The Extraordinary Meeting of the Council of Exeter Council was scheduled to discuss a Civic Centre Relocation Strategy. Councillors were also reminded of the need to declare any disclosable pecuniary interests, and a recommendation was put forward regarding the exclusion of the press and public during consideration of items on the agenda.

Civic Centre Relocation Strategy

The council was scheduled to consider a report regarding the Civic Centre Relocation Strategy. The report noted that the council was seeking to identify an alternative civic centre relocation option because the current accommodation was not fit for purpose, and to enable the release of the current Civic Centre site for housing, to help facilitate the delivery of the council's Liveable Exeter vision.

The previous plan to relocate to a split site led by the Guildhall was proposed to be discounted because it would not provide enough accommodation, given the council's flexible working arrangements.

The report recommended that the council approve, in principle, a proposed office move to Senate Court, subject to a further report in November 2025 identifying the full cost and feasibility of the relocation.

The report also recommended that the council approve a budget of £412,000 to meet its obligations for the payment of the statutory compensation in securing the full vacant possession of Senate Court. This cost would be met from the Guildhall Shopping Centre income surplus.

Reasons for the recommendations included that Senate Court:

is owned by the Council and provides modern, open plan and energy efficient accommodation which can satisfy the Council's entire civic centre requirement in a single location (including the Customer Service Centre).

The report stated that securing a new short-term lease with the tenant at Senate Court would provide a fixed end date for their occupation to terminate, which was agreed in principle for July 2026. This, together with the council's agreement to pay statutory compensation, would enable the council to secure full vacant possession of the building as the replacement option for the new Civic Centre.

The report mentioned that the Civic Centre site is identified in the Liveable Exeter programme and forms part of a strategic allocation in the draft Exeter Plan as a site for future housing-led mixed-use development, and that the recommendations would advance the work required to enable the site to be re-developed for that purpose.

The report noted that the Civic Centre offices were constructed in 1972 and are widely considered no longer fit for purpose. The building is poorly laid out and does not enable modern ways of working, to operate both efficiently and effectively. In addition, the building has a high carbon footprint and requires significant maintenance and repair due to its age and design.

The report stated that Senate Court is mostly vacant, and was identified as a potential alternative option. The building is owned by the council, provides modern, open plan and flexible accommodation and is right sized, being able to accommodate up to 300 desks together with the broader council requirements including committee rooms, meeting rooms, the Customer Service centre and staff wellbeing facilities.

The building incorporates robust sustainability credentials and has the potential to achieve a high EPC¹ B rating. The building benefits from electric heating throughout, therefore, achieving the aspiration of non-gas. The proposed upgrade project includes a PV² array over the roof which when considered holistically contributes to the overall ECC PV and Net Zero aspiration strategy.

The report stated that the council has engaged a professional team to develop a series of layout/utilisation and fit out options together with a project risk, cost and programme/delivery assessment. The intention is that the outcome of this feasibility study will be reported to council in November 2025 seeking approval to i) the refurbishment budget and implementation of the upgrade works to Senate Court and ii) authority to vacate the Civic Centre site and relocate to Senate Court in early 2027.

The report stated that Senate Court is vacant except for the part basement, ground and first floor (and 10 car parking spaces) which is leased to a tenant for a term expiring in March 2025 and at a passing rent of £315,150 pa (exclusive). Following the service of a section 25 Notice³ in mid-2024, the tenant is currently holding over pending agreement of terms.

The council's Commercial Assets team has commenced negotiations with the one remaining tenant and has secured in principle agreement that full vacant possession will be yielded in July 2026.

Under Section 37 of the Landlord & Tenant Act 1954 a tenant is entitled to statutory financial compensation for the disturbance to their rights of security of tenure where the landlord relies on one or more 'no fault/compensation grounds' to secure possession of that accommodation. The amount of the compensation is determined by the length of period the tenant has been in occupation of the premises.

The tenant has been in continuous occupation since August 2005, which is over the 14-year threshold, and are entitled to a compensation package amounting to 2 x Rateable Value, which equates to £412,000.

The key terms of the agreement are as follows:

• Simultaneous surrender of the existing lease and granting of a new lease expiring in July 2026, to be contracted out of the provisions of the Landlord & Tenant Act 1954
• Immediate vacation of first floor and consolidation into ground floor and part basement
• Passing rent £159,239 (payable from completion of the new lease)
• Dilapidations settlement to be waived and no reinstatement works are to be required (on basis that elements of the existing fit out can be utilised by the Council)
• The compensation sum will be paid in two instalments. 50% will be paid on surrender of the existing lease and 50% will be due on expiry of the new short terms of the ground floor.

The report stated that the tenant requires certainty to commit to alternative accommodation and to be in a position to vacate in mid-2026, and that due to a protracted negotiation with the council, time has now become of the essence.

The report noted that should the council not agree terms with the tenant for a new lease and payment of the statutory compensation, they have the option can apply to Court for a new lease for a term of up to 15 years, which would compromise the council's opportunity to relocate to Senate Court.

The report stated that achieving vacant possession of Senate Court supports the delivery of the following overarching strategic priorities:

• Homes: The Civic Centre site has been identified as a Liveable Exeter strategic regeneration opportunity for a high quality residential-led scheme.
• Well Run Council: Having regard to existing running cost and repairs/maintenance liabilities for the Civic Centre, the move to Senate Court would enable the Council to meet its operational requirements whilst achieving better value for money.
• Local Economy: The move to Senate Court would be a clear commitment by the Council to invest in and support the economic vitality of the city centre, helping to support local business and jobs.
• Sustainable Environment The building's improved energy efficiency credentials are also in closer alignment with the Council's sustainability agenda, with the opportunity to move towards a net zero building.

Exclusion of the Press and Public

The council was scheduled to consider a recommendation that, under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the consideration of particular items on the grounds that they involve the likely disclosure of exempt information as defined in the relevant paragraphs of Part 1, Schedule 12A of the Act.