Northampton residents and councillors criticise WNC's £3 million loan to Grosvenor Centre
Northampton residents and councillors have heavily criticised WNC’s plan to loan £3 million to to help move H&M in and help unlock a deal which has been dubbed a 'once-in-a-generation opportunity' for the town.
In December last year, cabinet members backed the multi-million-pound loan, which will help fashion giant H&M move into the Grosvenor Centre and create new flexible office spaces in return for greater control over the future use of Belgrave House.
Breaking down the costs, £2 million would be loaned to keep H&M in the town centre and the remaining £1 million would go towards flexible Wizu office spaces on the upper level of the centre. Both loans would be paid to the owners of the Grosvenor Centre, who would then be responsible for paying the council back within five years.
Benefits to the authority would include getting permission to install solar panels on the centre’s mutli-storey car park, offering two hours of free parking for users of a proposed gym in the former Sainsbury’s unit- which the council says would entice the business to fill the empty lot- and the complete removal of restrictions on the use of Belgrave House.
There has already been a lot of oppositional reaction to the plan, but more people have spoken out.
West Northants Labour Group leader Wendy Randall expressed concern over the loan, saying: “I’m very concerned about us taking out a loan in our name for another organisation. We are carrying all the risk. If we get into power, we would operate differently, investing wisely and consulting residents and businesses.
"Last year we saw parking charges increased despite opposition, and Mark Mullen from Northampton BID warned that it would turn shoppers away. The cabinet didn’t listen and overestimated parking charge collections. I also objected to the leisure group getting 180 parking spaces with two free hours of parking. If they can offer gym members two hours free, shoppers should get the same. We need to encourage shopping here, and free parking will help.”
Lib Dem councillor Jonathan Harris raised concerns about the legacy of previous council decisions, saying: “We are mopping up so many poor decisions from the legacy councils - it seems in particular Northampton Borough Council. I understand that the long lease on Belgrave House was signed one week before vesting day. Crazy. How on earth was that allowed to happen?”
Chronicle & Echo readers have also shared their thoughts and concerns.
Richard Potsy Potts said: “The council say they are struggling for funding for many things, including police and fire service, schools, roads, yet they can pull £3 million out their back pocket for a loan. I agree with most – let’s see how much the council tax goes up to cover the things that money should be for.”
Gill Trevor said: “Why do they need to borrow £2 million from a local council that has so many better causes it could support?”
Susan Hawkins said: “I, like a good many others I would think, pay my council tax to provide the services the council is elected to provide, not to loan to businesses. Past experience of the council doing this didn’t end well for Northampton residents now did it!”
Mark Sanders said: “THREE MILLION?!?! Where has that money come from and why is it being given to a chain who one would think could afford to deal with their own finances?”
Martin Spencer said: “Total misuse in my opinion of council funds. It's been said several times here, if H&M want to move let them pay for it then the council loan can go to support social care instead.”
Mark Mayes wrote: “Why is it a once-in-a-generation opportunity? H&M obviously think that Grosvenor is a better position than its current one. It’s a business decision, not one that should risk council tax payers' money.”
Anita Wooltorton added: “Your money, going to prop up a private company is their move here. See it for what it is.”
Di Walton said: “I don’t pay them my money so they can fish it out to big companies in loans! Do I get a dividend? Anyway we will all get discounts on H&M clothes I guess?”
One man, David Jobling, backed the plans saying: Wouldn't it be good to fill an empty unit at no cost that will help regenerate the town centre? “I would argue regenerating town centres (not just Northampton) should be a priority for every local council.”
Assistant director of assets and environment, Simon Bowers, told the meeting that the deal presented a “once-in-a-generation opportunity” to regenerate Greyfriars. Though full details of the Greyfriars vision have not been finalised, bringing Belgrave House back into use will be a key aspect in joining the whole development together and connecting it with the town centre.
Plans show a preference to transform the tower block into an ‘innovative workplace’ providing jobs and opportunities for local people.
Mr Bowers added: “It’s worth pointing out that this is not a free decision of the council, it’s not something that the council said ‘oh we fancy getting H&M into the Grosvenor Centre’. The deal that we have proposed helps unscramble that omelette and put things in place where we need them to be.
“There needs to be a new life to Belgrave House which is currently sitting vacant and is looming over the Greyfriars site. If we don’t do this deal the Greyfriars regeneration is rendered immensely difficult and we sit on a cost every year of trying to maintain a tower block.”
The authority previously revealed that recent service and insurance charges for Belgrave House totalled around £85k per year.
Editor’s note: An earlier version of this article stated in the headline and introduction that the £2m would be paid to H&M.
We are happy to clarify that this money will be paid to the owners of the Grosvenor Centre