Traders claim Project Jennifer offers are "derisory"

A GROUP of businesses on a trading estate in north Liverpool earmarked for compulsory purchase as part of St Modwen’s £150m Project Jennifer scheme have described the offers being made for their properties as “derisory”.

The companies, who are all based on the Taylor Street industrial estate earmarked for closure as part of plans to create a new district centre in the area around Great Homer Street market, also state that the long-running process is damaging their prospects as they cannot reinvest in units which may be taken from them.

Victor Mass, who works for the Rotunda House Group of companies has written to Liverpool Council leader, Cllr Joe Anderson and to the chief executive of the scheme’s proposed anchor tenant, Sainsbury’s Justin King, to argue that St Modwen “has not been willing or able to to progress the project or deal fairly with those on the receiving end of their acquisition attempts”.

Mass told TheBusinessDesk.com that businesses standing in the project’s path are currently receiving offers of around £25 per sq ft for their holdings, even though rival supermarket chain Tesco paid up to £65 per sq ft to other landholders in the area two years ago.

He said the money currently on the table is not enough to compensate the businesses for the units they are losing and their relocation expenses.

“They talk about bringing jobs to the area, but there are many existing jobs at risk,” he said. “I’ve no doubt that Sainsbury’s could build a fantastic store here, but we don’t see why we should be contributing to it.”

Stephen Leahey, director of Crown Battery, said that the proposals have now been dragging on for eight years – although this was partly due to Tesco submitting plans for a rival standalone foodstore and then issuing legal challenges to the scheme when these were rejected.

“I was born and bred in this area and I’m the first to admit that something needs to be done, but what we’re being offered is nothing short of a scandal.

“We want a fair price for our land and our property and we’ll move on.”

Leahey said that the bulk of the units on the trading estate were occupied seven years ago, but as leases have expired tenants have moved off the park leaving a small group of owners reluctant to spend on units which may be taken from them.

“It’s holding my business back,” he said. “The estate is an absolute disgrace now.
“I’ve got a deal on the table to import new product from China. The guy wants to come over and meet me but I’ve been putting the meeting off because I’m embarrassed.

“I’ll have to spend the first ten minutes of the meeting explaining why it’s in this state .”

Peter Rawcliffe, founder of 10-year old meat products firm Rawcliffe Foods, is one of several firms that have formally objected to a CPO process which began in March, meaning the project is now likely said the businesses were “in a state of suspended animation”.

“I was told in 2004 that we’d be out of here in a couple of years so we didn’t do anything, but we’re a food manufacturer it got to a stage where we had to reinvest otherwise we’d have been in danger of losing our licence. I probably won’t get that money back.”

The £150m Project Jennifer redevelopment is a mixed use development anchored by a 110,000 sq ft Sainsbury’s supermarket. Overall, the development takes in 45 acres of land and includes a new district centre with 80,000 sq ft of retail units, 80,000 sq ft of light industrial space and around 450 new homes.

A Liverpool City Council spokesman said: “There are more than 150 land interests involved in the CPO at Great Homer Street and it is not appropriate to comment on the detail of individual negotiations.

“It is our intention to try to relocate as many existing businesses as possible and we are working closely with all tenants to secure suitable alternative accommodation.”

If a public enquiry is required, it is likely to commence during the second half of 2012.