It’s snow-go as legal action by developer fails
A LEGAL action against Middlesbrough Council by the developer of a failed snow centre has been struck out.
Long-running plans for the £30m to £40m development finally ended last year after the authority revealed that the project, which included a 165m ski slope, a beginners’ run, shops, restaurants and cafes, would not be coming to Middlehaven Docks.
Developer Subzero launched legal action against Middlesbrough Council after the authority scrapped the plans for the centre. Subzero claimed the decision not to support the project had been politically motivated.
The case was due to be heard at Leeds Business and Property Court on Tuesday but did not go to trial. The council has not been found to be at any fault over the doomed plans.
The local authority is now in the process of recovering its costs from Subzero. The amount that can be claimed is yet to be set by the court.
In October 2020, Middlesbrough Mayor Andy Preston claimed the proposals didn’t stack up financially and, by the following February, the council announced it was looking for alternative uses.
At the time, a spokesperson for Subzero accused the council of making a politically-motivated decision; however, the council’s chief executive, Tony Parkinson, denied this and blamed the developer for not delivering what it
said it could. A spokesperson for the council said it was time to draw a line under the issue. They added: “The council was happy to support proposals for the development of a snow centre as part of the ongoing regeneration of Middlehaven.
“Unfortunately the developers were unable to come up with a viable scheme, which led to an option to purchase on the land expiring, and it is now time to draw a line under the matter. We now look forward to pressing ahead with alternative developments that will help to transform this regionally important site.”
Questions also remain over £250,000 of taxpayer money handed to the developer by Tees Valley Combined Authority. Rachael Howson, the director of Subzero, said £180,000 had been provided in a grant, along with a £70,000 loan.
TVCA said in January said it was attempting to recoup the loan it gave to support the plans. Ms Howson, the director of Subzero, said the company didn’t need to repay the £70,000 loan.
In a council report in September 2021, it was mentioned that Chinese state-owned developer BCEGI was exploring plans for the former snow centre site at Middlehaven Docks.
It was suggested that a key leisure attraction could be built for local, national and international visitors including a major venue for hosting concerts, events or exhibitions or a multi-sport centre. It is unclear how the relationship with BCEGI will progress now the site will fall under the Middlesbrough Development Corporation.