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. Both FBCs indicate that additional staffing will be required and it was confirmed that this will form part of the annual budget planning for the service.  It was confirmed that the difference in the costs to the service between the two locations, beyond staffing, mainly relate to rent/rates, service charge, utilities cleaning and telephones associated with Maylord Orchards as a commercial centre. Noted that if commercial tenants occupy the allocated space in Maylord Orchards then they will cover the service charges together with paying non-domestic rates with the council expecting to receive rental income in the excess of £55k per annum.

Group leaders gave the views of their groups. Whilst there was initial support for Maylord Orchards, it was the only option offered at the time and now there was some support for the Shirehall.  Noted that the Shirehall has financial, commercial benefits and would bring a valuable heritage asset back into community use. There were concerns expressed that the Shirehall had been neglected for 4/5 years and what would become of the building. It was raised that not all CCSC recommendations were responded to.  Concerns were expressed regarding the funding, and further information was still required for the figures and costs. A request was made to confirm the scale and the source of the funding to renovate the Shirehall up to 2029 and the impact this would have on other directorates, such as Children Services.  Noted that the estimated costs in making the Shirehall suitable for the library were high and the five phases will not be completed until 2029.  Concern expressed that relying on the Benefit Cost Ratio was a false analogy to support the Shirehall and the focus should be on which location offers better value for money.  It was raised that the Shirehall was an emotive rather than a business decision.  Discussed that Maylord Orchard’s remained the better option and how the Shirehall will be managed, if it were not chosen, should be discussed afterwards. 

In response to the points and queries raised Cabinet members confirmed that recommendation (d) in the report would be deleted.  The views of Group Leaders had been heard as well as the recommendations from Scrutiny committee. Confirmed that Cabinet members would make their decision whilst being fully aware of the demands of other services of the Council. 

It was unanimously resolved that:

a)     Cabinet approves the Shirehall as the location for Hereford Library and Learning Centre (HLLC);

b)     The full business case (FBC) be submitted to the Stronger Towns Board with a request to transfer the funding associated with the Maylord Orchards project to Shirehall;

c)     Subject to recommendations (a) and (b), the Stronger Town grant be accepted with permission to spend the full budget allocation of up to £3.005m with all operational decisions to progress the project to conclusion delegated to the Corporate Director Community Wellbeing in consultation with the Cabinet Member for Community Services and Assets and the Deputy s151 Officer.