Dozens of developments remained stalled across Liverpool city centre with more than half up for sale including a collapsed former new Chinatown project.
In August 2020, a task group was established to identify the scale of stalled development across the city and establish what could be done to get them moving again. A report to Liverpool Council ’s strategic development and housing committee has revealed that latest figures state how there are 21 projects in the city yet to either get underway or recommence after initial progress.
At first, 42 sites had been identified as stalled but original developers had returned to site to continue their schemes, or other new investor/developer consortia step forward to take on part-finished projects. The report said, in many instances, it is “failure of lack of capacity” to manage risks that cause a scheme to stall, such as construction material costs.
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It added: “Development is an inherently risky business.” Currently there are 11 stalled sites for sale, including the Great George Street project - formerly new Chinatown - Strand Plaza, and Kings Dock Mill – Phase 2 Land at Hurst Street. These are mostly through administrators and the council expects changes of ownership to stimulate new schemes to come forward.
It was revealed by the ECHO last month that bidders for the Chinatown site have been asked to sign non-disclosure agreements (NDA). An NDA, also known as a confidentiality agreement, is a legal contract which sets out how information or ideas are shared in confidence.
However, the council conceded it has “minimal control over City Centre stalled sites and the rate at which their development is brought back on track.” Stalled schemes that are not under offer or up for sale, with no sign of progression include 70-90 Pall Mall, L1 Studios at 16 Fleet Street and The Block at King’s Dock which has experienced fire damage.
The sites are said to impact upon city centre residents “mainly through visual blight” caused by unfinished schemes, as well as negative publicity “threatening to undermine confidence in the city.” The report added: “There are more direct impacts for some residents where anti-social behaviour may arise around a particular stalled site.
“More serious impacts arise not from visual blight, but where stalled schemes were originally funded through fractional investment methods (also known as buyer-funded development) and a limited number of local residents, acting as private investors, have paid deposits for the purchase of individual units of accommodation which have not been built.” The council said in these scenarios, investors’ money may be completely lost as they did not own a lease or other protected interest in the land before completion, and the development became stalled as the cost of completion exceeded the likely finance which would be available to any potential purchaser of the site from the administrators.
Among the projects back on track include Cavern Walks, Kingsway House, Hatton Garden, and 37 Hope Street.
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