This report asks members to approve the refurbishment of Exmouth Town Hall before Gateway 7 is reached in relation to planning permission on the Knowle site. The request is for a budget of £1.669m, this is an increase of £0.408m for this part of the project but overall net costs are expected to still be within the overall relocation budget.
It is a members’ decision whether to decide to proceed and approve the expenditure of £1.669m on Exmouth Town Hall refurbishment for the operational reasons outlined in this report. This decision needs to be under the clear understanding of the financial risk involved; a worst case position of no capital receipt from the Knowle to offset capital costs and no certainty of the associated savings obtained from operating from a new building in Honiton.
The borrowing impact on the Council should no receipt be forthcoming at all would be a £1.669m loan requiring an annual payment of £69,000 over 40 years to fully cover off both the loan sum and interest.
Mitigation against this financial risk is that the Knowle site has been allocated in the Local Plan for housing thereby giving some certainty of a capital receipt, if not now but in the future. Refusal of planning permission for the Pegasus Life proposal will add delay to the project but the Knowle retains a continued Local Plan allocation and capital value as a brownfield site for residential development. On this basis a more reasonable assumption at this point would be the requirement of short-term financing until a receipt is forthcoming. On that basis assuming a 3 year period of short-term financing this would incur an annual cost of £18,000 a year being interest only, if alternatively internal funds were used this would result in a loss of interest equating to £14,000 a year. …
AND THESE ARE COSTS EDDC DID NOT FACTOR IN TO EXMOUTH REFURBISHMENT COSTS:
… The previous figure was an estimated cost without full survey and confirmed contractor figures. The refined cost reflects the detailed building investigations, requirements of the planning authority and the actual price negotiated with the contractor.
The Town Hall is an old building combining different extensions over time. Costing the works on an existing building is less predictable than new build.
Expectations that some existing services could be retained have not been met and detailed surveys and investigations of the building have shown it to be in need of full services replacement alongside repair, redecoration and structural improvements.
Key additional cost elements are:
o Full rewiring
o Replacement of central heating and boiler system.
o Improved hot water provision
o Additional kitchen facilities on first floor
o Provision of mechanical ventilation
o Improvement of natural ventilation,
o Removal of asbestos and dealing with lead paint.
o Improved security provision.
o Better access within the building.
o Improved signage
o ETH will be refurbished to a high standard. It will be decorated and equipped in the same way as the new HQ. The reception areas in particular will have a similar look and range of facilities for our customers.
East Devon Watch 
EDDC can only put housing on the Knowle site and offset these costs if they move, and if they move there would be a LOT of additional costs. Indeed, as the same paper says, there would be a much bigger loan for the relocation. Indeed, in such circumstances it would be likely that the council would keep the existing loan taken out when interest rates are low (i.e. now) rather than replace it with part of a bigger loan at likely higher interest rates (we know inflation is on the way, so interest rates are likely to rise).
So isn’t it a bit disingenuous for the council to suggest that they don’t need to worry too much about the loan for Exmouth Town Hall refurbishment because it will eventually be covered by capital receipts from the sale of the Knowle for housing?
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Oh – and it seems that Exmouth Town Hall is yet another example of massive cost increases, this time of c. 1/3.
For goodness sake EDDC, get a grip!!
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Can’t track S106 monies, do estimates with a damp finger poked who knows where, waste our money left right and centre and seemingly don’t give a damn about morals, scruples, or their electors. What a crock of Steaming Hypoctites In Totality. They seem to just blunder on regardless of the realities!
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