The Executive Director (Development) submitted a report to Cabinet on 10 November 2021 seeking approval to fund and enter into a construction contract for the redevelopment of Standingford House and site at Cave Street, to provide affordable managed workspace. This is an increase to the proposed capital allocation in 21/22 consultation budget and the rationale for this increased investment is set out in the confidential Appendix to the report.

The Cabinet decisions are set out in the minutes of that meeting (included in this agenda).

Cabinet Members Cllr Brown and Cllr Turner will present the report and propose Cabinet’s recommendations.

Recommendation:

Cabinet recommends that Council resolves to

1.    approve a capital budget of £9.70m to deliver the project and including the use of £1.13m of funds awarded to the Council from OxLEP’s Local Growth Fund. This is an increase to the proposed capital allocation in 21/22 consultation budget and the rationale for this increased investment is set out in the exempt Appendix 1 – Not for Publication (item 24a).

Council considered a report from the Executive Director (Development) seeking approval to fund and enter into a construction contract for the redevelopment of Standingford House and site at Cave Street, to provide affordable managed workspace. The increase to the proposed capital allocation in 21/22 consultation budget and the rationale for this increased investment was set out in the confidential Appendix to the report.

Cllr Brown, Leader of the Council and Cllr Turner the Cabinet Member for Finance and Asset Management, introduced the report, proposed the recommendations and answered questions. Cllr Hollingsworth, Cabinet Member for Planning and Housing Delivery responded to questions relating to planning matters.

The recommendations were agreed on being seconded and put to the vote.

Council resolved to:

approve a capital budget of £9.70m to deliver the project and including the use of £1.13m of funds awarded to the Council from OxLEP’s Local Growth Fund. This is an increase to the proposed capital allocation in 21/22 consultation budget and the rationale for this increased investment is set out in the exempt Appendix 1 – Not for Publication (item 24a).

Council noted the exempt appendix.

The Executive Director (Development) has submitted a report to seek approval to fund and enter into a construction contract for the redevelopment of Standingford House and site at Cave Street, to provide affordable managed workspace.

Cabinet is recommended to:

1.    Approve the demolition and redevelopment of Standingford House Cave Street with a commercial development providing the best option for the Council in terms of financial viability, policy objectives, increased workspace and rental area and improved sustainability;

2.    Delegate authority to the Executive Director Development, in consultation with the Head of Financial Services; the Head of Law and Governance; the Leader and Cabinet Member for Inclusive Growth, Economic Recovery and Partnerships; and the Cabinet Member for Finance and Asset Management, to agree and enter into a building contract and associated professional services for the redevelopment following the conclusion of a procurement exercise;

3.    Delegate authority to the Executive Director Development, in consultation with the Head of Financial Services; the Head of Law and Governance; the Leader and Cabinet Member for Inclusive Growth, Economic Recovery and Partnerships; and the Cabinet Member for Finance and Asset Management, to enter into agreement with an operator to manage the building and provide business support services, following a lawfully compliant procurement process;

4.    Instruct the Executive Director Development, in consultation with the Council’s Section 151 Officer and the Head of Law and Governance to serve notice on extant tenancies; and

5.    Recommend to Council to approve a capital budget of £9.70m to deliver the project and including the use of £1.13m of funds awarded to the Council from OxLEP’s Local Growth Fund. This is an increase to the proposed capital allocation in 21/22 consultation budget and the rationale for this increased investment is set out in the confidential Appendix 1 – Not for Publication.

The Executive Director (Development) had submitted a report to seek approval to fund and enter into a construction contract for the redevelopment of Standingford House and site at Cave Street, to provide affordable managed workspace.

The Chair was pleased to introduce the report which set out proposals for an exciting development at an important site. The building was in poor condition generally, in urgent need of repair and maintenance and, in its present state, did not comply with certain minimum standards for commercial premises. The proposals before Cabinet, which benefited from OxLEP funding, would see the provision of flexible and affordable workspaces, well suited to small start up enterprises for which there was a recognised need in the City. There had been (and would continue to be) close engagement with existing tenants with regard to  future and interim arrangements.

Andrew Humpherson, Regeneration Manager, said 4 shortlisted options had been subject to close examination of which the proposal before Cabinet (demolition and commercial site development with two separate buildings to encourage flexible working opportunities) was clearly preferred.

Cabinet members emphasised the importance of workspace for small and medium sized start up businesses generally, and within in the City in particular (to facilitate easy and sustainable access). It was noted that other Councils might simply have chosen to sell such a building and benefit from a short term capital receipt. This proposal however demonstrated the Council’s wish to invest in the future and opportunities for small businesses to flourish in the City.

It was agreed that the name of Standingford House should be retained or acknowledged in some way in the new building in recognition of its association with Betty Standingford, a previous Lord Mayor and her husband Bert, also a Councillor, who had championed the cause of small businesses.

Cabinet resolved to:

1.    Approve the demolition and redevelopment of Standingford House Cave Street with a commercial development providing the best option for the Council in terms of financial viability, policy objectives, increased workspace and rental area and improved sustainability;

2.    Delegate authority to the Executive Director Development, in consultation with the Head of Financial Services; the Head of Law and Governance; the Leader and Cabinet Member for Inclusive Growth, Economic Recovery and Partnerships; and the Cabinet Member for Finance and Asset Management, to agree and enter into a building contract and associated professional services for the redevelopment following the conclusion of a procurement exercise;

3.    Delegate authority to the Executive Director Development, in consultation with the Head of Financial Services; the Head of Law and Governance; the Leader and Cabinet Member for Inclusive Growth, Economic Recovery and Partnerships; and the Cabinet Member for Finance and Asset Management, to enter into agreement with an operator to manage the building and provide business support services, following a lawfully compliant procurement process;

4.    Instruct the Executive Director Development, in consultation with the Council’s Section 151 Officer and the Head of Law and Governance to serve notice on extant tenancies; and

5.  ...  view the full minutes text for item 63

The Executive Director (Development) has submitted a report to seek approval to enter into a £1.93m Funding Agreement with Oxfordshire Local Enterprise Partnership for Local Growth Funding to support the refurbishment of 1-3 George Street and redevelopment of Standingford House on Cave Street to provide affordable and innovative workspace to facilitate the inclusive economy.

Recommendation: That Cabinet resolves to:

1.    Delegate authority to the Executive Director Development, in consultation with the Council’s Section 151 Officer and the Head of Law and Governance to agree and enter into grant funding arrangements and contractual terms with OxLEP for £1.93m in Local Growth Funds for the delivery of city-centre based workspaces at 1-3 George Street and Standingford House, Cave Street.

The Executive Director (Development) had submitted a report to seek approval to enter into a £1.93m Funding Agreement with Oxfordshire Local Enterprise Partnership for Local Growth Funding to support the refurbishment of 1-3 George Street and redevelopment of Standingford House on Cave Street to provide affordable and innovative workspace to facilitate the inclusive economy.

Councillor Susan Brown, Leader of the Council, introduced the report which proposed a timely initiative to support local businesses, particularly small local businesses.  The project would provide a welcome addition to the mix of business and office space in the city centre, the need for which had been emphasised during the recent development of the Local Plan. It would also provide an opportunity for necessary improvements to the Council properties listed the report which would, among other things, contribute to the Council’s carbon reduction targets.

Andrew Humpherson, Regeneration Manager, emphasised that the proposed work was necessary to get the properties concerned into a state fit to be let and so contribute to income for the Council. The immediate focus was on the building shells and getting them up to standard.   In relation to their future use, internal designs would be heavily influenced by close co-operation with operators, a dialogue which was already underway.  He  confirmed that early conversations with the planning department were underway in relation to 1-3 George Street, those with Cave Street would have to wait until later in the process.

It was noted that the funding for this project was required to have been committed by the end of July and not the end of June as described in the report.

Cabinet resolved to:

1.       Delegate authority to the Executive Director Development, in consultation with the Council’s Section 151 Officer and the Head of Law and Governance to agree and enter into grant funding arrangements and contractual terms with OxLEP for £1.93m in Local Growth Funds for the delivery of city-centre based workspaces at 1-3 George Street and Standingford House, Cave Street.

Cabinet, at its meeting on 15 July,  will consider a report on Local Growth Funded Workspace Projects. This item offers the Committee the opportunity to comment on the report and make recommendations to Cabinet if it wishes.

Councillor Susan Brown, Leader of the Council, Matt Peachey, Economic Development Manager  and Andrew Humpherson, Regeneration Manager,  have been invited to attend for this item.

Councillor Susan Brown, Leader of the Council, introduced the report.  The present economic situation was taking its toll.  The funding described in the report provided a timely opportunity to refurbish some of the Council’s city centre commercial properties which were in urgent need of attention. This would, among other things, support the Council’s ambition to support small local businesses and start ups.

Matt Peachey, Economic Development Manager, said Oxford’s city centre business growth lagged behind some comparable city and town centres. This was probably partly attributable to its dependence on just two sectors, education and tourism, the latter was  likely to suffer particularly as a result of Covid-19. Encouraging a more diverse range of  enterprises was therefore important and  this in turn required the development of flexible and accessible work spaces of good quality that were relatively affordable. The funding sought by the report would unlock the potential of the sites described in the report. Preparatory work was well advanced and the projects were achievable in the timescales demanded by the conditions associated with the funding. It was noted that the timescales referred to in paragraph 27 were in need of updating and this would be done before the report went to Cabinet.

The report referred to a vacant site adjacent to Standingford House. The Committee was keen that sight should not be lost of its possible use for housing rather than office accommodation. Officers confirmed that while the focus would be on office accommodation, both sites would be looked at in their entirety and consideration given to the most beneficial mix of commercial and housing use. It was also confirmed that the views and needs of the buildings’ current tenants would be fully taken into account and that social value would be an important consideration as the projects develop.

The Committee were concerned lest the market for the type of accommodation described might not be buoyant enough to make the proposal economically  sustainable. Officers said that while there was still a great deal of uncertainty about the market, current indications were that it would be sustainable and the project would be supported by good commercial advice throughout.

It was in the Council’s interests that the improvement of these properties was  on a sound commercial basis; it would not be appropriate for them or parts of them to be made available for community use.

In conclusion, the Committee agreed that a recommendation should be made in relation to the brief for the development at Standingford House, Cave St. The brief should  include the adjacent Council owned land and that it was for mixed business/residential use.