CONFIDENCE was expressed this week that the £600m project to reshape part of Sheffield city centre as a regional shopping destination will not be blown off course by the national economic downturn.

Councillors were told that London-based developers Hammerson had the financial strength and the commitment to pursue the construction of New Retail Quarter.

Design work was continuing and a contractor, Sir Robert McAlpine, had been appointed with a view to seeing the first phase, the opening of the new John Lewis department store, being completed by Christmas 2011.
Ron Rees, the council officer who has been working on the project for eight years, said Hammerson was taking a long-term approach.

"The economic climate is difficult," he said. "A lot of schemes have fallen by the wayside but they are the schemes designed to make fast buck for the developers. This is a long-term strategic project."

Hammerson had assets of £6bn and did not have to borrow money at "ridiculous" interest rates, added Mr Rees. "They know that in due course they will get their money back."

Councillors were given a progress report on the development, now branded as Sevenstone, on Tuesday.

The authority is still waiting for the outcome of a public inquiry into a compulsory purchase order, which it hopes will allow it to wrap up remaining land purchases. At the moment, more than 75% of the site between Barkers Pool, Pinstone Street and Moorhead is described as being in "friendly" hands.

The timetable envisages the new fire station and headquarters in Eyre Street being ready by September, which will allow work to start on stripping out the existing HQ in Wellington Street.

Demolition in earnest is due to begin early in the New Year – after the Christmas rush – to make way for the new John Lewis. Around the same time, a start is likely to be made on clearing the neighbouring Grosvenor block, which includes the hotel and shops.

Council officers are emphasising that the overall result will not be a big indoor shopping mall, but several individually designed buildings with new walkways and pedestrianised areas.

Replacing Charter Square roundabout will be a square as big as the Peace Gardens – and of similar quality, it is being promised.
The whole project is scheduled completion by Christmas 2013, by which time the authority and the developers hope the national economic picture will have been transformed.

lThe council's interim director of development, environment and leisure, David Curtis, told councillors that Sheffield was in a better position than most cities to withstand the economic squeeze.

Probably because the market had peaked more slowly in Sheffield, there was not the huge number of empty flats and offices as in some other places, he said.

Most developments have secured occupiers in advance or were competing for occupiers.

Mr Curtis said the focus was on trying to ensure key schemes in the city centre remained on track, rather than taking a "scattergun" approach to attracting development.

"That's not to say there may not be some difficult times ahead with some projects. There may be some that have to be put on hold until market conditions recover."

However, Mr Curtis added: "Nobody has said we are pulling out of a scheme, which has happened in other places."