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Knowle relocation: our construction expert writes … another £2 million down the drain?

The tender price index for British construction has risen 15% since EDDC announced the cost of the Honiton new build in March 2015.

Yet EDDC claim that the £669,000 increase in the cost of Exmouth can be absorbed within the overall budget of £9.2 million. We know that Exmouth was budgeted to cost £1 million, so the budget for Honiton was £8.2 million. We know that Exmouth has been subject to a 67% increase.

What can we expect for Honiton? Assuming that the costs will rise in line with the tender price index, the new cost will be £8.2 million, plus 15%. Which means another £1.23 million, totalling £9.43 million. It will, of course, probably go a lot higher.

Costs have therefore risen by £2 million since March 2015, but anticipated receipts from the sale of Knowle are unchanged. We appear to have lost £2 million – and we haven’t even started!

Will any of this figure in the debate? Probably not – our Tory councillors don’t enjoy discussing numbers that they don’t like!

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Knowle relocation: more public statements come back to bite councillors on their …

This passage didn’t get much noticed at the time, in a report to Cabinet March 2015:

‘The market value of the Honiton new build is estimated to be £3.25m in 2017 and Exmouth Town Hall had a site value estimated in 2013 as £0.9m. The sites are determined primarily on the basis that they make better financial sense than the Knowle and are located for operational rather than investment purposes.’

This appears to confirm that the value of the new build is much less than the cost of its construction. Way less. Only £3.25 million, forward dated to 2017. So about £8 million less than the cost of build. Plus, don’t forget that the Honiton site, with or without the Business Centre, is worth at least £0.75 million, so the added value arising from construction, costing £11 million, is £3.25 – 0.75 million. Just £2.5 million. What a terrible investment.

Moreover, the sentence, presumably composed by Richard Cohen, seems to suggest that the Town Hall will not receive any benefit from the refurbishment, as it is deemed to have only ‘site value’ at £0.9 million.

Councillors … wool … eyes … pulled over?

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Third refusal for development on Seaton/Colyford Green Wedge

To be followed by a third appeal?

Click to access obj.pdf

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Exeter Green Party wants transparency on proposed LEP and other secret partnerships including with East Devon

“Proposals by Exeter City Council to restructure decision-making in Devon are being challenged.

In a letter to Council Leader, Pete Edwards, Exeter Green Party has raised concerns about the ways Exeter City Council is developing initiatives to restructure the authority – all of which will give binding powers to new layers of local government.

[The letter states]

Exeter Green Party is deeply concerned about the ways in which the various initiatives to restructure local government decision-making in Devon are being pursued. We are referring to:

The “devolution” proposals for a combined authority covering the Heart of the South West, from which we understand the City Council withdrew at a meeting on 9 December.

The proposal for a Greater Exeter Growth and Development Board (GEGDB], agreed in principle by the City Council’s Executive on 8 November.

The proposals which emerged at the end of last week for a South Devon Unitary Council, involving Exeter, Plymouth, East Devon, Teignbridge, Torbay and possibly South Hams councils.

We do not at present wish to take a position on the merits of the various alternatives, though there are many concerns and questions to be addressed.

At this stage, we ask the following questions:

1. What mandate does the City Council have from the residents it serves to:

(a) attempt to reorganise local government decision-making structures?
(b) propose arrangements which would suck key decisions upwards from the elected representatives of the people of Exeter to a new superior authority – the GEGDB – which would not be directly elected?
(c) propose a strategic authority – the GEGDB – which on the evidence of the 8 November paper would focus solely on economic growth to the exclusion of social and environmental considerations?

2. When does the City Council plan to publicise its thinking and actively consult residents and businesses on whether they actually want new local government arrangements and, if so, on the form they should take and how any new body might be fully accountable to local people?

Because we believe there should be public debate now on these issues, we are issuing this letter to the media. I am also sending a copy to Karime Hassan.
I look forward to your reply.

In a surprise move proposals emerged at the end of last week for a new super South Devon Unitary Council. It could see a ‘super mayor’ governing Exeter, Plymouth, East Devon, Teignbridge, Torbay and possibly South Hams councils.

The Greens concerned that decisions are being made without any public consultation or mandate to give power to unelected bodies.

Exeter City Council had previously committed itself to the Heart of the South West “devolution” proposals for a combined authority. It is now understood Exeter City Council withdrew from this plan at a meeting on Friday. The Council’s Executive has also agreed in principle to set up a ‘Greater Exeter Growth and Development Board’ with East, Mid and Teignbridge Councils, and give this new body powers to make binding decisions on each Council.

Green Party spokesperson, Diana Moore, said:”These decisions about major changes to the structure and functions of local government are taking place behind closed doors.

“We want to know what mandate the City Council has for these proposals and when they intend to consult residents and businesses on whether they actually want new local government arrangements.

“They need to be transparent about their intentions and the power they intend to give away.

“The proposed arrangements would take away key decisions from the elected representatives of the people of Exeter and hand them to distant unelected bodies.

“The economic growth priorities of any of these bodies doesn’t address social and environmental considerations or the rising inequality in the city.

“Councils must focus on their duty to co-operate – and do that to the benefit of local people and not obsess about new structures which will only serve vested interests.

“Any new proposals for local government must be fully consulted on and that whatever structure emerges must be transparent and accountable to local people.”

http://www.exeterexpressandecho.co.uk/strong-concerns-raised-over-exeter-s-role-in-super-mayor-plans/story-29977062-detail/story.html

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Knowle relocation – the estate agent’s view?

The views below are those of an expert correspondent. Owl, needing only the branch of the nearest tree to call it home, is no expert and is happy to hear from others with different views

The build cost of the new building at Honiton must have increased: there is no way they will build it for less than £7 million.

But the big ‘economy with the truth’ is that relocation will be achieved for less than £10 million, because the costs of moving will be very high, not least for compensation to staff for having to travel further to work. Steve Pratten (the relocation consultant) alone is going to cost £1 million by the time the project ends and then there is all the officer time (never, ever costed by EDDC), and legal fees.

The real numbers, in my personal opinion (writes the correspondent) are likely to be:

Exmouth refurbishment:
£2 million

New Build at Honiton:
£11 million
(West Dorset’s new HQ was smaller three years ago and cost £10 million +)

Steve Pratten:
£1 million

Staff Compensation:
£1 million

Officer Time:
£2 million

Legal and other consultants:
£1 million

The move itself (physically relocating, plus things like new notepaper, equipment, etc):
£2 million

And, significantly, the immediate loss in asset value (the new building will only have a value of £2-3 million).

So subtract that figure from the asset value of Knowle (£7.5 million ):
loss of £5 million

Total: £25 million.

The improvements at Exmouth might give a modest boost to the value of the building, say £0.5 million, so a total cost of £24.5 million.

These figures are conservative. In truth, the ultimate cost is probably going to be higher. The ‘officer time’ figure of £2 million looks very low for example. It would not be at all surprising if the ultimate cost is of the order of £30 million.

The refurbishment of the modern buildings at Knowle was estimated at less than £2 million, which looks incredibly good value by comparison.

The refusal of the Pegasus application, together with the current upheaval over local government reorganisation in Devon, offer a clear opportunity to think again.

Cabinet on Wednesday might see the first signs of cracks appearing.

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Those relocation numbers STILL don’t add up (bigly) EDDC!

25 March 2015 extraordinary Meeting regarding Relocation:

‘Councillor Moulding emphasised the cost savings that would be achieved and highlighted key figures:

• The Knowle Site offer price agreed is £7-8m • Exmouth Town Hall modernisation will cost in the region of £1m • New Offices at Honiton will cost in the region of £7m • The Council will secure relocation in total for under £10m’

So it’s a £669,000 increase, not £408,000.

A 69% increase in costs in less than two years, without a brick being laid!

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EDDC progress: move from an old building – to an old building!

EDDC moves from Knowle because it is an old building (although most of it is modern and big enough to meet all their accommodation needs) and moves to Exmouth Town Hall – an old building – all of it old.

And the reason given why the costs are rising?

Exmouth Town Hall is … an old building.

Which begs questions:

A. Did EDDC expect costs to be higher than they estimated when making their calculations to move?

or

B. Did EDDC expect costs not to rise when they made their calculations to move?

and

which of these two scenarios is the worst one!

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What goes around comes around …. in EDDC la-la land

One of the reasons given for increased costs at Exmouth Town Hall – finding asbestos in the building.

One reason given for moving from Knowle – you guessed it – asbestos in the building.

Yes, Minister!

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Who counts the pennies at EDDC?

£1.6 million (minimum) overspend on Queen’s Drive, Exmouth
£400,000 (minimum) underestimate on Exmouth Town Hall refurbishment
£300,000 (minimum) not collected in Section 106 payments

£2 million … and still a quarter of the financial year to go.

Hello, KPMG, hello …..

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Extra £408,000 needed for Exmouth Town Hall refurbishment – estimate did not include things like rewiring and new boiler!

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.

Click to access item-14-relocation-report.pdf

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More on those devolution shennanigans!

Robert Vint, South Hams Lib Dem, DCC:

“We’re slowly piecing this together… Apparently Exeter City, Plymouth City & East Devon Council don’t want to be part of the HOTSW scheme and want to set up their own unitary authority – presumably with their own unitary Mayor. South Hams have apparently just been invited to join but West Devon have not. John Tucker says that SHDC [South Hams District Council] have not been involved in these discussions but that Torbay City and Teignbridge Council have. It seems odd that all the South Devon councils except South Hams & West Devon knew about this. There’s apparently a meeting of chairs of councils today where this will all come up. All very cloak & dagger!!”

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Exeter/Plymouth/Torbay super- mayor? Meeting in Cullompton today

“Council leaders from across south Devon are understood to be discussing plans for a “super-mayor” at a meeting today.

Leaders from Plymouth, Exeter and Torbay councils are meeting in Cullompton to discuss a bid for devolution.

It is thought that a central part of the proposal is to create a single authority stretching from Exeter to Plymouth, and including Torbay.

The authority would be run by an elected mayor.

At the South West Growth Summit in Exeter in October Sajid Javid, the Communities Secretary, told local politicians that they could forget any meaningful devolution unless they embraced the idea of an elected mayor for the whole region.

In private tweets yesterday Peter Doyle, head of external affairs for Devon County Council, wrote: “The very odd Southern Devon unitary plan will make tomorrow’s Heart of SW devolution meeting interesting to say the least.

“Hard to see any sense in breaking Devon into two unitary councils. Huge reorganisation costs, duplicates county council services, zero savings.”

http://www.plymouthherald.co.uk/plymouth-could-get-an-elected-super-mayor/story-29970966-detail/story.html#UJzDE8H1jAitmWS5.99

TWO unitary authorities? What’s left apart from North Devon? Does “Exeter” include East Devon or not? And where does the LEP fit in, if at all?

Of course, we, the council tax payers, will be the last to know!

And bet your bottom dollar the “same old” (vested interest) politicians and (vested interest) business people, same troughs, same snouts.

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Cabinet and Full Council to overthrow DMC Knowle decision?

EDDC has updated its ‘Moving and Improving’ website after the decision by the Development Management Committee to REFUSE the PegasusLife planning application.

Owl always thought that planning decisions were taken by the DMC. It appears not. Which begs the question: why have committees at all?

It seems East Devon is turning into Trumpland.

This is what it now says:

“December 2016

Development Management Committee refuse the planning application by Pegasus Life Ltd for Knowle.

Cabinet and Council (separately) will take the opportunity to review the Project. This is known as Gateway 7 which is to note satisfaction of the financial requirements and restrictions of the Final Design, confirmation of Contractors Project Costs, advice regarding Planning Application for EDDC at Heathpark and for Pegasus Life Ltd at Knowle.

December 2017
Relocation to refurbished Exmouth Town Hall.

April 2018
Relocation to Honiton complete.”

http://eastdevon.gov.uk/moving-and-improving/moving-and-improving-all-you-need-to-know-about-the-office-relocation/project-timeline-key-dates/

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Oh, oh, trouble: a mini Local Enterprise Partnership or a maxi East Devon Business Forum on its way?

Another unelected, unaccountable, non-transparent secret society on its way?

Another shady group of “private sector representatives and business community” Tories wetting their pants with the excitement of yet another trough for their snouts?

Cabinet Agenda for 14 December, 2015
Item 19
Page 147

The “Exeter Travel to Work Area (TTWA) area recommendations:

Click to access 141216combinedcabagendafinals.pdf

“It is presently proposed that the desired formal body for the Exeter TTWA will be a ‘Greater Exeter Growth and Development Board’ (GEGDB) including the local authorities covering the Greater Exeter functional economic area.

The Board would be a Joint Committee under s101 (5), 102 Local Government Act 1972 and s9EB Local Government Act 2000 and pursuant to the Local Authorities (Arrangement for the Discharge of Functions) (England) Regulations 2012.

It will comprise the 5 local authorities [Exeter, East Devon, Mid Devon, Teignbridge and DCC] as voting members

and a number of non-voting co-opted private sector /other representatives drawn from the wider business community.

This approach was agreed by Exeter City Council in principle on 8 November and is now being considered by the other potential partners.”

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Well done those EDDC Tory councillors! But watch your backs now

Unconfirmed reports suggest that Tory councillors Grundy (Exe Valley) and Pepper (Broadclyst) were the two sensible councillors who voted against the PegasusLife Knowle planning application.

So, no-one can accuse anyone of a “Sidmouth stitch up”.

It seems unlikely that the two councillors will be getting any gifts from under the Tory Christmas tree from Santa Phil Twiss – the official EDDC Tory Whip – who denies ever having used it but who is said to be less than chuffed at the result.

Of course, not being whipped, no-one will expect them to be removed from the DMC for not following non-whipped orders ….

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When and how will PegasusLife spring back to life?

Cynics amongst East Devon Watch’s readers (the majority one might suspect) are already considering aspects of yesterday’s refusal of planning permission for the Knowle site.

Of course, there is the prospect of an appeal. But there are also other scenarios being mentioned.

Some suggest that this refusal suits both PegasusLife and East Devon District Council – the former so that it can tweak its application in the light of the current economic climate and resubmit and the latter because a delay in building the new Honiton HQ might be in the council’s own interests, given the same current economic climate and the need to almost certainly raise more money due to increased costs. Also there have been some misgivings expressed by Tory councillors on the design of the new building (which does look rather like a people warehouse) and considered hardly befitting the status and importance of the people warehoused within it:

Others suggest that, as “Greater Exeter” moves ever more quickly (and secretly) forward it might be better for EDDC to cut its losses on a new Honiton HQ which would only be a satellite amongst satellites and therefore not needed to be so large (or maybe not needed at all if the Exmouth premises are large enough). Not to mention the messy complications of devolution and its effect on all district councils in Devon.

Others have even suggested that EDDC has had a better offer from a hotel chain which shall be nameless!

Whatever the reason, we can be absolutely sure that, like the Terminator, it will be back!

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Today truly IS a day for miracles! Pegasus Knowle planning application REFUSED by DMC

Refused by 7 votes to 6. Express and Echo article here, more to follow:

“Controversial plans to build 113 apartments for older people on the site of East Devon District Council’s offices at Knowle in Sidmouth have been dramatically rejected by the authority’s Development Management Committee.

The decision could throw into jeopardy the council’s planned relocation to new offices in Honiton and Exmouth Town Hall.

To finance the move, East Devon District Council had agreed to sell its Knowle headquarters to Pegasus Life Ltd, which specialises in providing living and care facilities for older people. The sale was subject to a successful planning application.

The council decided to relocate its headquarters in March last year.

It plans to move out of its current premises in Sidmouth to purpose built offices in Honiton and to Exmouth Town Hall, which will be refurbished.

The relocation to Exmouth is due to take place during the latter part of next year, with relocation to the new purpose built offices in Honiton to follow by spring 2018.

But it is not yet clear how the planning committee’s decision will affect these plans.

The planning application by PegasusLife for a 113-apartment assisted living community for older people was refused by the committee by seven votes to six at a meeting on Tuesday, December 6.

Local campaigners and Save Britain’s Heritage had objected to plans to demolish the 19th-century council offices and build on the Knowle Park.

Liz Fuller, buildings at risk officer for Save Britain’s Heritage, said: “The Knowle is an important local landmark building in Sidmouth standing in attractive landscaped grounds.

“In our view, the loss of the Knowle and the additional development of the park’s upper lawns and car park as proposed represent a devastating blow to the history and character of Sidmouth, a remarkably well-preserved Regency town in a beautiful setting on the Jurassic coast.

“The long-term benefits of retaining this building should be properly considered as it would serve to secure an important local landmark.

She argued that the proposed development would result in “clear over-development of the site”.

Pegasus Life said its plans would help to meet Sidmouth’s housing need. The company had reduced the amount of proposed accommodation in response to comments from local residents.

The application was refused on the grounds that it was an overdevelopment of the site which would impact on neighbours and the character of the area; that the proposed development should be a C3 use and include affordable housing and not a C2 use, and that it impacts on the setting of an historic building.

PegasusLife now has the option to appeal.”

http://www.exeterexpressandecho.co.uk/retirement-village-plan-for-east-devon-council-s-knowle-hq-rejected/story-29961485-detail/story.html

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Post-truth spin by Conservative Gatecrashers

Owl refuses to publish the EDDC press release that triggered the comment below. Owl considers it a brazen example of “post truth” spin. Suffice to say he tries to twist the situation where he and two other councillors gatecrashed a “Save our Seafront” meeting.

Here is an organiser’s response:

“Councillor Skinner’s press release of 05/12/16 is full of mistruths. In terms of clarification, the meeting Councillor Skinner [attended] was advertised as ‘all welcome’, however it was not advertised as a public meeting but as a Save Exmouth Seafront (SES) meeting in which we were welcoming along new supporters following the large numbers who attended our protest march. I don’t think that gives Cllr Skinner any legitimacy in his hijacking of the meeting – and hijack he did. If he wanted to attend a public meeting to genuinely engage, why did he arrive unannounced so no questions could be formulated ahead of the meeting? He attended and DISRUPTED what was a SES meeting, and judging by accounts of his behaviour – he had no intention to listen to those present anyway.

I have been trying since July to organise a public Q&A session with Cllr Skinner; the idea being for ALL members of the public to be able to attend and put questions to him, not only the supporters of SES. That he attended uninvited and unannounced and simply disrupted a SES meeting does NOT count as public engagement!

If Cllr Skinner was genuinely hoping to use this meeting as an opportunity to engage, the overriding question has to be, why did he not contact the organisers of the meeting, including myself, for I was emailing him in the preceding week asking him to clarify his intent ref the public Q&A? My emails of the preceding week would have been a perfect opportunity for him to tell me he intended to attend the SES meeting. Instead he utterly ambushed the meeting and acted rudely towards many who were in attendance, I therefore take serious issue with him now trying to paint this as a public engagement exercise.”

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The Local Plan is now ready to depart from Sidmouth …

The agenda for the December 6th DMC meeting makes an interesting read. Two very contentious applications are being considered.

First: The Pegasus Life, Sidmouth scheme is, to quote a planning officer-

“A DEPARTURE FROM THE LOCAL PLAN, providing apartments with extra care in excess of the allocation or requirements of the plan, it therefore makes a meaningful contribution to housing delivery on a largely brownfield site.”

Second: The Syon House, Frogmore Road, East Budleigh scheme is, to quote again-

“The application represents A DEPARTURE FROM ADOPTED POLICY as the proposal does not fully accord with Strategy 35 in that a lower than 66% affordable housing provision is proposed.”

It makes Owl think that council tax payers should wonder why East Devon District Council spent a lot of time, money, tears and effort to finally get a local plan adopted just to DEPART from it less than a year from adoption.

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Exeter NHS Rally: East Devon Alliance well represented, no Tory councillors or MPs spotted!

East Devon Alliance:

Spotted in the crowd (not an exhaustive list as crowd too large): East Devon Alliance councillors Marianne Rixon and Cathy Gardner (also on Spotlight and Radio Devon), Sidmouth campaigners Di Fuller and Robert Crick along with town councillor Martin Shaw of Seaton and Independent Councillor Roger Giles of Ottery St Mary.

Many people attended from Exeter, Okehampton and North Devon.

No East Devon Tory Councillors or MPs sighted at all. Nor Exeter MP Ben Bradshaw.