Agenda item

Repairs to Council Asset - 1 Lodge Street, Lancaster

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

 

Report of Director for Economic Growth & Regeneration  (report published on 11 September 2020)

Minutes:

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

 

Cabinet received a report from the Director for Economic Growth & Regeneration which provided an overview of the general and structural work required to the property at 1 Lodge Street, Lancaster. The repairs were necessary to bring back into repair a Council asset that has become significantly dilapidated over a long period of time. The work will bring the property into a lettable standard and forms part of the Council’s wider strategic regeneration objectives within the Canal Quarter within which 1 Lodge Street is located.

 

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

Option 1: Do nothing

Advantages: The council does not spend the allocation of capital funds requested.

 

Disadvantages: The asset will continue to deteriorate and eventually become unsafe. There are already props in place in order to prevent possible roof collapse.

A significant site within the Canal Quarter will remain unsightly.

 

Risks: The building could become unsafe/a dangerous structure if it continues to be left.

If our lack of action impacts the tenants, public or adjoining buildings, there could be significant reputational damage.

 

Option 2: Complete the works as described

 

Advantages: Protect a Council asset that sits in the prominent Canal Quarter area of Lancaster.

Allow the Council the opportunity to bring the asset to a lettable state.

 

Disadvantages: There is a capital cost to the Council.   

 

Risks: Delay in reaching new lease terms with the existing tenant, based on a new business plan and cultural service level agreement.

 

 

The officer preferred option is Option 2. The condition of the asset has been of concern for some time and it is now beyond minor/remedial repair.

 

 

Councillor Hamilton-Cox proposed, seconded by Councillor Parr:-

 

“To delegate to the Leader and portfolio holders the decision on whether to use the capital budget of £486,450 to undertake the necessary works to repair the building and bring it into a lettable condition.”

 

 

Councillors then voted:-

 

Resolved unanimously:

 

That Cabinet delegates to the Leader and portfolio holders the decision on whether to use the capital budget of £486,450 to undertake the necessary works to repair the building and bring it into a lettable condition.

 

Officer responsible for effecting the decision:

 

Director for Economic Growth & Regeneration

 

Reasons for making the decision:

 

Whilst Cabinet had no hesitation in approving the budget for the repairs there were various issues that needed to be addressed. The decision enables the relevant portfolio holders to meet as an informal steering as soon as practical and work through those issues in order that the Leader could authorise the release of funds when the outstanding matters had been resolved.

 

Carrying out the essential repair works to Council assets demonstrates sound asset management and optimisation of Council assets. Any further deterioration could impact on the safety of neighbouring properties and leave the Council open to claims from third parties in the event of damage. Once the work is completed the Council will then be able to lease the improved building. The decision is also consistent with the Council’s ambition of encouraging a “A thriving and Prosperous economy.”

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