Chester Northgate scheme bill set to rise by £6 million

The cash will allow Cheshire West and Chester Council (CWaC) to forge ahead with Phase 1 of the £300 million project.

Costing £60 million, this phase will see the construction of a relocated market, six-screen cinema, restaurants, a public square and car parking.

The request for the money to be released forms part of a report that will go before the council's cabinet and full council for approval in the coming weeks.

It comes after CWaC received confirmation last month that the compulsory purchase orders needed to acquire the remaining land had been approved by the Government.

Construction on Phase 1 could now begin by the end of next year.

Council chiefs say that work to design future phases of the scheme - including retail, housing, leisure and cultural elements - will continue.

The total cash allocated to the project so far is understood to be £56.85 million. This was before news broke this afternoon (Tuesday, October 2) of the request for a further £6 million.

The report to cabinet and full council is described as a "vision for the next 12 months" and details funding milestones and financial risks among other factors.

It is also said to acknowledge the need to "consider options" on the plan to relocate the existing Crowne Plaza Hotel.

The hotel on Trinity Street was meant to be demolished to make way for the House of Fraser department store, with a new one built next to the Storyhouse theatre.

But House of Fraser's withdrawal from the scheme has cast doubt on much of the retail element of the Northgate project.

The council says that the next year will be spent "completing feasibility studies, appointing a preferred contractor, continuing tenant negotiations, submitting plans to planning and beginning construction enabling works".

Cllr Brian Clarke, Cabinet Member for Economic Development and Infrastructure, said:

“With any project of this size there is always a certain amount of risk against an ever changing economic backdrop but that’s why we are open and transparent about these risks and our work to mitigate them.

“In this report an additional £6 million is being requested to bring us to a point where we can break ground on Phase 1. Funding will only be released following the agreement of the council’s cross-party working group. The capital will be released in portions after key milestones have been met to limit the risk to the public purse.

“There will be significant consultation in the months to come which will allow the community and stakeholders the opportunity to shape the future of this part of the city.”

He added: "Our aim is to deliver a mixed use scheme that’s ready for the next generation, rather than having to build something that’s a legacy of the last 10 years’ thinking. Doing nothing is not an option for us.

“Northgate should not be seen in isolation. Its impact on Chester will be to support the whole of the city centre by improving our offer and encouraging more visitors.”

Chester Northgate is part of the One City Plan that guides development across the city and last year saw the completion of the Storyhouse project incorporating a new 900 seat theatre, arthouse cinema, library and restaurant.

Since its opening the cultural centre has smashed its first year targets and welcomed over a million visitors.

Shadow Cabinet Member for Communities and Wellbeing, Cllr Stuart Parker, said: “Phase 1 of Chester Northgate will create a significant new destination within the heart of the city, complementing other key One City Plan investments such as the Central Business Quarter, Storyhouse and the new bus station.

“Relocating Chester Market will be at the heart of the first phase, with ambitious plans to become one of the best markets in the country. It has been transformed over the past year, it has returned to full capacity, welcoming half a million visitors this year and there is now a waiting list for traders.

“If this momentum is to continue then it’s essential that the city responds to the dynamic changes that cities like Chester are exposed to. Chester Northgate is the largest project the city has seen in decades and aims to secure its position in the country for years to come.”

Following the agreement of cabinet members on October 8, the plans will be shared with full council on Thursday, October 18.

In the New Year designs for phase one will be finalised and shared. Phase one already has Picturehouse, Tapas Revolution, Cosy Club and Zizzi confirmed and the council says work will continue to attract more businesses to Chester.

Updated plans for Phase 1 will be released in Spring 2019. Pre-construction and enabling works start in Autumn 2019 and construction on site in early 2020. The new timetable has a Phase 1 completion in Spring 2021.