No wonder EDDC wanted to keep its deliberations about a move to Skypark secret!

In Cabinet minutes they reveal:

“However, within the negotiation, due diligence process and legal advice it has become clear that such an arrangement could potentially fall outside of European Union regulations. This would have then required a new site search exercise, cost and delay.”

Now, what was the deal that might have been unlawful? When was it revealed that it might be unlawful? How much did the legal advice cost? Did the project continue after the advice was given? Is this the real reason the project was abandoned and the loss of the supermarket just a smokescreen?

Click to access 031214-cabinet-agenda-public-version.pdf

page 37 onwards

All efforts now are towards saying what a sensible and brilliant idea EDDC upper echelons have come up with for Exmouth and Honiton presence.

So why did they waste hundreds of thousands of pounds of OUR money on Skypark?

From their press release we learn:

“It is clear there is a need to increase service provision for housing benefits, Council Tax, housing advice and register and debt advice in both Exmouth and Honiton and there would be significant demand led presences in Sidmouth and Axminster.

“The council would provide surgeries in other towns as they do in Cranbrook, Seaton, Ottery St Mary, and would experiment with frequency and range of services depending on demand.”

It must have ALWAYS been clear that Exmouth, Honiton, Sidmouth and Axminster needed to be close to accessible services and that the need for these services would only increase as development increases. (Oddly Seaton doesn’t seem to need them – perhaps it will be left stateless when new mergers take place!).

Yet, given all of the above, Skypark was chosen. Why?

It is absolutely impossible to pull the wool over our eyes, EDDC – you blew it, you blew it spectacularly and no amount of “justification” for the latest plan will persuade us otherwise.

See you at the ballot box – though we would suggest to disenfranchised majority party councillors, as much in the dark as minority ones it seems, that a change at the top is now called for – and long overdue!

Oh, the panic!  No supermarket so no Skypark – now what!  Think, think …. oh heck, we’ve sold the Knowle site – humungous panic.  Wait, wait, there’s some space in Exmouth, there’s some space at the East Devon Business Centre (especially now we have told tenants they will need to leave), yeah, that should do it, quick, quick, a press release, oh heck, how are we going to talk our way out of this one, how can we fix it before the next election!  Now, who can I pass the buck to?  What, me, buck – no way!

Oh, and someone had better tell the councillors – oh damn, they have read it first on the EDA website and the Express and Echo.

That’s another fine mess you’ve got me into  Ollie …. Ollie …. where are you Ollie!

Time to lie down in a darkened room …. what’s that, the last person left and turned the lights out?

Extract from council papers:

Report to: Cabinet

3 December 2014

Relocation Update – key decision

Purpose of report

In particular to make Members aware that Marketing of Knowle and Manstone sites is completed and further discussions with bidders are in progress and ….. to advise Members of changed circumstances and proposed changes to the preferred new HQ site.

Recommendation

1.  Note project progress following the previous update report of4 June 2014

2. Recognise emerging changes to the relocation project agreethe following:

a.  The marketing exercise for Knowle and Manstone has resulted in a range of offers and , following a detailed assessment process,

we have received price, form and quality of development propositions that merit further detailed negotiation toward selection of a preferred developer.

1. Leading offers for Knowle do not include options to sell Manstone in which case EDDC can choose to retain Manstone for the foreseeable future as a depot function and continued employment use .
2. The reduced offer for EDDC’s Heathpark site no longer represents a sufficiently persuasive level of capital receiptand will not be pursued further.

1. The retention of Heathpark in EDDC ownership means that this now represents the most cost effective and straightforward location to develop a new headquarters building for the Council.
2. Relocation to Skypark is no longer a viable proposition based on the reduced offer for Heathpark and combination of Knowle market value and prudential borrowing.
3. The East Devon Business Centre (EDBC) should preferablybe retained and could potentially be combined within a new EDDC HQ development.

In the interim, Exmouth Town Hall has been vacated by Devon County Council Services and represents a new opportunity within the relocation plan.

1. A new HQ in Honiton can be restricted in size and cost to a170 desk equivalent scale with an improved Exmouth Town Hall for 80 EDDC staff as a main satellite office in the District’s largest community.

As part of its commitment to more mobile working and accessibility, the Council will offer a service presence as customers require in future at locations elsewhere in the District.

1. That relocation continues to make financial and operational sense on a whole life cost basis, specifically 20 yr. projections

combining capital receipt and repayment of prudential borrowing versus existing office running cost and unfunded expenditure on

existing building repair, maintenance and improvement.

Authorise the Deputy Chief Executive (Development, Regeneration and Partnership) in consultation with the Office

Accommodation Executive Group to take forward further actions in pursuit of the above recommendations and Project

Plan

4.  Agree that further reports are produced for Cabinet and Council on project progress and to seek formal approval for any disposal of Knowle

 AND MORE MAJOR COCKUPS:

However, within the negotiation, due diligence process and legal advice it has become clear that such an arrangement could potentially fall outside of European Union regulations. This would have then required a new site search exercise, cost and delay.

Do recall that, all down the line, EDDC insisted that the relocation would be “cost neutral”!

Surprise, surprise! The following statement has just been issued by East Devon District Council:

25 November 2014

Development at Knowle and changes to destination to be considered by cabinet

Significant changes to the preferred location of new council offices in East Devon will be discussed at cabinet next week (Wednesday, 3 December).

Cabinet will hear the latest developments since it was last reported in February and how changing market conditions mean that SkyPark is no longer the preferred option.

Whilst SkyPark has been the leading contender as the relocation site, the council was very clear that no decision was going to be made on the final location until all the facts and figures were known with other key pieces in what is a complex jigsaw slotting in to place.

Instead, recommendations to cabinet are to retain the council-owned Heathpark site in Honiton and potentially combine East Devon Business Centre with a new headquarters. This will allow existing tenants of the business centre to remain.

In addition, it is recommended that the council use the existing office space at Exmouth Town Hall, recently vacated by Devon County Council. This would allow for a smaller building in Honiton and existing tenants at Exmouth Town Hall to remain.

Interest

Marketing of Heathpark began last year and the highest value commercial interest came from a supermarket operator. The offer price negotiated at that time was attractive as part of the funding package to relocate to SkyPark but the supermarket reduced its offer in line with a new business sector model. The reduced offer makes a sale of the site no longer attractive.

In response to marketing of Knowle and Manstone, a mix of proposals were received, which contained variations on residential, retirement and/or care and extra care communities whilst retaining the public park. All proposals were based on the removal of existing buildings at Knowle (whilst keeping or re-provisioning the bat roost). A range of matters still need to be explored before selecting a preferred bidder but once selected, it will be for the developer to enter into discussions with the planning authority to explore proposals.

Among the bids are proposals to develop Knowle only. It could well be that a preferred developer is selected that leaves Manstone to continue operating as a depot for the time being. The depot functions currently provided at Knowle Depot would be transferred across to Manstone.

New build at Honiton and refurbishment of Exmouth Town Hall will be funded by capital receipts and prudent borrowing. Over a 20 year period the spend will at least pay for itself with savings accruing after then. This would allow the council to remove itself from a costly, uncertain and increasingly impractical future at Knowle.

Essential repair works to existing buildings would cost £1.5 million and there is no funding allocation to cover this cost. Refurbishment of all existing buildings would cost up to £15.9m. Knowle has high annual energy costs of £83,900 per year compared to a predicted energy cost for Honiton/Exmouth combined of £33,700 per year.

Operationally, a twin site approach accommodating around 250 officers will be supported by mobile working. The council aims to expand its digital offering and has an ongoing project to improve existing online transactions and develop a further online service for customers who would like to do their business online.

Demand

Sites in two of East Devon’s major towns provide an ideal opportunity for the council to respond to the demand for various services. It is clear there is a need to increase service provision for housing benefits, Council Tax, housing advice and register and debt advice in both Exmouth and Honiton and there would be significant demand led presences in Sidmouth and Axminster.

The council would provide surgeries in other towns as they do in Cranbrook, Seaton, Ottery St Mary and would experiment with frequency and range of services depending on demand.

In the longer term, the council needs to consider the shape of local government. A combined Honiton and Exmouth office base offers a more flexible approach to our accommodation requirements involving new and modernised offices in two locations. In a world of increasing co-operation between local authorities, a smaller headquarters and an accessible presence around the district offers a better proposition for our customers.

If a successor organisation or other local government arrangement inherited Knowle from the council it is unlikely that such care would be shown toward its future use as shown by the East Devon District Council.

Cabinet’s decision next week will then be considered by full council on Wednesday, 17 December.