Agenda item

To receive an update from the Director of City Development on the current review of the Council’s estate.

The Chair introduced the item noting that the report in front of members provided an update on the locality building review, set in the context of the recommendations of the 2023 LGA Peer Review and the Council’s current financial challenge.

 

Those in attendance for this item were:

 

-  Cllr J Pryor (Executive Member substituting for Cllr D Coupar)

-  Angela Barnicle (Chief Officer, Asset Management & Regeneration)

-  Lee Hemsworth (Chief Officer, Community Hubs, Welfare & Business Support)

-  Mark Mills (Head of Asset Management)

-  Eve Roodhouse (Chief Officer, Culture and Economy)

 

Angela Barnicle outlined the progress of the Council’s estate rationalisation over the last 11 years, highlighting the focus to date on buildings which have provided office accommodation for staff.

 

Over that period, the programme has reduced the Council’s estate by over 125 buildings, delivered over £8m of revenue savings and generated over £25m of capital receipts through asset disposals.

 

Members were informed that the Council’s estate remains substantial with over 900 individually listed assets, which vary significantly in size, nature and use. The associated cost pressures linked to the maintenance of these buildings is unaffordable.

 

A review of the Council’s current estate is therefore underway and aims to make sure the Council’s estate better reflects the size of its services and the required use of buildings.

 

Members were provided with a summary of the distribution of assets across the city, categories of buildings and patterns of use. It was noted that locality buildings are often utilised for 30-50% of their capacity during opening hours whereas the target for office space utilisation is 80%. There is an ambition to improve ‘out of hours’ usage for many locality-based assets.

 

In response to member concern, officers confirmed that further due diligence will be required to determine whether individual buildings have any title restrictions preventing disposals or have received grant funded investment, which would include clawback provisions.

 

The review of locality buildings is being carried out in parallel to a separate review of how the Council delivers services in its localities, which is being led by the Director for Communities, Housing and Environment.

 

The Scrutiny Board was informed that the locality buildings review is being carried out in two phases. Phase 1 is focusing on data gathering to assess the number of buildings, their condition and approximate usage. This phase will also include the identification of any potential ‘quick wins’ where services can be relocated into alternative, appropriate buildings to release a community building for disposal.

 

Members were advised that phase 2 will see further building releases but these will be identified through the locality service transformation programme. Members were informed that this parallel review will include consideration of how to better embed multi-disciplinary teams in localities, improve the use of public facing Council owned buildings and make better use of other non-Council owned assets in communities. 

 

Officers provided an overview of the principles guiding their work, including aiming for a utilisation rate of at least 80% in retained building and providing a range of community spaces, which can be hired more easily than dedicated community centres.

 

The Scrutiny Board was informed that there are several categories of buildings that are excluded from the review, including residential accommodation, depot facilities and sports and recreational facilities.

 

Further information was provided to members about routes to release buildings including Community Asset Transfers and disposal as part of the capital programme.

 

The Scrutiny Board was advised that following the first phase of the review initial proposals will be presented to the Executive Board for consideration.

 

Members discussed the scope for investment in the retained estate to enable services to relocate into alternative buildings, the need to consider long-term maintenance requirements and the development of a new booking system for community spaces that would enable internal and external hire.

 

Members queried how usage figures were calculated and were advised this is based on a broad indication of the number of hours a building is open and the proportion of the building in use during that time. There is a particular challenge in establishing usage for buildings that provide ‘drop in’ services.

 

Members sought clarity about whether there is a target number of buildings that it is hoped can be sold or a savings target it is hoped can be achieved within a specified timeframe. The Board was informed that there is not a specific target but there is a recognition that savings can be delivered, and officers estimate there is scope to release around 60% of buildings.

 

Concern was raised about the potential to create long-term void properties that present risks to their communities and additional costs associated with security and maintenance. It was agreed that there would be a need to move at pace to release buildings identified for disposal.

 

It was agreed that an improved, centralised booking system for community spaces would benefit both the Council and communities.

 

Eve Roodhouse updated members on a commercial review of the museums and galleries service and confirmed a plan will be put in place for each Council site that will connect to broader work across different service areas.

 

Officers were asked how much of the locality buildings review relied upon officers working from home. In response members were informed that in this review there is a greater focus on ‘touch down’ spaces for workers traveling between different community locations.

 

Members sought reassurance about the way in which the locality buildings review and the local service transformation programme are complementing one another and sought clarification about how to assess the social and economic outcomes of both reviews. Members proposed potential future joint working with the Environment, Housing and Communities Scrutiny Board to consider progress across both reviews.

 

Further matters examined by members included:

 

-  The process for the disposal of buildings that have been used for education including the requirement to seek permission from the Secretary of State.

-  The potential to offer longer term leases to encourage investment in Council-owned assets.

-  The development of a more standardised approach to Community Asset Transfers to make the system easier to navigate for both community groups and council officers.

-  The process for consultation with ward members as part of the determination of the role of specific buildings in local communities.

-  Examples of successful changes to service provision in localities, which has involved a change of use for community buildings.

-  Proposed engagement with local communities about assets in their areas.

-  The energy efficiency requirements of corporate landlords and the assessment of locality assets against these criteria. It was noted that further national policy changes are anticipated in relation to EPC ratings, and this may impact upon the future business case of any potential community asset transfer. 

-  Ways in which to maximise the value generated through asset disposals.

-  The ‘one public estate’ programme in West Yorkshire and the role of the Leeds Strategic Estates Board. 

-  The future use of the Town Hall and progress with its refurbishment.

 

Members sought reassurance that plans to reduce buildings will align with ambitions to facilitate sustainable local service delivery by alternative providers in communities including third sector organisations.

 

Members sought clarity about the way in which the Council would consider its responsibilities relating to equalities, diversity and inclusion in any planned relocation of services and release of buildings.

 

Concern was raised about the capacity of the service to deliver the ambitions of the locality buildings review. Members were reassured that the phased approach is in part designed to mitigate this risk.

 

 

RESOLVED:

 

Members agreed to:

 

a.  Note the contents of the report and the approach to the locality buildings review.

 

b.  Schedule a future update on the progress of phase one in 2024/25, including reference to planned investment in the retained estate.

 

c.  Consider future joint working with the Environment, Housing and Communities Scrutiny Board in relation to the interaction between the locality buildings review and the local services transformation programme.