Issue details

Decision

(a)  That Dorset Council grant a 20-year lease to Dorset National Health Service (NHS) institutions for use of South Walks House for clinical and office use on terms to be agreed by the Executive Director for Place in consultation with the Cabinet Portfolio Holder for Economic Growth, Assets and Property.

(b)  Note that the governing boards of the various NHS institutions planning to move into South Walks House will be making their decisions in February and March 2022.

(c)  That officers should immediately commence discussions to proceed with the second-ranked option should the NHS institutions decide not to proceed with the lease or are unable to come to a decision by the 31 March 2022.

Reason for the decision

The investigation into and analysis of options for the future use on South Walks House had been detailed and exhaustive. This had involved taking advice from specialist consultant firms on each of the options considered and assessing and ranking the options to establish which one would be the most financially advantageous to the Council after also taking into consideration the wider economic and social benefits of the approved option. It was believed that the proposed use by the NHS for a combination of clinical and office purposes, which provided a central and easily accessible location for the NHS, allowed it to widen its service provision for Dorset’s residents, whilst providing the best financial return to the Council.

Alternative Options considered and rejected

As set out within the report.

Consultees

N/A

Budget Implications

Financial performance was given the greatest weighting out of the evaluation criteria used for assessing the options. The financial implications of each of the assessed options are detailed in the report. The Council currently incurs approximately £316,000 per year while the building remains unoccupied in rates and running costs. The ability to transfer responsibility for the building to a third party not only saves the current budget expenditure but also will bring additional income into the Council’s budget

Legal Implications

All other implications are set out within the Cabinet report.

Reference documents

Cabinet 7 December 2021