Proposals to save £200m town centre scheme
TVCAProposals have been put forward to save a flagship regeneration project that has been on hold over fears it was "financially unviable".
Six options are on the table for the future of the £200m Gresham regeneration scheme in Middlesbrough, known as Crown Square which includes a hotel, student accommodation, and build-to-rent apartments.
Work stopped in October due to "national economic headwinds", although the mayor-led Middlesbrough Development Corporation (MDC) said it remained committed to developing the area.
An MDC spokesperson confirmed the board would reconvene as soon as possible to endorse the review of the plans and to agree a preferred option by the end of March.
The hotel was due to be completed by mid-2027 with the remaining work finished by early 2028.
In 2023 Middlesbrough MP Andy McDonald called for a pause in the regeneration plan, saying there were a "million questions" hanging over it.
However, according to the Local Democracy Reporting Service the new options open up the potential to downscale the project.
The options are:
- Delivering the existing scheme by exploring additional funding from Homes England and private sector partners. This is seen as at risk of "high dependency" on securing significant funding
- Reducing the height of the buildings to make cost savings, but this could limit "long-term economic activation"
- Reconsidering the plan by building two and three-storey homes, while still providing "attractive" housing to young professionals
- Focusing on building the 200-bed hotel and visitor accommodation or a smaller 120 to 150-bed hotel. This option could potentially be below cost
- Scrapping plans for the "higher risk" hotel and student accommodation to make way for "lower cost" residential housing
- Market the site to private and registered providers through a "competitive process" although this proposal could be risky in the current economic conditions
The scheme was launched in July 2024 amid a row over claims of "secrecy".
