Norseman Investment's managing director Duncan Ashby has voiced his "disappointment" over plans for the mammoth One Derby development being put on hold.
Derby's largest ever city centre development has been mothballed due to a dispute over a section 106 payment. I spoke to Duncan following the news breaking on Monday and he said: "It was disappointing, especially as we had an independent assessment carried out which backed up our proposals."
The disagreement centres around the local council demanding that developer Norseman pays a £900,000 contribution towards infrastructure, however Norseman is offering just £300,000, which the authority claims is far too low.
Pre-recession, I'm sure the figure of £900,000 would have been far more palatable for Norseman to swallow. However, pre-recession the end value of the scheme was put at £150m - this has been revised down to just £92m. The massive readjustment in the market generally in the past year should prompt a similar recalculation when it comes to Section 106 costs.
So now Derby council has deferred its decision to grant consent for the 400,000 sq ft business quarter development until 14 January 2010 "or sooner", to allow the pair to come to an agreement.
Ashby remains positive: "We're still in ongoing discussions with the council and I'm confident we'll resolve the matter. The council knows how important the scheme is to Derby."
Plans for the new business district form the first phase of the city's Castleward regeneration area. The site, now branded as One Derby, will include: a 100-bedroom hotel, five office blocks, restaurants, cafes and a public square - and is crucial for attracting much-needed inward investment in to the city.
Let's hope common sense will prevail...
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