Derbyshire Council backs plans to turn County Hall into luxury hotel after it's revealed two thirds of the building is empty

Derbyshire County Council’s cabinet is supporting multi-million-pound money-saving plans to convert the authority’s majestic County Hall headquarters in Matlock into a hotel, homes and offices, with less than a third of the building currently occupied by staff following new working patterns.

The council’s cabinet voted in favour of a report supporting County Hall’s conversion at a meeting on Thursday, January 11, but stressed the council still intends to continue to be based in Matlock on the same campus while ensuring the iconic building supports authority staff, Matlock residents and the town.

Deputy leader Cllr Simon Spencer, cabinet member for corporate services and budget, said: “I am delighted to be able to bring this report to cabinet and it is the culmination of about 18 months of work.

“I am delighted in many ways in particular for the people who work in this building and for the people in Matlock.”

The multi-million-pound landmark council-owned headquarters, off Bank Road at Matlock, was the subject of a marketing exercise after the council realised it is no longer using the site to its full potential.

Since the Covid-19 pandemic and with new working patterns and home working arrangements, Cllr Spencer revealed the building’s occupancy has reduced to about 30 per cent, which the council recognises is unacceptable given the costs of running and maintaining the entire building.

Proposals for the building currently include turning the south block of County Hall and the Winter Gardens into a hotel and events venue, while creating new homes in the north block and the south west car park and building a new, low carbon office on the site to accommodate up to 500 council employees.

The council has stated that it wants the building’s conversion to contribute to the vitality of Matlock while making a significant ongoing contribution to the area’s economy.

It is hoped changes to the building will result in 130 new hotel jobs, address a hotel accommodation shortfall, and bring an estimated £56m to £57m boost to Matlock’s economy, and a potential £150m boost to Derbyshire, while saving the council more than £130m in necessary repairs and update costs for the building.

The council has stated that the annual budget running costs for County Hall sits at £1.347m and the year-end forecast spend for 2023-24 is £1.984m not including any allowance for planned maintenance work.

And business case consultants have projected anticipated annual running costs for County Hall – including an allowance for essential maintenance which is likely to increase due to underinvestment in previous years – as likely to rise to £3.3m.

However, investors are now expected to be attracted by the council’s proud claim that the Peak District and Derbyshire tourism industry already generates £1.9bn for the local economy supporting 31,000 jobs and attracting 35m visitors annually.

The iconic County Hall is a Grade ll listed building originally built between 1853 and 1886 as Smedley’s Hydropathic Establishment after Matlock was developed as a spa town following the discovery of thermal springs at nearby Matlock Bath in 1698.

It sits on a 5.8 hectare site with fantastic views overlooking Matlock and the Derwent Valley and boasts many period, hotel-style features and decorative stained-glass windows as well as a restaurant, bar, lounge and meeting places.

Cllr Spencer told the cabinet meeting that the council held a briefing session to discuss potential changes for the County Hall with the objective of obtaining a political consensus among all councillors so the council can move forward with plans for council staff and for the people of Matlock.

Following the cabinet’s support for the recommended proposals for County Hall, the matter will be considered at scrutiny meetings and it is expected the overall proposed project could take as long as ten years to deliver.

Cllr Spencer said that bringing the proposed project to a conclusion as soon as possible will be in the interests of sustainability and the tax-payers.

He added that any plans would be run in conjunction with a number of interested parties and bodies to make sure the best use is made of the available facilities with the best possible outcome.

Cllr Spencer also said he feels the proposed project is something most people will get behind because it is ‘the right thing to do’ not only for the people of Matlock but for the building itself which deserves to be put back to its former glory.

The potential conversion of the council-owned County Hall is one of many cost-saving proposals which the Conservative-led council is considering after it has estimated a £39.5m budget shortfall for the 2024/25 financial year while it continues to address an estimated budget overspend of £33m for the 2023/24 financial year with other cost-saving measures.

Council Leader, Cllr Barry Lewis, told the cabinet meeting: “It’s quite an expensive building to run and in recent years since Covid its occupation has reduced to about 30per cent and it’s the time to do something about that.”

Cllr Lewis added that the council recognises the continued importance and economic impact of the building for Matlock and he stressed the council’s long-term commitment to the town as the local authority’s administrative centre.

Derbyshire County Council has not yet indicated any specific property value, possible sale or possible lease arrangement proposals for the County Hall building at this early stage of proceedings.