The FULL COUNCIL of Isles of Scilly Council is scheduled to meet on Thursday 18 June 2026. The primary focus of the meeting will be an update on the Town Hall Redevelopment Project, which aims to transform the Grade II listed building into a Museum and Cultural Centre.

Town Hall Redevelopment Project Update

The meeting agenda includes a significant update on the Town Hall Redevelopment Project, a complex initiative to convert the Grade II listed building into a Museum and Cultural Centre (MaCC). The report pack details the project's history, its aims to provide a new home for the museum, a performance and exhibition space, and a community hub. It outlines the intended gallery spaces, performance hall capabilities, and the integration of a café and bar.

The project has faced considerable challenges, including programme delays and cost increases. The report details the current status of the construction, which began in April 2025, and the revised anticipated opening date of the 2027 visitor season. It highlights the significant funding secured from various sources, including the National Lottery Heritage Fund, Levelling Up Capital Projects, and the Shared Prosperity Fund, alongside the Council's own contribution.

A key aspect of the discussion will be the financial implications of the project's delays and cost overruns. The report outlines the current budget position, detailing a significant funding shortfall and proposing options for how to proceed. This includes recommendations for the Council to note the project update, delegate authority to the Strategic Director for Place, Economy and Environment to submit additional grant funding applications, and approve an additional funding contribution of up to £794,320 from prudential borrowing.

The report also delves into the causes of the programme delays, attributing them to factors such as design changes, issues with the historic building, freight delays, weather, and subcontractor availability. An independent evaluation of the project to date has identified lessons learned, including the importance of fully developed designs before construction contracts, considering appropriate procurement models for complex refurbishments, and building realistic contingency into timelines and budgets. The report also addresses the implications of the revised programme and estimated project costs, outlining options for the Council, including stopping works, reducing scope, or full completion. The preferred option is full completion, with a detailed plan for how this can be achieved, including cost implications and contract options. The report concludes by detailing the funding position, including the availability of further grant funding and the need for a Council contribution to secure match funding for potential applications to the National Lottery Heritage Fund.

The report also includes appendices providing a summary of previous Council reports on the project, grant funding outcomes, and the project evaluation report. The approval of the report is sought from Nicola Stinson, Strategic Director of Place, Economy and Environment; Russell Ashman, Chief Executive & S151 Officer; and Lia Musto-Shinton, Monitoring Officer.