Issue details

Proposed decision

The Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services to:

1.    Note the feedback from the community consultation exercise conducted by Sevenoaks District Council;

2.    Support the objectives and principles of the regeneration of the Sevenoaks Town centre, subject to KCC’s red line requirements, which includes the potential relocation of County Council services to new build facilities within a future scheme; and

3.    Agree for Kent County Council to work with Sevenoaks District Council to progress the scoping of proposals and to delegate authority to the Director of Infrastructure, in consultation with Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services, to enter into a Memorandum of Understanding, which will establish the principles of collaborative working between the two authorities. It should be noted that a further Key Decision will be taken in respect of the consideration of any final business case and the implementation of any proposals.

Reason for the decision

Kent County Council (KCC) has been engaging with Sevenoaks District Council (SDC) regarding SDC’s ambition to regenerate the area to the east of the town centre in Sevenoaks. The project can only continue in its current form in collaboration with KCC, as the County Council is a key landowner and stakeholder.

The proposals involve the relocation of KCC services, including the library function to an alternative new facility and location within a future scheme, which would deliver more efficient and cost-effective buildings for KCC’s estate, supporting Framing Kent’s Future – Our Council Strategy 2022-2026.

Approval is being sought to enter a Memorandum of Understanding (MoU) with SDC, which will establish the principles of collaboration to explore the viability of proposals in the regeneration scheme.

Background

Sevenoaks District Council and Kent County Council own land to the east of the High Street, Sevenoaks. The property assets which would be in the scope of the regeneration project are the: current leisure centre, the library / museum / gallery, surface level car parks, Sackville House, and the former M&Co shop. SDC’s stated ambition is to regenerate these areas to provide: -

•          A new state of the art, environmentally efficient leisure centre.

•          A new multi-use learning hub that will incorporate a library, adult education centre, gallery, facilities for learning disabilities, registrar, museum, and a community space.

•          A new market hall to enhance the retail, cultural and dining offer, and support for local and emerging businesses.

•          A new hotel.

•          New homes, including much needed affordable housing.

•          Improved pedestrian connections between the town and Knole Park.

•          Improved public transport and green travel routes.

The pre-consultation engagement was undertaken at the end of April 2024, to seek the view of residents, businesses, and other stakeholders on the early ideas for delivering improvements to the area east of Sevenoaks High Street (around Buckhurst Land and Suffolk Way).

KCC has to date, engaged with SDC on the proviso that the scheme will be self-financing. The current KCC assets are broadly fit for purpose, and therefore the primary rationale for KCC’s involvement is to deliver a maximised capital receipt in addition to the re-provision of service accommodation, to allow for reinvestment back into service priorities.

Subject to viability of the proposals being established, a further key decision will need to be taken in advance of KCC legally committing to the project and relevant members will be engaged as part of this process.

Entering an MoU does not oblige KCC to continue with the project.

The MoU will address the following topics:

a)      The key objectives of the Project.

b)      The key inputs and outputs from the Project, from both a financial and property perspective.

c)      The principles of collaboration.

d)      The governance structures the parties will put in place to develop the detailed design proposals. This will involve the establishment of a Project Board and Project Working Group.

e)      The respective roles and responsibilities the parties will have during the project.

f)       The equitable treatment of outputs from the project to protect each party’s commercial interests i.e. to ensure that what KCC get out of the scheme is equal to KCC’s proportional contribution to the project.

g)     Clarification that neither party’s ability to exercise its statutory duties will be impacted by the MoU.

h)     The right to terminate the MoU should the project be deemed unviable or at either party’s discretion with sufficient notice.

Options (other options considered but discarded)

The main alternative is to do nothing, with no partnership working explored with Sevenoaks District Council in relation to this regeneration project, and for the existing KCC library and services to remain within the current 1987 built building. Sevenoaks District Council have confirmed that they have alternative proposals which do not include KCC’s site.

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

This decision supports Framing Kent’s Future – Our Council Strategy 2022-2026 in the following ways:

Priority 1 – Levelling up Kent 16

-        The proposal for the regeneration of the Sevenoaks Town centre, (subject to it being viable) will help support the Kent economy to be resilient, adaptable to challenges and opportunities.

-        This reflects KCC working in partnership with other authorities.

Priority 2 – Infrastructure for Communities 28

-        Subject to viability, new buildings will be built for KCC services ensuring that they will be fit for purpose and sustainable in today’s climate ensuring net zero targets are considered and applied.

-        The regeneration of the Sevenoaks town centre will include green travel options.

Priority 3 – Environmental Step Change 40

-        The newly built provision will ensure that the KCC service requirements and needs are catered for and are appropriate for the community it serves, which will be in sustainable, fit for purpose buildings.

-        The newly built provisions will help to meet KCC net zero targets.

How the proposed decision supports Securing Kent’s Future 2022 -2026:

This decision supports Securing Kent’s Future 2022-2026 as the project envisages that land value capture can be used to fully fund the reprovision of KCC facilities within Sevenoaks, to deliver a modernised and more energy efficient estate. This will assist in the reduction of annual revenue expenditure and mitigate capital expenditure in relation to estate maintenance and upgrades. It is also envisaged that the project will generate a surplus in the form of either a capital receipt or an ongoing revenue stream, which can be applied to KCC’s budgetary priorities.

Financial Implications

At this stage KCC’s financial exposure is limited to the legal costs associated with the drafting and negotiation of the MoU, circa £15,000.

 As noted, it is envisaged that for KCC to consider committing to the wider project, it will need to be established that it is viable for community facilities to be fully funded to the required specification solely from land value capture, in addition to additional financial return. Limited further revenue expenditure may be required to support this assessment prior to a full business case being prepared and a subsequent key decision being sought. This expenditure will be funded through capitalisation against the currently forecast capital receipt should the project progress, which is KCC’s standard practice in respect of capital generating disposals.   

The MoU will establish the principle of the delivery of new provisions that offer more energy efficient facilities which meet current and future service requirements. This is in line with KCC’s corporate aspirations to deliver revenue savings across the KCC property estate, as set out in securing Kent’s Future and the Medium-Term Financial Plan.