News Column

Pounds 5.8m loan will boost hotel plans

February 27, 2014

Elaine Blackburne; By Elaine Blackburne elaine.blackburne@eveninggazette.co.uk

A COUNCIL is set to loan almost Pounds 6m to create a hotel and breathe new life into the centre of a Teesside town.

Plans were put forward a year ago for a 125 bedroom hotel to be developed in empty buildings, above right, in the Cleveland Centre, Middlesbrough.

But, despite permission being approved, these were abandoned when funding could not be secured.

Now, fresh proposals have been put forward for a 138-room Holiday Inn Express hotel after a new company, Ashall Projects Ltd, secured a 150-year lease on the property along with the previous permissions.

But members of Middlesbrough Council Executive will be asked on Tuesday to approve a secured Pounds 5.8m loan over eight years to the developer to partially fund the Pounds 12m project. It would be at a fixed interest rate of 5%.

A report to the meeting says the move will help create jobs and boost the town centre.

It says: "By generating investment in the town centre it will create jobs, opportunities and wealth that will benefit the town."

It goes on: "Building on recent initiatives the prospect of a new hotel to serve the town and better frame the Centre Square area, offers significant benefits which have the potential to improve the integration of the town centre and the cultural and administrative area at Centre Square.

"The investment offers major employment opportunities and attracting complementary retailers and services."

The hotel, at Cook and Endeavour House, on Albert Road, will overlook Mima and Centre Square.

The report says it will create about 100 jobs and will also generate about Pounds 45,000 in business rates a year.

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Source: Evening Gazette (UK)


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