Perth City Integrated Investment Proposal
Perth and Kinross Council · 4 September 2024
Back to Perth and Kinross Council — 4 September 2024 and its agenda
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Perth and Kinross Council 4 September 2024 PERTH CITY INTEGRATED INVESTMENT PROPOSAL Report by Strategic Lead - Property Services (Report No. 24/242) 1. PURPOSE 1.1 The purpose of this report is to: (i) Implement the instructions of Council in relation to: the future use of Pullar House in anticipation of the Public Finance Initiative (PFI) Project Agreement coming to an end in September 2025 (Report 23/268 refers) a revised scope for PH2O with options for ice provision (Report 24/19 refers) proposals for the future use of Bell’s Sports Centre to be used as the basis of community engagement (Report 24/151 refers) (ii) Highlight opportunities that emerge from considering these projects together which can help to answer some of the challenges set out in the Perth City Plan (Perth 2040: Our Agenda for Change) (Report 19/360 refers). (iii) Set out a series of proposals to leverage those opportunities to create additional public value for residents, visitors and businesses. 2. RECOMMENDATIONS 2.1 It is recommended that the Council: 1(a) Note the content of Appendix A and the associated benefits, risks and opportunities 1(b) Commit to the creation of a Public Service Hub within Pullar House 1(c) Authorise officers: (i) to exercise the Council’s right under the terms of the PFI Project Agreement to purchase Pullar House at market value upon termination of the lease agreement (ii) to negotiate “market value” with the landlord based on the valuations obtained by the parties, failing which to accept the market valuation as determined by an independent arbiter in accordance with the Dispute Resolution provisions within the PFI Project Agreement; and to proceed to purchase at that price
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1(d) Instruct officers to negotiate and agree lease terms with partners, for accommodation within Pullar House on an open-book, cost sharing basis 1(e) Approve capital funding of £10m for the Pullar House workstream as set out in Appendix A 2(a) Note the content of Appendix B and the associated benefits, risks and opportunities 2(b) Authorise officers: (i) to exercise the Council’s right under the terms of the PFI Project Agreement to purchase Kinnoull Street Multi-Storey Car Park (MSCP) at market value upon termination of the lease agreement (ii) to negotiate “market value” with the landlord based on the valuations obtained by the parties, failing which to accept the market valuation as determined by an independent arbiter in accordance with the dispute resolution provisions within the PFI Project Agreement; and to proceed to purchase at that price 3(a) Note the content of Appendix C and the associated benefits, risks and opportunities 3(b) Approve Thimblerow as the site for the construction of the new PH2O facility for the approved base case facilities mix. 4(a) Notes the content of Appendix D and the associated benefits, risks and opportunities associated with integrated investment proposal 4(b) Agree that 250 new social and/or affordable homes should be developed on the existing Perth Leisure Pool (PLP) site and Dewars Centre site, upon completion of the PH2O facility 5(a) Notes the content of Appendix E and the associated benefits, risks and opportunities 5(b) Agree that there is no viable or sustainable business case for the inclusion of ice in PH2O base case or the Council’s wider sport and leisure offer 6(a) Notes the content of Appendix F and the associated benefits, risks and opportunities 6(b) Seek the views of the community in relation to the repurposing of Bell’s Sports Centre for future use as an unheated multi-use sports pitches/ events space
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3. REPORT STRUCTURE Section 1: Purpose of report Section 2: Recommendations Section 3: Structure Section 4: Executive Summary Section 5: Background/ context Section 6: Integrated Investment Proposal Section 7: Options for Ice Section 8: Proposal for future use of Bell’s Sports Centre Section 9: Financial Implication Section 10: Conclusion Appendices 4. EXECUTIVE SUMMARY 4.1 Like all other local authorities, Perth and Kinross Council is operating within an already stretched, finite financial envelope, with significant challenging savings targets across all areas. It is vital therefore that, where we are committing capital investment, we are creative and innovative in our thinking and planning, to ensure that we drive the greatest possible value from our investment decisions. The proposals within this report have all been developed within that context. 4.2 In addition, the third edition of the Perth City Plan – Perth 2040: Our Agenda for Change – endorsed by Council in December 2019 set out a strategy for Good Growth for Perth city centre. Against a positive and optimistic vision for Perth the plan recognised eight key challenges which have also been considered in developing this integrated investment proposal for Perth city centre: Climate change An ageing population The future of work The changing role of city centres Travel and mobility Building new communities Being digital Striving for social justice 4.3 This report sets out a series of linked proposals, which when taken together provide an integrated investment plan which creates opportunities which will work to address several of these challenges, particularly – the changing role of city centres - as well as aligning to key priorities and principles agreed by Council in the 2022/23-2027/28 Corporate Plan (Report 22/311) and does so in a financially sustainable way. The proposals are also in line with the Perth City Centre Development and Design Framework Consultation Draft submitted for consideration at this same meeting of Council.
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4.4 The proposals within this report provide the next steps for a number of previous instructions of Council taken in late 2023/early 2024: to test the viability of establishing a Public Service Hub and developing a business case for purchasing Pullar House (Report 23/268 refers) as part of the Working Smarter Project. to revise the outline business case in line with the facilities mix for PH2O approved in January 2024, including undertaking further work on curling usage and affordability factors (Report 24/19 refers) for the future provision of leisure and sports facilities in Perth city. to bring forward further proposals for Bell’s Sports Centre following Live Active Leisure’s (LAL) approved request to withdraw services from the building (Report 24/151 refers) The decision by Council to amend the Disposal of Land and Building Policy to prioritise the delivery of affordable/ social housing provision when disposing of land or building assets (Report 24/150 refers) 4.5 In looking to implement these decisions several pertinent risks and/or opportunities have emerged. These are: Confirmation that Bell’s Sports Centre now has Category B listed status Notification by Scottish Water of planned flood mitigation investment in the North Inch area in the region of £5m-£6m; proposed works include enhanced building drainage, upsizing of existing sewers, a new sewage pumping station, surface water management measures in the car park and a small bund along North Inch Pathway Recent confirmation of the availability of the site at Thimblerow as a potential option for the location of PH2O The opportunity to purchase Kinnoull Street MSCP at market value upon termination of the current PFI project agreement The savings target of £1.9m attached to Pullar House and the rationalisation of operational properties, which requires to be met 4.6 These changes have created an opportunity to look at all of the proposals in the round to develop an integrated investment plan which prioritises: affordable/ social housing, increasing footfall in the city centre through office accommodation, leisure facilities and an indoor sports pitch/ events space, improved customer service experience in a public sector hub, bringing consistency to the city centre parking offer to improve customer satisfaction. 4.7 By considering the complementary nature of these projects, we have an opportunity to exceed the individual project goals; to mitigate and manage risk more effectively and ultimately, deliver better value for money in terms of additional economic, social and environmental benefits.
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4.8 Detailed information to support each of the recommendations which contribute to this integrated investment proposals are included in the six appendices, but can be summarised as: Appendix A sets out a robust case for the purchase, by the Council, of Pullar House at market value when the existing PFI project agreement comes to an end in September 2025. Appendix B shows that there is now a strong commercial case for the Council to also purchase Kinnoull Street MSCP at market value alongside Pullar House. This will help ensure the deliverability of the Public Service Hub and provide additional city centre parking infrastructure. Appendix C presents a comprehensive argument for shifting the preferred location of the new PH2O to Thimblerow from the originally proposed existing PLP/ Dewars site. Appendix D sets out the additional benefits which can be achieved from developing PH2O at Thimblerow by creating 250 new affordable and/or social houses at the existing PLP/ Dewars site. Appendix E sets out the costs and options associated with integrated ice options as instructed. Officers remain of the view that ice provision is not a commercially viable option for the Council, given the potential benefit to cost ratio. Accordingly, officers do not recommend including ice provision as part of Perth’s sport and leisure offer. Appendix F presents a concept for the future use of the now Category B listed Bell’s Sports Centre as an unheated multi-use sports pitches/ events space, with a recommendation that this goes out to public consultation. 4.9 Officers are therefore proposing a series of recommendations designed to form a cohesive integrated investment plan to ensure that we can drive the greatest possible strategic value from our capital investment decisions and optimise our property assets within the city centre to better serve our community. These recommendations can be summarised as follows: 1) Purchase Pullar House at market value 2) Purchase Kinnoull Street MSCP at market value 3) Develop PH2O (base case) on the Thimblerow site 4) Designate the PLP site for affordable and/or social housing (est. 150 units) upon completion of PH2O 5) Agree that, in terms of the Council’s duty to deliver best value, ice provision will not be part of its sporting and leisure offer within Perth City upon completion of PH2O at which point the Dewars Centre site shall be designated for affordable and/or social housing (est. 100 units) 6) Consult with the community on the future use of Bell’s Sport Centre as an unheated sport and leisure facility
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5. BACKGROUND/ CONTEXT 5.1 Following consideration of a report to Council in October 2023 (Report No. 23/268 refers), where the establishment of a Public Service Hub within Pullar House was agreed in principle, officers were instructed: to develop a business case, to include the potential purchase of Pullar House, in accordance with the Council’s approved Investment Planning framework, for consideration and decision in developing the business case for the public sector hub model, to seek to achieve the maximum possible level of cost recovery whilst recognising that other public sector and charity bodies also play a vital role in delivering positive outcomes for our residents to work with the potential partners to realise net zero ambitions for Pullar House in order to make it a more attractive proposition to potential partners 5.2 Since then officers have been working with partners to implement the above into a proposal (the Pullar House “Route A” option for ease of reference). 5.3 In January 2024, Council considered the Transformation Review of Leisure Assets (Report No. 24/19 refers) which, based on usage data and market analysis, recommended reducing the scope of the accommodation proposed in the outline business case to remove leisure water, indoor bowling and ice provision. This was accepted by Council, given the need to address serious issues as regards the affordability of the project, subject to ensuring that the design of the new pool allows for a family friendly leisure swimming offer, with the further instruction that officers: (i) undertake further analysis as regards curling usage, market trends and affordability (ii) include options for an ice rink component within the final costed PH2O proposal to be brought back before Council. 5.4 For the purposes of this report the PH2O proposal has been considered in two component elements (1) the accommodation elements as agreed by Council to date and (2) the exploration of options for sustainable ice provision as per the further instruction of Council. 5.5 The agreed elements (referred to as the PH2O “Base Case”) are as follows: 25m, 8 lane traditional swimming pool including moveable floor (with family friendly leisure swimming availability) Teaching pool Fitness gym Studios (group, multi-purpose space) Sports hall Family play activity 5.6 As agreed by Council, the base case accommodation does not include leisure water provision (flumes, lazy river, wave pool etc).
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5.7 The assessed options for ice provision, as further requested by Council, are set out in Section 7 with further details in Appendix E. 5.8 On 15 May 2024, Council agreed (Report 24/19 refers) to LAL withdrawing delivery of services from Bell’s Sports Centre and relocating health and fitness activities to the Dewars Centre in the interim, pending completion of the anticipated PH2O Project. 5.9 In light of the confirmation of Bell’s status as Category B listed building, it was noted that officers, in liaison with Historic and Environment Scotland (HES), were exploring potential alternative public service uses for Bell’s. Officers were therefore instructed to bring forward proposals for the future use of Bell’s to Council later in 2024, including plans for community engagement on these further proposals. 6. INTEGRATED INVESTMENT PROPOSAL 6.1 While both the Pullar House and PH2O proposals have the potential to create additional public value in their own right, once Thimblerow was identified as a potential site for PH2O the proximity of the two sites highlighted the potential for a broader integrated city centre investment proposal. Allowing us to harness the opportunities which each presents to optimise the value of our investment and deliver on the commitment to Good Growth set out in the most recent update to the Perth City Plan. Offering a response to the challenges set out in the plan: Challenge 1: Climate change – replacing aging buildings with more energy efficient new builds Challenge 3: The future of work – creating circumstances to support Perth as a resilient, knowledge-based economy by creating a Public Sector Hub to retain employment in the city centre Challenge 4: The changing role of city centres – bringing leisure and sport into the city centre and developing new affordable housing nearby creates more reasons for people to choose the city centre as a place to live, shop, work, learn and meet. Challenge 5: Travel and mobility – focussing development alongside public transport links and creating opportunities for a holistic review of Perth’s parking offer. Challenge 6: Building new communities – answering the need for new homes. 6.2 The Council’s agreed approach to capital investment is set out in the Investment Blueprint (Report 21/180 refers) with the viability of proposals determined on the basis of the HM Treasury’s Green Book “5 Case Model” the principles of which are set out below:
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STRATEGIC Is it needed? What is the business rationale for investment Is it a strategic fit? Will it further our aims and objectives? ECONOMIC Does it deliver best value? Have a range of options been explored? Is it the best balance of cost, benefits and risks? COMMERCIAL Is it commercially viable? Is there a market? Can we secure a value for money deal? FINANCIAL Is it affordable? Are the costs and assumptions realistic? Is the required funding available and supported? MANAGEMENT Is it achievable? Do we have the right resources, systems and processes in place to deliver? Once delivered, can it be sustained? 6.3 The details pertinent to the viability of the respective project proposals are set out in the attached appendices. 6.4 Key risks relate primarily to affordability and/or ongoing operating costs, particularly given the already agreed savings target attached to Pullar House and the need to rationalise the operational estate (£1.9million). 6.5 The following sections provide a high-level assessment summary of the component elements of the integrated investment proposal based on the 5 Case Model approach. It must be borne in mind that depending on what stage the business cases are at, there will be varying levels of detail available at this point in time and costs are indicative based on information available to date and best assumptions.
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6.6 Route A: Purchase of Pullar House at Market Value Meets the assessed Council and current partner requirements for office and records storage accommodation and to facilitate the co-location of other interested public partners Strategic case (Business rationale) Aligns with local and national policy ambitions for more integrated public service delivery and a single Scottish Estate Compared to other options, this is the more cost efficient and effective mechanism to meet assessed Council operational need for office/records storage Economic Case (Value for money) Co-location would reduce property costs for interested public partners Depressed market for office accommodation equates to low market value – attractive price for prime city centre real estate Genuine interest from key public partners in co-locating with Council Opportunity for the future costs of carbon reduction measures to be shared Commercial Case (Viability) Avoids future additional costs for records storage Delivers potential revenue saving of £1.9mFinancial case (Affordability) Delivers potential £1+million saving to public partners NHS already in situ on interim basis Minimises disruption to operational service delivery Management case (Deliverability) Commitment from public sector partners at highest level Market value not yet determined - failure to agree will result in arbitration Risks Costs for renovation are indicative only prior to final design Risk Mitigation Market for office accommodation is significantly diminished Council and landlord have each shared valuations. District Valuer has provided valuation that aligns with Council’s initial valuation Commercial case can be made based on current market value assumptions Economic: Retains control of a prime city centre site Social: Creation of Public Service Hub – more integrated and better public service customer experience Social: Supports hybrid working and cross service/sector collaboration Social: Prevents a large city centre property lying empty/falling derelict Environmental: shared costs will make future carbon reduction works more affordable Economic: increased city centre footfall will support local economy Benefits: Economic: provides a cost effective solution to a live risk in relation to museum collection storage
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6.7 Base Case PH2O at Thimblerow Need to address condition, costs and energy consumption risks in relation to the existing facilities at PLP/Dewars Alignment with corporate priority: Supporting and promoting physical and mental wellbeing Alignment with Perth and Kinross Physical Activity and Sports Strategy 2023-2028 (Report 23/133 refers) Strategic Case (Business Rationale) Alignment with the Perth City Plan’s answer to challenge 4: the changing role of city centres to broaden the appeal of Perth city centre so that more people choose it as a place to live, shop, work, learn and meet. Following options appraisal – proposal represents the most cost effective way of delivering the facilities to meet assessed need and demandEconomic Case (Value for money) Drives greatest value from available sites within Council ownership and/or control Commercial Case (Viability) Solution reflects an appropriate level of construction risk Given the reduced specification (30% reduction in base case accommodation as compared with original business case (through removal of leisure water, bowling and ice), indicative costs are within designated capital budget envelope for the project Financial case (Affordability) Scope, design and energy efficiencies will reduce annula revenue operating deficit Management case (Deliverability) Optimal transition: Maintains service provision at PLP and Dewars throughout duration of PH2O build Proposal at Strategic Business Case only therefore no finalised design. Costings are therefore indicative only Loss of leisure water (flumes etc) – impact on usage/ reputation Risks Loss of surface car parking within Council control Risk Mitigation Purchase of Kinnoull Street MSCP to provide additional Council-operated car parking Social: new swimming, sport and leisure facility in prime city centre location Social: maintains existing swimming, sport and leisure provision for build duration Social: releases PLP and Dewars sites for 250 new affordable and/or social houses Economic: local job opportunities for the build Economic: brings ~400,000 users into the city centre Benefits Environmental: Increased energy efficiency/carbon reduction by design
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6.8 Purchase of Kinnoull Street Multi Storey Car Park at Market Value Meets operational requirements of Council and Public Service Hub partners Ensures adequate parking infrastructure to support delivery of the Integrated Investment Proposal Strategic Case (Business Rationale) Better alignment with Mobility Strategy Economic Case (Value for Money) Cost effective solution to mitigate risk of reduction in surface car parking at Thimblerow Competitive purchase price due to depressed market value Commercial Case (Viability) Ability to offer greater consistency in the Perth city parking provision providing greater public appeal Indicative total revenue investment required is not significantly greater than the current unitary charge costs, but future revenue costs can be mitigated by income generation Financial Case (Affordability) Funding would come from Parking Account Management Case (Deliverability) If Council wish to purchase at market value asset will transfer at the expiry on the PFI agreement in September 2025 Risk Market value not yet determined, failure to agree will result in arbitration Current market value is significantly diminished Council and landlord have each shared valuations. District Valuer has provided valuation that aligns with Council’s initial valuation Risk Mitigation Commercial case can be made based on market value assumptions Social: supports the creation of the Public Service Hub (partner requirements) Social: provides appropriate parking to support PH2O and city centre Social/ Environmental: provides opportunities to rationalise and repurpose underused carparking facilities Economic: retains commercial control over key parking resource and supports increased footfall in the city centre Benefits Economic: provides additional car park income source
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6.9 Repurpose PLP and Dewars Site for Housing Target investment where it is most needed (there are currently 785 applications, almost a quarter of all applications on the Common Housing Register, requesting accommodation in Perth city centre) Aligns with Council’s corporate priorities in particular – tackling poverty, climate change and promoting health and well-being Strategic Case (Business Rationale) Aligns with recent Council decision to prioritise surplus land for housing Economic Case (Value for Money) Provides a cost-effective solution to meet assessed need for affordable and/or social housing within the city centre Commercial Case (Viability) Land is already within LAL ownership – no title impediment to transfer or use for housing purposes by Council /Housing Revenue Account. Financial Case (Affordability) Funding would come from Housing Revenue Account, Council Tax Reserve Income and Affordable Housing Grant from the Scottish Government Management Case (Deliverability) Potential for up to 250 housing units Risk Housing will not be developed until completion of PH2O at alternative site. Potential alternative proposals may be considered in intervening time. Risk Mitigation Early consideration by Council of planning application and development of housing proposals soon after LAL operations move to alternative site. Social: helps meet unmet demand for social/affordable housing in Perth city centre Environmental: Provides energy efficient housing solutions to meet unmet need Benefits Economic: provides housing which is accessible and affordable to help mitigate the impact of poverty 7. OPTIONS FOR ICE 7.1 Based on: a comprehensive assessment of sport and leisure demand and usage in previous Transformation Review of Leisure Assets; further assessment and analysis of data in relation to curling usage, income, market trends/growth potential the required capital and revenue investment required to accommodate ice provision as part of the PH2O offer; and consultation and engagement with local, national and world curling bodies duty to deliver best value and to target investment where is most needed/ would deliver the greatest benefit
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Officers have determined that there is no viable business case to support the inclusion of ice provision as part of the Council’s PH2O offer, the detail of which is set out in Appendix E. 7.2 Given the views of the curling community however, the following sets out an alternative option which, although not recommended by officers, members may wish to consider exploring further. Alternative Ice Option: Perth/Scottish and/or World Curling assume full responsibility for ice provision from the existing Dewars Centre Aligns with Council Corporate Plan priority: supporting and promoting physical and mental wellbeing Strategic Case (Business rationale) Aligns with Council Corporate Plan priority: Working in partnership with communities Economic Case (Value for Money) This option would see curling bodies and/or other third party(ies) take on lease of Dewars Centre on full repairing and insuring basis. Council would have no ongoing financial liability for any element of ice provision or maintenance and repair of building or plant Commercial Case (Viability) It would be for curling bodies to determine the commercial case. They would however have options to establish a Trust or other similar model enabling them to leverage funding not available to the Council Financial Case (Affordability) To support curling bodies with an affordable solution to operate an ice facility the Council could potentially lease Dewars to them for a nominal sum Management Case (Deliverability) No legal impediment to lease arrangement Lack of appetite from Perth/Scottish and/or World Curling (and/or any other 3rd party) Commercial viability based on data re usage/trends/growth potential etc. Risk Failure to maintain building/plant to safe standard Risk mitigation Transfer would be part of planned transition process towards opening PH2O Benefits Social: ice provision would be retained in Perth city centre Dis-benefits Social: loss of 100 affordable and/or social housing units
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8. FUTURE USE OF BELL’S SPORTS CENTRE UNHEATED MULTI-USE SPORTS PITCHES/ EVENTS SPACE 8.1 In agreeing to the formal request by LAL to relocate service provision from Bell’s Sports Centre to Dewars Centre and in light of the building’s recent Category B listed status, officers were asked to explore options for future public alternative use and to bring back proposals, together with plans for how the community would be engaged on this issue. on site
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8.2 Officers have continued to engage with Historic Environment Scotland given the building’s newly listed status. They have confirmed that it is the original dome of the structure that is of material architectural significance and not the associated buildings that have been added over the years. 8.3 This has therefore inspired a concept which puts the original dome at the heart of the design and repurposes the space to meet the significant unmet need of community sports clubs and youth groups for outdoor (but covered) sports pitches or event space. 8.4 As this is not yet a strategic proposal and merely a concept for consideration and consultation, there is no high-level design, and the indicative costs are a best estimate based on current costs, assumptions and professional experience. 8.5 It is suggested that further work be undertaken to firm up costings based on ongoing condition surveys. If these are broadly in line with indicative costings, the proposal as a concept be put out to consultation to ascertain the views of the community but also to seek alternative suggestions which could be delivered within a similar financial envelope. Meets an unmet community need for more synthetic sports pitches Retains a much-loved listed building as a public amenity, showcasing the element which is of true architectural significance Strategic Case (Business Rationale) Aligns with Council Corporate Plan priority: supporting and promoting physical and mental wellbeing Economic Case (Value for Money) Proposed design requires more modest capital investment and based on available data re usage and demand, gives higher cost/benefit ratio than other potential option Commercial Case (Viability) Opportunity to partner with third party to leverage funding opportunities which may not be available to the Council Financial Case (Affordability) Proposed design solution minimises future revenue costs Management Case (Deliverability) Land is within Council ownership and is leased to LAL. Proposal at concept stage so costings are indicative Flood risk from sewerage/drainage infrastructure Building is Category B Listed Risk Long term lease arrangement between LAL and Perthshire Rugby Football Club Notification from Scottish Water re planned flood mitigation investment (£5-£6million) at North Inch area Risk Mitigation
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Continuing dialogue between officers and Historic Environment Scotland Ongoing discussion with Perthshire Rugby Football Club to seek to review current lease terms Public consultation on proposal to assess interest/appetite or identify better alternative option Social: helps meet current unmet demand for sports pitches Benefits Economic: retains listed building as a community amenity 9. FINANCIAL IMPLICATIONS 9.1 Financial implications arising from the recommendations are detailed within the relevant appendices. 10. CONCLUSION 10.1 Officers consider that the creation of the Public Service Hub within Pullar House and locating the new PH2O at the site at Thimblerow, when considered as an integrated programme, delivers significant public value over and above the merits of each proposal as a standalone investment decision: Better customer experience – the creation of a one site leisure facility in PH2O and a Public Sector Hub offer a better experience for residents and visitors who can access services conveniently. This is also supported by both sites being close to public transport links and by bringing Kinnoull Street Multi Storey Car Park into the same operating model as other Council-owned parking, making the parking offer more consistent and less confusing. Partnership working opportunities -Co-location with partners and the third sector within a Public Sector Hub at Pullar House will support multi- disciplinary collaboration, improving communication and helping to improve cross-agency working to address complex community needs more effectively. Business boost – increased footfall from staff and customers of the Public Sector Hub, users of the sport and leisure facilities at PH2O, and 250 new households at the edge of the city centre, will invigorate the local economy, supporting businesses and helping promote local economic growth and regeneration. Addressing housing need – unlocking 250 affordable and/or social housing units within Perth city in an area with established amenities and access.
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Environmental benefits – disposing of energy inefficient aging buildings and investing in new leisure and domestic builds designed for better energy efficiency aligns to a just transition to net zero. Financially sound - given current office accommodation market conditions, purchasing Pullar House and the adjacent car part at market value makes commercial sense. It positions the Council and its partners to leverage cost efficiencies and generate long-term savings, meeting and potentially exceeding the £1.9million savings target set by the Council. An integrated PH2O facility at Thimblerow also presents the most cost- efficient option for delivering the agreed leisure facilities mix, reducing the current operating deficit and delivering greater energy efficiency 10.2 The integrated investment proposal presents a unique opportunity to optimise the public value of our investment decisions to deliver significant additional social, environmental and economic benefits to our community. Author Name Designation Contact Details Stephen Crawford Strategic Lead, Property Services SCrawford@pkc.gov.uk Lisa Simpson Strategic Lead, Legal and Governance LiSimpson@pkc.gov.uk John Fyfe Principal Officer (Project Management) JohnFyfe@pkc.gov.uk Kirsty Fleming Working Smarter Project Lead, Property Services KFleming@pkc.gov.uk Approved Name Designation Date Clare Mailer Director (Strategy, People and Resources) 28 August 2024