Agenda item

The Leader of the Council to submit a report to provide an update on progress of the Asset Development Programme and specifically in relation to the potential redevelopment of the Parkside offices to accommodate a hotel alongside the council offices.

Cabinet:

1)    NOTED the progress made on the Asset Development Programme (ADP).

2)    REAFFIRMED the need to diversify the Parkside offices in accordance the aims of the ADP which seek to reduce costs, increase income, and support the local economy.

3)    CONFIRMED the Council’s interest in further exploring the option of accommodating a hotel on part of the Parkside offices site, but prior to progressing with the procurement, and more detailed financial and legal appraisal, request the following be provided in a subsequent report to the June 2023 Cabinet meeting:

3.1)       A summary of the detailed analysis of alternate options identified in the report and their implications for the site.

3.2)       Provision of an economic impact assessment for the options considered, including the hotel.

3.3)       Any further soft market testing that may be required to support the analysis.

The Director for Growth and Regeneration introduced the report the purpose of which updated Members on the progress of the Asset Development programme (ADP) in relation to proposals to develop and diversify the Council’s Parkside offices with a view to facilitating the conversion of part of the building into a hotel, setting out the benefits, risks and implications arising from the proposal and seeking agreement in principle to enable further detailed exploration to take place.

The Leader informed Members that the recommendations as listed within the report had been amended and then read out the revised recommendations.

The following comments were made:

·       It was recognised that the Council are on the verge of realising growth opportunities for Melton.

·       The plans would address the issue of the under occupancy of Parkside coupled with the high maintenance costs.

·       It is important to include all stakeholders on the journey.

·       The Council needs additional resources to help deliver services and the plans would mean that the Council wouldn’t have to spend as much on maintaining the building therefore meaning more resources for the delivery of services.

Cabinet:

1)    NOTED the progress made on the Asset Development Programme (ADP).

2)    REAFFIRMED the need to diversify the Parkside offices in accordance the aims of the ADP which seek to reduce costs, increase income, and support the local economy.

3)    CONFIRMED the Council’s interest in further exploring the option of accommodating a hotel on part of the Parkside offices site, but prior to progressing with the procurement, and more detailed financial and legal appraisal, request the following be provided in a subsequent report to the June 2023 Cabinet meeting:

3.1)        A summary of the detailed analysis of alternate options identified in the report and their implications for the site.

3.2)        Provision of an economic impact assessment for the options considered, including the hotel.

3.3)        Any further soft market testing that may be required to support the analysis.

Reasons for Recommendations:

The Council’s Corporate Strategy (2020 - 24) commits the Council to take a commercial approach to the management of assets to deliver jobs, homes, and income. The key focus for priority 3 – Delivering sustainable and inclusive growth in Melton is to confirm plans, secure funding and develop our assets to generate income and provide housing and jobs.

One of the key recommendations from the LGA finance review (2021) is for the Council to take a more strategic long-term approach to Financial Planning and the delivery of transformation using Council’s assets and a requirement to at times take a hard-nosed commercial view.

The Asset Development Programme has been established to support financial sustainability by taking a strategic and long-term approach, rather than short-term and reactive approach to managing our assets. Through appropriate capital investment, the proposals contained within this document have the potential to generate a net revenue benefit which would assist with the council’s financial sustainability.

Properties and buildings owned by the Council are key tools available to the Council to proactively lead the regeneration of the town centre and support the local economy. The opportunity to redevelop under-utilised parts of the Council office estate and develop a hotel, next to the railway station and in close proximity to the town centre, will support the tourism and help increase footfall. This will help delivering aspirations of the Melton Mowbray Town Centre Vision produced by the Council and its partners.

Key potential benefits of this proposal are:

• Reduced cost for MBC from rationalising the office space whilst maintaining strong local presence and remaining accessible to our residents.
• Significant multi-million-pound investment in the town centre.
• Support night-time economy, events and tourism, increase in footfall and spend in the economy.
• Meeting an identified gap in the market for hotel provision by proactive intervention.