A “world class” arena and conference centre on the Gateshead Quayside will not be completed until 2025, council bosses say.
After news this week that the massive development had won £20m of new backing from the Government’s Levelling Up Fund (LUF), local authority chiefs have confirmed that its opening date has been delayed again. It had originally been hoped that the huge facility, which will be called The Sage, would have been ready to open this year, before being pushed back to 2024.
But, with the early stages of construction work on the riverside site having halted while the delayed LUF funding announcement remained uncertain, it will now be 2025 before the new arena is ready. Spiralling costs caused by huge inflation have cast doubt over the future of the project, which is now expected to cost upwards of £350m.
Read More: £20m boost for Gateshead Quayside arena as North East bids win Levelling Up Fund cash
But Gateshead Council leader Martin Gannon insists that the authority is “committed to ensuring that development will be completed in 2025”. The Labour councillor said: “Due to a combination of external factors which are outside the Council and its partners control, including the delayed LUF announcement, soaring construction costs, and escalating energy and inflation costs, the completion date will now be extended to 2025.
"Gateshead Council, the developer and all partners are committed to ensuring that development will be completed in 2025. We are working to mitigate any further impact on timelines on an ongoing basis.”
Plans for the new complex have already had to be redrawn to cut costs, with two proposed hotels having been removed from the main site and relocated to the corner of Hawks Road and Quarryfield Road nearby. The Sage will sit between the existing Sage Gateshead concert hall and the Baltic Centre for Contemporary Art and could create 2,000 new jobs.
It will feature a 12,500-capacity arena that will replace Newcastle’s Utilita Arena, an international grade conference centre with 17 suites, art exhibition space, bars and restaurants, and new walkways and public space around the Quayside. With Sage PLC having bought the naming rights for the new complex, the existing Sage Gateshead music centre next door is due to be renamed.
After Wednesday night's LUF funding announcement, Coun Gannon said: “It’s great that government has recognised the benefits of The Sage development, especially during the current economic climate. As a Council we are dedicated to ensuring The Sage is delivered; so that we can deliver employment opportunities to our residents of Gateshead and beyond. The economic benefits of The Sage will radiate out as local businesses and hospitality benefit from the increase of trade”
Read More:
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- 'Yet another snub' – North East anger as Government denies skewing levelling up money to the South
- £20m boost for Gateshead Quayside arena as North East bids win Levelling Up Fund cash
- Gateshead leisure centre closures: Council plans change as Birtley swimming pool now set for axe
- North East's £4.2bn devolution deal moves closer as all seven councils back historic agreement
