Redrawn plans for a huge regeneration project on the Gateshead Quayside have been approved – but the opening of a 12,500-capacity arena has been pushed back to 2027.
Councillors have backed the latest designs for the new Sage Arena and International Conference Centre (ICC) on the south bank of the Tyne, which will sit between the existing Sage music centre and the Baltic Centre for Contemporary Art.
It was originally hoped that the massive complex would be ready to open this year, but the project has suffered a string of setbacks since it was first signed off in 2020.
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The impact of Covid-19, the war in Ukraine, energy prices, and inflation have sent the estimated cost of the "transformational" scheme rocketing from £260m to more than £350m.
The huge disruption has meant that a controversial 11-storey hotel which was attached to the eastern end of the proposed conference centre has been removed and will be relocated to the nearby corner of Quarryfield and Hawks Road.
After the revised plans were approved by Gateshead Council's planning committee on Wednesday morning, the local authority confirmed that construction work will at last begin this autumn.
But, while the ICC and the hotel are both now scheduled to open in autumn 2025, there will be a longer wait for the arena.
The venue, which will act as a replacement for the Utilita Arena in Newcastle, is now earmarked for a 2027 opening – four years later than was originally hoped.
Gateshead Council claimed that the development would be a "catalyst" for £2bn of investment along the riverside all the way to the Derwent Valley.
Council leader Martin Gannon said: ‘‘Today marks another major milestone in the project and we’re looking forward to bringing the Sage Arena and ICC to Gateshead, attracting high-profile events and conferences to our region. The development will bring numerous opportunities and benefits to our residents, attracting visitors and creating jobs and bringing millions of pounds of investment to Gateshead and the North East.’’
The section of the Quayside that would have been occupied by the hotel under the original plans is now instead designated for a park area.
The relocation will come as a relief to the residents of the Baltic Quay flats, who had complained the hotel, once constructed, would block their light. According to the local authority, "the hotel will have the ability to accommodate 210,000 visitor nights per year, contributing an estimated £13m annual contribution made to the local economy".
Ian Thomas, destination director for the NewcastleGateshead Initiative, said:
“This is an excellent step forward. We welcome all progress on the Sage Arena and International Conference Centre (ICC). It will be such a transformational asset for our whole region, showcasing our strengths to a global audience and supporting the growth of our visitor economy.”
It is estimated that the development will provide over 2,000 jobs and bring in 387,000 extra visitors to the region every year.
The new development will be known as The Sage, with Sage PLC having bought the naming rights for it. That means that the existing Sage concert venue next door is due to be renamed.
