Agenda item

            The Committee considered the undernoted report in relation to the obtaining of temporary office accommodation in Harvester House:

“Relevant Background Information

      Members are aware of the urgent need to find alternative temporary office accommodation in the City centre as a result of imminent redevelopment proposals for Clarendon House that have now been submitted to Planning Service by the building’s new owners. Notice to Determine Council’s occupation in Clarendon House has now been served effective from 23rd November 2008. Members will also be aware of the continued overcrowding, not only experienced in Clarendon House, but also now evidenced within the Cecil Ward Building.

      A Notice under the Belfast Improvement Act requiring essential remedial work was served on Clarendon House as a result of falling masonry from the Adelaide Street façade. Short?term solution has been to remove any visually obvious loose/dangerous masonry from the building but this is very much a temporary measure pending its demolition.

      Pending completion of the City Hall refurbishment and in addition to displacement of staff and services from Clarendon House Council will have other temporary accommodation requirements arising from the imminent surrender of Callender Street premises and the forthcoming need to renew short term tenures in both Linenhall Exchange (Feb 2009) and Scottish Amicable buildings (Jan 2011)

      Members have previously been advised of only two City centre office buildings that meet the specific occupational requirements of Building Control and of suitable size and availability on a short term basis that could accommodate Council’s immediate needs - namely Fanum House and Harvester House. Due to the standard of accommodation in Fanum House it was deemed an unsuitable option for the relocation of Council staff.  Relevant Council officers have inspected Harvester House and concluded that it would, with an appropriate degree of refurbishment, be suitable for Council’s short term accommodation requirements.

      At its meeting on 14th March 2008 the Strategic Policy & Resources Committee authorised the Director of Corporate Services to enter into negotiations for additional accommodation in Harvester House.

      Negotiations have been progressed with the agents for Harvester House that will address both Council’s immediate need for office space and also provide some scope to deal with subsequent events that will impact on Council’s ability to provide suitable short term City centre accommodation for continued effective delivery of its services.

Key Issues

-     Current occupation of Clarendon House

-     Results from a recent satisfaction survey of staff in Building Control have concluded a very negative view of current accommodation which is in stark contrast to the high levels of satisfaction of staff recorded within other facets of their working environment.

-     Harvester House presents an opportunity to explore solutions to current overcrowding in Cecil Ward Building and provide the means to manage other short term Leases that are due to terminate within the coming two to three years.

-     The currently available office accommodation in Harvester House is spread over 5 floors totalling 20,524 sq ft. In order to match Council’s occupational requirements to the configuration of the available space in these premises will necessitate leasing the entirety of accommodation currently on offer.

-     Harvester House provides the essential requirement for Building Control to occupy ground floor accommodation (totalling 4,396 sq ft) with “back office” space available on the immediately adjacent 1^st and 2^nd floors (9,089 sq ft) The contiguous accommodation on the 3^rd and 4^th floors (7,039 sq ft) would also provide sufficient space to relieve the overcrowding that is currently experienced by Cleansing.

-     By taking all available space in Harvester House Council has strengthened its negotiation position and provisionally agreed the following terms:

·         Term of 5 years

·         Rent based on £11.50 per sq foot (£236,026)

·         Initial 12 months of the term rent free

·         Service Charge payable currently £4.30 per sq foot

-     Total annual cost (excluding rates) £324,279

-     It is necessary to carry out refurbishment of Harvester House to an acceptable standard including data cabling. The refurbishment contract would be procured through Facilities Management and costs offset by the following savings:

·         Rent free period                                           £236,000

·         Contribution by Clarendon                         £100,000

·         Reduced rent                                                £102,000

·         Planned refurbishment of Clarendon        £100,000

·         Total                                                               £538,000

      In order to effect an early surrender of Council’s tenancy in Clarendon House at least by end of August 2008, thereby facilitating early vacant possession for redevelopment, the owner of Clarendon House is willing to pay a premium of £100,000 towards any relocation/refurbishment expenditure incurred by Council.

Resource Implications

      Financial

-     The occupational cost of Harvester House is offset by the currently incurred occupational costs of Clarendon House and Callender Street premises which total £223,331 (rent & service charge but excluding rates)

-     Financial contribution from owner of Clarendon House in recognition of early surrender of Council occupation and initial 18 months rent free in Harvester House will assist in offsetting relocation to these alternative short term premises.

      Asset and Other Implications

-     Relocate to a single office building of suitable location, size and specification is considered more cost effective rather than further split Council’s temporary requirements over multiple premises that individually would require fitting-out and suitable data communications installed to each.

Recommendations

      Members are asked to note the detail of this report and

a.   to approve the leasing of additional office accommodation in Harvester House that will also address the loss of space currently faced in other temporary City centre office accommodation, subject to a satisfactory Lease approved by the director of Legal Services,

b.   to approve the refurbishment of Harvester House,

c.   to receive a further report on options for Council’s anticipated office space requirements in the longer term at a future date.”

            The Committee adopted the recommendations and agreed that a value-for-money study in relation to temporary Council office accommodation be included within the Audit Panel’s Annual Plan of Work for the current year.