Gateshead Quays update as council leader makes 'absolute guarantee' promise

The proposed Sage arena and conference centre site between the Glasshouse and Baltic on the Gateshead Quayside
-Credit: (Image: Newcastle Chronicle)


Gateshead’s council leader has given an “absolute guarantee” that a flagship Quayside development will go ahead, despite lengthy delays and spiralling costs.

Martin Gannon told colleagues on Thursday that he had full confidence that a promised international conference centre will be built on the south bank of the Tyne, though he notably did not offer such assurances over a 12,500-capacity arena which also forms a key element of the Sage project. The senior Labour figure’s comments came as it emerged that Gateshead Council is withholding payments to the contractors behind a £23 million multi-storey car park already built in anticipation of the Quays regeneration scheme.

That publicly-funded car park in the Baltic Quarter is yet to open and Coun Gannon confirmed that the local authority is in dispute with the builders over the facility not being “fit for use”. Gateshead’s Lib Dems had urged the council to investigate options for opening the car park, which is now expected to be in use next summer.

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There has been uncertainty for months over the planned Sage arena and conference centre project, with construction work still yet to begin on a prime patch of land in between the Baltic art gallery and the recently-rebranded Glasshouse International Centre for Music. The cost of the “world class” development was said to have jumped from £260 million to more than £350 million almost two years ago, a figure that is thought to have continued to increase since then.

After calls for the council to deliver answers on the future of the Quays development last week, Coun Gannon accused the Liberal Democrats of “malicious” criticism at a full council meeting on Thursday. He told the chamber that the authority remained in “detailed discussions” about the project, adding: “We have that ambition and I absolutely guarantee that international conference centre will be delivered.”

Coun Gannon appeared careful, however, not to give the same guarantee about the new arena planned as part of the riverside venue, which would also act as a replacement for Newcastle’s Utilita Arena.

Original plans for the project were approved four years ago but later had to be redrawn, after which it was stated that construction would begin in autumn 2023. While the land has been cleared ready for building work to take place, there has been little sign of progress for many months.

The council leader’s comments were made during a debate over the Hawks Road car park, which Liberal Democrat leader Ron Beadle said should be opened to give motorists heading into Newcastle an alternative to driving over the Tyne Bridge during its restoration works. He also suggested it could be used as a park and ride site for some of the thousands of HMRC workers who will travel to the new Pilgrim’s Quarter offices in the city centre once they are completed.

Redesigned plans for the new Sage arena and conference centre on the Gateshead Quayside.
Redesigned plans for the new Sage arena and conference centre on the Gateshead Quayside. -Credit:Virtualplanit Hok.

Coun Beadle added: “If we go back 20 years, the then-Sage Gateshead – now the Glasshouse – car park was built at the same time as the music venue. In this case, we have built a car park in advance of a conference centre and arena. We are still waiting for the conference centre and arena four years on, but we have the car park. Perhaps there are lessons to be learned from that.”

Fellow Lib Dem councillor Dawn Welsh said that residents “deserve answers and deserve to see progress” on the Quays site.

Willmott Dixon was appointed to build the car park in 2021. Revealing the dispute with the car park contractors, Coun Gannon said: “The car park has never been completed to satisfaction and we are retaining elements of the payment to the contractor until such time as it is fit for use.

"There has been a schedule agreed in terms of completing the work and we anticipate that it will take place very quickly. If not, then we will retain elements of those payments and get it completed by a separate contractor.”

The council leader added that the council was in the process of procuring an operator for the car park and expect that it will open next summer. Gateshead Council faced similar criticism previously after spending £700,000 on the nearby Quarryfield Road surface car park, which it built without planning permission in 2018 and was little used at the time.

But Coun Gannon said on Thursday that, following the subsequent building of the Riga and Proto offices, the site is now full and had already generated more than £300,000 of income so far this year. He added: “The evidence demonstrates clearly and absolutely that that was the right decision to take.”

Willmott Dixon was contacted for a response.