Yahoo News Freshney Place car parks will 'eventually become unviable' if work not carried out
North East Lincolnshire Council's purchase of Freshney Place in Grimsby was cheaper because of due car parking maintenance, it has emerged.
It bought it in August 2022 for under the £17.1m asking price, with £16.5m government Future High Streets Fund cash used. It is now planning significant repairs to the shopping centre's two car parks, which have 849 parking spaces.
Water is penetrating structures. A cabinet Freshney Place sub-committee decision to authorise the maintenance was called in by Independent Group for North East Lincolnshire councillors.
Works would take place across approximately 18 months. They would involve concrete repairs, full new coatings, and all works to top decks and upstands, "open to the elements and in worst condition".
The council report on the maintenance states doing nothing will see water "continue to penetrate into the concrete and degradation will occur at an accelerated rate", shortening the car parks' life expectancy.
Since the council bought Freshney Place, appointed project manager Black Cat has worked on cost estimates for the car parking repairs. Though councillors were given sight of it, the estimated costs are not being disclosed publicly yet. The council do not want contract bidders knowing.
'How many more hidden costs are there?' says critical councillor
Cllr Paul Henderson called the decision into the transport, infrastructure and housing scrutiny panel. "Freshney Place's finances are opaque at the best of times," he argued. He opposed the council's purchase of it, and does not support the leisure scheme plan. He pointed out the report on the car park maintenance states the need for repairs was known at the time of purchase, but this had not figured at any point until now.
"How many more hidden costs are there? We need to know because the business case is late, the plans have been pushed back another year," said Cllr Henderson, adding the leisure scheme's cost quote in 2022 were at a time of inflation rises.
"I'd like to request no further expenditure on Freshney Place until there's a full, accurate treasury business case," passed by scrutiny and cabinet, said Cllr Henderson.
He read out a statement by Cllr Paul Bright, who co-signed the call-in "due to the large sum of money involved". "This was known about over two years ago. Why has this taken so long to address the issue?"
Alternative is car parks 'continue to deteriorate'
Cllr Jackson noted the call-in was about the car parks' maintenance. "I think it's unfortunate that Cllr Henderson has used the opportunity to conflate to his objection to the purchase of Freshney Place in the first place and the leisure scheme."
The leisure scheme "will be reporting back more fully over the next month or so". "The alternative to not spending money on maintaining the car park at Freshney Place is that it continues to deteriorate."
"That would eventually make the car park unviable," Cllr Jackson said, and Freshney Place "less viable". "No borrowing was required" for the shopping centre's purchase. The knowledge that future car parking repairs would be needed was reflected in the lower purchase price.
Freshney Place East Car Park has 454 spaces, the West Car Park has 395. "I think we need to treat them with the same respect as the main buildings and the investment accordingly we're putting into Freshney Place," said Cllr Ian Lindley.
"We need new parking facilities that are fit for purpose," he said. He noted the extra footfall the Community Diagnostics Centre (CDC) being built inside Freshney Place would bring, and the Horizon Youth Zone being built nearby.
"Stalling now so we can go round in circles and talk about the same things that we talked about in the past" he said "would be counter-productive" to those projects. Labour and Co-op Cllr Karl Wilson said, "I don't remember this car park issue being part of the debate when we bought Freshney Place."
Minutes and documents for the cabinet meeting in June 2022 to buy Freshney Place do not contain any reference to future needed car parks' work. An identified risk with the purchase back then does state: "Additional costs relating to the condition and ongoing maintenance of the building may arise."
"We bought Freshney Place to avoid going into a managed decline," said Conservative Cllr Neil Pettigrew. "I can't see that a bad decision's been made," he said. Borrowing costs for the maintenance will be offset by income from Freshney Place.
The decision was released four-all, on chair Labour Cllr Sheldon Mill's casting vote. The sub-committee was recommended to refer to audit on transparency over the financial figures.
