Rotherham Council is in discussions with its landlord over the £3.2m a year lease for its offices at Riverside House.
Landowner and developer, Evans Property Group, built the 172,000 sq ft civic headquarters on the Guest & Chrimes site on the edge of Rotherham town centre in 2011.
Having sold its former civic offices across town to enable the Tesco Extra to be developed, the Council entered into a 35 year lease, a commercial full repairing and insuring lease, with fixed rate five year rent reviews and no break clause.
A report to the authority's cabinet states that, with 28 years remaining, an opportunity has arisen via the landlord to restructure the lease.
Advertisement
Jonathan Marriott, estates manager at Rotherham Council, said: "The Council approached the landlord [Evans] to discuss potential options for Riverside House. The discussions centred on issues such as permission to sub-let part of the building, potential to purchase the building and revised lease arrangements which would deliver annual revenue savings, along with an option to own the building at the end of the lease.
"The lease restructure will allow the Council more freedoms and flexibilities in the use of the building, along with full flexibility on sub-lease arrangements which would offer future income generation opportunities. The proposal will also deliver annual revenue savings to the Council."
Rothbiz reported last week that Rotherham Council was required to find savings of £15.2m for 2018/19, with further savings of £30m required over the period 2019/20 and 2020/21.
If approved by the Cabinet, discussions would continue over a restructured lease that would be extended by seven years to 35 years, with the Council becoming the owners of the property at the end of the term as opposed to ownership reverting back to the landlord in the current lease.
Advertisement
An analysis of Council spending shows that it paid £823,497.69 in rent to Evans Regeneration Investments Ltd each quarter for the last year. Financial implications of the proposed restructured lease have not been disclosed.
The authority has already set aside £400,000 from its 2018/19 capital budget for a project called "Riverside House part lease." However, recent reports also show a pressure of £140k on the Regeneration and Environment Directorate's budget in respect of a saving to let office space at Riverside House, caused by the proposed tenant withdrawing.
The Evans Property Group is the private sector developer hoping to create 200,000 sq ft of office accommodation on Forge Island in Rotherham town centre.
In 2012, the council's cabinet confirmed the prominent site as the preferred location for a new town centre cinema and theatre and developers and operators were sought. In the short term, the council is operating the former home of the Rotherham Forge & Rolling Mills as a car park now that Tesco has moved across the town.
Council bosses have since confirmed that the Forge Island site is being earmarked for an ambitious plan to create a public sector hub, which could result in thousands of additional jobs in the town centre.
The project involves the construction of offices for the use by government departments vacating London and also includes car parking, pedestrian bridges, public realm, addressing site contamination and flood alleviation works. The work has been given a total investment figure of over £70m with £65m set to come via Evans.
Advertisement As part of Tesco's move, the council has an option to buy the Forge Island site for £1.5m by the end of 2015. Arrangements have been progressed for the strategic acquisition of the vacated site, which the council previously admitted could include a purchase and sale to a third party.
Rothbiz understands that a legal agreement has been drafted that would see Evans purchase the site from the Council in a back-to-back transaction following the Council's potential purchase from Tesco.
The development could support 4,400 new jobs of which 2,000 would be new to the city region.
Evans has already commissioned a market intelligence company to engage with potential public sector occupiers, with a target of securing agreement for leases on 75% of the space by the end of 2015.
Work could start on site in September 2016 with an initial target date of August 2018 for the whole development to be completed and occupation of the office building.
The office development on Forge Island is also expected to accelerate development on surrounding sites, many of which, such as the former abattoir site and properties along Corporation Street, are in Council ownership.
The council is proposing to take vacant possession of the Riverside Precinct, currently occupied by a number of retailers, so that it can be demolished in 2016. Tenants are already being assisted to locate elsewhere in the town centre.
Clearing the sites would enable the rebirth of the "deck of cards" proposal that included a 50 space undercroft car park and a significant scheme of environmental works and public realm improvements. The idea was for steps down to the river creating a cascading area of public realm at the upper Market Street level down to the weirside, opening up other council-owned development sites along the river.
Two pedestrian bridges linking Forge Island to both the revamped rail station and the core of the town centre are also included in the proposal and the council and Evans are seeking around £6m of pubic sector funding via the Sheffield City Region Local Enterprise Partnership's investment fund for strategic infrastructure investment (SCRIF).
Leeds-based Evans was the developer behind Rotherham Council's 250,000 sq ft Riverside House building on the Guest & Chrimes site on the edge of the town centre. Bringing together staff from a number of locations, the £60m investment houses 2,600 employees at only 1,308 desks.
In 2010, Rotherham Council set aside £2m to acquire 10.85 acres at the Guest & Chrimes site from Evans that enabled Rotherham United to construct the £20m New York Stadium.
Plans for Rotherham United to create a new community stadium took a major step forward this week, after the Borough Council's Cabinet agreed officers' recommendation that the council buy the land needed, at the Guest & Chrimes site in the town centre.
The plans would see the council buying the 10.85 acres (4.39 hectares) from Evans of Leeds, which has cleared and prepared the site for development. The council and Evans hope to conclude the deal around early May, when the official scrutiny period expires. The acquisition is being funded by the Local Authority Reward Grant.
The club has said it will create an iconic stadium, with new design and new lighting technology, which will enhance the borough's status. The officers' report to Cabinet said the proposals would not just create a community stadium but provide high-quality buildings, public spaces and the opportunity for further facilities to be provided within the site , an enhanced vibrancy to the town centre, opportunities for learning and local employment during the construction period, community-based sports-learning and improved pedestrian links.
Karl Battersby, the council's strategic director of Environment & Development Services said: "It's a good deal all round. Good for the people of Rotherham, good for the club, and good for the future prosperity of the borough. Among other things, it could mean a lot more business for town-centre businesses.
"But most immediately it's good for Millers' fans – realising their dreams of bringing the club home. Having your home club on home ground – that's important to a community."
Plans for the 12,000 seater stadium were unveiled earlier this month and an outline planning application is to be submitted shortly.
The stadium will stand next to the council's own "New Civic" offices, now under construction at Guest & Chrimes, on Main Street.
Those, together with the recently announced deal with Anglo-Dutch developer TCN UK for the "old Civic", other council properties and Forge Island, represent massive progress for Rotherham Renaissance, which is regenerating the town centre.
Rotherham Council are in negotiations to purchase land at the Guest and Chrimes site in the town centre for regeneration purposes including the construction of a new community stadium by Rotherham United.
The deal has been agreed in principle by councillors and officers are proceeding with negotiations to acquire the land owned by Leeds based developer, Evans.
They will then negotiate detailed terms with Rotherham United for the grant of a long leasehold interest in the site to include the construction and occupation of a community stadium.
The acquisition is being funded by the Local Authority Reward Grant and the deal is similar to that agreed in principle by the club and the council to lease land at Roughwood Road for a new training ground and Centre of Excellence.
A report to the council's Regeneration Scrutiny Panel last week stated that negotiations with the club are being conducted in parallel with Evans and the three parties will reach mutually agreeable terms within the next few weeks.
It also said that the club has appointed a project manager, engineering consultants, planning consultant, architects and solicitors and all of their background works and investigations are progressing well.
The site of the former Guest and Chrimes foundry was announced in January as the preferred choice for a new stadium by Millers chairman, Tony Stewart.
The managing director of successful Rotherham business, ASD Lighting took over the club in 2008 and the team have been playing home games at the Don Valley Stadium in Sheffield after leaving Millmoor.
When confirming the former Guest and Chrimes Foundry site, he said: "This is an ideal site for our new home back in Rotherham, it will also provide significant regeneration benefits and leave a legacy for the future, not just for the Football Club, but for our town.
"The Council have played a pivotal role in making this happen, and we are very grateful for all their continued help and support."
A key site in the £2bn Rotherham Renaissance programme, building work has begun on 172,000 sq ft of new civic office space for the council. This deal would be for the remaining 10 acres of the site.
Drawings and layouts of the stadium will be exhibited this week at Rotherham Central Library and in the matchday programme at tonight's game with Northampton Town.
Rotherham United have confirmed that the site for a new stadium is the former Guest and Chrimes site at Main Street in the town centre.
Chairman Tony Stewart told the official Millers website: "The former Guest & Chrimes Foundry site has now been confirmed, this is an ideal site for our new home back in Rotherham, it will also provide significant regeneration benefits and leave a legacy for the future, not just for the Football Club, but for our town.
"The Council have played a pivotal role in making this happen, and we are very grateful for all their continued help and support."
"We have been working hard on the new stadium project behind the scenes for over 18 months now and have gained tremendous knowledge of numerous stadia throughout the country, and we have a good understanding what is needed for it to be a success for both supporters and to work for us commercially to provide financial stability for Rotherham United Football Club for years to come."
"Our town needs a Football Club to be proud of, playing in a stadium to be proud of, providing facilities for our community to be proud of."
"Make no mistake this is a significant day in Rotherham United's history and to say I am delighted for everyone concerned is an absolute understatement."
The managing director of successful Rotherham business, ASD Lighting took over the club in 2008 and the team have been playing home games at the Don Valley Stadium in Sheffield after leaving Millmoor.
In August, the council made the issue of a community stadium for the town a key priority in their "Shaping the Future" document for this year.
Owned by Evans Regeration Ltd, The Guest & Chrimes site is a key site in the massive Rotherham Renaissance programme and will also be home to new civic offices for Rotherham Council.
The Guest & Chrimes Foundry stood on Don Street from 1857 to 1999. Inventions such as the screw-down tap gave this internationally famous firm a monopoly of several water-handling items like taps, pumps and meters.
Work has begun on the new civic offices in Rotherham town centre with investigation work and preliminary surveys on the former Guest and Chrimes site at Main Street.
Agents, GVA Grimley submitted the plans on behalf of land owners and developers, Evans Property Group to create 16,000 sq m (172,000 sq ft) of office space for Rotherham Metropolitan Borough Council.
A key part of the £2bn Rotherham Renaissance scheme, the new building will bring together council services from across the town centre, allowing the vacated sites to be redeveloped.
Rotherham Council leader Roger Stone he was delighted to see work finally start on the site. He added: "It has taken a lot of hard work to get to this stage, so I am really pleased to see the preparatory work begin.
"This is an important step for the authority because once the building is completed it will allow us to release more important redevelopment sites – adding to the ongoing renaissance of Rotherham town centre."
Martin Kimber, Rotherham Council's new chief executive, said: "I am very pleased to have arrived in Rotherham just in time to see the start of the next important phase of the Renaissance plans. Despite the economic climate the authority has to look to the future and have the courage to continue with the plans for the town centre.
"We have already seen a huge amount of redevelopment in the town in the form of exciting new buildings and refurbishment projects by both ourselves and other agencies, such as the NHS and the South Yorkshire Passenger Transport Executive."
The plans for the multi-million pound civic offices on the Guest & Chrimes site in Rotherham town centre moved a step closer at the council's planning board last week.
Agents, GVA Grimley submitted the plans on behalf of land owners and developers, Evans Property Group to create 16,000 sq m (172,000 sq ft) of office space for Rotherham Metropolitan Borough Council.
The design has been prepared by architects Carey Jones, who worked on the Frenchgate Interchange in Doncaster and the St Pauls Quarter in Leeds.
Last September, RMBC's cabinet gave approval to a conditional contract and 35 year lease with Evans for one of the most significant public sector property transactions outside of London in the last year.
A key part of the £2bn Rotherham Renaissance scheme, the new building will bring together council services from across the town centre, allowing the vacated sites to be redeveloped. Incorporating a "three-fingered" design consisting of a four, five and six storey building, the proposals aim to provide a high quality new office development with strong links to the town centre, bringing a significant portion of the former Guest & Chrimes site back into economic use.
Also included are landscaping, flood protection and improvements to the junction with Main Street. The building is set to open out to the town and river to the east and introduce a sense of arrival relating to the new civic square. The publicly accessible plaza will see visitors from the town centre cross the existing road bridge and emerge into a light filled public space.
The plans also include two roof courtyards which have the potential to be developed as garden spaces for the adjacent offices.
The exterior will incorporate sandstone similar to Rotherham Red and brass metal work to reflect the history of the borough and the site.
Managing Director of Leeds-based Evans John Bell said: "The proposals are significant for Rotherham town centre. Regenerating this site, which is at the moment unused, opens up further opportunities for redevelopment and investment into the town centre.
"It also provides the town centre with a modern building, improving services to Rotherham people, the working environment for thousands of Borough Council staff and it’s a clear indication of the council's continued commitment to the regeneration of the town centre."
Members of the planning board were disposed to grant the application.
The application now has to be referred to the Government Office for Yorkshire and the Humber, which has 21 days to decide whether to intervene or allow the local authority to make the final decision.
Subject to that decision, Evans plans to start on site in the autumn of this year with the anticipated completion of the building in late 2011 or early 2012.
Work could start on site in September 2016 with an initial target date of August 2018 for the whole development to be completed and occupation of the office building. 
Plans for Rotherham United to create a new community stadium took a major step forward this week, after the Borough Council's Cabinet agreed officers' recommendation that the council buy the land needed, at the Guest & Chrimes site in the town centre. 
Rotherham
"We have already seen a huge amount of redevelopment in the town in the form of exciting new buildings and refurbishment projects by both ourselves and other agencies, such as the NHS and the South Yorkshire Passenger Transport Executive."
"We have already seen a huge amount of redevelopment in the town in the form of exciting new buildings and refurbishment projects by both ourselves and other agencies, such as the NHS and the South Yorkshire Passenger Transport Executive."
