Agenda item

REPORT OF THE SENIOR ESTATES SURVEYOR

To update the Committee on the outcome of the community engagement exercise for Charnwood House.

To request the Committee’s approval to seek Cabinet’s authority to dispose of Charnwood House by way of a lease of maximum term of 99 years, and to seek Cabinet’s authority to market the property for leasing by informal tender.

RESOLVED:

(1)  That the Committee notes the outcome of the community engagement exercise.

(2)  That the Committee endorsed seeking Cabinet’s authority to dispose of Charnwood House by way of lease of maximum 99 years, and seeking Cabinet’s authority to market the property for leasing by informal tender, subject to Officers first undertaking an options appraisal for running Charnwood as a community hub, to include the option of North Herts Council running Charnwood in house.

REASONS FOR DECISION:

(1)  Noting the outcome of the community engagement exercise supports the Committee’s role in coordinating interest in Charnwood House from parties within the public, private and voluntary sectors, in pursuit of repurposing the building to community hub use.

(2)  Approving seeking Cabinet’s authority to dispose of and market Charnwood House for leasing will signify support to Officers to pursue these important next steps towards securing Charnwood’s future use as a community hub. Undertaking the options appraisal first would determine the full range of choices to successfully deliver a community hub in Hitchin at Charnwood House.

Audio Recording – 86 minutes 43 seconds

Christopher Robson, Senior Estates Surveyor, presented the report entitled ‘Charnwood House, Hitchin’ and gave a verbal presentation to update the Committee on Charnwood House, which included:

·         180 survey responses had been received in response to the open days held at Charnwood House in early September and there were over 200 visitors across the two days.

·         Many uses were suggested by individuals and organisations, but full analysis had not yet been completed.

·         North Herts Council was aware of a covenant on the property, but believed there was sufficient scope to refurbish and develop the building for use as a community hub.

·         Keen to promote and maintain the historic spirit of the building.

·         Need to begin the marketing of the property and encourage all to make formal offers to see what is viable and within the restrictions of the covenant.

·         Owing to the interest levels it was likely some people would be disappointed, but there was a desire to work across groups and individuals within the property.

·         Keen not to avoid any further delay on the project.

Councillor Richard Thake commented that full commercial value would not be possible without going into marketing with the possibility that covenant protections would be overthrown. He did not believe this was the position of the Council at this time, but wished to highlight the difficulty in understanding the property’s true value.

Following the presentation, the following Members asked questions:

·         Councillor Elizabeth Dennis-Harburg

·         Councillor Paul Clark

In response to questions asked, the Senior Estates Surveyor advised:

·         If there was letting out with repairs to bring the property up to standard, there probably would not be a financial return.

·         A bid had been submitted for finance to support refurbishments.

·         Was unaware of any issues with lead on the site, but would confirm this following the meeting and respond to Members directly.

·         A condition survey was previously carried out by the Council and will be re-evaluated when there is an understanding of what is happening with the property.

The Chair invited Bernard Eddleston, Chair of the Charnwood House Community Management Association, to make a verbal presentation, which included:

·         The Charnwood House Community Management Association had produced a condition survey, which was submitted to Council, in December 2020 and this included possible costs for refurbishment into a community hub.

·         There were also detailed plans on conversion and a business plan submitted in confidence to the Council and the Association was happy for this to be shared with any bona fide community groups interested.

·         Good to see the Open Days were successful and some analysis had taken place, but at this stage it was a summary and more detail was needed.

·         There was a need to ensure that attractive commercial offers were not taken into account that would see the property turned into offices on the cheap and this would be against the covenants on the property.

·         There was some possibility that commercial offices could be developed on the lower floor.

·         Private events at the property would help to make the overall community hub viable.

·         There would be no more submissions from the Association following their previous submitted documents and reports.

·         No objection to the Council running the building, but this may affect ability to bring grant funding to the project.

·         The current recommendation is too general and needed to stipulate that residential developments, demolition or commercial offices were not acceptable.

The following Members asked questions:

·         Councillor Richard Thake

·         Councillor Simon Harwood

In response to questions, the Senior Estates Surveyor advised:

·         When dealing with previous leases at Community Centres there were flexibilities written in the leases to support tenants in income generation, whilst maintaining the predominant use of the building as serving the community. Practical experience of securing an appropriate balance for such buildings between protecting their core community use and ensuring tenants can support themselves commercially is in place at North Herts Council

·         Understood need to explore the potential option of developing Charnwood House and the adjoining library owned by the County Council as a joint project, not just Charnwood House in isolation. However, discussions with County Council will need to be factored in, inevitably prolonging the process in bringing Charnwood House back to full use. 

·         Marketing the property and doing an options appraisal would give realistic options.

Following the end of the discussion, the Chair confirmed that requesting an options appraisal was within the remit of the Committee and drew attention to an amendment to the motion as included on the Agenda.

Councillor Ian Albert as Chair proposed and Councillor Elizabeth Dennis-Harburg seconded and, following a vote, it was:

RESOLVED:

(1)  That the Committee notes the outcome of the community engagement exercise.

(2)  That the Committee endorsed seeking Cabinet’s authority to dispose of Charnwood House by way of lease of maximum 99 years, and seeking Cabinet’s authority to market the property for leasing by informal tender, subject to Officers first undertaking an options appraisal for running Charnwood as a community hub, to include the option of North Herts Council running Charnwood in house.

REASONS FOR DECISION:

(1)  Noting the outcome of the community engagement exercise supports the Committee’s role in coordinating interest in Charnwood House from parties within the public, private and voluntary sectors, in pursuit of repurposing the building to community hub use.

(2)  Approving seeking Cabinet’s authority to dispose of and market Charnwood House for leasing will signify support to Officers to pursue these important next steps towards securing Charnwood’s future use as a community hub. Undertaking the options appraisal first would determine the full range of choices to successfully deliver a community hub in Hitchin at Charnwood House.