To present the full business case for the Shirehall as a location for the Hereford Library and Learning Centre (HLLC) and compare against the full business case for the HLLC at Maylord Orchards.

The Cabinet member for Community Services and Assets introduced the report and highlighted that Hereford library needs a new home as the museum is being redeveloped to make it a World class museum in heritage.  A review took place in June 2023 to find potential locations for the library and learning centre and identified two preferred sites, Maylord Orchards and the Shirehall.  In July 2023 Cabinet agreed a full business case to be considered against the existing plans for Maylord Orchards. 

In October 2023 capital funding was sought subject to Council approval and Stronger Towns Board subject to agreement. It was noted that revenue uplift would be required to meet the increased staffing to manage a larger library. 

It was noted that locating to the Shirehall would bring a valuable heritage asset back into continued community use.  It would provide a bigger floor, library and learning centre space than Maylord Orchards and bring together the library, adult learning, health and wellbeing and community services. It would also provide residents with access to sensory learning, digital skills and business development advice. 

Cabinet Members discussed the report and it was noted that:

The cost of renovating the Shirehall is a consideration but does not form part of the business case, which is focused on the best location of the library. 

The two buildings, Shirehall and Maylord Orchards, cannot be compared as they were built in different times (1817 and 1987).  Queried if the decision was taken not to place the library in the Shirehall, what would become of the building.  It was discussed that a key consideration is ‘where is the best place to put the library’. Noted that the Shirehall is an iconic building.  It is a civic building and by putting the library in the civic centre of Hereford, would provide lots of learning resource space and provides that building a long term purpose. If it was decided that the Shirehall was not the best location for the library then the Council would continue to act as custodian for the building. 

Noted that if the library was located in Maylord Orchards it may not be a long term option due to changing situations in terms of future retail and commerce opportunities.  Whereas the Shirehall is a civic building, which will always be used for a civic purpose and that correlates with the library having a permanent home. 

Noted that the Shirehall is an iconic building, and we now have the opportunity to use it to provide a valuable service to the public.  Commented that the BCR was positive and obtained through the correct processes. 

Noted the cost of moving the library service from Broad Street to either Maylord Orchards or Shirehall will require an increase in revenue budget, as the footprint of the library in both locations will be greater and the provision of the Learning Centre is a new provision. The revenue cost for Maylord Orchards is estimated at £515,973, and for the Shirehall, £390,077.  ...  view the full minutes text for item 44

To scrutinise both the full business case for Shirehall as a location for the Hereford Library and Learning Centre (HLLC) and the full business case for the HLLC at Maylord Orchards.

The executive report on 'Review of the Full Business Case for the Shirehall as a location for the future of Hereford City Library', published on 18 October 2023 and due to be considered by Cabinet on 26 October 2023, is appended to this report.

The Chairperson advised that the purpose of this item was to undertake pre-decision scrutiny of the full business case for Shirehall as a location for the Hereford Library and Learning Centre (HLLC) and the full business case for the HLLC at Maylord Orchards.

The Cabinet Member Community Services and Assets made opening comments about the potential of Shirehall as a location, including: meeting the strategic objectives of the Town Investment Plan; bringing a heritage asset back into use; achieving a higher Benefit Cost Ratio, as independently assessed by Rose Regeneration; providing opportunities for other facilities and services given the larger footprint; utilising more of the Stronger Towns Fund on fit out and on the visitor experience; generating income, through a dedicated events space and the hire of rooms, to offset operational costs; and reducing additional operating costs given the service charges that would be incurred at Maylord Orchards.

The key topics explored by the committee and principal lines of questioning are summarised below.

Strategic case

1.           In response to a question from a committee member about previous assessments indicating a decline in retail in city centres, the Cabinet Member Community Services and Assets commented on current unit occupancy at Maylord Orchards. 

2.           A committee member said that Maylord Orchards provided options for different uses and higher income potential, whereas the options for Shirehall were limited given its historic context.

3.           Referring to the ‘Short-list of options’ in the business case for Shirehall (committee agenda page 62 / Cabinet agenda page 82) which showed ‘Do nothing’ was the ‘Base case’ and ‘Develop Library and Learning Centre in the Shirehall building’ was the other option, the Chairperson questioned why the base case was not to continue with the project at Maylord Orchards given that this was fully designed and funded, and had planning permission.  The committee was advised that the document provided an independent look at the Shirehall location.

4.           The Vice-Chairperson questioned whether consideration had been given to a ‘hybrid’ option where some services could be located at Maylord Orchards and others at Shirehall.  The committee was advised that the business case for Shirehall had been provided to enable comparison with that for Maylord Orchards.

Economic case

5.           Referring to the ‘Approach to economic case’ (committee page 67 / Cabinet page 87) which stated ‘Project options are fully considered in the strategic case’, the Chairperson emphasised that the existing project at Maylord Orchards had been omitted from the strategic case.

6.           A committee member expressed a personal view that the case for Shirehall was convincing, particularly in view of the need for the refurbishment of the building.

7.           The Chairperson noted that the agenda papers contained only a few references to the £4.2m required for the Phase 1 refurbishment works to the Shirehall building, with no further details provided.  The Chairperson considered it striking that the economic case (including the Benefit Cost Ratio) did not include the costs of the Shirehall refurbishment works which were required to bring the building back  ...  view the full minutes text for item 15