Decision details

Proposed decision:

The Deputy Leader to:

Revisit, Review and Determine the future of KCC Strategic Headquarters (SHQ) arrangements including Sessions House and Invicta House and associated investment and/or disposal options

Reason for the decision

-      Following a change in administration and confirmation of the indicative Local Government Reorganisation (LGR) timetable, the Administration intends to reconsider the current property strategy relating to KCC Strategic Headquarters (SHQ). The outcome of the review will support a decision to either continue as per the original decision or progress with an alternative option. 

Background

-      The property strategy in relation to KCC’s SHQ has been discussed and considered over a number of years with decision 24/00100 having been taken by the previous Administration. That decision is currently in the implementation phase. The implementation of the project is reaching a critical stage where KCC would need to enter into contracts for the works to Invicta House and progress the disposal of Sessions House.

-      Given the imminent contracts that KCC would be required to enter into would involve committing the Council to significant expenditure, the Administration intends to review the decision and consider an alternative of maintaining a presence in Sessions House and the disposal of Invicta House. As part of this, the Administration will consider both these options against:

• The impact of the indicative LGR timetable
• Minimising capital spend and any associated borrowing in the next three years
• Retaining the heritage associated with Sessions House for use by staff and Members

Both the current option and alternatives will have different financial and operational opportunities and challenges that will be explored within future, more detailed, reporting as part of the relevant decision-making processes.

Options (other options considered but discarded)

Alternative options have been considered and are detailed within the updated and previous Business Case. The previous options that have been considered include:

• Do nothing
• Relocation of SHQ to an alternative KCC property
• Relocation of SHQ to a new property (both leasehold and freehold) 

How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026

Detailed assessment of this will feature within future decision documentation, following further consideration of the key information.  The Administration will assess the strategic value of maintaining different SHQ arrangements than those currently approved in accordance with relevant aspects of the Council’s Strategic Statement.

How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf

The Policy and Resources Cabinet Committee report, the options appraisal and any decision-making documentation will consider alignment with the Strategic Statement and the Council’s Best Value obligations.

The Deputy Leader to agree to:

1.      AGREE to discontinue with the Preferred Option as set out decision 24/00100;

2.      Given the proposed Local Government Reorganisation timetable indicated by Government CONFIRM Sessions House will continue to be the strategic headquarters for KCC for the remaining life of the Authority;

3.      ALLOCATE £4m from the 2025-34 approved capital budget to enable the essential and urgent backlog maintenance works at Sessions House to be completed;

4.      WITHDRAW from the sale of Sessions House and Albert Street Car Park with immediate effect;

5.      DISPOSE of Invicta House and the associated car park as soon as practical to reduce holding costs and liabilities for the Council;

6.      REALIGN the capital and revenue budget as required to enable the above to be implemented; and

7.      DELEGATE authority to The Director of Infrastructure, in consultation with the Deputy Leader to authorise the execution of necessary contractual and land agreements required to implement the above.