A retail expert believes attracting investment for Chester’s £300m Northgate Development will be ‘really hard’ but still backs the council vision.

Guy Butler, co-founder of Manchester-based property company Glenbrook, is the outgoing chairman of Chester Growth Partnership which brings together public and private sector partners including Cheshire West and Chester councillors.

So there were raised eyebrows when he appeared to cast doubt on the CWaC-backed Northgate Development which includes a large amount of retail space – including a department store run by House of Fraser which had a ‘disappointing’ Christmas – in addition to a replacement Crowne Plaza hotel, leisure and housing.

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Mr Butler, who helped deliver Liverpool One when he worked for the Duke of Westminster’s Grosvenor company, wrote in Chester Civic Trust’s December newsletter: “The economic viability for investors in the high street is dead; people are not keen on retail, and Chester is difficult because the investment scale is more limited. So we need to look at attracting investors in other sectors – like housing, hotels, leisure and offices.

“London is where the key investment goes in this country; Birmingham and Manchester follow, and then it spills out to Liverpool and Bristol and the like. Chester is the next rung down the ladder; we need to incentivise money in to the city and the only way this can be done is by showcasing opportunities.”

But Mr Butler, who lives at Cholmondeley, has since clarified that as a commercial operator in the property sector he has a more narrow focus on what is deliverable. He nevertheless supports CWaC for ‘doing the right thing for the city’ in pursuing a vision with a broader set of aims.

“I can’t knock them,” said Mr Butler, who says Northgate must clear the next crucial hurdle by securing the last few plots to complete the site assembly at a public inquiry in February.

On the plus side, Mr Butler is confident what is known as phase 0, to transform the old library into a restaurant hub, is ‘fundable’.

The current library will be transformed into a restaurant hub with an entrance through to the new market square

But he warned: “The hard bit is the next phase – the relocation of the hotel and the anchor store – and there’s no middle ground between the two. That’s going to be really hard. The other option is to fund a more favourable scheme. But once you go down an avenue you have to be committed. You have to believe in it.”

The Labour-led council has been struggling to attract external investors in Northgate so in October voted to risk £57m of taxpayers’ money in a bid to break the logjam. A report to the cabinet recommended the council maintain ‘critical momentum’ by funding the construction phase if no financing partner was forthcoming, subject to stringent commercial conditions, with the hope private money will follow later.

David Lewis of Rivington Land, Cllr Brian Clarke, cabinet member for economic and infrastructure and shadow cabinet member Cllr Stuart Parker and Clare Huber, Cheshire West and Chester Council senior construction manager in front of Chester Library that will become a restaurant hub and entrance way into the new market square.

Councillor Brian Clarke, cabinet member economic development and infrastructure, remains upbeat.

In response to Mr Butler’s article, he said: “Chester Northgate is a mixed use development designed to complement Chester’s current offer of retail, leisure, tourism and city centre living. Whilst it is true that the face of the high street is changing, retailers still require a high street presence in key locations across the country.

“Chester is currently in the top 50 retail destinations and it is the aim of the council to retain or improve on its position. Retail is changing and people expect much from a city such as Chester which is why the scheme includes a remodelled market providing a new visitor experience, new city centre living, a new hotel, Picturehouse cinema, bars and restaurants.

“The proposed development, together with the recently completed Storyhouse cultural centre and the new bus interchange fundamentally changes what Chester has to offer residents and visitors and complements everything that makes Chester a great place to live in and visit.”