Newark and Sherwood District Council cabinet vote to pause Newark Gateway project and reallocate £4million funds

A major £4 million economic development has been put on ice - with the money moved to other projects.

At the cabinet meeting of Newark and Sherwood District Council on Wednesday, May 8, councillors agreed to postpone the Newark Gateway/SiSCLog project until a viable solution for the relocation of Newark Lorry Park and redevelopment of the Newark Gateway site can be presented back to cabinet.

It was highlighted that “various challenges” were impacting the Towns Fund project, including timing and inflation.

Officers had been working to identify an appropriate site and financial package for the relocation of the lorry park, ideally around the A17 and Newark Showground area, but ‘challenging inflationary costs and rates of borrowing’ mean there is no option which would yield a financial return to the council.

As the lorry park can’t currently be relocated, a report on the A46 Northern Bypass and associated impacts will be presented at a later cabinet meeting — as the scheme will have some impact on the existing lorry park site.

Leader Paul Peacock described the situation as “regrettable” but noted that “across the country local authorities are struggling to get Towns Fund projects off the ground”.

“[This report proves] we are working well,” he added.

Presenting the item, Matthew Spoors said the council had “got a variety of projects which are going really well in town”.

Newark’s completed Towns Fund Projects are: the Air and Space Institute, the Construction College Centre of Excellence, the YMCA Community Activity Village and the Cycle Town Project.

Rhona Holloway added: “It always was a challenging situation.

“I think it’s really important that we retain the money.”

The £4.294million of Towns Fund money allocated to the Gateway project will be reallocated to existing undelivered Towns Fund projects. The full £25million Towns Fund grant, provided by the Government, must be spent by March 2026.

Subject to the Newark Towns Board’s approval, the Gateway funds are planned to be split — with £790,000 towards Stodman Street phase one; £310,000 to the Castle Gatehouse and £3.194million towards Stodman Street phase two.

Phase one of Stodman Street relates to the demolition and building works at the former Marks and Spencer store, at 32 Stodman Street.

The report presented to cabinet detailed a funding gap between the “contractor price and previously approved budget”, which the additional £790,000 would fulfill.

It was explained that the council had to balance between making the project cheaper and retaining some credentials of their contractors, such as sustainability.

Keith Melton endorsed the decision to spend more to ensure the development was in line with the council’s “aspirations for the future”.

Phase two refers to St Mark’s Shopping Centre, which the council has previously identified as a “key opportunity area”.

The £3.194million proposed to be reallocated to the phase will go towards further work required prior to a purchase price being agreed, continued exploration of an appropriate maximum purchase price and relevant conditions, and the ability to call upon a facilities management resource for facility, tenant, and vacancy management in the lead up to, and initial ownership of the centre should the council decide to proceed.

The additional £310,000 for the Newark Castle Gatehouse project is planned to make up for higher-than-forecast costs of a design team to lead the delivery of the scheme, which the report claimed reflected “some of the pricing volatility in the market”.

At the same meeting a report on the Long Term Plan for Towns Fund was presented.

It is a pot of £20m over 10 years, but to secure it a ten year Town Plan Vision and a three year Investment Plan must be developed for the town. The priorities for the fund are safety and security, high streets, heritage and regeneration, and transport and connectivity.

The funding would be provided as £1.6m capital and £0.4m revenue per year — the first time revenue funding has been provided.

The report provided an update on the progress, detailing plans for the Towns Board to meet monthly, and the expected completion of the Newark Masterplan this August.

Members also agreed to recommend to Newark Towns Board a number of council priority projects and programs to be considered for the plan.

These include: transformational change and further events at Newark Market Place, future ambitions for the St Mark Place site, enhanced CCTV, creative spaces and Palace Theatre transformation, grant regimes and sustainable public transport.

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