Northumberland County Council is unable to make plans for a key site that has fallen derelict at the heart of a market town as it is unwilling to pay the asking price to secure it.
Following a presentation to councillors from bosses at Advance Northumberland, the council's arms-length development company, Corbridge councillor Nick Oliver asked about the progress of a development in Hexham town centre.
Coun Oliver was referring to the town's former bus station, which has stood vacant since the replacement site opened in 2016 and has since fallen into disrepair. The town centre site is currently on the market, with owners Dysart Developments setting an asking price of £1.5m.
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Speaking at the meeting, Advance's Executive Director Rick O'Farrell said: "It is a demonstration of why a local authority gaining ownership of a site is of prime importance - the local authority or its creature, in this case Advance.
"We don't own that site and the developer that owns it can't come up with a viable scheme so they're just going to sit on it. We continue to discuss with them the acquisition of the site.
"The planners at this point in time are developing a mini-development brief which will define what is acceptable in planning terms on that site. I will then reopen negotiations on that site with the developer.
"That's being done in parallel with design work on the (Hexham) Middle School site above it, because it is important that the whole of this links through to the town centre.
"It is actively ongoing, but it is difficult because of the private owner, who has aspirations for the value that we do not share."
Mr O'Farrell added that there was a need for a supported living development in Hexham, which could go on the site.
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The mayor of Hexham, Coun Derek Kennedy - who also represents Hexham West on Northumberland County Council - branded the bus station a "bomb site" at February's meeting of the county council and explained that Dysart had been promising a development on the site for a number of years.
He said: "As I have highlighted for many years the bus station being left as it is is not acceptable. It is a key part of the fabric of Hexham that is letting the town down.
"Dysart came to the town some years ago and said by 2019, the old bus station would have been knocked down, cleared out and there would be shopping units with flats above and some housing where the Ropery is, so it would link Marks and Spencers through a walkway onto Fore Street.
"The plan was lovely, we were supportive - but that was supposed to be done three years ago. Everything would be built by 2019, and here we are in 2022 and not a brick has been laid.
"Dysart asks for £1.5m for that land, which the county council are saying is no the true value."
Coun Kennedy added that the county council has allocated £5m in the recently approved budget for redevelopments in Hexham town centre - likely to be the bus station and the former Robbs building on Fore Street.
Attempts have been made to contact Dysart for comment.