Finding a viable model for new council co-working and event space

Thanet District Council acquired a building, located just off Ramsgate’s high street which they wanted to support local businesses and bring footfall to the town centre.

The council now needed a viable commercial and operating model for the unit to ensure its development supported the use needed to balance the books.

BACKGROUND

Thanet District Council’s economic strategy includes strengthening the innovation culture and growth in creative and digital industries in the town, building on the existing momentum in these sectors.

However, creative businesses struggle to find affordable, flexible space to make, work, and potentially grow.

The Broad Street building was identified as having potential as a co-working space, including a kitchen or café facility. There was also the possibility of working in partnership with other enterprise providers to create a portfolio offer in conjunction with other council-owned buildings and developments in the town.

WHAT WE DID

Based on the architect’s plans, we conducted a detailed site assessment of the Broad Street building..

We carried out a market appraisal and concept development exercise to support the delivery of the project and the implementation of an operating model.

There was also the opportunity for the space to change in use across the day/week, with interest from employment services/government providers and a youth charity in using Broad Street outside traditional office hours.

This would also increase footfall in the early evening in the town centre, which is typically quiet, while providing much-needed affordable space for community support activities and groups to meet.

Three options for delivering the co-working space were reviewed:

• In-house management by Thanet District Council.
• Go to market to find an operator.
• An interim solution to allow the council to establish internal operations and/or split management of the hard (e.g. building management) + soft elements (e.g. front of house)

We reviewed demand from co-work operators, drew up a shortlist of potential partners, and assessed the appetite of potential occupiers for the space. We also set up a financial model – income and expenditure – to establish the optimum occupation and capacity to break even.

Work was also carried out to develop and agree an operating model and specification, including setting out the commercial terms, roles and responsibilities for each party and potential operational alignment with other council projects such as the Green Campus and Innovation Hub.

We concluded that Broad Street could be financially sustainable, creating a new and appealing hub for the creative sector in Ramsgate if operated as part of a wider business support offer.. Approaching Broad Street as one part of a portfolio of properties also allows the property to benefit from the potential cost efficiencies of working together.

Thanet District Council accepted our recommendations and the council is tendering for a design and build firm to carry out the refurbishment work with tentative plans to open in 2026.