Culture year cash crisis deepens
by Larry Neild, Liverpool Daily Post
PROPERTY developer Bill Davies is taking legal action against Liverpool City Council over his failed bid to develop a multi-million pound shopping and leisure centre in Chavasse Park.
It comes as opposition councillors claim a massive loan will have to be found to fund a £29m black hole in the budget for Capital of Culture Year.
The council’s executive board will meet on Friday to discuss ways of bridging the cash shortage, just months before the big culture year.
To add to the cash problems, a report to politicians last night confirmed the pending legal action by the Walton Group.
Mr Davies’s group held an option on the showpiece site but after a lengthy court battle the site was handed over for a rival scheme by Grosvenor.
While their £920m Liverpool One project has been racing ahead, and is due to open next year, Mr Davies’s lawyers are embroiled in a behind-the-scenes legal clash with the city council.
A report compiled by the council’s resources director, Phil Halsall, says money saved from the disposal of the Colomendy outdoor children’s centre, in North Wales, could be used to help fund the culture year.
He also says income to the town hall from the leasing of land for the Liverpool One redevelopment could also be allocated to the culture programme.
The bulk of the missing millions, more than £22m, relates entirely to Capital of Culture year, a figure made worse because more than £4.4m of private sponsorship has so far failed to materialise.
Mr Halsall says there are four ways of finding the cash: seeking extra help from the Government and sponsors, cutting the costs of running council services, raising money using capital or making alternative financing arrangements.
Using capital means selling council land, specifically brownfield sites, taking money from income generated by Paradise Street or the savings from Colomendy.
But he warned that using capital would need special government permission.
Last night, Labour leader Joe Anderson accused the Liberal Democrats of mismanagement.
He said: “Capital of Culture has been in the planning for more than four years, and months away we have this financial black hole.
“It is bad enough not having arrangements in place, but to talk about using the money saved from Colomendy is rubbing salt into the wounds as far as the children of Liverpool are concerned.
“We have just finished paying off the loans from the Militant era, and now will have to go to the moneylenders for more.
“If the Government then refuses us permission to use the capital money, it will potentially be a disaster.”
div>
Last night, council leader Warren Bradley defended the council’s strategy. He said: “By producing this report, we are being open and transparent.
“I have no doubt we will deliver the best-ever Capital of Culture and we will find any shortfall by means that will protect services and council tax bills.
“We have always said we will raise £12m in our culture year, so despite the impression from Labour there is no crisis. People will enjoy our culture year and it is not going to cost them through extra taxes.”
Bookmarks