Yahoo News Major update in Freshney Place leisure scheme
The Freshney Place leisure scheme's cost has leapt to £50m, but work could start early next year, North East Lincolnshire Council have said in a 'major update' issued today. The council has also confirmed it will not be paid through any council tax increase.
The scheme's final detailed designs and costing have now been published as it heads back into council meetings to be scrutinised and voted on. The regeneration project proposes to transform the western end of the Grimsby shopping centre.
Already granted planning permission, the leisure scheme would create a five-screen cinema, food hall and a new location for Grimsby Top Town Market. But its cost has risen by 62 per cent since its last estimate, made in summer 2022.
Back then, it had a budget of £30.9m, already a rise on an original cost estimate of £27.3m. Now, in November 2024, the final costing is estimated at £49.96m.
If approved by councillors in coming weeks - it will go through cabinet and full council - it will be paid for through a combination of government funds and borrowing against rental income from the council-owned shopping centre.
North East Lincolnshire Council was awarded a £20m Levelling Up Fund grant for the scheme last year. The council has said it will also reallocate funds from the Green Skills Hub project. Additional funding will be sought in future to continue this project.
If it gets councillor approval, the council will enter into contract with GMI to deliver the scheme. The site set up would begin early in the New Year, and the estimated completion date is now Spring 2027.
Global upheavals and inflation costs
Work has been going on in the background to reduce the scheme's cost, given global upheavals in recent years and significant inflation in costs over the last few years across the construction industry. Changes made to this end include different types of finishes, layout alterations and the order of the programme of works.
Since the council bought the shopping centre in August 2022, the net return has been around £3.5m. The ongoing position, including the leisure scheme, is forecast to remain positive.
Public sector borrowing will pay for the scheme along with the government funds. The borrowing will not impact local council taxes, North East Lincolnshire Council has said. It will be repaid through the returns from the scheme and the income from Freshney Place itself.
Top Town Market will relocate to the old BHS building on the scheme's completion. During the construction period, a temporary market is planned to be provided within Freshney Place, similar to the one that was provided for the Christmas event a few years ago. In addition, other units and mall pitches, within Freshney Place, will be considered.
Once the new market hall has been completed within the old BHS building, traders, new and old, will be invited to see the new development and find out about what opportunities will be on offer.
Montagu Evans, a leading UK property consultancy advising the council, state in a report the leisure industry, like many, is always evolving. Although there has been a growth in online shopping, around 75 per cent of all sales are still in person on the high street.
The scheme includes the creation of four new leisure, food and beverage, or retail opportunities, including a larger unit to-let, and four refurbished units within Freshney Place.
