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21/22 consultation budget and the rationale for this increased investment is set out in the confidential Appendix 1 – Not for Publication.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.    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.