Bayard Place and parts of the Town Hall and are set to be rented out with Peterborough City Council staff relocating to offices at the new Fletton Quays site.
A decision on Monday (March 7) by the council cabinet is expected to give the green light to the proposals which were first mooted last year.
If agreed the council would become an anchor tenant on the key city centre site in 2018, helping to kick-start the wider £120 million redevelopment that is set to include a hotel and 280 homes, as well as securing the future of the listed railway sheds.
The council states that the proposal would generate it additional income of £7.6 million over the coming years which will help to protect frontline services.
This would in part come from leasing both Bayard Place, on Broadway, and the non-civic areas of the Town Hall, in Bridge Street, for commercial use. The civic areas of the Town Hall, including the Council Chamber, would be retained and used as present.
The Fletton Quays development on Peterborough’s South Bank was approved late last year.
Councillor David Seaton, cabinet member for resources at the council, said: “The council has shown its commitment to the regeneration of Fletton Quays as a key city centre site. By becoming the first tenant it will kick-start the wider redevelopment planned.
“However, we have always insisted that it must be financially beneficial to the council in order to protect council taxpayers from extra cost. The business case shows that not only will this move benefit the city and residents but will also generate income to protect services.”
The council first stated in 2014 its intention to occupy new office premises on Fletton Quays, provided that the overall proposal would be financially beneficial to both itself and the city.
A business case to be presented to cabinet states that the move will generate additional income over the next 27 years.
This additional income will include the council’s share of proceeds from the sale of the Fletton Quays site to developers as a joint partner of the Peterborough Investment Partnership, a body it set up in December 2014 to pursue redevelopment of key sites in the city.
The financial benefits to the council also include rental income from leasing the Town Hall and Bayard Place and no longer renting Manor Drive. Through the redevelopment of Fletton Quays income will also be generated from additional business rates.
This is set to outweigh costs of the project, which includes leasing the new office and capital borrowing needed to fit it out.
Councillor Seaton added: “The council’s current accommodation doesn’t reflect how the council has changed over the last decade. In Peterborough we have seen huge reductions in funding, major changes in the way services are delivered and a decrease in the number of staff we employ.
“Moving forward the council is modernising the way we deliver services and the way staff work. These new facilities will allow staff to work more flexibly and efficiently to the benefit of residents.
“Councillors have indicated they wish to retain the historic civic areas and we have listened to that.”