Friday, November 15, 2024

News: £47m Forge Island development about regeneration, not commercial returns

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The Forge Island development was fully-funded by Rotherham Council for the purposes of regeneration of the town centre, not as a commercial venture, the authority has confirmed.

Forge Island is the town centre's new landmark leisure destination being delivered by Rotherham Council in partnership with Muse. The £47m development includes an 8-screen boutique cinema operated by The Arc Cinema, a 69-roomed Travelodge Hotel as well as food outlets which are yet to open.

Work began on site in November 2022 after Rotherham Council agreed to fund the regeneration scheme itself when the the funding available its delivery partner, Muse, "significantly reduced" due to the volatility of the financial markets. The authority said it would save nearly £50m compared to an externally funded deal drafted in 2018.

At a recent council meeting Cllr. Saghir Alam, Cabinet Member for Finance & Safe and Clean Communities, was asked about the financial situation at Forge Island given that a number of food outlets were not now planning to open as expected.

Rothbiz reported first in July that operators "have not been able to bring forward" outlets that had originally signed up for the development.

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Cllr. Alam said: "The Council had agreed the Forge Island development for the purposes of regeneration of the town centre, not as a commercial venture. The Cabinet approval for the scheme was that it would pay for itself over the life of the development. The scheme was projected to do so through a complex financial model which included provision for periods of time when some of the units could be empty.

"The Council were negotiating with a number of potential new tenants and as such, were not concerned about the implications of this."

Cabinet approved an increase in the Council’s Capital Programme in 2022 to cover the £46.8m costs which were expected to be covered by the authority's own borrowing and capital resources.

The council expected that the repayment of capital costs will be met wholly or largely over the long term by revenue generated from commercial activity in the Forge Island development. At the time, the cabinet heard that the longer-term financial risks that the project presents related to the Council’s ability to maintain the incomes levels from the lettings, car parking and business rates.

Doncaster's Rustic Pizza Co looks to be the latest operator to pull out having signed up last year and despite signs at the site saying "coming soon." A social media post stated: "Unfortunately we have decided not to proceed with Rotherham. As the other restaurants have pulled out it would be a huge financial risk for us if it wasn’t to work."

Cllr. Alam added that negotiations were ongoing with a number of different tenants.

Forge Island website

Images: Tom Austen

55 comments:

Anonymous,  November 15, 2024 at 11:00 AM  

If it's not about commercial returns then they should be offering temporary free (or at least much reduced) rents to get food outlets to open. To have every one of the food outlets pull out of the development is a complete disaster.

Anonymous,  November 15, 2024 at 1:21 PM  

It's a shame that due diligence wasn't done on the companies that went bust as that appears to have created a domino effect.

Given the general lack of footfall across the town centre, particularly at night time, I suspect RMBC will have to offer some pretty spectacular incentives to get cash strapped businesses to invest in the site (and foot the associated running costs), especially if they are looking at owner-managed concerns.

Also, I've read that the Council is also planning to offer a food offering in the new market complex - so perhaps some prospective tenants are adopting a wait and see approach to see how long, and how delayed that scheme is likely to be.

Anonymous,  November 15, 2024 at 1:48 PM  

It was claimed that they pulled out due to going bust but Estabulo, Casa Peri Peri, SakkuSamba and Cafe Noor are all still trading in other towns and cities.

Anonymous,  November 15, 2024 at 2:37 PM  

What a joke of a town!Was over in Barnsley last Friday night after Rotherhams match,and all I can say , Barnsley is light years ahead of Rotherham,loads of bars and proper restaurants,streets busy.The only people to blame for state of Rotherham town centre are Rotherham council and the people who continue to elect the same useless people on it.I honestly doubt we'll ever see a busy thriving town centre,the boat as sailed long ago.

Anonymous,  November 15, 2024 at 2:40 PM  

Kebab ,greasy fried chicken and attempts at pizza is best we have in Rotherham...oh and a desert or two or three ..

Anonymous,  November 15, 2024 at 4:15 PM  

We don't have local elections in Rotherham next year or else I think they would finally be voted out. While it wouldn't be my choice I think Reform will gain control of many places in the elections next year.

Anonymous,  November 15, 2024 at 4:15 PM  

Barnsley has seen a recent resurgence, though the council has had to spend over £200M on the Glassworks development to facilitate this. I don't believe Rotherham Council has this kind of budget available.

Anonymous,  November 15, 2024 at 4:20 PM  

Anyone who believes a grifter like Nigel Farage has their best interests at heart is deluded.

Anonymous,  November 15, 2024 at 5:11 PM  

I was also in Barnsley last weekend and yes they are years in front -the town centre was busy with lots of nice eateries to choose from -not kebab & dessert shops everywhere!
Forge island has been opened a couple of months now & still no sign of the promised restaurants and bars!
RMBC are pathetic

Anonymous,  November 15, 2024 at 5:26 PM  

Can't wait to see what this fiasco will do to my council tax bill!

Anonymous,  November 15, 2024 at 6:50 PM  

Another Town Centre White Elephant 🐘, RMBC hang your heads in shame we are wasting Millions of pounds on developments which are doing nothing for the town centre , No bars no decent restaurants we are a complete Laughing stock, Well done Barnsley for doing a wonderful job in your town centre you are way ahead of TOYTOWN

Anonymous,  November 15, 2024 at 11:12 PM  

Why don't you move to Barnsley?

Anonymous,  November 16, 2024 at 10:05 AM  

We went for a walk on White Elephant Island Friday morning. It was deserted apart from a few workmen. Tumbleweed would complete the experience.

Anonymous,  November 16, 2024 at 2:31 PM  

Think I may have seen you. Weren't you picking up dog ends?

Anonymous,  November 16, 2024 at 2:41 PM  

Over £200 million isn’t a lot considering the end results and the huge amount of work that’s been done. Forge island & the markets will be well over £80 million alone!

Anonymous,  November 16, 2024 at 5:07 PM  

I agree, but if every other politician refuses to take notice voters will see him as a last resort and a risk worth taking. Same as with Trump. The ‘establishment’ has brought it on themselves.

Anonymous,  November 16, 2024 at 7:58 PM  

"Another Town Centre White Elephant 🐘, RMBC hang your heads in shame we are wasting Millions of pounds on developments" Barnsley have spent £210 million pounds developing the Glassworks. In addition to this they have offered over £11 million pound in subsidies and incentive payments to the restaurant and retail businesses to entice them. I don't think Rotherham has this kind of budget, and I'm not sure residents would be happy about tax payers money being used to subsidies businesses such as Next and TK Maxx who are hugely profitable businesses

Anonymous,  November 17, 2024 at 12:24 AM  

I'd rather RMBC stick to the basics, no speculative investments of the like that have crippled other councils in the UK. I'm sceptical that RMBC would see any meaningful return on any investment in the town centre. So do the right thing, use council tax money for servicing the essentials.

Anonymous,  November 17, 2024 at 10:49 AM  

“Why don't you move to Barnsley? “
Are you for real? It’s an example of what can be achieved-go and see for yourself!

Anonymous,  November 17, 2024 at 11:12 AM  

Zero confidence in RMBC -let alone speculative investment

Anonymous,  November 17, 2024 at 1:22 PM  

No, that was my dad. I don't smoke. It's a filthy habit. That's one of the reasons the town centre stinks so much. Common people smoking contraband cigarettes and drinking cider and such.

Anonymous,  November 17, 2024 at 5:45 PM  

Wetherspoons currently in talks to open here. Watch this space.....

Anonymous,  November 17, 2024 at 6:07 PM  

Some people aren't keen on tax payers money being spent at all.

Anonymous,  November 17, 2024 at 8:02 PM  

That should please the Rotherham Biz posters who normally site bars as the height of their aspirations

Anonymous,  November 17, 2024 at 9:15 PM  

Never mind rabbiting on about white elephants, you should take better care of your dad. What kind of a son are you anyway?

Anonymous,  November 17, 2024 at 10:55 PM  

“That should please the Rotherham Biz posters who normally site bars as the height of their aspirations”
It’s more preferable than having another kebab shop

Anonymous,  November 18, 2024 at 2:27 AM  

If you are so anti smoking why are you allowing your father to rummage through bins for tabs? Buy him some patches why don't you!

Anonymous,  November 18, 2024 at 8:58 AM  

Not if you prefer kebabs to beer

Anonymous,  November 18, 2024 at 8:59 AM  

And you heard the Wetherspoons rumour where?

Anonymous,  November 18, 2024 at 12:14 PM  

Hopefully a Wetherspoons is not incoming. Much as I'd prefer the units not to be empty, I do think another bar would just entice those already drinking in the town centre rather than attracting further footfall. Given the anti social behaviour seen around some existing establishments this could have a negative impact on the Cinema and deter families from visiting.

Anonymous,  November 18, 2024 at 12:36 PM  

Overheard a bloke in the County talking on the phone to a property developer.

Anonymous,  November 18, 2024 at 12:54 PM  

I have personally emailed a number of national chains, alerting them to availability on Forge Island. I figured that it's probably more than the council are doing. If anyone else has a bit of time on their hands I suggest you do the same, It can't hurt.

For instance, Wetherpsoons has on their website a form to suggest new locations...
https://www.jdwetherspoon.com/suggest-a-site/

Anonymous,  November 18, 2024 at 3:04 PM  

Time to email Hooters me thinks!

Anonymous,  November 18, 2024 at 4:22 PM  

Doubt if spoons would open as they tend to renovate old buildings & like to own rather than lease them-however you never know. A better option would be one of the nearby old banks at the top of Corporation St. Fingers crossed for a new Weatherspoons

Anonymous,  November 18, 2024 at 4:47 PM  

More than enough kebab places as it is

Jez November 18, 2024 at 5:19 PM  

Good idea. Just sent off the form.

Anonymous,  November 18, 2024 at 5:21 PM  

Not if you love kebabs

Jez November 18, 2024 at 6:31 PM  

Not on Forge Island I'd wager

Anonymous,  November 18, 2024 at 7:41 PM  

Not everyone likes Kebabs

Anonymous,  November 18, 2024 at 9:22 PM  

Already Have.

Anonymous,  November 18, 2024 at 9:25 PM  

There are plenty of Wetherspoons in new buildings, the one on Ecclesall Road and the one next to Leeds Arena to name two off the top of my head.

Anonymous,  November 19, 2024 at 2:22 AM  

Shooters methinks is an anagram of "mother knits shoes"
Not a lot of people know that.

Anonymous,  November 19, 2024 at 6:57 AM  

Well I thought that the Tumbleweeds were a very funny band.

Anonymous,  November 19, 2024 at 9:00 AM  

What are you doing up at 2.22am for goodness sake. If you can't sleep why don't you pop down to Forge Island and sweep up the grumble weed?

Anonymous,  November 19, 2024 at 11:24 AM  

Wishing for a Wetherspoons isn't very aspirational, is it.

Anonymous,  November 19, 2024 at 12:31 PM  

I'd only just got back from Forge Island. Read a lot about tumbleweed in western novels so wanted to check it out. Only thing I saw was an old guy going through the bins.

Anonymous,  November 19, 2024 at 1:52 PM  

It's not, and in an ideal world it wouldn't even need to be considered for Forge Island but we're currently in a beggars can't be choosers situation and Wetherspoons is just one establishment that could help to save the development from complete disaster. If no food outlets open soon I can see the cinema being gone within months.

Anonymous,  November 19, 2024 at 5:20 PM  

Why hasn't Rotherham got similar funds available,it's a larger town with more council tax payers than Barnsley,think Rotherhams problem is demographics of population.

Anonymous,  November 21, 2024 at 7:34 AM  

That'll be George.

Anonymous,  November 21, 2024 at 5:19 PM  

For your information, just because George recycles the contents of the County's ash trays does not mean he roots in bins for tab ends.

Anonymous,  November 22, 2024 at 7:31 AM  

Were you the one wearing a dirty mac and waiting for the cinema to open?

Anonymous,  November 22, 2024 at 1:30 PM  

His nickname at school was Tab Hunter.

Anonymous,  November 22, 2024 at 2:39 PM  

I remember him well. He lived a few doors down from Vinegar Liz.

Anonymous,  November 22, 2024 at 4:24 PM  

His dad used to look after Liz's garden.

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