Council cautioned on Milburngate site risks. Project delays spark inquiry calls after Tolent collapse. Cost is around £55 million.
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Councillor Bill Moist cautioned about financial impacts. He thinks a development failure would hurt council finances, calling it a “potential nightmare scenario” for Durham. Moist believes other services merit more attention and says rescuing a private failure is not the council’s role.
Moist stated the council is for people, not property development. Durham residents reportedly dislike the Milburngate project. The development was set to open in 2022 and would feature apartments, offices, a hotel, bar, and cinema.
Construction firm Tolent went into administration in 2023, and fire safety issues caused further delays. Brewdog has been unable to open there. The council will use a loan to pay for the site, with tenants then repaying this loan.
Labour leader Carl Marshall is shocked it’s still not open and wants an independent inquiry into the delays. Committee chair Rob Crute called the project a “gamble,” noting its many potential risks.
Crute worries about the impact on Durham taxpayers as investment failure would affect them heavily. Despite the risks, the council believes it can revive the site.
Rob Davisworth said the council addresses private sector failure. They believe it will bring good value, even with its risk. Councillor Phil Heaviside was initially unsure, but now he supports the council’s ambition and backs the call for an independent inquiry.