Serious questions are being raised about the future of Gateshead Civic Centre as occupancy dwindles and running costs spiral to £1.4m a year.
A report released by the local authority has revealed the Civic Centre, on Regent Street, may well require extensive work over the next 10 to 20 years including renovating rooms, windows, toilets, and kitchen areas. In addition, occupancy has "plummeted" as more and more people take to working from home.
Monitoring conducted by the council over a 27-week period discovered a maximum of 480 desks out of the council's 2,250 available were used at any given time, meaning just under 80% are unused.
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Council documents state that even with consolidation and the closure of the Dryden Centre, the Civic Centre is unlikely to reach above 40% occupancy.
Council officers are expected to conduct an options appraisal on the future of the building, including what investments need to be made to make the building attractive for potential rental tenants.
However, the building's single heating system prevents 24-hour access, and council officers have conceded this may be a disadvantage when attempting to rent out space.
The council's depots are also a cause for concern, with running costs of £1.44 million a year. Reports into the authority's depots reveal "high-risk traffic flows" with many suffering from ageing infrastructure.
The report goes on to say "most of the facilities are no longer fit for purpose with per vehicle washing facilities, common vermin issues, common poor insulation, temperature control and energy management".
The depot at Park Road is also of major worry as recent storm damage has affected staff welfare and frontline service delivery.
Sandra Watson, service director, housing, environment and healthy communities at Gateshead Council said: "Like most councils, Gateshead Council has experienced significant funding reductions and we need to make careful choices in where we prioritise the money we spend. This is especially true in relation to property.
"Without careful management, there is potential to waste of money by keeping buildings that are not fit for use or unnecessary. Equally, all assets have a value and if they are no longer required, we might be able to sell them to unlock that value and use or invest the money elsewhere.
"We live in ever-changing times. Factors like population change changes in deprivation levels, digitalisation, and the effect of Covid-19, are changing how we work and how we deliver our services.
"Our assets will also need to change to support the council as we face these changes. Assets deliver a mixture of frontline services, indirect service provision, supporting local communities and providing a financial return of the council.
"We do not just own assets for the sake of it, they need to have a purpose and we constantly need to challenge this. Our asset review process explores the utilisation of assets, the financial effectiveness of assets, along with analysis of running and maintenance costs, and geographical location.
"This ensures that only those assets that are needed are retained. The ultimate aims of the review are to reduce costs, identify assets that should be retained for use and or invested in, and identify those that are surplus to requirements."
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