£20m lifeline for retail quarter
ALMOST £20m of public funds are to go into saving the Sevenstone retail quarter in Sheffield city centre.
The financial lifeline is designed to ensure the much-delayed 600m project between Barker's Pool, Pinstone Street and Moorfoot can eventually get off the ground after falling victim to the credit crunch.
The council and Government development agency Yorkshire Forward are preparing to step in to enable the compulsory purchase programme to continue after London-based developers Hammerson said they could no longer maintain it.
Without the intervention, the ten-year scheme would unravel by July next year amid uncertainty over land acquisition and the expiry of existing compulsory purchase orders.
The council said this week that Sevenstone is crucial to the future prosperity of the city centre – and it believes it will get its money back, with interest, when construction begins.
The council is preparing to borrow 10m to keep the retail quarter plans alive subject to the confirmation of an expected Yorkshire Forward contribution of 9.57m.
It is working on the basis that the developers will finally deliver the scheme, although a possible scenario is being mooted in which alternative developers may be needed.
"Hammerson have already invested in the region of 60m in the Sevenstone project and remain committed to the scheme," says council executive director Simon Green in a report to councillors next Wednesday. "The risk is therefore seen as low.
"If they do leave, the council will… seek an alternative developer to deliver the New Retail Quarter and would look to that developer to take on all of Hammerson's existing financial obligations."
The retail quarter is intended to create a range of top quality shops that retail analysts say Sheffield currently lacks, helping the city to compete with places such as Leeds, Nottingham and Manchester.
At its heart is a new and bigger John Lewis store – and the council says John Lewis remains totally committed.
Simply, the authority argues that the whole project is so important it cannot be allowed to fall apart.
Coun Colin Ross, cabinet member for employment, enterprise and development, said: "It has become necessary for the public sector to provide this investment because of the current economic climate.
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Thursday 24 May 2012
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