A major developer that has been working with Liverpool Council on a major housing project at the Festival Gardens site has hit out at the local authority's decision to start a new search for a developer.
Liverpool Council previously had an exclusivity agreement with Ion Developments to build around 1500 houses on the waterfront site and the developer had produced a draft residential masterplan for the site. But that agreement has now expired and the council announced today it is recommending a full procurement process that could see a new development partner appointed for the huge site.
This new approach comes after a year-long review of the site. The council said the move is being made to ensure the project aligns with the council’s recently adopted Local Plan, Council Plan and the Mayoral triple lock policy, which stipulated a new approach to development focusing on sustainability, inclusivity and social value. The new approach will push the project back by a year.
READ MORE: Liverpool Council seeking developer for huge Festival Gardens project
The move has not gone down well with Ion, who have said they are "very disappointed" and have hinted that legal action could be taken. A spokesperson for Ion said: "We understand that officers have made this recommendation to members based upon a belief that there is an unresolvable technical issue in the original developer bidding process which would prevent the use of the previously agreed legal structure and documentation.
"Unfortunately, the Council has not shared its legal advice in relation to this purported issue, which does concern us, and makes us question both its validity and the motivation behind the recommendation.
"We are obviously very disappointed by this approach, particularly given that the council has confirmed on numerous occasions that our performance on the project is not in question and the fact that we have worked seamlessly with the council's regeneration team to progress the project since our involvement commenced some four and a half years ago."
In its statement, Ion were keen to point out the "considerable benefit" the council has derived from the involvement of the company with the project so far. The spokesperson added: "(This) Includes the use of our design and technical information to secure circa £30 million in grant funding. This information has also been used to progress the remediation to date, including the adoption of our masterplan and design specification, upon which the works are based.
"This has involved a huge amount of work and expenditure on our part, using our excellent Liverpool based design team. Clearly the council is undergoing a period of upheaval and it would appear from our point of view that this recommendation is directly related to the desire of the Council and the Commissioners to demonstrate that changes are taking place."
"We expect to commence formal discussions with the Council in the near future to establish how our contribution to date will be recognised and to agree a way that our considerable knowledge can be used to assist with the successful delivery of this important site. Hopefully such an approach will resolve the matter without recourse to litigation."
Explaining the council's decision and new approach, Cllr Sarah Doyle, Liverpool City Council’s cabinet member for development and economy, said: “The city council is now at a critical stage in establishing how this site will progress. Given its strategic importance to our housing programme, it is only right and proper that a major review of our approach was undertaken to ensure it aligns with all the new policies we’ve adopted since our new mayor was elected.
“Now that that review is complete a clear programme has been set out to shape its future direction. If approved, this procurement process will mean adding a year to the original timescales but given the site lay dormant for a quarter of a century our focus is on getting this right, as this scheme will be a home for a whole community for the rest of this century.”
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