Rochdale's scaled back £150m regeneration effort for the town centre could be seriously stalled if financial backers are not found soon.
That is one of the the findings of a confidential report seen by the Observer and set to be discussed at Monday's cabinet meeting, which could decide to ditch developer Genr8 because of the amount of time it has taken them to come up with firm backers for the scheme.
The report discloses that Genr8 was given a further three months grace to March 1, to provide the local authority with further clarification of its ability to fund the scheme, which pre-recession had been costed at up to £250m.
More crucially, Rochdale councillors are being asked on Monday to decide whether to give Genr8 more time to come up with the necessary assurances or take the authority scheme back onto the open market.
The report, prepared by the chief executive of Rochdale Development Agency John Hudson, states: "Progress has been made by Genr8 in engaging with funders and three organisations are interested in investing in the company'.
In his report Mr Hudson warns of the dangers if the authority pulls the plug on the firm by explaining: "Rochdale Council could withdraw from discussions with Genr8 and seek to secure another development partner for the town centre scheme. 'However, due to the economic situation our property advisers DTZ have advised us that given the low level of interest shown in the recent selection process it would be advisable to wait for 12 months before offering the scheme to the market again.
"This would mean a delay in taking the scheme forward of at least 18 months with no certainty of Rochdale Council being able to secure a suitable partner."
After seeing the report the Observer contacted Mr Hudson who added: "Genr8 is the council's preferred developer and has made a significant upfront commitment to the redevelopment of Rochdale town centre already, developing proposals for the recent public consultation which received a lot of positive feedback.
"It is no secret that we are operating in a very difficult market due to the national recession, but rather than sitting on our hands we are working with Genr8 to bring forward proposals so that when other major building projects such as the new Sixth Form College, Transport Interchange and council offices are delivered by 2012, we are in a position to quickly bring forward new commercial developments such as a department store, supermarket, high street shops and new leisure facilities.
"Our financial advisers tell us that the market will be in a better position in two years time and we want Rochdale to be ready to benefit from the significant private sector investment the Genr8 proposal intends to bring."
Mike Smith, partner of Genr8 told the Observer: "We are making plans to invest up to £150 million into Rochdale town centre and it is not unusual that progressing a development of this size does take a lot of effort and negotiation with partners.
"We have made great inroads developing early proposals in conjunction with the council and Rochdale Development Agency and have enjoyed meeting local people during the consultation and hearing their views.
'We are working up the detail needed this summer ahead of preparing a full public consultation before the end of the year."
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bluemanc1309, rochdale (19/03/2010 at 14:59)
Mick Martin (19/03/2010 at 16:31)
"The report discloses that Genr8 was given a further three months grace to March 1" Another report suggests that at the cabinet meeting they are likely to be given another three months. If they haven't got the backers by now, are they going to ever get them?
What I wan't to know why is this meeting in private? Again, to hide facts from the people? To protect those running this shambles? To help those up for election in the cabinet retain their seats? Honesty and openess is the best policy.
The development was £250m pre recession. No it wasn't. It was still being quoted by Rowen and the Lib Dems at £250m in September at the unveiling of the masterplan. It was only last week the Observer dropped the bombshell that £100 to £150m had been written off the project.
If Genr8 can't get the finance in place for a project now £100 to £150m less how on earth were they going to do one at £250m?
Rochdale deserves better than this. Councillor Sharif please do explain.
Ray Stay (19/03/2010 at 16:42)
selfexiled (19/03/2010 at 19:44)
its because the council the redevelopment commitee and anyone you could hang these continuous failures on need to hide behind spin doctors.
No self respecting national bespoke chain of shops will come near the town centre and thats a matter of history not conjecture, Debenhans came and went in the 80's and other smaller chains have legged it.
The council will blame everything from the state of the economy to companies just relocating elsewhere but Rochdale as always been a expensive parking location and the deterioration of Drake st and the area up to Milnrow Road as been going on for years and the council as not made any effort to consult this problem.
So now they run round like headless chickens inviting ideas in forums from people who are at desperation stage regarding their business's.
Its all to little to late and the outcome is even more dire than people realize.
If there are no decisions made for another two years and it takes another 4 years for these decisions if any are made to come to fruition then the town centre is Dead.
STREETSHACK, RED BROOK (19/03/2010 at 21:25)
Rochdale voters read with growing incredulity on Wednesday evening the breaking news story on Rochdale Online that:
“The Council's town centre re-development partner, Genr8, was given three months, to the 1 March, to provide further clarification of their ability to fund the scheme's significant pre-development costs and has failed to do so” [‘Town Centre re-development setback’, Rochdale Online,17 March 2010]
Public money is streaming into private property developers but despite the bailout companies are not required to build extra affordable housing. Northwest companies receiving funds, missing deadlines and continuing to sell at a premium. Sadly Rochdale’s latest fiasco with Genr8 Developments is nothing new.Hundreds of millions of pounds of public money has been pouring into regeneration sites around the country, many of which had stalled as investors and developers had sat on their hands waiting for the economy to pick up again. That the industry’s showed a “tremendous response” to government plans to give over £1 billion is hardly shocking.
Compared to bankers’ bonuses there’s been little scrutiny of the vast sums going into these projects. A little surprising, considering how bound up the financial crisis was with the property market.
In December, the Homes and Communities Agency (HCA) published the list of schemes awarded funds [2] from the first round of the Government’s Kick start programme.
It totaled £360 million for 136 projects, 22 of these were in the Northwest, receiving over £48 million between them.
That the decision on the deadline extension will be taken behind closed doors at a meeting of the Cabinet in Rochdale Town Hall on Monday 22 March with the press and public being excluded from witnessing any of the discussion should surprise no one in Rochdale who has been following this ‘re-generation’ debacle ~ from standing start to current quagmire in a mere three years ~ well done RMBC truly Olympic Standard ineptitude.
WHY ? ~ One wonders are the Press also excluded from this meeting?
WHAT? ~ The voters of Rochdale might ask have the Council got to hide?
Have Rochdale Lib Dems utilised their celebrity and hospitality budget to employ that well known Lib Dem supporter John Cleese - another comedian nearly as world renowned as Rochdale Council for his comedy timing - to get his Monty Python buddies to write the stage directions for this farce?
Many of us simply saw the flawed & bureaucratic decision making processes at RMBC as the work of clowns & jesters ~ few of us realised they had this latent talent to branch out into an all singing all dancing comedy act!
gatesofheaven (19/03/2010 at 23:43)
Henry Kelly, Ireland (20/03/2010 at 00:46)
Bald Bob, Oldham (20/03/2010 at 08:49)
CLIVE WILLIAMSON (20/03/2010 at 12:24)
Artful Dodger (20/03/2010 at 21:23)
Henry Kelly, Ireland (21/03/2010 at 02:33)
The town centre development, which is to house around 2000 staff, will feature a new library and information centre, public customer services and training facilities, together with offices for other local partners. Although not confirmed, it is expected to have a gross floor area of between 250,000 and 320,000 sq ft.
The building will replace the existing Municipal Offices as well as 27 other current Council office sites and will be developed on a two-acre riverside location nearby on Smith Street. The offices will be next to the new transport interchange, which will see the Metrolink tram come into the town centre, and it will be at the heart of multi-million pound plans to redevelop the town centre. Clearance work is already underway and once completed, the building is expected to achieve a BREEAM ‘Excellent’ rating.
Curtins’ involvement in the project will include an assessment of contamination issues associated with the former site, potential flood risks for the new location, and the provision of extensive and innovative sustainable solutions.
Jon Moister, lead engineer for Curtins, said: “This is a dream project for any engineer to be involved with so we are delighted to have been appointed by Rochdale Council and look forward to working with them and the appointed design team.
“It is a vast development, and once completed it will serve as an excellent venue for the community and council staff, right in the heart of the borough.” Consultation on the outline designs of the building has taken place with hundreds of local people and council staff giving their views on the proposals. The design team is now working towards a concept design with a planning application expected to be submitted early in the New Year.
John Patterson, Executive Director at Rochdale Borough Council, said: “We have a fantastic opportunity to create a great building. The council is committed to moving the borough’s economy to a low-carbon model, in line with national requirements, and this building will meet some of the most challenging sustainability standards.
“We are confident that we will create something that we, along with future generations of residents and visitors to the borough, can admire and be proud of.”
Councillor Mohammad Sharif, Rochdale Council Cabinet Member for Regeneration, said: “We have recently unveiled a bold new vision for Rochdale town centre and the relocation of the council offices, and the demolition of the current office building, will be a catalyst for our being able to achieve it.
“The regeneration plans will see Rochdale established as a sub-regional shopping centre with fantastic cultural and leisure facilities centred around the largest public square in England. The construction of this building will demonstrate our commitment to bringing positive and lasting change to the borough.”
Construction is expected to start next summer with the building due to open in autumn 2012.
E K (23/03/2010 at 22:54)
E K (23/03/2010 at 23:07)
You do my head in.
Where have you got all that info from.
You spout a load of garbage. AND I don,t beleive you live in Ireland for one minute. If you do, then leave Rochdale to us who live here.
sonofa tool (29/03/2010 at 20:23)
What we need now is a council comprised of INDEPENDANT members no NO OUTSIDE CONFLICT OF INTERESTS.
The three party system in Rochdale is broken beyond repair, and corrupt throughout.