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Search forCredit crunch forces developer out of agreement to build Derbyshire super-village
Tuesday, December 02, 2008, 07:30
Birmingham-based Spring had intended next year to submit a planning application to build on the former Stanton Ironworks site, near Ilkeston.
But the property developer has been badly hit by the downturn and yesterday said it would no longer be involved.
Landowner Saint-Gobain said it would forge ahead with the project with few changes to Spring's plans for homes, industrial buildings, amenities and a link road.
It is now looking for a new developer to take on the plans within the next six months.
Andy Wilkins, managing director of Spring, said he was sorry the company could not continue with its plans.
"It is with much regret that, in the current market, Spring cannot proceed any further with our regeneration plans for the area," he said.
"We are delighted to have been involved this far and to have set up a process which, we believe, will produce a very successful development."
A company spokeswoman said Spring was "very much alive and kicking" but its residential property arm had suffered in the credit crunch. Saint-Gobain said it would now need to find a new developer but would continue working to submit a planning application to Erewash Borough Council in the latter half of next year.
Property and development director Richard Baldus said: "Saint-Gobain are very much committed to taking this site forward and building on the momentum and strong lead established by Spring to date.
"We look forward to progressing discussions with the various stakeholders early in the New Year."
Some people living near the site formed a group, the Green Squeeze, to protest against the lack of employment opportunities at the site and the possible routes mooted for a new road.
The writing of a report into five possible routes has now been taken over by Saint-Gobain and is expected to be completed in the new year.
One of the five will be chosen for inclusion in the company's planning application, which is due to be submitted in the second half of next year.
One of Green Squeeze's founder members, Anne Adams, 65, of Dale Road, Stanton-by-Dale, said she hoped any new developer would look again at the proposals.
She said: "I struggle to believe that if a new developer gets involved they wouldn't have new ideas.
"We would like to see roads looked at again and also more employment opportunities."
Farmer David Hitchcock, 63, who fears a route for one of the roads would cut across his fields at Hopwell Cottage Farm, near Risley, said yesterday's announcement gave him little hope.
He said: "I think it's a nightmare that's not going to go away."
Sue Blakeley, the borough council's director of development and regulatory services, said the authority would continue to support Saint-Gobain.
She said: "Stanton is a very important site for Erewash and our planning team are committed to supporting our elected members to ensure that Saint Gobain bring forward the best long-term regeneration proposals for the site."
DERBYSHIRE'S manufacturers will be among those hardest hit by the economic downturn, according to a report.
The Engineering Employers' Federation, which provides support and employment advice to the engineering sectors, said about 100,000 jobs could be lost in 2009 as a result.
And the hardest-hit area, according to a new survey, will be the Midlands, which is home to a number of major manufacturers, like Rolls-Royce, Toyota and Bombardier.
Peter O'Grady, the EEF's East Midlands spokesman, said the survey looked at responses from more than 800 firms.
He said: "Over half of the companies surveyed said that if the next quarter is as bad as they fear, they will have to make employees redundant."
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