News: £47m Forge Island development about regeneration, not commercial returns
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
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:
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.
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.
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.
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.
Kebab ,greasy fried chicken and attempts at pizza is best we have in Rotherham...oh and a desert or two or three ..
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.
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.
Anyone who believes a grifter like Nigel Farage has their best interests at heart is deluded.
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
Can't wait to see what this fiasco will do to my council tax bill!
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
Why don't you move to Barnsley?
We went for a walk on White Elephant Island Friday morning. It was deserted apart from a few workmen. Tumbleweed would complete the experience.
Think I may have seen you. Weren't you picking up dog ends?
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!
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.
"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
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.
“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!
Zero confidence in RMBC -let alone speculative investment
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.
Wetherspoons currently in talks to open here. Watch this space.....
Some people aren't keen on tax payers money being spent at all.
That should please the Rotherham Biz posters who normally site bars as the height of their aspirations
Never mind rabbiting on about white elephants, you should take better care of your dad. What kind of a son are you anyway?
“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
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!
Not if you prefer kebabs to beer
And you heard the Wetherspoons rumour where?
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.
Overheard a bloke in the County talking on the phone to a property developer.
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/
Time to email Hooters me thinks!
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
More than enough kebab places as it is
Good idea. Just sent off the form.
Not if you love kebabs
Not on Forge Island I'd wager
Not everyone likes Kebabs
Already Have.
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.
Shooters methinks is an anagram of "mother knits shoes"
Not a lot of people know that.
Well I thought that the Tumbleweeds were a very funny band.
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?
Wishing for a Wetherspoons isn't very aspirational, is it.
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.
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.
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.
That'll be George.
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.
Were you the one wearing a dirty mac and waiting for the cinema to open?
Yes.
His nickname at school was Tab Hunter.
I remember him well. He lived a few doors down from Vinegar Liz.
His dad used to look after Liz's garden.
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