Funding plans pulled from £300m regen project

PUBLIC funding towards a £300m shopping, leisure and residential project in Wolverhampton is set to be axed.

Following a detailed study by Wolverhampton City Council, officers have recommended the authority does not financially back the ‘Summer Row’ regeneration scheme by Belfast-based developers Multi.

Its cabinet will meet this evening and is expected to follow officers’ recommendation to terminate the council’s agreement with the firm.

A compulsory purchase would have been necessary to make the land available for Summer Row but the authority is now expected to let it lapse without being implemented by February 12.

Multi has been searching for sources of funding to make the scheme a reality since its main investors pulled out in 2008.

The council was approached last year about investing and, although councillors approved the idea in principle, officers were tasked with carrying out a detailed assessment of the risks before committing.

An officers’ report says there are too many financial uncertainties and risks as well as too little time to resolve them before the CPO deadline next month. The council would not divulge exactly how much it was proposing to put into the scheme.

Included in the plans are a 70,000 sq ft Debenhams over three floors, 140 apartments, public realm and bars.

Managing director of Multi UK Paul Sargent said: “Naturally, we are deeply disappointed at the council’s decision after six years working on Summer Row, but we are sympathetic with the council’s viewpoint in the current economic climate of uncertainty.”

Regeneration chief Cllr Peter Bilson said: “We have already had expressions of interest from developers who have ideas for Wolverhampton.

“My message is that we will not rule anything out at this stage, come to us with your ideas, innovation and enthusiasm and let us see what we can do for Wolverhampton.”