Sale Waterside is a well regarded suburban arts centre in Sale. The complex also includes Sale Library and a large amount of office space that is primarily used by Trafford Council. There’s also the (now closed) Slug and Lettuce and the Caldo Lounge.
The complex was developed under a PFI arrangement and opened in 2004. The PFI arrangement to which Trafford entered into paid a charge to the contractor. This is coming to an end and the Trafford Council Executive has to take a decision
The options are:
Option A
Exit the contract and take back the complex for the final “bullet” payment in the contract. Agree to purchase the 2 commercial units for their open market value.
Option B
Exit the PFI asset in October 2028, leaving the facility in the PFI contractor ownership.
The Council has performed a financial analysis, including a valuation of the building, the exit payment and operating costs, and the recommendation is to take back the building and make the final payment to Equans. The recommendation is also to acquire the two commercial units at open market value. Details of this are outlined in the part 2 (restricted) report.
Thoughts
Even allowing for the fact that the commercial/financial data is closed to the public, it does feel as though only a shallow consideration has been taken.
There’s apparently 400 council desks at Waterside. Is it in the council’s interest to maintain that. I’ve got to be honest, I was surprised by the number. Is it time to start consolidating our office space? I think we also need to ask the extent to which our presence is good for Sale Town Centre. This is a prime site in Sale. I am surprised that the vibrancy of this quarter has been allowed to slide.
Clearly, I’m not questioning the presence of the library and theatre and it may be that the only way to ensure continuity is the purchase option. I’d be surprised if this was the case and that the library and theatre were part of this deal. They’re not explicitly mentioned. We’re over a barrel if they are!
I think overall, I’d have liked scrutiny to take a broad look at the options before taking a decision. There’s a risk that back in Trafford’s ownership, we can’t maintain the premises to a standard that benefits Sale and we end up in a worse situation. These are not luxury offices. The risks mentioned in the report seem so superficial. It just seems a less than thorough options appraisal.
I’d really be pleased to hear your thoughts on this as I think I’m just scratching at the surface.
Sale Waterside Complex by N Chadwick, CC BY-SA 2.0 https://creativecommons.org/licenses/by-sa/2.0, via Wikimedia Commons
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