Regeneration site finished using community levy following collapse of contractor

More than £400,000 generated by housing developments in Somerset has been spent on finishing a major regeneration site after the main contractor went into administration.

Somerset West and Taunton Council spent £16m on the Riverside development on the Coal Orchard site in Taunton.

The council revealed it spent £420,000 on new steps down to the River Tone, paid for by the community infrastructure levy (CIL).

The additional funding was needed after the main contractor went into administration last year.

A total of £16m was spent by the council on delivering the Coal Orchard project between 2019 and 2023.

Of this, around £7.7m came from the sale of existing council assets and just over £3.9m came from external borrowing.

A total of £1.25m came from the government’s future high streets fund, on top of £870,000 from Homes England and more than £1.85m from other grants or underspends in other budgets.

This left a gap of £420,000 which was filled by the community infrastructure levy.

Joe Wharton, the council’s assistant director of major and special projects, said the additional funding had been needed in part by Midas Construction going into administration in January 2022.

“This funding request is for a contribution to the cost of the high quality public realm and riverside steps delivered as part of the Coal Orchard scheme.

“The overall cost of the scheme has been subject to overspend due to the impact of the main contractor going into administration in January 2022.

“The project has created a new high-quality public realm, including additional flood mitigation in the town centre on the site of an end of life public swimming pool and car park.

“The public realm supports 40 one and two-bedroom apartments and eight commercial units, as well as creating and augmenting the surrounding Taunton independent quarter, the Brewhouse Theatre and the riverside footpath.”

Cllr Mike Rigby, portfolio holder for economic development, planning and transport, said in his final report: “At the time of writing, all but two of the residential units were occupied, including all of the discounted open market units that were subject to strict criteria relating to income and local connections.

“A new commercial agent is now in place, with ongoing negotiations on several commercial units continuing. Two of the eight units are close to agreement.”