Firm running library sold due to £1.5m refurb costs carry out repair works for ‘half the price’

AN historic Derby building sold off by the council because it would have cost £1.5 million to renovate has been refurbished for half that price.

The revelation has sparked anger the former Pear Tree Library building in Normanton could not have been kept in public ownership.

Labour councillor Hardyal Dhindsa and Liberal Democrat councillor Ajit Atwal have called into question Derby City Council’s decision to sell the iconic property. The criticism came after it was recently claimed the cost of getting the building back up and running over the past year was significantly less than the council envisaged.

The decision to sell the building - originally known as Carnegie Library - was made in 2018 when the council (run by the Conservative group) agreed to put it on the market.

At the time the council said the former library had suffered “structural defects” and repair work would cost roughly £1.5million.

The building was then “surplus to the council’s requirements” and it then appealed for expressions of interest to come forward.

The library was relocated to St Augustine’s Community Centre in Almond Street.

When the council was seeking expressions of interest for the building, an online petition urging it to be saved as a public asset was signed by more than 1,000 people.

Two years on last year, the building reopened as a shopping complex – mainly for independent traders and entrepreneurs to use as a base.

The company behind the new shopping complex is 2i Investments Ltd. It is said it has taken on the building via a lease arrangement initially with the intention of being able to purchase it in full at a later date.

But at a community scrutiny meeting, held at the end of 2021, it was suggested by council bosses the figure spent in total to get the former building back up and running was between £700,000 and £750,000 – half of the £1.5million (approximate) figure the council anticipated for repair work.

Steve Caplan, director of property services at Derby City Council said: “I have spoken to colleagues and officers who have been to the property and checked they are complying with the contract where they undertook certain work and their estimates are that they spent at least half a million pounds on it – which is why they are not able to complete the purchase currently but they have until June 2023 to which to complete the purchase by the way of an additional £160,000.

“If they fail to do that, I believe the lease lapses and we get the property back.

“The deal I believe is they paid £45k to enter the lease and carry out contracted works which I believe they have done and have up until June 2023 to make further payment of £160,000 when the freehold transfers.”

Mr Caplan added that the council would have had to pay a repair cost to cover at least 30 years of future use – which possibly is why the council estimate was significantly higher.

“It is not clear if a business such as 2i Investments would have had to do the same.”

But councillors have called it a “shame” the building is no longer council-run and questioned whether selling the building was the right move.

Councillor Dhindsa said: “We lost a facility that was quite central, quite historic, quite valued by local communities and I’m surprised the cost of somebody coming in using the facility is a lot less than what we were told at the time.” Councillor Atwal said he had fond memories of the place and how it brought people together.

He said: “I was one of those who strongly objected the library going because for us growing up in Normanton a lot of people used it over the years. It was not just a library but a massive hub for all walks and races.

“Unfortunately, it wasn’t meant to be. It was a costing of between £1 million and £1.5 million – I don’t think there’s been that much spent on that to get it back up and running.

“It’s just a shame we couldn’t have kept the building. The bottom line is we’ve lost a fantastic building that has served the community for hundreds of years. At the time the costing was way over-priced and that for me is quite concerning.”

Derby City Council and 2i Investments have been approached for comment.

The costing was way over-priced and that for me is quite concerning.

Councillor Ajit Atwal