Bedford Borough Council is spending nearly half a million pounds a year on the former Debenhams building – with councillors clashing over whether the costly problems with the site were foreseen at the time of purchase.
Reports presented to the Budget and Corporate Services Overview and Scrutiny Committee (Thursday, 11 September) show that the running costs of the High Street site amount to £117,000 a year for the new “What’s On” hub, plus £170,000 for the rest of the building’s upkeep.
And committee chair, Cllr Michael Headley (Lib Dem, Putnoe) said his calculations found that the council is also paying around £170,000 in borrowing costs on the £1.9m purchase price.
That brings the estimated overall annual cost close to £450,000.
The committee heard that the building remains largely empty, with the only active use being the visitor information centre and Corn Exchange box office that opened in May.
The members’ briefing note reported that the remaining area is “not in a lettable condition.”
Portfolio holder cllr Andrea Spice (Conservative, Wixams and Wilstead) told councillors that unexpected obligations had arisen once the council took ownership:
“When we’ve tried to make changes… we come under the new building regulations that weren’t applicable to Debenhams as it was running… it’s not that it’s unlettable… we’ve just got to follow the building regulations,” she said.
Her explanation was challenged as “balderdash” by Cllr Christine McHugh (Lib Dems, Goldington), who said regulations in force at the time of purchase should have been known.
Ed Palmieri, head of regeneration, property and local economy, gave a different emphasis, saying the building’s problems were no surprise and that substantial expenditure had always been expected and budgeted for.
“It would have been clearly obvious at the time that the building would need a substantial amount of expenditure,” he said.
Cllr Spice defended the decision to buy the site, saying the council had also had to deal with vandalism and roof leaks since taking it over:
“I want it let out, I want it busy, it is a prime spot in our town that we are not using,” she said.
The committee agreed to recommend that the executive review the value for money of both the Debenhams building and the What’s On hub in light of the council’s wider financial crisis.
by John Guinn
Local Democracy Reporter
