Developer confirms commitment to Hereford's ESG

8:00am Thursday 20th November 2008

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THE contract crucial to Hereford’s Edgar Street Grid is still to be signed, but the developer involved has confirmed “total commitment” to the project as the credit crunch bites.

Alistair Shaw, director of Stanhope, chosen to develop the grid’s £200 million retail quarter, told the Hereford Times that he now expected his company’s contract with ESG Herefordshire Ltd to be signed early next year.

“We remain totally committed to this project, there is no going back as far as we are concerned, despite the very tough economic climate.

“It’s not unusual during a big and longterm project such as this that there will be downturns,” said Mr Shaw.

“My view is that we work very hard during the downturn so that we are in a position to start building the moment there is a sign of recovery,” he said.

Stanhope was chosen as the developer earlier this year and, since then, Herefordshire Council has heard that backing for the project is lacking.

Councillor Mark Hubbard told a recent meeting of the full council that the results of public consultation over the project did little to demonstrate widespread public support – a factor made worse by the current economic climate.

Council leader Councillor Roger Phillips said the scheme had to be seen against Herefordshire’s potential for post-crunch economic growth with the “unwavering support” of regional development agency Advantage West Midlands (AWM) and the “very considerable”

financial strength of committed developer partners.

“Inevitably, projects of this scale encounter changes in economic conditions, and it would be foolish to expect otherwise,” said Coun Phillips.

Council heard that considerable investment in infrastructure was needed before any development could begin, specifically a major flood alleviation scheme and the new link road.

Right now, the project had reached the point where planning applications for these works were ready to be submitted.

Subject to approval, work would start in 2010/2011 funded by AWM.

The Hereford Times has learned that some amendments have been made to the design for the scheme itself, like the location of the foodstore near the football ground and the department store near the roundabout being swapped around - a move approved by the project design committee.

Jonathan Bretherton, chief executive of ESG Herefordshire, said: “The ESG project to regenerate Hereford, including the role to be played by Stanhope, as developers of the retail quarter, was recently fully endorsed by the Scrutiny Committee of Herefordshire Council.

“However, the retail quarter project is a complex one and it is not unusual that the preparation and agreement of a contract by all parties involved should be a lengthy process. It is important we get it right.”

Mr Bretherton added that good progress is being made on the design and planning of the project, especially on the first phase which will be the building of the infrastructure.