An Eden councillor has defended a proposed £4 million-plus spend to transform Penrith’s Voreda House into a public service hub.
The district authority’s cabinet agreed to approve a revised budget of £4,130,000 for the project which would see a single site being established from which to run council services rather than being split between Penrith Town Hall and Mansion House.
Eden Council’s resources portfolio holder Karen Greenwood (Ind Alliance, Appleby) said: “Current arrangements cannot satisfy the need to secure a public service hub for our residents, partners and the communities we serve.”
With the onset of local government reorganisation — which will create two unitary authorities in Cumbria — there was a need to create a “public service hub” in Penrith which Voreda House would be able to provide, the cabinet meeting was told.
“I believe it is vital, to secure public sector jobs in Penrith, contribute to a strong local economy, demonstrate our commitment to reducing carbon emissions and provide the best possible public services directly to our communities,” said Mrs Greenwood.
She said the current, split site office accommodation was not fit for purpose.
It was not energy efficient and the operational costs involved in maintaining a split site operation were increasing and energy costs were escalating.
A planning application to convert Mansion House into a hotel is expected within a month and a feasibility study is under way which is exploring options to transform the town hall into a facility for arts, cultural, community and business uses.
The tendering process for the construction of the Voreda House scheme was said to be nearing completion.
However, the change to the external treatment of the building, as defined by the planning consent, has proved to be “technically undeliverable” from a construction perspective.
“The existing building structure is unable to support the weight of sandstone cladding,” a report to councillors stated.
And additional costs are expected due to inflationary increases in the construction industry and escalating materials prices.
“COVID-related cost escalation for construction projects is an issue that is impacting upon the sector as a whole and is not confined to the Voreda House project,” councillors were told.
It was agreed that, rather than abort the project, the council should proceed with the revised scheme.
The meeting was told that the project costs had been compiled as a result of project team discussions with suppliers and the current market conditions for the construction industry.
“I am confident that these costs will enable us to deliver the requirements of the project,” said Mrs Greenwood.
She added: “I would also emphasise that the February 2018, capital allocation of £2.3 million has not been subject to any revision since it was put in place three and a half years ago.”
