Cost of moving homeless centre ‘significantly’ above estimate
NEW accommodation for a longstanding Derby homeless charity will take longer to repair and also cost more money than originally budgeted, it has been revealed.
Land that the premises owned by the Padley Group in Becket Street stands on is needed as part of a £45 million project to build a new performance venue in adjacent Becketwell.
The plan is for the charity to move its warehousing and educational day centre facilities to a property in Charnwood Street early next year to allow Padley House to be demolished.
An offer for the Charnwood Street property has been accepted but work to establish the overall costs has revealed they are “significantly higher than originally anticipated”.
It is expected to be in the region of £1.6 million but the financial details were contained in a separate document only available during part of the council cabinet meeting when the press and public are omitted.
Additional works were identified as part of more specialist condition, structural and mechanical and electrical surveys resulting in a cost increase.
And the cost has risen following increased labour and material cost increases. The report adds: “Although a relocation costs contingency was included in the budget approved at March 2021 for the known cost risk at the time, it cannot cover the increase in the latest cost estimates.”
It also means that to enable the Padley Group to continue to undertake services for homeless people, it will need to relocate to temporary premises in the meantime, and temporary access and use of the existing storage facility on Becket Street will be provided
until June 2022 via a separate agreement between the Padley Group and the city council. An ill-tempered meeting of the council cabinet approved the changed situation and solution but Labour group leader Councillor Baggy Shanker criticised the situation.
He said: “This increase is the first overspend on the Becketwell performance venue. We were told there was no risk of overspend previously. This is taxpayers’ money. We have a found a venue for the Padley Group, agreed a sale price and done some surveys. “The building is not fit for purpose and I would expect the council to seek a reduction in the price. Prices have gone up and now there are costs with a temporary move. Is this the best use of money?”
Mr Shanker tried to pursue issues concerning a different and nearby building housing the Dubreck Studios in Becket Street, also expected to be vacated next month, but Mr Poulter cut him short and stopped further comments on the grounds of “commercial sensitivities”. Councillor Roy Webb, council cabinet member for adults, health and housing, told the meeting that the relocation was a “sensitive issue”.
He said: “There has been a lot of discussion about this and we have worked with them to adapt their working practice.
“We are moving them to new accommodation which will not be a drop-in centre they have had. They will have warehousing and educational facilities to help most vulnerable in our city.
“The valuation on the premises was carried out by two independent people and we had a higher and lower valuation and the vendor accepted our offer based on the lower valuation.”
“I think Padley has made a really good move here and contributes to the city’s successful homelessness strategy.”
Padley House previously provided an open access 12-bed hostel and day centre provision and welcomed between 60-100 people each day but the hostel closed earlier this year. Instead, the Padley Group is now supporting men and women in self-contained accommodation around the city.
A statement accompanying a planning application for the Charnwood Street building said: “During the day the Charnwood Street building will be used to provide activities to support those who are seeking to move out of the cycle of deprivation into which they have fallen for whatever reason.”
Prices have gone up and now there are costs with a temporary move. Is this the best use of money?
Councillor Baggy Shanker