This item was due to be considered at the meeting on 24 February 2022 which was abandoned due to technical issues.

The Cabinet Member for Economy and Property introduced the report which gave an update on the works, progress and financial propriety of the Greening of Swale House project.

Members were invited to ask questions and make comments which included:

·         What were the projections on the use of Swale House by third parties after the refurbishment?;

·         more information sought on the funding opportunities for the refurbishment;

·         more detail was required on the minor internal alterations to enable third parties to use the space;

·         did not consider the process to be ‘greening’ of Swale House, it was more of a refurbishment;

·         it was probably more cost effective that Swale House be sold off for much needed housing, rather than carry out costly improvements to the building;

·         suggested that Swale Borough Council (SBC) invested in off-site renewable sources to supply its needs in Swale House;

·         more information sought on the timetable/study of the amount of space needed by SBC employees;

·         with more flexible working, did not consider there would be a need for people to want to rent work space;

·         a market study should be carried out to see who would be likely to want to rent space in Swale House, and a delay in this could mean SBC was missing out on potential tenants;

·         could not understand why this was on the agenda as there did not seem to be a clear project, it was expensive, there was nothing to scrutinise at the moment and SBC did not presently know its own or third party requirements;

·         how much money was SBC saving by carrying out the proposed works?;

·         in terms of solar panels, suggested SBC worked with a community energy provider;

·         there were ways of greening with no capital costs; and

·         there must be a time with Swale House, when SBC says ‘enough is enough’ and considered the length of the building’s useful life.

In response, the Cabinet Member for Economy and Property explained that there had been interest from various parties, from both the public and private sector and this was likely to increase, once the building had been refurbished.  She explained that a good market rent would be sought and by renting some of the building out, this would decrease SBC’s business rates bill.

The Cabinet Member for Economy and Property explained that it was disappointing that funding from the Public Sector Decarbonisation Scheme was less than expected, but it was hoped that there would be further funding opportunities.  The Director of Regeneration and Neighbourhoods explained that the space that would be available for third parties was not known yet as the process of what space was still required by SBC staff was ongoing and a work in progress.

The Cabinet Member for Economy and Property said that it would cost considerably more to move, rather than improve the building.  There were no suitable premises to re-locate to and to construct a new building would cost more, and was environmentally unfriendly, than what would be achieved by the sale of Swale House.  She acknowledged the need for more housing, but said that the land where Swale House was situated was employment land, not residential.  The Cabinet Member for Economy and Property outlined the works that would be completed and said that in the long term, SBC would save money and Swale House would become a more comfortable environment to work in.  The Director of Resources agreed that it would cost more for SBC to move premises, and said that capital receipts could not be used to pay rent on a premises.

The Cabinet Member for Economy and Property said that SBC was looking into off-site carbon neutral energy sources such as wind turbines and solar panels.  She explained that the priority had been the first round of works as set out in the report and solar panels could be an option on the roof of Swale House at some point in the future.

The Director of Regeneration and Neighbourhoods explained that the review of  the New Ways of Working (NWoW) would run in parallel with the refurbishment works in the Summer/Autumn of 2022.  On 1 April 2022 there would be further Covid-19 Government guidance and this would enable SBC to become clearer on its space requirements.

The Cabinet Member for Economy and Property explained that some businesses were looking for office space in more localised premises, rather than a larger town, with some businesses expanding and needing more space.  She was confident that there would be a market for the rental of offices in Swale House.

The Interim Property Manager explained that once the NWoW study and the refurbishments had been carried out it would be possible to evaluate the space available to rent out.  This was likely to be one third of the building space.  He said that in its current state, it was difficult to rent out, but with the improvements, although there was a volatile market, the building would be in a better state to present to potential tenants.  The Chief Executive explained that a joint Member and staff working group had agreed that space within Swale House would not be dramatically reduced for staff, and that by the end of Summer 2022, it would be clearer on the way forward.  She highlighted the importance of taking staff wellbeing into consideration, and this was echoed by Members.  The Cabinet Member for Economy and Property said that a market study carried out now, prior to the works being completed, was likely to be inconclusive.  The Interim Property Manager explained that he engaged with any potential tenants, both in the public and private sector, and that there had already been a number of enquiries.  It was difficult to give definite times as to when the space would be ready to let, but every enquiry was monitored.  He was confident that the space could be let as Swale House offered a unique space in the town centre.

The Cabinet Member for Economy and Property did consider the project was ‘greening’ Swale House as, with the installation of double glazing and insulation of the under-croft, this went towards consuming as few energy resources as possible.

The Interim Property Manager advised that he was waiting to hear from the project manager in terms of the final costs of the project as this depended on the type of double glazing that was used.  There were opportunities to make savings.  There was a balance between rises in gas and electricity costs and the improvements being made to the insulation of the building.  The Cabinet Member for Economy and Property agreed to circulate the figures to Members in due course

The Cabinet Member for Economy and Property explained that Swale House was a concrete frame building, with embedded carbon and to build a new building this required a lot of resources.  She added that there was structurally nothing wrong with Swale House, but investment and periodic housekeeping was essential.  The building was still viable and had an economic life.

The Chairman responded to why the item had been added to the agenda, which had been on the request of members of the Scrutiny Committee as the project involved a huge amount of taxpayers money.

The Chairman thanked the Cabinet Member for Economy and Property, the Director of Regeneration and Neighbourhoods and the Interim Property Manager for attending the meeting for this item.

Resolved: 

(1)      That the report be noted.