Council vows to open delayed leisure development

Council leaders have vowed to open a major leisure and hospitality development after years of delays.

Durham County Council's cabinet agreed to proceed with negotiations to acquire Milburngate, in Durham, to end years of uncertainty around the site's future.

The acquisition and future development of the site are estimated to cost about £55m and would be self-financed, the Local Democracy Reporting Service said.

Liberal Democrat Elizabeth Scott, cabinet member for economy and partnerships, said the money would be paid for by a loan to the council, which would be repaid by the development's tenants.

"It does not impact on the Durham taxpayer," she said, adding that tenants should hopefully move into the development in about 18 months.

Milburngate, which includes 150 apartments, hotel, bar and cinema, was scheduled to open by the end of 2022 but has run into several problems.

Construction company Tolent entered administration in 2023, while questions about fire safety issues delayed construction further.

A discussion on the acquisition was held behind closed doors due to commercial sensitivity, but the coalition-led authority revealed the proposal was backed by cabinet members.

However, Milburngate's developer Allan Cook, from Arlington Real Estate, said the whole experience had been "frustrating".

He said the site's empty cinema had been ready for "about two years" and he did not know when the development would open.

"It's been ready to go for quite some time," he said. "You can imagine how frustrating it is for me."

When asked when he thought the site would be open, he added: "It depends how the council tackle it."

Labour councillor Carl Marshall said it was "absolutely shambolic" it had taken the local authority three-and-half years "for something to happen".

One resident told BBC Radio Newcastle the vacant site was a "disgrace for Durham".

"I do think it could be good, but it needs finishing," she said.

The local authority said it would work with tenants and other stakeholders to ensure the development was fully completed and open to the public "as soon as practicable".

Previously, BrewDog expressed frustration at investing £1m into the development and not being able to open.

Scott said the council was "very aware of the economic significance of Milburngate".

She said combining the business and leisure opportunities with residential and hotel accommodation meant it had a "lot to offer residents and visitors".

"Investing in Milburngate would, therefore, allow us to secure its future and bring significant economic benefit to the city and wider county," Scott added.

Additional reporting by Mark Denten.

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