Issue - meetings

Report of the Deputy Chief Executive (Place)

The Cabinet considered a report of the Deputy Chief Executive which indicated that in 2013, the Council approved starting the Friargate Business District to regenerate the City, transform the Council and deliver savings through the purchase of the first building on Friargate for occupation by the Council. The Council’s operational office buildings will be reduced and agile and flexible working arrangements introduced to support productivity and efficiency gains from Council staff.

Securing a second tenant to the Friargate scheme remains strategically important to provide confidence to other potential tenants. The Council were approached confidentially in early May by the Financial Ombudsman Service who were conducting a property search in the Midlands and negotiations commenced with the financial Ombudsman Service to become the second tenant at Friargate by taking up occupation in the Council’s building.

The Financial Ombudsman was seeking modern office accommodation for up to 300 staff from October 2017, to supplement their office accommodation in London. Time was of the essence to agree the terms and complete an agreement for lease to them in May to permit occupation in October. Acting under powers of urgency and after consulting the Leader of the Council and the Cabinet Member for Jobs and Regeneration, the agreement for lease was completed at the end of May. The report therefore sought retrospective approval to that lease to ensure that this strategically important business occupier to both Friargate and the City was not lost.

The consequence of completing this lease requires the Council to retain operational building capacity within its existing building portfolio for staff (350) intending to move to Friargate, and the upper floors of Broadgate House had been retained for this purpose for the medium term.

A corresponding private report detailing confidential aspects of the proposals was also submitted to the meeting for consideration. (Minute 32 below refers)

Councillor O’Boyle, Cabinet Member for Jobs and Regeneration, paid tribute to officers for all their hard work in this regard.

RESOLVED that the Cabinet retrospectively:-

1.  Agrees to amend the approved Council strategy to co-locate staff to Friargate, by retaining the upper floors of Broadgate House to co locate staff not now destined for Friargate and invest in these buildings for staff.

2.  Approves the letting to the Financial Ombudsman Service of Floors two and three of the Council’s new building at Friargate

3.  Requests officers to bring back a further report on investment to maintain Broadgate House in use for operational purposes and any other mitigation measures.