Revamp grinds to a halt in a row over cash

Business Editor ONE of the North East’s key regeneration sites was at the centre of a row today as council bosses unexpectedly cut the developer out of the scheme.

The Clouston Group has been developing the Stephenson Quarter, behind Newcastle’s Central Station, for more than a decade, bringing around 1,000 jobs to the site with hopes 2,000 more could be created.

But now Newcastle City Council, which owns the site, has ended its contract with Clouston, saying the company had failed to make agreed payments.

The authority is now looking for new developers to take the site forward, with the next phase of scheme including a business incubator, luxury flats and event spaces.

Clouston, however, insists it is “uniquely positioned” to complete the Stephenson Quarter development, which is widely seen as a key site to provide high quality jobs in the city centre because of its central location and six acres of land.

Coun Ged Bell, cabinet member for employment at the council, said: “Unfortunately our partnership with the Clouston Group has ceased in accordance with a long-standing contractual arrangement.

“Although this is disappointing, we are committed to further ensuring the success of our flagship Stephenson Quarter, which remains in the council’s hands.

“This is a prime area of land with high quality office accommodation, hotel and leisure development and employment opportunities to create a modern urban environment in the heart of the city centre.

“Since its development, as well as the significant numbers of construc- tion jobs this has created, we have seen 900 jobs brought into the city through the occupation of the Rocket Offices with a further 100 jobs through the hotel and we are committed to creating more jobs as the development continues to grow.

“The city council will be seeking new opportunities with developers who can meet our aspirations for this key site and bring forward viable developments and further build on the success of the Stephenson Quarter.”

Clouston, which had previously developed the Silverlink business park and the Trinity Gardens scheme behind Newcastle’s Quayside, bought the Stephenson Quarter from a church charity in 2004.

But the site was taken over by the council when Clouston needed