Bristol City Council is to buy an £18m office block as part of its cost-cutting plans to consolidate staff into two buildings.
The council has exchanged contracts on 100 Temple Street near Temple Meads with owners Aviva Investors Property Trust. The deal will allow it press ahead with plans to consolidate staff in Temple Street and City Hall.
The purchase is part of the council’s ongoing programme to radically improve the way it works and save money. This includes:
· Reduction in office space from 53,000sq m to at most 32,000sq m. This is a reduction of 40% of office area. The Mayor has asked officers to draw up plans for further reductions.
· Consolidation of central Bristol offices primarily into City Hall and
100 Temple Street
· Long-term direct revenue savings of an estimated £40 million over the following 25 years.
· The plans include a refurbished City Hall on College Green, including new public facilities.
Mayor George Ferguson said: “It makes complete sense for the council to vastly reduce the number of offices it currently owns or leases across the city, and consolidate into a few core offices. The location of 100 Temple Street is very strategic next to Temple Meads and the planned Metrobus interchange, as well as being right at the heart of our ambitious plans for Redcliffe and the whole Enterprise Zone area.
“The recession makes this a good time to make this purchase and it represents a good deal for the taxpayer. It is a sustainable solution that will bring long-term environmental benefits through our investment in energy efficiency measures.
“We looked carefully at A Bond but it was not right for this move. It would have been more expensive, would have provided less functional workspace and was in an inappropriate location. However there remains a great opportunity for A Bond to be developed in partnership as a residential or mixed use development as part of a wider regeneration of Cumberland Basin.”
The announcement has been welcomed by business leaders and property experts in the city.
Ned Cussen, on behalf of the Bristol Property Agents Association, said:
“This is good news for all of Bristol and I commend the initiative from the Council. It will enable the Council to deliver more efficient services in a first class building. It is a great location both for staff and visitors. 100 Temple Street is a quality building and the deal represents good value for money.
“Whichever way you look at it this is a major property deal for Bristol and gives a great lift to the local economy. More so it uses vacant space and gives a great boost to the Enterprise Zone at Temple Meads. The EZ will be one of the major focuses for economic activity in the Greater Bristol area in the next decade. This deal makes far more sense than trying to convert the red brick Tobacco Bond at Cumberland Basin to offices.”
Colin Skellett, Chairman of Wessex Water and the Local Enterprise Partnership said: “This is great news for Bristol and makes eminent strategic sense in terms of its location alongside the Enterprise Zone with its great regional transport links. It is encouraging to see the Mayor driving these efficiency measures through in the interests of more effective and economic governance.”
Phil Smith, MD of Business West, said: “We applaud George for taking decisive action to implement more efficient and effective ways of accommodating council staff. Whilst this may seem obvious and a relatively minor decision it will actually provide some important benefits.
“More staff housed in fewer offices and less space will save the council money at a time when budgets are particularly tight – a saving of around £40m over 25 years is a significant amount that can now be used to help create jobs and improve the environment of the city. The idea of relocating council staff close to Temple Meads and the Enterprise Zone shows the Mayor’s commitment to further regenerating this area and creating a focus for activity and enterprise, hopefully this will encourage others to do the same.”
The purchase of 100 Temple Street, which houses accountants KPMG's regional office, means that the council can now finalise the timings for the refurbishment of City Hall. The existing public spaces in City Hall – committee rooms, council chamber and conference hall – will remain open during the work.
