URL: https://rother.moderngov.co.uk/ieDecisionDetails.aspx?ID=1849

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To consider options for the Town Hall Renaissance Project

Content: In October 2022, planning permission to redevelop the Town Hall and Amherst Road buildings was refused and subsequently the Town Hall was granted Grade II Listed status.  Since the Town Hall Renaissance project was originally conceived, demand for office space had declined, homelessness had grown significantly, as had the demand for temporary accommodation (TA), at growing revenue cost to the Council, which was more than £2m per annum.  Therefore, alternative redevelopment options for the site had been explored.   At present, the project was still live, and the costs continued to be held on the Council’s balance sheet as Assets Under Construction at a value of £0.86m.  The project was re-appraised to ensure that it was viable and delivered the best outcomes for the community and represented value for money.  Several options had been explored namely, office space (including all Class E uses); hotel; light industrial; and small-scale retail.  Engagement with local agents consistently showed that there was insufficient demand for these uses and it was anticipated that a return on investment would not be realised in short or long-term.  As a result, the Council was not actively progressing any projects reliant on redevelopment or sale of land at the Town Hall site for non-residential uses.  Therefore, residential opportunities had been explored.   The Town Hall site comprised of the Town Hall and Amherst Road buildings and curtilages; 1 and 2 The Villas and curtilage; the car park; and the former Autolec site as identified in Appendix 1 to the report.  Confidential Appendix 2 to the report detailed the site assumptions, appraisal outcomes and cost and revenue position, which contained commercially sensitive information. Cabinet did not consider it necessary to go into confidential session to discuss the contents of Appendix 2.    Based on the re-appraisal, the viable economic investment option for the Council would be to convert 1 and 2 The Villas and build a residential development on land at the rear of Town Hall, Amherst Road, Autolec site for TA provision, as illustrated in Appendices 3 and 4 to the report.  However, there would be significant risks regarding high capital costs for redevelopment / construction purposes.  It was noted that affordable housing (AH) options were not recommended.  However, it might be feasible to sell the land to a Registered Provider who potentially could access Homes England funding to redevelop the site affordably (circa 35 residences).  Open market sale or private rental tenures could also be considered, which could potentially achieve a higher land value at the cost of lower AH delivery.  Both sale options would need to be weighted against the impacts to Council operations through loss of car parking spaces.   It was therefore recommended that further work be undertaken to assess next-stage feasibility of converting both Villas and developing the rear of the Town Hall for TA building.  This would involve the Council seeking the ability to do that through initial planning inquiries, but to also look at what the market interest in such a site might be at the same time and then come back to Cabinet.  A budget of £45,000 would be required, which could be taken from the previously approved TA budget.     Officers would continue to investigate further open market sale options for AH opportunities.  Once completed, a recommendation with full proposal information would be brought back to Cabinet for consideration and formal approval.   Cabinet approved the recommendations proposed and requested that the project be renamed, as the Town Hall Renaissance title was no longer relevant.   RESOLVED: That:   1)     £45,000 of the approved Temporary Accommodation (TA) budget be used to further investigate:   a.    the feasibility of converting 1 & 2 The Villas into residences for TA; b.    the feasibility of new-build development on land at the rear of Town Hall, Amherst and former Autolec buildings for TA; c.    sale of available land at the rear of Town Hall, Amherst and former Autolec buildings for housing development, both for affordable housing and open market sales; and   2)     officers return with a formal proposal including budget, Business Plan, and initial concepts for further consideration by Cabinet.   (Appendix 2 was considered exempt from publication by virtue of paragraph 3 of Schedule 12A of the Local Government Act 1972, as amended).   (Councillor Timpe declared an Other Registerable Interest as a Member of Bexhill-on-Sea Town Council and in accordance with the Members’ Code of Conduct remained in the meeting for the consideration thereof.)

Date of Decision: July 28, 2025