Northgate Development scheme revamp due for discussion in April

Dec 9 2008 by David Norbury, Chester Chronicle

POSSIBLE changes to Chester's credit crunched near half billion pound Northgate Development are unlikely to be discussed until the spring.

The scenario emerged during a series of questions from all parties at a meeting of the full City Council.

Labour heavyweight Cllr Bob Rudd (Boughton) started the ball rolling when he asked development portfolio holder Cllr Stuart Parker (Con, Christleton): “When does the council intend to start working on revised plans for the Northgate Development?”

He pointed out that since the original planning permission, there had been “significant changes of circumstances” including the closure of the Odeon cinema, the government's decision to approve the new Cheshire West and Chester council, changes to sub regional retail markets, “the meltdown in global financial markets” and the failure of Icelandic banks which had badly affected the group which owns House of Fraser, the anchor store in the development.

Cllr Parker replied: “There have been a number of changes which have taken place since the inception of the Northgate Development scheme.

“The main influencing factor delaying the project start is now the meltdown of the global financial markets, as Cllr Rudd calls it, which is resulting in widespread recession throughout the world.”

He pointed out that in a report to a meeting of the Town Hall Executive, he had indicated the city council is working with developers ING to identify and select a joint venture funding partner as soon as possible.

“As soon as this partner is identified and selected we will commence discussions on potential revisions to the Northgate scheme.

“We are hopeful these discussions will take place early in the new year,” said Cllr Parker.

Cllr Rudd asked: “Will there be time for this city council to achieve that because early in the new year could mean April?” to which Cllr Parker replied: “I can certainly clarify that early in the new year will be April. That is as far as I can go at this stage.”

Asked by Tattenhall City Cllr Mike Jones (Con) to explain the background reasons for the delay in the development, Cllr Parker said the scheme had been put on hold to ensure it would not suffer from the continued economic uncertainty.

“The scheme was originally started in 1993 which seems an incredible amount of time ago,” said Cllr Parker.

Due to various changes by the previous Lib Dem/Labour administration, the development finally received planning permission in August 2007.

“There was further delay for judicial review and the earliest start date possible was in November 2007.

“In addition ING were still in the process of identifying and short listing joint venture partners when the credit crunch began to escalate, increasing construction costs and reducing property values which brings me back to the present situation,” he said.

Responding to Mollington councillor Brian Crowe (Con) who asked for an explanation of the reasons the city council was maintaining its partnership with ING, Cllr Parker said this had been explained in his report to the executive.

Upton Grange councillor Jill Houlbrook (Con) suggested Cllr Parker would agree “that the residents of Chester deserve an honest explanation of the circumstances surrounding the Northgate Development” and asked if he could explain why there had been “so many frankly spurious and disingenuous comments that could jeopardise the negotiations made by members of the council”.

Cllr Parker suggested the short answer was “yes” but added: “Residents do deserve to be informed which is why we have been immediately forthcoming with press releases and briefing notes.

“On the second part of the question I could not agree more,” he said.

“The Northgate Development is an important scheme for Chester and should not be jeopardised by spurious and misleading comments by members of this council.”

Vicars Cross Cllr Graham Proctor (Lib Dem) asked Cllr Parker to confirm the scheme was no longer viable and that ING would remain involved until 2012.

“The scheme is no longer viable and will be subject to review,” replied Cllr Parker.

“ING have confirmed they are committed to bringing forward proposals for the regeneration of the Northgate site.

“For the reasons stated in the report to the executive it has been recommended that ING remain as the council's development partner.

“We have no reason to doubt their ongoing involvement.”

“Does Cllr Parker take it as appropriate that the city council should be held in thrall to a foreign bank for a further four years,” responded Cllr Proctor.

“Will he also investigate ways of retaining the planning permission for the scheme but divided into smaller phases which could be delivered by more locally based developers to give a much needed boost to the local economy whilst getting the city centre revitalised more quickly?”

Cllr Parker pointed out the development “was already signed up by the previous administration and has been accepted as such”.

Hoole All Saints councillor Ted Longman (Lib Dem) argued: “The state of the city is of such concern to everyone in Chester that we want to be absolutely certain that everything is being done to expedite the development.”

He asked: “Is there a plan B which can be put in place as soon as possible or are we entirely dependent on ING and their search for a funding partner.

“The present situation continues to paralyse progress.

“As so much preparatory work has been done we should proceed while building costs are minimal so that when the economy does turn upwards we are in a position to benefit from it.”

Cllr Parker said his report to the executive had outlined options for moving the Northgate project forward to achieve a mixed development scheme for that quarter of the city.

“We have examined other options and this is the most viable option,” he suggested.

Cllr Longman inquired if the other options which had been considered would be made public and Cllr Parker replied: “When it is possible to do so.”

At the start of the exchanges, Lord Mayor Cllr Brian Bailey told councillors: “Can I remind the council this authority has signed a legal agreement which contains a confidentiality clause.

“I urge all councillors to consider that matter when asking the question and any supplementary question and the executive member should do the same when replying.”