Council drops injunction over failed snow hub
CASE WAS WITHDRAWN AS COUNCIL ‘DRAW LINE’ UNDER MATTER
MIDDLESBROUGH Council has dropped an injunction to force developer Subzero to hand over all of its documents regarding the failed snow centre site.
The £30-£40m Middlehaven development, which would have included a 165m ski slope, a beginner run, shops, restaurants, and cafes, was finally scrapped in February, last year.
The case for the injunction was due to be heard at Leeds Business and Property Court on Tuesday, but it was withdrawn.
This means the council will be required to pay Subzero’s legal fees relating to the injunction costs.
However, The Gazette understands that this will be significantly less than the amount the council will be claiming from Subzero for its costs after the developer’s claim against the council was struck out by the court.
Subzero launched legal action against Middlesbrough Council after the plans for the snow centre were scrapped.
At the time, the developer said the decision to call an end to it was politically motivated, an allegation which was denied by the council’s chief executive Tony Parkinson.
The case, which was heard on July 5 at Leeds Business and Property Court, did not go to trial. The council has not been found to be at any fault for the failed development.
However, The Gazette understands that an injunction is not off the table if Subzero breaks its contractual obligations. The plans for the Snow Centre were approved by the council’s planning committee in March 2020, however, by October 2020 Mayor Andy Preston said the proposals didn’t stack up financially.
In February 2021, the council said it was looking for alternative uses for the land. A council spokesperson said: “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. ”
However, there are still questions over £250,000 of taxpayer money that was plunged into the development by Tees Valley Combined Authority. In January, the TVCA said it was attempting to recoup the loan, however, Subzero director Rachael Howson said she didn’t owe anything. Ms Howson has previously confirmed that £180,000 was a grant and £70,000 was a loan.