Agenda item

The future of BCP ‘FuturePlaces’ Ltd, investment and development

This report makes recommendations following a review of BCP FuturePlaces Ltd’s (FuturePlaces) work programme and business plan to enable BCP Council to deliver financially sustainable investment and development.

Minutes:

The Leader of Council presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

The Leader of Council introduced Members to the scrutiny of the report to Cabinet. The Leader emphasised that the proposals within the report had arisen from the decision of the Council to progress work on regeneration in a way that was more fitting for the Council within the context of the new Political environment since May 2023 elections and within the context of the rapidly changing economic environment generally. The Leader explained that the new proposed approach intended to focus resources upon areas of work that the Council had identified as its key priorities. It was emphasised, however, that, although the suggestion was to bring the operations and activities of ‘FuturePlaces’ into the Council, the report should not be considered as a commentary upon the quality and value of the work already undertaken and produced by ‘FuturePlaces’. This was also endorsed by Karima Fahmy, the interim Non-Executive Chair of ‘FuturePlaces’, who had been invited and was in attendance at the meeting and the Non-Executive Board members had been closely involved with discussions. The Committee recorded there thanks to the Board and their appreciation of the role undertaken by them.

Members of the Committee raised questions about the implications of the proposals in terms of Human Resources and were assured that staff currently employed directly by ‘FuturePlaces’ had been closely involved in the discussions so far and with Human Resources representatives also involved. It had been made clear that all staff would have the opportunity to transfer into the employment of the Council with their terms and conditions of employment protected in accordance with legislation.

The Committee explored the relative merits of the in-house option compared to the existing ‘FuturePlaces’ model. There was recognition that through bringing the operation in-house the Council would have more direct control of the operations than was currently the case and that, because of that, the desired focus upon delivery of priorities for the local community would be more effectively achieved. There were also expected to be advantages in bringing the Council’s Housing Delivery and Commissioning teams into the same in-house Directorate. Similarly, there was an expectation of lower office accommodation and resources costs arising from using office space which was available within the Council offices rather than incurring costs of sourcing office space externally. In response to questions, it was confirmed that notice to terminate the lease of external office space had already been given.

The Committee considered and questioned estimates of the financial costs of closing ‘FuturePlaces’ and it was hoped that it would be possible to more accurately express the closedown costs. In response, it was explained that ‘FuturePlaces’ were currently carrying out a process of providing a summary of each specific project and that once this was complete, very much more accurate assessments of value was expected to become possible but with the aim of achieving winding-up costs that were as low as possible. The principles under which such an open assessment of value would be made were set out within the report.

Members also examined the relative financial implications of the options and the detailed costing comparisons set out in the report were explained. There was also an explanation about the way in which the Intellectual Property value of work already undertaken would be retained by the Council and how, in very many cases, that prior work already undertaken and in existence would be taken forward by the Council and used to inform and support future delivery programmes. For example, work already undertaken in respect of the ‘Holes Bay’ site had already enabled significantly quicker progress on bringing forward the development and this momentum would be continued and prioritised.

There was recognition by Members of the significant changes financially, both within the Council and nationally, that had taken place since ‘FuturePlaces’ was first established and that this had led, understandably, to tensions within the commissioning process which needed to be resolved.

The Chair advised the Committee that scrutiny of proposals relating to the future of the former Civic office sites in Christchurch and Poole would be undertaken later in the meeting.

RESOLVED that Corporate and Community Overview and Scrutiny Committee recommend to Cabinet that recommendations (a) to (g) as outlined in the report be approved by Cabinet.

Voting: 9:0 (2 abstentions)

The Committee scrutinised progress with taking forward disposal of the two former civic centre sites at Christchurch and at Poole. A number of important issues for further discussion by all Councillors were identified including the most beneficial format of disposal and the arrangements for dealing with the historic civic part of the former Poole Civic Centre building known as ‘the vertical slice’ and there was acceptance that, whilst recognising the importance of minimising delay, this matter would best be deferred for further consideration.

RESOLVED that Corporate and Community Overview and Scrutiny Committee recommend to Cabinet that recommendation (h), as outlined in the report for recommendation to Council, be deferred by Cabinet, to enable further work to be undertaken on the subject of the future of the civic offices in Poole and Christchurch.  This deferral is recommended to enable all councillors to fully understand the options for the civic offices, particularly around leasehold and freehold options, and to address issues around that part of the former Poole Civic Centre known as ‘the vertical slice’, whilst recognising that there is a need to progress this whole issue as quickly as possible.

Voting: unanimous

 

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