Freshney Place could host new leisure facilities and an ice rink in takeover
CABINET MEMBERS WILL BE URGED TO BACK BUY-UP PLAN
BUYING up Grimsby’s Freshney Place shopping centre is the only way to promote regeneration of the town centre, according to the Leader of the Council.
Councillor Philip Jackson said the shopping centre will diversify into a leisure and retail complex to meet the council’s ambitions to regenerate Grimsby Town Centre.
In his first statement since North East Lincolnshire Council announced its interest in buying the site, Councillor Jackson said it could become a home for a new ice rink, as well as a multi-screen cinema.
The shopping precinct was bought for around £100 million about 20 years ago. It is understood its value is now a fraction of that.
NELC cabinet members will be urged to back the buy-up plan and safeguard 1,700 jobs, at a special meeting on June 22.
It will ultimately be a decision for the Full Council whether to go ahead with the purchase.
They already approved last year to use a Government grant of £17.3 million from the Future High Streets Fund for a transformation of the western entrance to Freshney Place. That will include a multi-screen cinema and new food hall and new entranceway from The Bull Ring.
In January, it was revealed Freshney Place had gone into liquidation and was in the hands of receivers who are trying to sell the shopping centre and keep it operating. Freshney Place had earmarked £5 million to match £5 million from North East Lincolnshire for the transformation scheme, kickstarted by the £17.3 million Government grant.
All 42 councillors are due to meet next month to decide whether to give approval for the latest multi-million pound deal to buy Freshney Place.
Councillor Jackson told Grimsby Live: “Freshney Place has to be seen in the context of the Grimsby Town Centre Masterplan in which we are trying to bring together the Future High Streets Fund plan and the main elements of the Masterplan. Freshney Place is a huge chunk of Grimsby town centre which is over-reliant on retail, more so than other town centres.
“As a Conservative I would naturally be ideologically opposed to a council buying a shopping centre. But this is the only way we can ensure the regeneration aspirations for Grimsby town centre.
“Its liquidation was announced a few months ago and at the time shopping centres’ fortunes plummeted due to changes in shopping habits and the Covid pandemic.
“We are presented with the risk that a private sector interest would buy it at a much-reduced value and not be prepared to invest and seek only to get a return on their money.
“Somewhat reluctantly, if we buy it, we can continue to attract new businesses and repurpose and diversify the economy of the town centre.
“The danger is a low-value private sector would not be prepared to partner with the council in such an endeavour. This is the best way forward.” He stressed it is a Full Council decision and not one for cabinet members and each of the 42 councillors will have a say and vote later this summer.
North East Lincolnshire Council aims to use the Future High Streets Fund grant to buy the shopping centre and bid for a further Levelling Up Fund of £20 million for the western entrance scheme.
That project to build a cinema and food hall is already welladvanced with potential clients, told the Council Leader. He added: “Grimsby town centre is uniquely dependant upon retail. Therefore we need to diversify. Retail will always remain important. The council will not be running it dayto-day. That would be with an arms-length organisation so we have influence over the type of business which will move in to the centre and what the rental policy should be.
“People running the shopping centre have huge negative equity and they will be trying to reduce that equity by charging a level of rents which meet that objective. In 2002 it was valued at £100 million. Now it is a fraction of that. In future we would have flexibility with a rental policy.”
The Leader said negotiations still had to take place in the next few weeks but they are set against the backdrop of the risk of not intervening.
Councillor Jackson said taking on Freshney Place would provide “a town centre option in talks with the organisers of Grimsby Ice Rink” who are seeking to enhance the sport’s provision in North East Lincolnshire.
The Leader said officials and councillors will be studying other local authorities’ purchases of shopping centres in their areas, in order “to adopt best practice.”
In 2002 it was valued at £100 million. Now it is a fraction of that. Councillor Philip Jackson