HIGH PEAK BOROUGH COUNCIL
Individual Executive Decision for comment
Please respond with any comments by 3 June 2020 to [email protected]
Date of Decision 4 June 2020
TITLE: Buxton Crescent Hotel – Project Progress Update
EXECUTIVE COUNCILLOR: Councillor McKeown - Council Leader HPBC
CONTACT OFFICER: Neil Rodgers - Executive Director (Place)
WARDS INVOLVED: Buxton Central;
1. Reason for the Report
1.1 To provide members with a summary of progress of the restoration works and likely opening timetable for the Buxton Crescent Hotel, in particular in light of the impacts of COVID-19.
2. Recommendation
2.1 The Leader is asked to note the update on the progress of the Crescent project and outstanding issue around the leases and legal arrangements for the project.
3. Executive Summary
3.1 The Council has been working with partners over a number of years to restore the Crescent, Natural Baths and Pump Room to deliver a spa hotel and visitor attraction for Buxton. The project is very nearly complete and whilst scheduled opening of the hotel had been targeted for May / June this year, the COVID-19 pandemic has resulted in inevitable delays to the programme.
3.2 Internal and external works to the Hotel are virtually complete. The contractors Vinci have remained on site to work through snagging items and any outstanding works that can be undertaken safely, and within Government guidelines on distancing. This has restricted the nature of the tasks that can be undertaken. However the Hotel would be in a position to open relatively quickly, following a decision taken to do so. 3.3 The Council’s legal consultants, Gowling WLG (UK) continue to provide advice on the leases. A number of issues are being worked through in order to reach a position whereby the leases can be completed. These issues include agreeing a Landlords Management Plan, finalising a Public Access Policy, approving works to the Pavilion Garden car park, and ensuring satisfactory condition of the Pump Room.
3.4 There is no current opening date proposed for the Hotel. The date will be determined by a number of key factors, including when the government’s five tests are met enabling an ease of the lockdown restrictions, the social distancing requirements that will remain at that point, and the Hotel’s assessment of the state of the travel and leisure market.
4. How this report links to Corporate Priorities
4.1 Opening of the Buxton Crescent Hotel will have implications for:
Aim Three: To protect and create jobs by supporting economic growth, development and regeneration
5. Alternative Options
5.1 Option 1 (recommended) – that Councillors note the detail of the progress update. There are no further options.
Neil Rodgers Executive Director (Place)
Web Links and Contact details Background Papers https://buxtoncrescent.com/ Joanna Bagnall
6. Detail
Background
6.1 The project involves the renovation and restoration of the Crescent, Natural Baths, Pump Room and the Old Bakery.
6.2 The Crescent was built between 1780 and 1789. It was the centrepiece of the Fifth Duke of Devonshire’s plans to establish a fashionable Georgian spa town in Buxton. The Crescent is a Grade I listed building and is one of the most architecturally significant buildings in the country. 6.3 The Natural Baths were built in 1853. The building sits over Buxton’s thermal natural mineral water spring. The Pump Room, where the public went to “take the waters”, was built in 1894. Both are Grade II listed buildings.
6.4 The Old Bakery is a small building (unlisted) behind the Crescent on George Street. Its freehold is owned by High Peak Borough Council, as is the car park in Pavilion Gardens, part of which is to be used for hotel parking.
Scope of the project
6.5 The project includes provision of the following key elements:
An 81-bedroom, luxury spa hotel occupying the majority of the Crescent. It will be one of only two genuine thermal spa hotels in the UK. A thermal, natural mineral water spa in the Natural Baths. A visitor attraction in the Pump Room, and in dedicated rooms of the ground floor and basement of the Crescent, which will present Buxton’s spa heritage. A programme of events will allow public access to the Assembly Rooms for a number of days each year. Included within the 81 hotel bedrooms are two heritage bedrooms, which will also be made available for the public to view on a limited number of days during the year. Six small retail units in the front, ground floor of the Crescent. An enhanced setting to the buildings incorporating a new water feature to the Crescent’s front forecourt. Dedicated hotel car parking for approximately 66 cars to be provided in the rear part of the undercroft car park in the Pavilion Gardens.
Key project partners
6.6 Buxton Crescent Limited (BCL) has been established as the company to deliver the Crescent Hotel project and, following the granting of a long lease by the Councils, to manage it on completion of the renovation and restoration works. The company is jointly owned by CP Holdings and the Trevor Osborne Property Group Ltd.
6.7 Buxton Crescent Ltd has appointed the company Ensana to operate the hotel. Ensana is Europe’s largest health spa operator.
6.8 Buxton Crescent Heritage Trust (the Trust) has been established to operate the visitor attraction and the Tourist Information Centre in the Pump Room.
Project costs
6.9 Total development costs are circa £70million. Public funding has been secured to cover the specific, non-commercial cost of works arising from the sensitive heritage and architectural importance of the buildings. Public funding has included:
£1.1m from High Peak Borough Council £13.4m from Derbyshire County Council £23.8 million grant from the National Lottery Heritage Fund £2.0 million grant from the D2N2 Local Enterprise Partnership £0.6 million from Historic England
6.10 Derbyshire County Council has in addition provided a commercial loan to Buxton Crescent Ltd of £11.3m.
6.11 Buxton Crescent Limited is funding the balance of the costs.
Progress
6.12 The main works commenced in February 2016 with Vinci Construction UK Ltd acting as the principal contractor. These are now almost complete. Details are provided in the paragraphs below.
The Pump Room
6.13 The restored Pump Room opened as a visitor information point and venue for events in March 2019. However there are some outstanding issues that remain to be resolved.
6.14 The building suffers from damp and whilst action has been taken, the situation will need to be monitored to establish if remedial works have been succesful in preventing further water ingress. If so, the building may dry out naturally over the long term.
6.15 Investigations to improve levels of heating within the building are ongoing. Recorded levels of radon gas within the Pump Room have been a concern. Design options for a roof fan are being consdered that would be both sympathetic to the heritage nature of the building, and help to suppress the radon.
6.16 Buxton Crescent Heritage Trust will lease the Pump Room from Buxton Crescent Limited and will take responsibility for the repair and maintenance of the building. Before signing an underlease agreement, the Trust will need to be content that the heating, damp and radon concerns have been satisfactorily resolved. In the event that this is not the case, the lease should be suitably amended to clarify that these issues remain with the developer to address.
The Crescent
6.17 Vinci remain on site, working their way through outstanding works and snagging items, whilst complying with Government guidance on social distancing. This has restricted the nature of tasks that can be undertaken safely. However the hotel interior is considered virtually complete.
6.18 Outstanding issues include significant dampness evident in first and second floor corridor walls, resulting in widespread de-bonding of wallpaper in these areas. All affected wallpaper is to be removed and the walls re-lined with lining paper, pending a decision on a new finish. The pause created by the COVID-19 restrictions may permit additional drying out to occur before new, breathable wallpaper is applied. In addition, remedial works to the damaged basement corridor and kitchen floors have not yet been completed.
6.19 Small items for the bedrooms have been delivered and are in storage until they can be fitted. Some joinery work remains to be completed. Soft furnishings are waiting for the fit out suppliers to be in a position to return to work safely. Cutlery, glassware and china will be ordered once an opening date is known.
6.20 The scheduled date for delivering IT network / internet connection for the hotel has been cancelled by BT in favour of critical infrastructure works elsewhere. A revised installation date will need to be agreed.
Natural Baths / Spa
6.21 The Spa works are almost complete. The order of the mud oven from Germany is currently on hold, the oven will need to be fitted on arrival and the mud preparation area finished off.
External works
6.22 The resin bonded gravel works to the Crescent forecourt and rear have been completed. Refurbished carriage lamps have been fitted to the front of the building.
6.23 Highway improvement works have been agreed with the Highways Authority and it is intended that the hoardings will remain in place until these works have been completed. The road will become one-way in front of the Crescent and will be re-shaped to achieve a car free forecourt. There will also be controls on the length of time that drivers are permitted to stop during specified times.
Pavilion Garden car park
6.24 The Council is to release 66 spaces on the lower deck of the Pavilion Gardens car park to the Hotel for use by hotel guests. To achieve this, the Council will need to give notice of its intention to vary the High Peak Borough Council Off- Street Parking Places Order appropriately.
6.25 The Hotel will be required to pay a service charge to help with the upkeep of the Pavilion Gardens car park. The Council will need to prepare a car park schedule of condition to act as a baseline against which the standard of upkeep can be agreed.
6.26 Before the hotel opens, the Council will need to approve the following works to be undertaken by the Hotel:
altering the white lining within the car park to accommodate the “carving out” of the Hotel’s parking area; installing a CCTV system; separating the Hotel’s parking area from the rest of the car park; erecting signage and barriers at the car park; and creating a separate electrical supply for the Hotel’s parking area.
Staff recruitment
6.27 The staff recruitment process for the Hotel has been deferred and existing appointments are to be, or have been, furloughed.
Legal issues
6.28 The Council continues to take advice from its legal consultants for the project – Gowling WLG (UK) LLP. All negotiations and agreements in relation to granting the leases take place in partnership with Derbyshire County Council, and following advice obtained from Gowlings.
6.29 At its meeting on 5th December 2019, the Executive approved a change to the proposed lease arrangements such that the headlease of the buildings is now to be granted by the Councils to the developer (Buxton Crescent Limited) and not as formerly proposed to the Heritage Trust. The Executive also approved that the lease arrangements could be varied, if necessary, to reflect any requirements made by the National Lottery Heritage Fund.
6.30 The headlease (between the Councils and BCL) is to be finalised with updated plans of the buildings. Buxton Crescent Limited will grant a sublease of the Pump Room to the Buxton Crescent Heritage Trust. Alongside the County Council, and under advice from Gowlings, the Council is currently working through the remaining issues to be completed before the leases can be signed.
6.31 Under the leases BCL is responsible for the ongoing repair and maintenance of the Crescent and the Trust is responsible for the ongoing repair and maintenance of the Pump Room (subject to any exclusions to be agreed). To help mitigate any risks, a Landlords Management Plan is being prepared to set out a monitoring regime ensuring the properties are kept in good repair. The need for such a Plan is one of the requirements made by the National Lottery Heritage Fund as a condition of its grant funding.
6.32 A further requirement of the National Lottery Heritage Fund is to ensure that there are suitable arrangements in place for a visitor experience and public access to the Crescent for people to enjoy the restoration works, in part paid for through public funds. The leases include provisions for public access to the Crescent, with precise wording remaining to be agreed.
6.33 Public access will be managed through the Trust from its hub in the Pump Room. The public will be permitted access to a Visitor Centre to be located in four rooms on the ground floor of the hotel and five rooms in the basement, subject to an admission charge. The public will be allowed access to the Assembly Rooms, the Grand Staircase the Heritage Bedrooms and the Visitor Centre free of charge on days and at times to be agreed in the Public Access Policy. 6.34 The Policy is to include wording on discounts for residents of Derbyshire that is also yet to be finalised. It is proposed that the Hotel will operate a “Crescent Card” loyalty scheme that would be available free of charge to residents of the County and offer enhanced benefits for entry to the Visitor Centre and Assembly Rooms, as well as discounts on treatments in the spa.
Opening date
6.35 To reduce social contact, the government has required by law that holiday accommodation, including hotels, should be closed to members of the public. On 11th May the Government published a strategy setting out a roadmap to easing the existing COVID-19 restrictions. This confirms an ambition to open some hospitality businesses, including "foodservice providers, pubs and accommodation" from 4th July - if the five tests for controlling the spread of Covid-19 are being met.
6.36 There is currently no scheduled opening date for the Crescent. BCL remains keen to open the hotel as soon as it can do so safely. It is possible that this may be at some point in the autumn. However it is not possible to anticipate precisely when it will be viable, or desirable, for the hotel to open. In part this will be dependent on market conditions and the social distancing measures that will need to be observed.