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Options appraisal proposed for planned headquarters

Published June 08, 2021 5.26pm

Councillors in County Durham are being asked to agree to review the options for our headquarters' functions, including a review of the potential uses for a new building designed as our base.

Our Cabinet is being asked to agree to an options appraisal for the new building at the Sands in Durham City whilst also reviewing options for the existing headquarters site at Aykley Heads and the potential of the area in which it is located to deliver jobs and growth.

A report to the meeting, next Wednesday 16 June, explains that the appraisal is being proposed to assist our new Joint Administration in reviewing options for use of our buildings. The appraisal would look at alternative uses of the building on The Sands as well as continuing with the proposed use as a new headquarters, to ensure best value and economic benefit from our investments.

Cabinet agreed in January 2018 to relocate our headquarters to The Sands and to develop the Aykley Heads area, home to our current County Hall base, as a strategic employment site capable of attracting high paid jobs to the county. The report to the 2018 meeting included proposals to relocate the county archives to a new History Centre at Mount Oswald.

The new headquarters was designed to create a smaller, more modern and efficient building to allow staff to work flexibly and with appropriate collaboration and meeting space. Staff currently working out of the existing County Hall building that were not planned to be moved to the new headquarters were to be accommodated at other strategic sites across the county.

The report to next week's meeting sets out how a capital budget of £49.1m was allocated for construction of the new headquarters and how Kier Property Developments Limited was awarded the contract to build it following a competitive procurement exercise.

Work began on site in 2018 and the report explains that the facility is "substantially built" with a target completion date of October this year. The report to the meeting sets out how Medium Term Financial Plan savings of £275,000 are currently anticipated from the relocation to the new headquarters.

The meeting will hear that as part of its initial review of priorities and in setting our strategic direction for the next four years, the Joint Administration is proposing to review the use of the new building as well as considering options for the existing headquarters at Aykley Heads, whilst ensuring a focus remains on creating strategic employment opportunities in the city.

To enable the review to take place, Cabinet is being recommended to agree to an options appraisal which would include an assessment of opportunities, costs, risks and the implications of any proposals that are brought forward.  

If agreed, the results of the appraisal will be reported to Cabinet no later than September 2021.

Cabinet will meet at 9.30am on Wednesday, 16 June in the Council Chamber at County Hall.

Due to social distancing requirements, spaces for members of the public are very limited and anyone interested in attending in person must register in advance by emailing

The meeting will be broadcast live online on our YouTube channel and members of the public are being encouraged to follow the proceedings this way.

Cllr Richard Bell, Cabinet member for finance, said: "The new Cabinet wants to ensure that all options for the use of the headquarters building are fully considered and a full options appraisal will provide us with information on which to base our decisions going forward.

"The review will be undertaken as quickly as possible whilst providing an evidence-based assessment of future options available for the building and our headquarters' functions.

"There is also an opportunity to consider how the wider Covid recovery can be taken into account in our future plans." 

Cllr James Rowlandson, Cabinet member for resources, investments and assets, said: "As part of reviewing the council's priorities, we are very keen to ensure that we are making the best possible use of all our assets and getting the best return for our investments.

"The new building at The Sands is clearly a significant asset and investment and we believe it is only right that a timely and full options appraisal is carried out to make sure we proceed with the most appropriate use for it."

Cllr Elizabeth Scott, Cabinet member for economy and partnerships, said: "The options appraisal if agreed would consider both progressing with the site's development as the council's headquarters and other potential uses so it is important to stress we are not ruling anything in or out.

"This is a really important period for our economy amid the impacts of the coronavirus pandemic and that is why it is vital that we make sure we are putting The Sands site to the best possible use whilst ensuring we provide the strongest possible opportunities for new jobs in the city and across the wider county."

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