Greater London Authority assembly members have flagged significant concerns over its proposed relocation to the Royal Docks, E16.
These concerns, raised during an oversight committee meeting today, included the short consultation period, hard facts about the finances involved, the need for a major planning application to be approved for the Crystal before Christmas, as well as staff capacity, and the profile of City Hall if it moves outside of central London.
GLA deputy chair Susan Hall pointed out that key information was lacking four weeks into the six-week consultation.
Tight timeframe
GLA chief officer Mary Harpley said there was limited time for the consultation since planning needed to be obtained for change of use for the Crystal, as well as serving notice on Christmas Eve to the building’s owner St Martins Properties.
However, Harpley said that “constructive” discussions were under way with the Kuwaiti-owned landlord, and that she anticipates a formal offer around changing lease terms.
These discussions between the GLA and St Martins Properties did not begin until the consultation was launched, she added.
A decision by London mayor Sadiq Khan over whether to proceed with relocating City Hall will be taken in September to allow time for a planning application.
A pre-application meeting was set to take place in early August, but Newham Council indicated it would be willing to shorten the 13-week statutory planning application process to between six to eight weeks.
More clarity needed on income loss
Assembly member Caroline Pidgeon highlighted a lack of clarity over loss of income related to events and other activities held at its current home, such as filming. According to Pidgeon, the GLA had made more than £100,000 out of a James Bond movie filmed at City Hall.
When the GLA launched the consultation last month, it said it expected to save around £55m after about £8m in relocation costs.
However, it also faces around £10m in dilapidation costs at its current home in SE1.
This would bring the total saving over five years to its 2026 lease expiry at City Hall to £31.5m, or £6m per year from 2021/22.
Saving costs
Harpley said the GLA only started to seriously consider relocating out of City Hall in May, after realising it could operate on a smaller footprint with staff working remotely.
The 240,000 sq ft Crystal has been mostly empty since Siemens vacated last year.
GLA officers said that the Crystal could hold a minimum of 246 staff, if staff did not all work in the building at the same time.
The GLA has been located in City Hall since 2001. It also occupies space at the London Fire Brigade’s HQ on Union Street, SE1.
City Hall’s rent, rates and services charges will amount to £12.6m from 2021. Rent payable to GLAP, the Crystal’s owner, is estimated to be £23 per sq ft.
On top of relocating to the Crystal, the GLA would also rent a floor of Transport for London’s Palestra in Southwark for its staff.
Avison Young is the GLA’s retained adviser.
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