Britannia Hotels has issued a statement saying it will enter a development agreement with Manchester city council on London Road Fire Station, hours before a compulsory purchase deadline on the site.
The council had given Britannia until close of play today (17 November) to sign a binding development agreement and ensure its long-held goal of seeing the redevelopment of the Grade II-listed building.
It is not yet clear whether this commitment will be strong enough to prevent the council – which had been seeking a “legally-binding implementation agreement” – from pursuing CPO action.
The site has been largely dormant since 1986, but has planning consent for a 100,000 sq ft hotel with 227 beds.
The council said Britannia made little progress over the past three years, and sought a CPO on the building in 2010. This was rejected by a government inspector after a public inquiry in 2011, at which Britannia gave assurances it would develop the site quickly.
Argent had been selected to bring forward an alternative scheme, but communities secretary Eric Pickles questioned the financial viability of the backup. The company had wanted to turn the historic site – built in 1906 and neighbouring the developer’s Piccadilly Place project – into a major mixed-use project led by a music and arts venue.
The saga has cost Manchester more than £1.5m in legal fees. In June this year the council dismissed as “pure speculation” market rumours that a second CPO attempt would be made, but in September then made a renewed push, approving a compulsory purchase order if Britannia failed to respond by the deadline.
Britannia financial director Robert Ferrari said: “We would like to work in partnership with Manchester council on the development of the fire station and understand that a development agreement, to be jointly agreed, is being proposed.
“To that end we are happy to enter into a development agreement with the council’s co-operation. Can I suggest that you propose a range of items that you would like to see included in the development agreement and we can hopefully work together.”
A Manchester city council spokesman said: “We are considering the contents of this letter, which we have not yet formally received, and will make a statement on our position once we have had a chance to do so.”
