Proposed buyer of Shire Hall in Cambridge plans luxury hotel and spa - but did delay ‘cost taxpayer millions’?

Shire Hall in Cambridge looks set to become a luxury hotel after councillors backed plans to sell the site to a new preferred bidder, but there have been claims that a delay in selling it has cost the taxpayer millions.

Cambridgeshire County Council is selling its former headquarters after moving its operations to a new building in Alconbury Weald in 2021.

A new buyer has been chosen for the site and plans to convert it into a luxury hotel with a restaurant and spa complex.

Property developer Brookgate had previously been lined up to convert the site into a hotel on a 34-year lease, but the company withdrew its offer.

It was remarketed earlier this year and 15 bids were received, with the highest bidder - which proposes a luxury hotel - now selected.

The county council stated: “Due to commercial sensitivities, the financial details of the bid are not being made public at this time.”

However, the sale price may be revealed after contracts are exchanged, which is due to happen by October 9.

Cllr Ros Hathorn, chair of the asset and procurement committee that agreed to put the building back up for sale, said: “We received a lot of interest in the Shire Hall site and carefully considered all the shortlisted bids at the committee. I know that this has been a difficult decision for all of us. Shire Hall is a Cambridge landmark and where many of us began our political roles.

“The original decision to sell the site and relocate to Alconbury Weald was made back in 2018 by the previous Conservative-led administration, so it is only the final step in this process that fell to us yesterday.

“We’re all aware of the impact the pandemic, the Russian invasion of Ukraine and increasing construction costs has had across the development industry and the role this played in the previous bidders withdrawing from the previously agreed sale.

“Our newly chosen bidders made a strong case for the creation of a luxury hotel at Shire Hall, which we hope will offer a five-star future for this historic site, as well as bringing new jobs and a wide range of economic benefits to the city.”

Shire Hall, the attached Octagon building, the former registry office in Castle Lodge and the Old Police Station along with the surrounding car parking were put up for sale in February.

The former Conservative administration’s decision to sell Shire Hall was reviewed in detail by the joint administration of Liberal Democrat, Labour and Independent councillors when they took control of the council in 2021. They agreed to sell it and to protect the public realm around the site, including Castle Mound, a scheduled ancient monument.

Following the remarketing, a range of uses for the buildings on the site were put forward, including a hotel and extended stay apartments, retirement living space, student rooms, co-living space, research, residential apartments, offices and business space.

A shortlist of four bids, including three to create hotels, were submitted to the committee.

The council will now enter an exclusivity period with a preferred bidder, enabling surveys and discussion with council planners to progress the designs.

The developer’s proposals to create a new high-end hotel on the site will require planning permission and considerable building works to transform the existing offices into premium visitor accommodation.

At the committee meeting, Conservative opposition leader Cllr Steve Count claimed “political shenanigans” led to the previous deal falling through, which he claimed had been “so close to getting wet ink on paper”.

Cllr Count (Con, March North and Waldersley) accused the joint administration of not wanting to sell Shire Hall when they took control. He suggested there may have been a “loss of millions” as a result.

Cllr Lorna Dupré (Lib Dem, Sutton) branded these claims an “extraordinary set of allegations”.

Cllr Hathorn (Lib Dem, Histon and Impington) said the comments were “speculation” and the joint administration’s review was “perfectly prudent”.

She said a bid “doesn’t mean anything” until contracts are said.

Cllr Peter McDonald (Lib Dem, Duxford) said the previous buyer got “cold feet for various reasons” and accused Cllr Count of creating an “alternative mythical conspiracy theory narrative”.

A council officer added that the “national economic position arising out of the pandemic” meant the previous deal had to change and any previous bid was a “snapshot” of that period.

Additional reporting: Hannah Brown, Local Democracy Reporter