Issue details

Proposed decision:

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

1)    AGREE to continue the disposal of Sessions House in its entirety (Blocks A-E);  

2)    ALLOCATE £20m as identified in the Council’s 2023-33 Capital Programme Budget, approved by County Council on 9 February 2023 to deliver the proposed works, inclusive of costs incurred to date (£1.65m) as part of the SHQ Programme for Invicta House to accommodate the new Strategic Headquarters (SHQ) arrangement, followed by the award of a construction works contract as necessary to deliver the scheme and any required decant within the agreed budget limits; 

3)    NOTE that the provision of a dedicated Council Chamber in Invicta House is additional to the scope of the previous decision and will require additional capital funding to be allocated through the Budget setting process;  

4)    AGREE to progress with the inclusion of a new Council Chamber located in Invicta House within the approved SHQ plan, subject to completion of detailed design development at RIBA Stage 4 and appropriate capital funding allocation through the Budget setting process.

5)    DELEGATE authority to the Director of Infrastructure, subject to the above progression requirements being met and in consultation with the Leader, the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services, s151 Officer and the Monitoring Officer, to approve required works and to negotiate, finalise and award relevant contracts in relation to the dedicated Council Chamber; and 

6)    DELEGATE authority to the Director of Infrastructure in consultation with the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services, s151 Officer and the Monitoring Officer, to authorise the execution of necessary contractual and land agreements and enter into other contracts or legal agreements as required to implement the decision. 

Reason for the decision:

Kent County Council’s (KCC’s) Strategic Headquarters requires significant investment to address building condition issues and to deliver accommodation which is fit for purpose. This decision supports the Councils considerations in making best use of its resources and estate, whilst remaining options are assessed.

Background:

An options appraisal was previously undertaken based on the pre COVID-19 pandemic working styles during early 2020. This appraisal was then revisited, taking into account the changes in the way that KCC need to work post the pandemic, and a new accommodation model was developed, which allowed a number of new options to be considered.  

The Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services then took decision 21-00064 on 13 August 2021, to progress with the marketing of Blocks A, B and E of Sessions House for disposal and to develop an option for the refurbishment and modernisation of Blocks C and D, predominately for civic uses and Invicta House as a staff hub.

In October 2022, given the Council’s significant financial challenges, the Deputy Leader and Cabinet Member instructed officers to pause design work for the 2021 option, revisit the scope and present lower capital cost options. The £35m capital budget allocated to the project was reduced to £20m and endorsed by full Council in February 2023.

Four lower cost options were considered and developed in further detail with both the qualitative and financial assessment. Two options failed the assessment with two options progressing passing the evaluation process.

On 26 July 2023, the updated Business Case report was provided to the Policy and Resources Cabinet Committee and summarised the options available for the estates strategy moving forwards, within the revised Medium Term Financial Plan (MTFP) cap of £20m.The report identified a preferred Option - the increased utilisation of Invicta House, and the disposal of Sessions House (in its entirety). This preferred option was subsequently agreed under the Key Decision 23-00072 on 12 September 2023 with its viability tested further as set out in this report.

Sessions House was marketed and following the evaluation of bids a preferred bidder has been appointed for the disposal of the whole of Sessions House, along with further work to test and further develop the preferred option which reconfirms that the preferred option continues to meet the objectives of the council and is within the assumptions of the MTFP. Since the Key Decision which was taken in 2023 this option has been updated in the business case addendum. The proposed decision commits the council to the implementation of the Preferred Option, the disposal of Sessions House in its entirety and the consolidation and relocation of the functions carried out in Sessions House into Invicta House.

Other options considered are detailed within the Business Case.

How the proposed decision supports the Interim Strategic Plan, Framing Kent's Future - Our Council Strategy 2022-2026 and Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf:

SHQ and its future direction is a key strand of the office strategy as part of the Future Assets programme of the Strategic Reset programme and the delivery of the MTFP savings.