Arena warning for business leaders

MEMBERS of Yorkshire’s business community have been warned not to “discredit” plans to build a new arena in Leeds by the senior council figure leading the project.

Councillor Andrew Carter, executive board member for development at Leeds City Council, said the announcement that the 12,500-seater concert venue will be built on land at Clay Pit Lane in the city centre was a “bold and determined” move by the council that should not be underminded by a “cabal” of “movers and shakers”.

The announcement that the council has chosen a site which it co-owns with Leeds Metropolitan University “shocked” developers who had believed it would be between sites in Holbeck and Elland Road.

Former chairman of Marketing Leeds, Jan Fletcher, had proposed her site at Sweet Street while Leeds construction entrepreneur Peter Gilman was involved in the plans to take it to council land beside Leeds United’s stadium.

Ms Fletcher said she was “shocked and extremely surprised” by the move and seeking a “full explanation” from the council.

Peter Gilman of GMI said: “Naturally GMI were very disappointed to hear the news regarding the Leeds Arena. Over the last year or so GMI have committed extensive resources at a not inconsiderable cost to ensure that their bid for the much needed Leeds Arena met the council’s aspirations.

“GMI has worked very closely with both Leeds City Council and Yorkshire Forward on many projects over the years and is in full support of the Arena development. 
“However, until we are formally de-briefed by the council we cannot at this time make any further comment.”

The council said the original proposal to select a developer and site through commercial bidding were unaffordable.

It said the “public subsidy required to deliver both bids was also significantly higher than if the council was to develop the arena itself”.

It said the £30m cost will be met by the council and regional development agency, Yorkshire Forward.  The council will own the land and the building with the arena being managed by the already chosen operator, SMG Europe.

However doubts have been raised whether the public sector can deliver such a project on time and budget. One source close to negotiations said: “Let the people that know about development do it.”

However Cllr Carter warned: “A little cabal of people…movers and shakers who want to try to discredit the site…won’t be in the best interests of the city and we won’t be very happy about it.

“There is a huge determination here. We will weather the national and international economic downturn.

“What we can’t do is to commit funds that we simply can’t afford. This is an affordable solution. It’s a very positive message to all,” he added.

Cllr Carter has also dismissed criticism that the arena site will create further traffic congestion in the city centre.

Many readers of TheBusinessDesk.com have voiced fears that the arena will be difficult to reach.

But Cllr Carter said: “If they think that we haven’t already had people looking at the implications of that site, then they are mistaken. I don’t think it [traffic problems] will be the case.

Gary Williamson, chief executive of Leeds, York & North Yorkshire Chamber of Commerce, welcomed the move as it will “bring maximum economic benefit to Leeds”.

“However, the Chamber is concerned that there has been no mention of conference and exhibition facilities being included in the arena development, and very much hopes that they will be part of the plans,” he added 

The West End Partnership; a consortium of five major developers in Leeds that are currently investing £1bn to create a new business district off Wellington Street in the city, supports the move.

Nik Dockree, development manager at BAM Properties said: “We are 100% behind this decision and feel that it is a great regeneration opportunity for the city. The site of the arena is well-connected to the city centre and will mean that visitors will use existing city centre amenities such as restaurants, pubs and hotels, delivering tangible economic benefits to businesses in the area.

“In the UK the MEN Arena delivers more economic benefits to its home city that any other. Why? Because it sits right in the heart of Manchester – the same way the Leeds Arena will be located in the heart of our city.”

Sylvia Bowden, senior partner in the structured property finance Team at Yorkshire Bank, said it was “very positive news indeed for the city and its residents”. 

“This will provide a great opportunity to add another iconic building to the civic quarter of Leeds and encourage spending in the city centre.  The site adjacent the universities on the free city bus route, within walking distance of the rail station and multi-storey car parks will prove very popular with young people,” she added.

To listen to Editor David Parkin’s views on Leeds Arena click here.

Do you share Cllr Carter’s views or should the private sector have been given the chance to build Leeds Arena? Add your comments below.