Westmorland and Furness Council leaders will be asked to approve more than £5.7 million be used to transform Penrith Town Hall but only if a full business case is developed and shows the proportion is viable as it abandons plans for the town centre Enterprise Hub project in the former Barclays Bank, plans for the town hall will also see the Penrith and Eden Museum moved from its current home on Middlegate into the Town Hall.
Council leaders at next week's cabinet meeting taking place in Appleby will be recommended to approve development of the full business case for the redevelopment of the Grade II listed Town Hall into what the council describes as a Creative and Community Hub that will only be delivered if the business case shows it to be viable.
The plans deliver a scheme that includes a 100 to 120-seat performance venue, creative studios, rehearsal spaces, youth facilities, digital innovation space, community rooms, meeting rooms, office space and a café.
One of the biggest proposed changes will see the Penrith and Eden Museum relocated into the Town Hall, subject to a formal public consultation.
If approved, the move would leave the museum's current home in the former Robinson School building vacant, adding another empty public building to Penrith town centre.
The Town Hall scheme has now become the council's primary regeneration project after officers concluded the separate Eden Enterprise Hub proposal was no longer financially sustainable and recommended it should be abandoned.
Despite recommending the project progresses, officers openly acknowledge the financial risks with the project delivery.
The Cabinet will be told the current operating model proposed for the town hall generates only a small surplus, warning that relatively modest reductions in income or increases in running costs could quickly push the building into a deficit placing further financial strain and risk on the council’s finances.
Officers will tell council leaders that analysis indicates the project could require significant annual financial support for public money if income projections are not achieved with the town hall redevelopment.
Because of the risks, council leaders will only be asked to approve progression to a Full Business Case, with a final decision on construction expected later this year after more detailed financial modelling has been completed.
Cabinet will also be asked to approve a formal consultation on moving the Penrith and Eden Museum into the Town Hall, with officers noting that although there is no automatic legal requirement to consult, doing so is considered essential to protect museum accreditation, and ensure the public has the opportunity to influence the decision.
To fund the project, the council leaders will be recommended to redirect more than £2 million previously allocated to the Enterprise Hub by agreeing to abandon that project altogether after council officials concluded it is no longer financially viable. and redirect part of the finding into the Town Hall redevelopment.
If approved, the total investment in the project would rise to around £5.74 million, with remaining regeneration funding continuing to be ring-fenced for projects within the former Eden district. But the full business case development will mean further delays and the town hall remain empty and in a state of disrepair with the risk the project could also be abandoned once the full business case development is complete.
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