the Leader, Councillors Wallace and Godfrey addressed Cabinet as summarised briefly below.

Councillor Wallace

Councillor Wallace welcomed report’s proposals but emphasised that members require greater clarity on the potential financial exposure and capital investment required beyond the previously approved £5m. He raised several queries regarding how community access and democratic functions would be protected whilst balancing commercial returns against Winchester's cultural and civic objectives. As chair of the Scrutiny Committee, he requested that the committee be involved early in the project to help shape its direction rather than simply commenting on a pre-developed preferred option.  He sought Cabinet’s assurance that all issues already raised and emerging from the marketing exercise would be fully explored through the scrutiny process to ensure members have a meaningful opportunity to influence the final decision.

Councillor Godfrey

Councillor Godfrey considered that while the principle of a commercial handover was acceptable, the proposed contract length was too short and other constraints (such as existing tenants) would not attract the substantial investment required. The previously approved £5m expenditure would only cover basic repairs rather than establishing a genuinely commercial venue.  With regard to Abbey House, he highlighted its lack of civic use currently and significant maintenance requirements, the costs of which had not been included in the report.  In summary, he believed that the proposals for the two buildings would not be successful without greatly extending tenure being offered.

Patrick Davies and Ian Tait also addressed Cabinet during public participation as summarised briefly below.

Patrick Davies

Patrick Davies expressed disappointment about what he considered to be the poor state of the Guildhall building due to ongoing neglect by the council.  He criticised the lack of transparency due to the exempt financial appendices and queried why the proposal appeared to have bypassed established scrutiny and committee processes.  Regarding the impact of the proposed Local Government Reorganisation (LGR), he argued against the proposal to relocate meeting spaces as LGR would probably decrease future requirements for such facilities.  He requested that the entire project involve meaningful consultation with residents in relation to these historic community assets.

Ian Tait

Ian Tait considered that Abbey House had been losing money for the council for a long time and the building should either be sold or placed on a long-term lease. He stated that the asset was currently underused, expensive to maintain, and failed to meet modern disability standards, asserting that traditional justifications for its retention carried no weight given current financial pressures.  He also reminded members of previous proposals to replace the current City Offices with a modern development and argued that the Colebrook Street car park was a waste of valuable land.   He urged Cabinet to proceed with proposals and to engage with the community to ensure residents had a say in the future of these important civic assets.

Councillor Thompson and the Strategic Director responded to the comments and queries raised, including emphasising future decisions would also have regard to the balance between civic and community uses.  The Strategic Director advised that the information in the exempt appendices in relation to the soft marketing testing undertaken confirmed that there was commercial interest in a lease of the length of time being suggested.

Cabinet and invited councillors present confirmed that they did not wish to move into exempt session to discuss the contents of the exempt appendices further.

In relation to the comments made by Councillor Wallace, Councillor Tod confirmed he would discuss further with the councillor and the Chief Executive about how wider member involvement could best be achieved, within the necessary commercial constraints.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RESOLVED:

1.              That the formal marketing of the Guildhall and Abbey House to secure an offer for an occupational lease be approved as combined and separate lots.

2.              That a budget of £ 97k for the relocation of the Walton Suite and other Guildhall offices into City Offices as well as other one off costs be agreed.

3.              That a further report will be presented on the outcome of the marketing exercise before the Council enters into the lease.