A decision on a new headquarters for Cardiff Council in the centre of the capital will be decided over the next few months.
As part of wider plans for a £500m mixed-use scheme around its current County Hall headquarters site in Cardiff Bay, the council is considering relocating to a new build HQ at a vacant land site on the south side of Callaghan Square in the centre of Cardiff.
The council is committed to delivering a £100m indoor arena for 15,000 spectators on the current car park site of County Hall. Last week it was revealed that the authority, in a deal understood to be in region of £60m, has acquired the Red Dragon entertainment and leisure venue just yards from its HQ site from the British Airways Pension Fund.
It will now look to develop a new leisure scheme, but taking up less land space than the current Red Dragon Centre. This would provide land for a new wave of development such as bars, hotels, restaurants and apartments.
The scale of commercial developments around the arena, would be around 20 acres if the council opts to move to a new office building at Callaghan Square and demolishes County Hall.
A report to cabinet on a HQ move, although it is also considering refurbishment County Hall, is expected to be submitted later this month.
Discussions between the council and the Welsh Government over a land deal are understood to be progressing well. However, it could take several months to finalise, following any approval from the council seeking to vacate County Hall.
The Welsh Government acquired the vacant land site at Callaghan Square from property development firm MEPC for £7m in 2013.
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It is understood that to offset the cost of land acquisition, the council is looking to sell land adjoining the site which it owns to the Welsh Government.
The Cardiff office of international property advisory firm, Knight Frank, are acting for the Welsh Government.
Following the council’s recent transport white paper, which could see the introduction of a vehicle congestion charge for the city to reduce vehicle and pollution levels, any new HQ would only include minimal parking for less than 100 vehicles - with no plans to have a staff dedicated multi-storey car park.
The council will have to ensure improved public transport provision, including where it has direct control in bus through its ownership of Cardiff Bus.
If cabinet backs a relocation, then subject to finalising a land deal with the Welsh Government, a new HQ would be built ranging from 200,000 sq to 270,000 sq ft.
A new HQ at Callaghan Square would also bring staff under one roof from the council’s other current major office sites at City Hall and Wilcox House.
It would fund any HQ building from the Public Works Loan Board, or potentially the new Municipal Bonds Agency giving local authorities another option on long-term capital borrowing.
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A single new modern HQ building housing several thousand staff, would also generate cost savings, than having to run, as currently, three major offices. It would also provide potential rental income from vacated office space.
With planning and construction any new HQ is not expected to be ready for occupancy still late 2022 or early 2023.
The council declined to comment.