Councillors to reassess 'no longer viable' redevelopment plans for former site of 42nd Street in Whitley Bay
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Last September, the council approved plans for the construction of 19 flats on the now demolished site, on North Parade. However, the approval was on the basis that several financial contributions to the local area could be made by the developer.
According to a financial assessment conducted by North Eastern Holdings, these payments, along with inflation costs, would render the project “unviable”.
These financial contributions, known as Section 106 payments, total nearly £40,000.
Demolition works on 42nd Street began in April this year.
Michael Hepburn, senior director of Litchfields and agent for the developer, said: “Unfortunately, due to wider economic issues, including the rapidly rising costs of materials and cost of borrowing, it has been proved that it is no longer viable to deliver the development alongside all of the financial contributions requested.
"A detailed viability assessment has been prepared by specialist consultants, which has been submitted to North Tyneside Council.
“Independent experts have reviewed this report on behalf of the council and have concluded that the scheme is no longer viable in its current form.
"As such, the council has recommended the reduction of financial contributions, meaning the application is required to be reconsidered by the planning committee.
“The overall contributions have been reduced, however, the developer is still committed to providing the contribution towards specific coastal mitigation projects and coastal service in North Tyneside.
"The council’s planning department has maintained its recommendation for approval of this application, and councillors are due to vote on the application later this month.
“Reducing the financial contributions will enable this high-quality development to come forwards along with all of the associated benefits of regenerating this brownfield site, providing much-needed new homes in a sustainable location, as well as supporting jobs in the construction industry.”
42nd Street, once a part of Whitley Bay’s famous nightlife, closed its doors for the last time in 2018 and had been derelict until it was eventually demolished.
Councillors will gather at North Tyneside’s Cobalt HQ to consider the reduced financial obligations on August 29 at 6pm.