Sheffield Council has parted with the original developer behind the city’s Sevenstone scheme and now plans to “go it alone” without entering into a new partnership. The decision follows four years of delays by property firm Hammerson, with financial issues playing a large part in the stalling of the project.
The council intends to set up a centrally owned organisation, known as a collaborative development vehicle (CDV), in order to drive the project forward and ensure all targets are met. However, it is also interested in working with private developers and even bringing in a commercial partner to oversee certain aspects of the scheme.
Cabinet member Leigh Bramall, says; “The project needs to be as flexible as possible at the outset; a CDV could allow a much more controlled approach to delivery, providing flexibility and mitigating risk.
“We want a high quality retail offer for the city centre to complement what is already available.
“Our vision is more than just the new retail quarter – we want a commercial centre for Sheffield and the wider city region that can attract investment and jobs to the area.”
The council is already in a good position to kick-start work on the project, as it owns the land and has utilities in place. Furthermore, funding should not be an issue as a potential £30 million could be borrowed against future business rates, meaning that delays due to financial problems are unlikely.
In total, the new retail quarter will offer around 800,000 square feet of available space, thus paving the way for a wealth of new businesses to enter Sheffield. Furthermore, a multi-storey car park will attract consumers into the city centre, as will a number of restaurants and entertainment venues designed to cater to round-the-clock custom.
A spokeswoman for the council said; “The council sees the need for the scheme to be delivered as a whole.
“However, there could be opportunities for the delivery of early elements, such as infrastructure and demolition through the collaborative development vehicle.
“Following a review of the new retail quarter scheme, we will be ready to take the scheme back to the market place for a new private partner during January to March 2014.”
The council is currently reviewing the situation and laying down plans as to the progression of the project. Should all go to plan, it is hoped that the Sevenstone development will be completed by 2019.
Do you think more local authorities would benefit from a greater level of involvement in retail and leisure developments, or will schemes such as the Sevenstone development always benefit from the experience of a private property firm at the helm?
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