Recession holds up city's masterplan

Sep 2 2009 By Amy Hunt, The Journal

A CITY centre regeneration project which could have brought thousands of jobs to the region is unlikely to be kick-started this year.

Empty offices in Newcastle's city centre are to be rented out instead as plans to demolish and rebuild part of the site are put on hold.

Buildings within the East Pilgrim Street area will be marketed for rent on a short-term basis.

Parts of the 42-acre site, which stretches from Saville Row to the 55 Degrees North building at Swan House roundabout and east to the Central Motorway, have stood empty for years.

Throughout that time city councillors have insisted they will be able to attract a major retailer, such as Harvey Nichols, and help to cement Newcastle’s position as a premier shopping locations.

It was hoped the scheme would create more than 3,000 jobs, and while acknowledging the latest setback city leaders last night insisted the long-term aim was still in sight.

For now offices including Norham House, Watson House, Commercial Union House and Bamburgh House will be re-branded NE1 Offices.

Over the last few months Newcastle City Council, together with owners Brookfield and Aldersgate, has been attempting to draw up interim planning guidance for the area which would get the high-profile revamp under way.

But large-scale developments have been put on hold because of the credit crunch.

Now in an effort to improve the look of the area and bring in some cash, the owners have embarked on the new marketing campaign, dashing hopes that the East Pilgrim Street revamp would soon begin.

Bill Shepherd, the city council’s executive member for regeneration, said: "There are some parts of East Pilgrim Street that don’t look too nice at the moment and there are some longer-term issues that need to be resolved before it can be regenerated in the way we would like.

"I think this would seem a reasonable way of bringing the land back into short-term use. If you’re planning something which will potentially take 15 years it’s not unreasonable to use this space as offices, but only in the interim.

"I don’t think that detracts from the longer-term goal."