Cardiff Council is gearing up to demolish County Hall and construct a new headquarters in its place. The decision to proceed with the plan comes after the council deemed refurbishing the current building at Atlantic Wharf, built between 1986 and 1987, to be too costly, with an estimated expense exceeding £100m. The maintenance and operational expenses of the existing building, which has a capacity for 3,000 people but on average only accommodates around 400 individuals daily, are also considerable. The council faced a hefty bill of £105,000 to repair a leak at the building’s front entrance just six months ago.
Moreover, Cardiff Council is currently grappling with financial pressures, with an anticipated overspend of £8.8m for the year, prompting the need for a sustainable solution to cater to its core office requirements economically. Council leader Cllr Huw Thomas highlighted the importance of securing a long-term, cost-effective solution to address the financial challenges faced by the council. The proposal to build a new headquarters aims to ensure cost predictability, avoid extensive maintenance backlog, eliminate the risk of major failures in the current office infrastructure, and align with carbon neutrality and economic rejuvenation goals.
The forthcoming council meeting is set to discuss and seek approval from cabinet members for the selection of a successful bidder through a procurement process for the new office construction. The new building is intended to be erected on the site in front of County Hall, with the existing structure planned for demolition only after the new office is completed and ready for occupancy. The new headquarters is envisioned to be around one-third the size of County Hall, creating additional space that can be utilised for social housing and private offices.
The decision to move forward with the new office project means that Cardiff Council will discontinue using City Hall as office space, reserving the location solely for full council meetings following necessary maintenance work. While specific borrowing costs for the new building project were not disclosed, it is estimated to be approximately half of the expense of refurbishing County Hall. Recent reports indicated Cardiff Council holding the highest debt among Welsh local authorities at £858m in January 2024. The council foresees increased borrowing for housebuilding projects exceeding £400m from 2024 to 2029.
Addressing queries about considering alternative solutions, Cllr Huw Thomas emphasised the limitations of existing office spaces in the city, emphasizing the lack of scale and bespoke design opportunities compared to the proposed new headquarters. The council explored temporary office options but highlighted the financial implications of delaying the new building construction, accruing inflationary costs of about £3m annually. Environmental concerns raised by organisations such as the Twentieth Century Society regarding the demolition of County Hall were addressed by emphasising the new building’s energy efficiency and sustainability benefits.
The ‘Cardiff Live’ project, including the new office development, the indoor arena, event hall, and production studios, amplifies Cardiff’s positioning as a hub for cultural and economic growth. Pending cabinet approval, the next steps involve entering a pre-contract service agreement to finalise designs and costs, aiming for a development agreement approval by May 2025. The matter will undergo scrutiny by the council’s policy review and performance committee before the cabinet meeting, highlighting the comprehensive planning and consultation process involved in this significant infrastructure project.