Councillors argue after the council allegedly “wasted” £1.2 million on the Durham Milburngate development.
Critics claim the council wasted over £1 million for legal fees during a stalemate. Carl Marshall, who leads the Labour party, says taxpayers will pay for the council’s “chaos.”
The development was to open in Durham City in 2022, but it has faced quite a few problems. Marshall stated the council wasted £1.2 million and said it sued its own developer. He questioned what went wrong with the project, suggesting a new company should have finished it.
The project includes apartments, offices, a hotel, a bar, and a cinema. The company Tolent went into administration in 2023, which delayed the project more. Fire safety issues caused even more delays.
Labour wants an inquiry to investigate the project’s management, and other councillors support this idea. Marshall added Labour nearly completed the project, as the development was only six months away when Labour handed it over.
Most council discussions were held privately due to commercial sensitivity. Councillors can view the information, but cabinet members say Labour hasn’t asked to see it. James Rowlandson, a councillor, declared people need all the facts first. The project would have cost £200 million for a 35-year lease under Labour.
Labour chose the developer, Arlington Real Estate and Richardson, as a joint venture. They were picked when Labour controlled the council. Richard Bell, in charge of finance, wants less council involvement in future projects. He said the council should provide services instead of backing risky venture capitalists. Bell said the 2018 decision created problems now.
Bell claimed Labour members haven’t read the papers. Marshall was involved from the start, he said, and Bell thinks Marshall knows all about it. He welcomes a full inquiry.