Concerns over costs of town centre project
THERE are concerns over the ballooning cost of a multi-millionpound Cheltenham town centre regeneration project.
The Minster Exchange (MX) Innovation Centre will include workspace, a cafe and space for events and is on track to open in time for the summer.
The MX spans 20,000 square feet of innovation facilities, including workspace, The Growth Hub to support business development, cafe and space for events and education, while the external Minster Gardens area has benefitted from new pathways, seating, lighting, CCTV and greenery.
But the urban rejuvenation scheme, which is a partnership between Cheltenham Borough Council and Hub8 by Plexal, was initially expected to cost £5.2m but is now has a budget of £9.2m.
Conservative opposition councillors say they are becoming increasingly concerned over the neverending costs and slipping timescales of this project.
“In the last few years we have seen a doubling of costs, way beyond inflationary pressures,” a Tory spokesperson said.
“We have also seen the original completion date being pushed back again and again.
“We will continue to watch this administration closely to ensure they are held accountable and this doesn’t continue to spiral out of control.”
A Cheltenham Borough Council spokesperson said the MX development
As of March 2024 the projected costs to complete the MX project is £9.27million which includes this contingency as approved by council in June 2023 Cheltenham Borough Council spokesperson
was initially budgeted to cost £5.2 million.
This was made up of a grant of £3.1million secured by Gfirst LEP from the government’s ‘Build Back Better Fund’ and £2.1million from Cheltenham Borough Council.
In December 2022, the council pledged a further £2.5 million.
“In June 2023, council voted to extend the funding up to £9.27million,” a council spokesperson said.
“This figure included a contingency to cover the potential of further risks in the project relating to inflation, supplier issues and labour availability, which continue to be experienced throughout the construction sector.
“As of March 2024 the projected costs to complete the MX project is £9.27million which includes this contingency as approved by council in June 2023.”
The MX, which has been designed to breathe new life into the historic centre of the town, could open in May.
The modular building is designed to provide a safe and trusted environment where the community can come together professionally and socially.