Will delayed revamp get the go ahead at all?

Dec 12 2008 by Michael Green, Chester Chronicle

It was revealed at a Chester City Council executive meeting the Northgate Development, shelved until 2012, is at “medium risk”. DAVID NORBURY reports.

The risk to the future of Chester’s Northgate Development was disclosed to councillors this week.

The Executive of the Tory controlled Cheshire West and Chester Council heard an assessment has been made of the possibility the near half-billion pound development will not see the light of day or will be substantially delayed beyond the currently predicted start in 2012.

In both cases, the threat level is said to be “medium” by the council’s director of regeneration and culture, Charlie Seward, who is also the City Council’s director of development.

To deal with the risk of the development not taking place, Mr Seward says discussions should continue with developers ING.

The troubled development is to be scrutinised at a Town Hall meeting on Wednesday (December 17) following a call in of the Executive’s decisions on its future.

On the possibility of a substantial delay to the start of the development, he says a procedure should be confirmed with ING to regularly review the viability of the scheme and its expected start date.

In the meantime, a series of measures should be taken to improve the development area generally.

Mr Seward points out in a report the development would take place over a five to six-year period.

It will be necessary to negotiate an extension and variation to the agreement with ING to secure the company’s continuing commitment to the delivery of a scheme.

“Whilst there will therefore be financial implications for Cheshire West and Chester, these will not be defined until the negotiations are concluded,” said Mr Seward.

The city council has agreed to retain ING as the development partner for the scheme, described by senior Lib Dem Cllr Jim Latham (Boughton Heath) as being “in paralysis.”

The council and ING are working together to identify a funding partner for the development and three financial backers are said to have been identified.

The city’s development portfolio holder Cllr Stuart Parker (Con, Christleton) recently faced a series of searching questions about the development with his answers taking account of a confidentiality clause in the agreement with ING.

Labour Cllr Bob Rudd (Boughton) asked: “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.

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.”

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.”

Cllr Proctor added: “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?”

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?”