Civic Centre Programme Room 302, Brent Town Hall Forty Lane, Wembley Middlesex, HA9 9HD

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REGENERATION & MAJOR PROJECTS Director: XXXXXXX

Date 9 August 2011

Dr S Ali XXXXXXXXXX XXXXXX XXXXXXX

Dear Dr Ali RE: Civic Centre Freedom of Information Request Thank you for your Freedom of Information request of 14th July for information relating to certain aspects of the Civic Centre project. This has been passed to me for a response. You have requested the data, evidential basis and calculations to underpin the projected savings in relation to the Councils move to the new Civic Centre. You refer to statements that you believe were made at the Wembley Area Consultative Forum on 12th July 2011. At the Wembley Area Consultative Forum a figure of 4m average cost saving per annum was quoted. This is based on a combination of reduced costs in operating the Civic Centre and an increase in income when compared to the current portfolio of 14 buildings, mainly rented rather than owned. When the building comes on stream, the Council will have two principle costs the cost of financing the debt and the cost of operating the building. These costs will be offset by income from a number of sources including the sale of existing buildings and rental from renting space to third parties and commercial revenue generated through other activities. In all cases we have prudent assumptions verified and challenged by external advisors. In the cases of both rental income from long term tenants at the Civic Centre, and from other short term commercial income it would be imprudent of me to release detailed figures to you at the current time as these are the subject of negotiations which may be prejudiced if they are in the public domain. I am happy to confirm that we have an overall assumption of 1.25m built into the plan for income from these sources which we consider to be prudent. The reduction in operating costs and other efficiency savings have been calculated by the Councils financial advisers. The projected general fund savings to the Council equate to 89m over the first 25 years of the project. This was the figure calculated in the most recent financial assessment of the project benefits and represents an average saving of 3.56m per year over 25 years of the project. The average figure will vary each financial year as a result of a number

of variables within the financial model, including assumptions around borrowing and the profile of construction costs. Based on these projections the Councils officers and its advisors have assessed the average saving to be in the order of 2.85m per year over the first 25 years. The approach to a prudent risk adjustment used in the business case and included in this response has been discussed and agreed with the Councils financial advisers for the Civic Centre Project. By adding the two risk adjusted figures an average improvement in the Councils financial position of 4.1 million per year on average from moving to the Civic Centre from the original portfolio has been calculated. This was the basis of the statement at the Forum that the Civic Centre would save 4 million per annum on average. As indicated above, it is hoped that even higher savings may accrue, especially for income, as the Wembley area as a whole is regenerated. However in the current economic climate a realistic approach is being adopted. I trust that you will find this response satisfactory. Yours sincerely

XXXXXXXXXX Civic Centre Programme Director