A plan to spend £17million on offices for 1,600 staff at the former Bulmers Cider site at Plough Lane in Hereford is likely to be approved at a council cabinet meeting this week.
Herefordshire Council has had its eye on the now Scottish and Newcastle Brewery-owned property since 2005.
But a cabinet report says changes in ownership of the site and “changing circumstances” meant the decision to buy was shelved until this Thursday’s meeting.
The preferred option among six short-listed, and appraised by consultants Knight Frank, the report says Plough Lane will meet a need for a new building to accommodate 1,275 workstations for some 1,600 full time equivalent staff – an average ratio of five staff to four workstations, achieved through improved flexibility in working practices.
The overall space of 12,500 square metres will include meeting space, a large business centre with drop-ins for remote workers, as well as training rooms and accommodation for council members and non-executive directors.
Parking for 314 vehicles for council and NHS primary care trust staff will be included in the deal to be financed through council capital reserves of £2.3 million along with a “prudential borrowing” pot of £14.7million.
An analysis of using sale and leaseback or traditional leasing to own the site outright, found that both methods would cost more than £20million than using a traditional procurement approach.
“The council currently has an agreed period of occupation at Plough lane until 2010. Acquisition of the site would remove the risk associated with the lease not being renewed”, says the report.
