FOLCA 1 Faces Sale, FOLCA 2 Chosen for New Town Centre Health Hub

What began as a flagship regeneration project for Folkestone town centre has unravelled into a divided legacy of half-funded ambitions and fading civic promises. The FOLCA building—formerly Debenhams—was once envisioned as a unified hub of public health, commercial revival, and architectural preservation. Now, five years after the council’s £2 million purchase, FOLCA 1 will be put up for sale after 11 June, if the Cabinet approves the sale; and FOLCA 2 will be remodelled with public funds into a medical centre and mixed-use complex.

Council leaders maintain that the overall project remains viable. But as money tightens, deadlines loom, and public consultation lags behind, many residents are left asking: Was this really the regeneration they were promised?

FOCLA 1: Public Heritage, Private Future

FOLCA 1—the Edwardian-fronted section of the Folca complex (pictured)—was originally meant to host a modern NHS medical centre consolidating two GP surgeries under one roof. The council’s business case even counted on a £1 million capital receipt from a lease premium to the NHS, forming part of its match funding for the £20 million Levelling Up Fund (LUF) project.

But by late 2023, the NHS withdrew from the plan, citing the economic fallout from the 2022 financial crisis. Build costs, interest rates, and market risks had made the scheme unviable. A subsequent structural survey added further complications, revealing that the building was in “extremely poor condition,” with over £3.8 million required just to make it watertight.

By July 2024, Cabinet had accepted reality: the medical centre would not go into FOLCA 1. Instead, the council authorised officers to explore other uses for the building, including outright sale. That same month, it still formally anticipated a £1 million capital receipt from the disposal—a figure now revised downward to £450,000, forcing planners to search for alternative revenue streams.

FOLCA 1, once celebrated for its historic red-brick façade and civic symbolism, is now likely to be offloaded on the open market. No consultation has been held on its disposal. No cultural reuse plans have been presented. And yet, it remains a listed “anchor” asset in the council’s own regeneration strategy—one it appears poised to relinquish after employing Wilks Head & Eve to undertake valuations for FOLCA 1 & 2.

FOLCA 2: Decarbonised, Medicalised, Monetised

In sharp contrast, FOLCA 2—the Art Deco extension on Sandgate Road

—has become the centrepiece of the council’s revised vision. Here, the NHS may yet find a new home. Following its withdrawal from FOLCA 1, NHS project teams approached the council with an alternative: to relocate the new medical centre into FOLCA 2, occupying the first & second floor, using a smaller, more cost-effective footprint and lower-specification fit-out.

This will go before Folkestone & Hythe District Council’s Cabinet on 11 June 2025, for approval. FOLCA 2 will then undergo £13.2 million in redevelopment, funded in part by:

• £2.2 million from the Levelling Up Fund, to make the building watertight and structurally separate from FOLCA 1.

• £1.44 million from the Public Sector Decarbonisation Scheme, installing low-carbon heating and insulation improvements.

• £9.6 million in council capital borrowing, offset by planned asset disposals, including FOLCA 1 and the Civic Centre. 

If delivered, the new configuration will host a medical centre on the first and second floors, with commercial space in the basement and ground level. The business case projects 103,000 kg in annual CO₂ savings, £86,500 in energy savings, and the creation of over 100 new jobs. But its financial break-even point depends heavily on the NHS signing a long-term lease—anywhere from six to 27 years, depending on contract terms.

According to Cllr Jim Martin (pictured AI generated) in January 2025, there are two key tenants already lined up to occupy the redeveloped FOLCA 2 building, offering some reassurance that the vision is taking shape.

However, significant risks remain. The LUF money must be spent by March 2027, following a Department for Levelling Up re-baselining. Delays in confirming occupancy or contract terms could trigger clawbacks or wasted expenditure. Meanwhile, the building remains vacant, its contribution to town centre vitality still theoretical.

The council is also exploring relocating frontline council services and Kent County Council facilities into the building to boost footfall and stabilise tenancy. But as of spring 2025, no final lease agreements have been announced, and refurbishment works are paused pending further clarity on occupancy.

Two Buildings, Two Destinies

FOLCA now represents a tale of two buildings: one reimagined as a publicly funded health and civic centre; the other to be discarded to help make the first one work. In many ways, FOLCA 1 is subsidising the salvation of FOLCA 2—its sale price patching a budget left incomplete by the collapse of the NHS lease it was meant to host.

Critics argue the original regeneration narrative has broken down. Instead of a coherent, town-centre wide improvement, the public now sees fragmented planning, shifting objectives, and dwindling accountability. The council has not yet committed to holding a public consultation on FOLCA 1’s disposal or on the long-term governance of the Folca project as a whole.

Recommendations for Rebuilding Trust

To restore public confidence and realign the project with its original intent, several steps are necessary:

• Immediate public consultation on the disposal of FOLCA 1, with options presented for cultural or heritage reuse alongside market sale.

• Full transparency on capital receipts, borrowing levels, and business case risks for FOLCA 2.

• Protective covenants applied to any sale of FOLCA 1, preserving its façade and limiting incompatible development.

• Independent oversight, possibly through a citizen-led regeneration board, to hold council officers accountable for project delivery and financial stewardship.

• Engagement with community partners to explore flexible, inclusive uses for the commercial units within FOLCA 2.

Conclusion: Regeneration or Retreat?

Five years ago, the Folca building symbolised Folkestone’s civic ambition. It promised modern health care, economic stimulus, and a respectful nod to the town’s architectural past. But in 2025, that promise appears only half-fulfilled. To date £305,655 has been spent on the building and nothing has happened. FOLCA 2 may yet succeed—but only by sacrificing its sister building. And even then, success depends on tenants signing up, construction timelines holding firm, and the business case surviving political and economic shocks.

The question remains: is Folkestone getting a brighter future—or merely a smaller one?

The Shepway Vox Team

The Velvet Voices of Voxatiousness