Council looks to buy town centre after regeneration stalls
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A Merseyside council is in discussions with a developer to buy a town centre, in a move designed to kick-start redevelopment.
Knowsley Council this week announced that it has begun negotiations with developer St. Modwen, over 6ha of land it bought from Tesco £36m in 2015.
Although the developer says that it has spent £2.3m on preparing the town centre for development, a planning application approved by the council in November 2017 remains unimplemented.
Speaking this week, council leader Graham Morgan said: “This council has been calling on the private sector to regenerate Kirkby town centre for a long time, but enough is enough.
“We have worked tirelessly to encourage and support the private sector to deliver on their plans for Kirkby.
“However, despite our best efforts, the redevelopment of the town centre still hasn’t happened and it’s quite clear that we need to find a different model. The people of Kirkby deserve more than this.”
Morgan said that the developer has been “extremely cautious” and has still not named a date for work to start on the development.
He called the move a “big shift for us and a big decision to make”.
“It would come with significant risks and challenges but we have concluded that the best chance we have to get this scheme completed would be to buy St. Modwen’s assets and deliver the rest of the improvements promised by them.”
The 11,000m2 scheme approved in 2017 includes a new supermarket, 12 other retail units, two drive through fast food restaurants, a petrol station and 480-space car park.
The council said that occupiers signed up by St. Modwen, including Morrisons and Home Bargains, remain committed to the scheme.
The council is working with independent experts to assess the appropriate market value of the land, before making a formal offer to the developer.
Morgan said: “We then need to look to identify the funds we would need to make this investment – as you might expect, we simply don’t have that kind of money sitting in the bank.”
A statement from St. Modwen said: “Knowsley Council has been actively looking to support the scheme and is pleased with the discussions to date and what it means for the prospects for Kirkby.
“Morrisons is aware of the discussions and is supportive of the development, having previously signed an agreement for lease.
“Knowsley Council and St. Modwen will continue to work proactively and look to make further, near-term announcements as progress is made.”
As recently as February, the developer reiterated its commitment to delivering the town centre regeneration.
The mooted purchase by the council is the latest chapter in the ongoing saga of regeneration in Kirkby town centre, including separate proposals by Everton FC and Liverpool FC to relocate their stadiums to the site.
