Decision details

Office Accommodation

Decision Maker: Chief Executive, West of England Combined Authority

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

The Combined Authority has occupied the ground floor of 3 Rivergate since 23rd June 2017. The lease expires on 23rd December 2022. The Combined Authority were in discussions on extending its existing lease-term but the Landlord’s position has hardened to an exit being required at the end of this calendar year in order to undertake significant refurbishment of the building without any tenant presence. It is imperative that the Combined Authority find new accommodation that demonstrates and delivers the benefits of set out in more detail in this record. Due to the lease structure currently in place, the authority has no right to renew or extend their lease at 3 Rivergate in its current condition.

This balance of home/office is particularly important for economic, organisational and people development, and health reasons such as:

a)    Economic and employment benefits for town centres and business and residents as a whole

b)    Learning and development of new and existing members of staff

c)    Further developing a positive, constructive delivery focussed culture and team working

d)    Maintaining hybrid working given the benefits of recruitment and retention and recognising the flexible benefits provided for home caring responsibilities

e)    Creating the opportunity to collaborate in a single site with good transport links for the region, and think of new ways to deliver greater benefits for the region with all our partners

f)      An organisational led requirement to work in a more consistent business led hybrid fashion with greater presence on site

g)    Ensuring that the costs of any new accommodation are proportionate to need, are value for money for the taxpayer in the narrow and broader strategic financial sense and are affordable within existing budgets

h)    Retains existing employees given the high percentage of Bristol based staff

i)      Maintains the organisational identity and purpose of the West of England Combined Authority for strategic and regional funding reasons and is appropriate in regional image and reputation to those who visit the organisation.

j)      Provides appropriate stability and flexibility to the organisation

 

 

 

Decision:

70 Redcliffe Street on balance for strategic, operational delivery and vfm reasons. This is a reasonable grade B building located in Bristol so will cause least disruption to the delivery of the significant programme of work and represents good vfm.

Alternative options considered:

Options considered:

 

1.       Options Appraisal

Key to scores: 1 = does not meet the requirement; 2 = meets the requirement in part; 3 = meets the requirement in full

 

Value for money / financial appraisal

Flexibility to sub-let

Available space

Sustainable

Accessible location

Keeping staff together in one building

Disruption

 

 

Building aesthetics / image

Meets timescales

Total score

 

 

Ranking

3 Rivergate

2

2

3

2

3

3

1

 

2

2

20

 

4

HALO

1

2

3

3

3

3

2

3

2

22

2

70 Redcliff Street

3

3

3

2

3

3

2

 

 

2

3

24

 

 

1

100 Temple Street

1

1

3

2

3

3

2

 

1

1

17

 

 

5

Lake View

2

1

3

2

1

3

2

 

2

3

19

   4

 

 

 

 

 

 

 

 

 

 

 

 

2.       Financial Appraisal – NPV over 10 years of all options

NPV @7%

70 Redcliff

3 Rivergate

HALO

100 Temple St

Lake View

 

 

 

 

 

 

 

Total cost over 10 years today

 £ 8,556,200

 £  10,274,773

 £ 10,825,997

 £9,000,000

 £  8,899,387

 

NPV at 10 years

 £ 4,349,538

 £  4,881,471

 £  5,503,388

 £ 5,025,553

 £  4,523,997

 

 

 

 

 

Publication date: 18/07/2022

Date of decision: 23/05/2022

Accompanying Documents: