Issue details
Approval of Project Design/Fees budget to finance design costs for reconfiguration of accommodation to increase the number of the available units within the Shell Store.
The Shell Store incubation centre project has
materially completed construction, the building was handed over to
the council in September 2020. A number of building tenants are in
occupation and an ITT for the procurement of a building operator
has been issued. In addition the Enterprise Zone are dealing with a
number of active enquiries from prospective tenants.
The configuration and mix of unit sizes at the Shell Store was
based on similar projects in operation elsewhere in the country .
In practice demand for the smallest units has been very strong and
all the 2 person units have been or are about to be taken up
already.
To react to this market demand and to maximise the building income
there is a requirement to undertake some architectural and M&E
design work to establish which larger units could be reconfigured
into smaller units without impairing the overall building
performance and appearance.
The anticipated costs for undertaking this design work is
£8,500.
This change request for design works only. These works will review
the feasibility of reconfiguration, the cost and the timescales
including whether feasible to undertake within the financial
year.
Charging tenants for these alterations was considered but officers
came to the conclusion that it ran counter to the agreed approach
to make taking accommodation in the building easy and flexible.
Tenants, particularly smaller businesses, are likely to be making
their first move into a commercial unit and will be attracted by
the high quality environment, support on offer, and that they are
not tied into long term arrangements. It was considered unlikely
that tenants would be prepared to pay for these alterations to our
building that would significantly increase their up-front
accommodation costs and primarily benefit us in terms of a
commercial return.
A further RoOD will be required to undertake any physical
reconfiguration works that result from this design process.
Decision type: Non-key
Decision status: Recommendations Approved
Notice of proposed decision first published: 14/02/2022
Decision due: 14 February 2022 by Corporate Director – Economy & Environment
Contact: Neil Taylor, Interim director of economy and place Email: Neil.Taylor@herefordshire.gov.uk Tel: 01432 260921.
Decisions