Cost of Hastings regeneration project rises

On Monday (December 7), Hastings Borough Council is to consider proposals to increase funding for a project to convert the upper floors of 12/13 York Buildings – a grade II listed building in Wellington Place – into six flats.

Cabinet members are recommended to increase the project’s budget by £166,000, which will put the total project budget up to £1.011m. 

In a report to be considered by cabinet, a council  officer said: “The conversion of the upper floors of this grade II listed building to six flats is a major project and has been included in the capital programme since 2017. 

“Given the grade II status and associated conservation requirements the project was never seen as straight forward, and has indeed remained challenging not least because of Covid-19.

“The large spaces above retail shops in town centres across the country have been seen as opportunities to help tackle some of the issues faced by town centres and their continued sustainability. 

“The historically low borrowing rates provided, and continue to provide, the council with the means to convert the otherwise unusable space in a building it owns, to meet severe housing needs in the borough.”

Construction works began in December last year, but the works were hampered due to the first national lockdown in March, with supply chains disruption and health and safety concerns leading to a site closure.

While works resumed in June (after a closure of 10 weeks), council officers say this disruption means the contract will need to be extended, which will lead to additional costs.

On top of this, the contract was initially only for internal conversion works, but once underway it was found that external structures – including windows, cills and gullies – also required maintenance. The additional costs for these works have been estimated at £45,980.

While not all these works need to be completed immediately, officers say it would be more cost effective to carry them out while scaffolding is up. 

Further unforeseen works have also been needed to address water damage and ensure the building meets fire safety regulations.

The cabinet last considered this project in September 2019, when the budget was increased from £757,000 to £846,000. 

If the additional £166,000 is approved, £46,000 is to be drawn from earmarked council reserves with the remaining balance being funded by borrowing.

In the report, a council officer added: “This project was only ever likely to be viable whilst borrowing rates remain at their historically low levels, and this remains the case. 

“The Covid-19 pandemic has highlighted more than ever the need to transform town centres and include more homes in them – thus enhancing the vibrancy and sustainability of the local economy. 

“The need for these new homes remains as high as ever. The council is still in the fortunate position to be able to complete this project – despite these additional, and unwelcome, costs.”