Regeneration scheme paused over financial fears
TVCAA flagship regeneration project has been put on hold over fears it is financially unviable.
A hotel, student accommodation and build-to-rent apartments were set to be built in Middlesbrough's Gresham area under the name Crown Square.
But work was paused and the mayor-led Middlesbrough Development Corporation (MDC) said this was due to "current national economic headwinds", although it remained committed to developing the area.
While MDC board members were told about the move at the end of October, it has only now come into the public domain.
At an upcoming MDC board meeting on 18 December, members will be asked to agree to "reassess the options for the Gresham development to bring forward a viable scheme".
'Weak' property market
MDC has been working on the project since late 2023 and building work on the hotel project was forecast to start in summer 2025.
Previously developers said the hotel should be completed by mid-2027, while they hoped the rest of the phase one work would be finished by early 2028.
Delays hit phase one over the summer, with Tees Valley Conservative Mayor Ben Houchen confirming there would be "no proper spades in the ground" until 2026.
According to the Local Democracy Reporting Service, MDC was told the project has "several viability issues" and the Middlesbrough property market is "currently weak".
The joint statement on behalf of the MDC, Tees Valley Combined Authority and developers iMpeC and Buccleuch Property said: "In taking on this challenge to deliver a transformational development for Middlesbrough, we have to take into account the current national economic headwinds, which have become more difficult in recent months."
It added all parties remain "fully committed to bringing real and lasting change to Gresham".
The scheme was launched in July 2024 amid a row over claims of "secrecy".
