CHESHIRE West and Chester Council has agreed to act as guarantor for a private developer to the tune of £11.5m in case a proposed Central Business District flounders.
Development partner Muse is seeking planning permission for its first office building together with shops, bars, restaurants and public realm on a 3.5-acre site bought from Lloyds Banking Group linked to nearby Chester Railway Station by a walkway.
But in the event Muse fails to find enough tenants for the building, expected to be completed in 2015, the council would rent some of the space up to a value of £11.5m.
Cllr Herbert Manley said should such an eventuality arise, the council would sub-let the office space as it does currently with many properties across the borough.
He argues the contribution is worthwhile given the ‘innovative’ project – which will also draw on £6m VAT money – will create £100m investment and jobs.
“When you are a partner you have got to take your fair share; you can’t say ‘I’m not doing anything’,” said the executive member for regeneration.
But he stressed: “I have got to be sure I spend council money, council tax-payers’ money, properly.”
Premier House, currently occupied by Lloyds, would be demolished to make way for the Muse scheme, but the bank will retain a presence at the site.
The business district would aid the regeneration of the area which will also see a new Waitrose supermarket and a housing scheme at the shot tower.
Cllr Manley added: “This is about the economic development of the centre of the city. It will create sustainable investment and jobs and that’s what this is all about.”
