Wednesday, 19 April 2017

Knowle relocation project: ‘spend now, pay later’

When is a project 'deliverable'?
Futures Forum: Knowle relocation project: and ‘undeliverable’ projects

The Save Our Sidmouth blog is not alone in considering the Knowle relocation project to be 'undeliverable':

EDDC relocation update . Latest resolve to proceed with move to Honiton, based on increasingly shaky ground.

April 19, 2017 by sidmouthsid Leave a comment

EDDC last night agreed on a ‘spend now, pay later’ plan, by rubber-stamping a move to Honiton, despite having no sale in place for Knowle.

EDDC relocation update . Latest resolve to proceed with move to Honiton, based on increasingly shaky ground. | Save Our Sidmouth

This evening's meeting was fairly predictable, then:
Futures Forum: Knowle relocation project: Audit and Scrutiny Cttees to consider Cabinet proposals: Tuesday 18th April >>> >>> >>> "If the sale of the Knowle did not happen, the Council would be required to pay for the project costs"

As referenced by the Herald:

District council opts for ‘go now’ relocation option

18 April 2017

Stephen Sumner

Plans to ‘uncouple’ the district council’s £10million relocation project from the sale of its Sidmouth HQ have won the backing of cabinet bosses.

Some slammed the ‘cavalier’ decision to borrow money to fund the move to Honiton and Exmouth – but East Devon District Council’s (EDDC) top officers said there is greater risk in standing still.

Cabinet members were given the options of borrowing cash to ‘go now’, waiting for the outcome of developer PegasusLife’s planning appeal after it offered £7.5million for Knowle, or staying put and modernising the former hotel or its offices, together with a refurbished Exmouth Town Hall.

Speaking at last Wednesday’s meeting, Sidmouth councillor Cathy Gardner said: “If you commit to borrowing a large amount of money at taxpayers’ expense, you aren’t in control. You are in more control when you know the outcome of the planning appeal.

“These figures aren’t certain. These are just estimates based 
on assumptions.”

She questioned if the officers had costed staying at Knowle, selling off part of the site and marketing its Heathpark plot in Honiton to another developer.

Councillor Marianne Rixson, who also represents Sidmouth, said EDDC was taking a ‘cavalier approach’ to spending taxpayers’ money, adding: “Any future developer will know you are desperate and will not match the price offered by PegasusLife.”

EDDC originally promised the relocation would be ‘cost neutral’, it would not borrow money and the project would not progress before Knowle was sold.

But chief executive Mark Williams disagreed, saying the ‘go now’ option ‘de-risks planning’, while delaying ‘increases risk’. He added “We have an asset [Knowle] that will appreciate in value.”

Officers said pressing ahead with the relocation to Heathpark and Exmouth Town Hall is the most cost-effective option and could make EDDC £1.4million better off over 20 years.

If it chooses to delay the project so planning permission for Knowle can be secured, it could be £400,000 better off.

In contrast, members were told if they chose the ‘go minimum’ option – giving up on the new-build Honiton HQ, completing the refurbishment of Exmouth Town Hall and modernising a section of Knowle for £11.3million or £5.9million – they would be £4.5million worse off. There is no capital receipt to fund the modernisation.

Cllr Tom Wright said: “There has been a lot of talk about uncertainty. This building is unfit for purpose. Moving is not a vanity project. It’s to improve what we can do. If we stay here, it’s money down the drain. This building is useless for the 21st century. This land isn’t going to lose value.”

The ‘go now’ option won the support of cabinet members, but is now set to be considered by a joint meeting of the overview, scrutiny and audit and 
governance committees on 
April 18. It will then go before the full council.

District council opts for ‘go now’ relocation option - Breaking news & sport in Devon | Midweek Herald

Here's the (very positive) view from Honiton:
District council hopes to complete Honiton move in December next year - View News

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