Residents have slammed a council’s decision to sell prime town centre redevelopment land valued at £1.2 million for just £4 as an ‘absolute joke’.
Bolton Council has agreed to offload the Church Wharf area because it is not financially viable to develop it.
It has ‘sold’, but essentially given for free, the site to developer Watson Homes who plan to build 414 new homes over the next four years – generating £81.6M to the north west economy.
The council’s decision comes after the site has been earmarked for a large-scale regeneration effort since 2008 but has been stuck in planning limbo for a number of years after agreements with previous developers fell through.
But the logic of handing over a site worth so much for free has led many Bolton residents to question to business sense of the council.
Bolton Council has agreed to offload the Church Wharf area for only £4, despite it being worth £1.2m, because it is not financially viable to develop it
Residents have slammed a council’s decision. Nicola Frigh (left), 35, a cleaner, said: ‘I’m livid’. Ebony Aubrey (right), 30, a barmaid, said: ‘It is a ridiculous decision. It’s a joke’
Mark Hall, 57, a structural technician, said: ‘I don’t trust the council at all. I don’t think they are up to the job and selling the land for £4 illustrates this’
Ebony Aubrey, 30, a barmaid, said: ‘It is a ridiculous decision. It’s a joke.
‘The council could have done a lot with the money if they had sold it for its market value.
‘There is nothing in the town for children. The money could have been used to improve services and facilities for children.
‘What was the council thinking? The money could have been put to good use.
‘But it is what you have come to expect from this council.’
Nicola Frigh, 35, a cleaner, said: ‘I’m livid. How could the council sell the land for £4? I’d have bought it off them for more than that!
‘The town is dying and that money could have been put back into the town.
‘They will probably build over-priced housing on it for private renters, that will be out of most people’s price range.
‘There is a real lack of affordable housing in Bolton and the land should have been used for social housing.’
Mike Lowrie, 46, said: ‘It is ridiculous and a bad business move if nothing else.
‘It is a shame that the council couldn’t secure the funding to redevelop it.
‘It has been empty for years and if the council can’t develop it, then it is good that it is going to be redeveloped. That has to be seen as a positive.
‘Hopefully, it will bring an economic boost to the town.’
Church Wharf occupies a desirable riverside location near the Parish Church and stands at a key gateway to the town centre.
Bolton Council previously acquired the land and a number of properties backing onto the area before carrying out a full demolition.
Bolton Council previously acquired the land and a number of properties backing onto the area before carrying out a full demolition
Mike Lowrie, 46, said: ‘It is ridiculous and a bad business move if nothing else. It is a shame that the council couldn’t secure the funding to redevelop it’
The council said the risk is too great and the margins too low for the proposed development to generate the £1.2m land value
A local authority report stated the current value of the land, based on unrestricted open use of the site without planning permission is £1.2m.
But the council said the risk is too great and the margins too low for the proposed development to generate that land value. Instead the report stated the value of the land for final use is £1.
The £1 valuation allowed the council to sell the land to Watson Homes to develop it, with the council charging them £1 for each phase of the development.
Watson Homes was selected from a total of five interested developers who were each assessed on the basis of the deliverability, sustainability, and the social value of their proposals.
As part of the agreement, the council will also take a share of any profits once the development is complete.
The council said an economic impact assessment had been undertaken in May which calculated the construction stage of the development will generate £75m of direct expenditure in the construction industry and an average of 377 jobs per year over four years.
Included within the £81m boost to the wider north west economy, £64m will be generated locally in Bolton.
Once built the economic impact is estimated on the development having 1,018 residents in 414 new homes, which will include approximately 505 new economically active residents.
The additional residents will contribute £145,000 a year in business rates, £652,000 in council tax and £135,000 in further mayoral general precept payments.
But some Bolton residents remain unconvinced at the council’s decision.
Andrew Atherton, 56, a structural engineer, said: ‘Why would anyone in Bolton’s economy at this time?
‘It just doesn’t seem viable. There’s nothing in the town.
‘It’s is brownfield land and if the council can’t do anything with it, it has done the right thing to sell it on – but maybe not for £4.
Andrew Atherton, 56, a structural engineer, said: ‘Why would anyone in Bolton’s economy at this time?’
Once built the economic impact is estimated on the development having 1,018 residents in 414 new homes, which will include approximately 505 new economically active residents
‘If someone thinks they can come along and redevelop it than that will be good but I’m not too sure.’
Mark Hall, 57, a structural technician, said: ‘I don’t trust the council at all. I don’t think they are up to the job and selling the land for £4 illustrates this.
‘The land should have been sold for much more. The council should have got nearer the market value for the land. It seems a strange decision.’
Church Wharf stands at a key gateway to the town centre and is one of six intervention areas under Bolton Council’s regeneration masterplan.
The 400 additional homes will complement ongoing residential developments at Moor Lane and Deansgate Gardens among others.
Bolton Council Leader, councillor Nick Peel, said: ‘Plans to regenerate Church Wharf were first put forward in 2008, but the nature of the site meant potential developers could not be sure of making a profit.
‘This is exactly why we established the £100m town centre master plan, to close this viability gap by acquiring and clearing sites ourselves before working collaboratively with the private sector to bring forward projects that will benefit everyone in Bolton.
‘Without interventions of this type, the regeneration of our town centre would simply not have been possible.
The council said the construction will generate an average of 377 jobs per year over four years
‘This agreement means work can start quickly, unlocking £75m in construction spending, creating jobs and new homes, while also securing the council a share of any eventual profits.’
Rob Watson, director of Watson Homes, said: ‘We are pleased to have agreed terms with Bolton Council for the purchase of Church Wharf, a project central to the regeneration masterplan of Bolton.
‘Church Wharf will play a transformative role in the redevelopment of Bolton town centre, boosting its local economy and enhancing the lives of its community.
‘This mixed-use development is a significant project for Watson.
‘We are active members of the Bolton community and fully committed to making long-lasting positive change for current and future residents by creating this town centre neighbourhood.
‘We’re excited to bring forward our proposals for the delivery of upwards of 400 homes, a hotel, new bars, restaurants and cafes, as well as commercial space on this brownfield land.
‘Church Wharf will provide a great selection of high quality, high specification homes with a selection being available for affordable tenures. The 120-bed hotel will provide employment to the local community and encourage footfall in the surrounding area.
‘We are now moving forward towards submission of our planning application and hope to begin work as soon as possible on this fantastic development.’
