Borough Council defends use of public money to bring a long-derelict town centre building back into use

Erewash Borough Council has defended a move to channel thousands of pounds of public money to a private developer to bring a long-derelict town centre building back into use.

The authority has facilitated £215,523 being given to Nottingham firm Huntingdon Properties 1 Limited to turn the former Argos at 12-14 Bath Street, Ilkeston, into 11 flats and two shops after 15 years of dereliction.

The funding, from the East Midland Combined County Authority and its Mayor Claire Ward, is aimed at bringing derelict brownfield sites back into use.

However, the funding award of public money for a private developer has led to the council being called on to defend the decision.

Documents from the combined authority detail that the scheme would include 11 homes but none of them would be classed as affordable housing.

This comes after three planning applications for the site have been approved and not progressed since the building’s 2010 closure, in 2010, 2021 and 2022 respectively due to viability issues.

Land Registry records say the building – 10b, 12 and 14 Bath Street – were sold for £350,000 in June 2023.

Viability documents submitted with the 2021 application say the scheme, including land purchase costs and contributions, was valued at £1.85 million, with developers at the time unable to afford to provide cut-price housing due to a projected completion value of £1.6 million.

The former building has been dubbed a “grim symbol of neglect” in Ilkeston’s town centre, with residents riled that the public-backed scheme will not provide direct benefit to the public who helped pay for the regeneration.

Warjinder Khamba, who runs Huntingdon Properties 1 Limited with his brother Tarjinder, was approached for comment but did not wish to provide a statement.

Steve Birkinshaw, the borough council’s head of planning, in an email sent to councilors, seen by the Local Democracy Reporting Service, wrote: “The last two applications were supported by viability evidence to prove that the development could not afford to make additional s106 financial contributions.

“That evidence suggested that the scheme was not actually viable to develop at all, even without the burden of a s106 contribution.

“The fact that the building has been available and actively promoted for development with the benefit of planning permission for 15 years, but has not been developed, supports the credibility of the evidence that it is not viable for development.

“Erewash Borough Council promoted this site to the scheme, in the expectation that suitable gap funding could bring the development forward.

“EMCCA have employed surveying consultancy Cushman and Wakefield to assess applications to the Brownfield Lane Fund.

“Cushman and Wakefield have been in intensive discussions with the developer, with the aim of ensuring value for money for any public investment made in this scheme.

“It is the scheme that is being assessed, not the developer.

“If the site is not successful in securing additional funding, the most likely outcome is that the building will remain empty for another 15 years.

“The alternative view, that a wealthy fund or individual will redevelop the property at a financial loss for the benefit of Ilkeston, is sadly naïve.”

Meanwhile, Cllr Curtis Howard, the borough council’s lead member for town centres, regeneration and planning, said: “All across Ilkeston, we’re taking a whole range of measures to try to get empty shops back into use – expanding the shop signs grant, issuing clean-up orders, and for the old Argos we’ve linked up the property owners with East Midlands Mayor Claire Ward.

“It’s a big project that will take a lot of work. At the end of the day I want to see it back in use, and I think the people of Ilkeston do too.”

In 2022, the borough council had submitted a £20m funding bid to central Government to regenerate Ilkeston town centre, including bringing long-vacant buildings back into use.

This bid subsequently failed but had shown that 10 properties in Bath Street had been vacant for between four and 23 years – including the former Argos.

The council had said those 10 shop units were not in a suitable condition to be re-let and were part of the 12 per cent vacant shops in Ilkeston.

It had said it may have to compulsory purchase some of the shops but would be aiming to buy the leaseholds for the 10 buildings and pay a development company to refurbish them.

The last approved application for the Ilkeston Argos – given the green light in March 2022 –  was filed by York OHC Property Five Limited, which is now in the process of being struck off.