New funding strategy for revised £50m development

A new funding strategy has been agreed for a £50m mixed-use development in Wolverhampton.City of Wolverhampton Council is set to agree the revised plan with development partner Urban&Civic for the Westside leisure scheme.The authority entered into a deal with Urban&Civic in April 2017 but said that “due to challenging national market conditions” the scheme was delayed.The parties have been in discussions to agree the new approach to kick-start the project, which instead of being funded by Urban&Civic will see it backed by an institutional investor, such as a pension fund.Under the new arrangements, part of the responsibility to fully occupy the scheme will sit with the council, giving it the opportunity to generate rental income from the development.The authority has said the project will add an estimated £6.5m a year to the local economy, bring thousands of people into the city centre, create 300 new jobs, and raise about £750,000 in business rates income on top of rental income to the council.The development will see a multi-screen cinema, additional family leisure attractions and new restaurants covering 150,000 sq ft, and a multi-storey car park, with plans for a hotel now on hold.Urban&Civic will now begin putting together a detailed planning application before selecting building contractors, with preparatory works to come later this year and full works starting on site within 12 months.The new financial model is set to be approved by councillors at Wednesday’s cabinet meeting.