A £3.5million deal could see Lichfield District Council “secure the long-term benefits” of a new city centre cinema development within the next two years.
A partnership between the local authority and Evolve Estates – owners of the Three Spires shopping centre – has seen the project to convert the former Debenhams store progress in recent months.
Planning permission has been sought to knock down four neighbouring units to connect the cinema with the wider Birmingham Road Site proposals.
But now the council is set to consider a proposal to effectively buy out Evolve Estates’ interest in the multi-screen facility within two years.
The additional £3.5million agreement would see the council “acquire the interests of the cinema development partner”.
Cllr Doug Pullen, leader of Lichfield District Council, said the move would allow the local authority to secure the long-term returns from the facility once it is up and running.
“The short-term financial support and expertise from our new development partners is crucial, but our longer-term goal is to shape our district in a financially prudent manner.
“This deal offers us the expertise to get the cinema up and running, and the longer-term financial security that we need.”
Cllr Doug Pullen, Lichfield District Council
Negotiations between Evolve Estates and a cinema operator are still ongoing, with the council saying the agreement is expected to get over the line this winter.
The facility will eventually feature four screens and create space for new food and beverage outlets.
The proposed £3.5million deal to take full control of the scheme is set to be discussed by members of the overview and scrutiny committee before a final proposal is put to cabinet and councillors.
If approved, the additional investment would come on top of a previous commitment of £5.3million to kickstart the cinema project.
This sounds concerning. Why would the Council need to buy out Evolve? Do Evolve have no confidence in the longer term benefits?
As an aside, I am flabbergasted that an agreement with the cinema operator still has not been agreed yet. How long have negotiations been going on for, around 18 months? It’s only a lease for a cinema for christ sake. China build skyscrapers quicker than this! Something doesn’t smell right.
So the Council, (us) take all the risk. Talk about over a barrel, Evolve Estates will be laughing all the way to the bank!
OMG up and down the country section 114 notices have been issued by councils who have run into trouble by investing in ventures that they did not understand or had the knowledge and expertise to run. Do these people never learn? Where is the money coming from, out of the magic reserves that are moved/allocated from project to project with nothing ever coming to fruition? £8.8m now. If it is such a great investment why are the capitalist private sector not queing up? Why don’t Evolve want the ownership? Will Labour and the Lds avert this pending disaster. 12 months since Pullen went on the TV promising a cinema and now a deal sometime this Winter?
I really hope the cinema works out, but with Lichfield council involved the chances are slim, they really haven’t got a clue.
Reeks off haven’t got a clue. All you get from Pullen is ‘if this’ and ‘if that’ blah blah blah. He’s moved the goalposts so many times on this cinema project that what he says now is no longer credible.
The council need to give it up, it’s a dead duck nobody wants it . We need some decent shops, reduce the rates and get something going here. We have to go elsewhere to shop so everyone’s a loser.Wake up and get it sorted.
PS, No more cafes.
Perhaps they’ve forgotten the failed shopping area. No worries it’s our money that they’re gambling with. But it will be ok because someone told them they will succeed.
No! No!! No!!! Doug, it’s not your money or the Council’s money, it’s our money paid by us to the council to provide services. Try popping over to Walsall and see how well the council’s acquisition of the Saddlers Centre is going.
Worst council and planners in the UK.
I am no financial wizz kid but when cinemas all over the Country are closing, pray how do the LDC think they are going to make money from this project.
With DPs promises again, is this more “pie in the sky”.
Somebody needs to swot up on the history of the Garrick once also known as the Civic Hall. Taxpayers propped this up for years and years. Haven’t kept up-to-date but are we still doing so? Do we want to do this for another venture. I don’t think so. LDC should be concentrating on delivering services and not running the entertainment industry. I despair!
No outside investment fund has come forward to invest in this project. There is a good reason for this…
Local Authorities are there to provide local services not effectively nationalise large parts of the city that the market are not willing to invest in. Stick to what you do – you are thinking of a multimilion investment when you cannot deliver a credible city centre pedestrian scheme.
Madness
Bad smell here. Promises made promises not kept esp by Mr Pullen. This is a dead project as others have mentioned, disaster awaits if LDC think they can keep a cinema running. Remember the Garrick saga 10 years ago? Cost a few £m in subsidy every year to get the current set up going & LDC is still subsidising it to almost .5m£ PA. I doubt cinema will ever return £1 of the investment.
It’s such a sure thing that the profit making firm wants to sell out their stake?
This feels like it’s collapsing right?
I and many others would love to see a cinema open in Lichfield. Everyman are opening several new cinemas this year. There is still a viable industry out there, hence we wouldn’t still have cinemas in every significant population centre.
Having said this, I am concerned by the amount of money the Council are having to put forward. Questions need to be asked and proper scrutiny must take place.
What about the rest of the scheme? We’re supposed to have a leisure operator in the Debenhams building too? Hopefully it’s something worthwhile and not just another gym.
Difficult to comment on this without seeing the detail. But given local authority borrowing costs are substantially cheaper than private sector borrowing costs, there is merit in this approach as the council will not be needing as quick a payback period as a private investor who will need quicker returns to appease shareholders, so on paper it could present a better deal all round. That said, the Council almost certainly aren’t best placed to run it, and I hope that isn’t part of the arrangement. Quite excited about this development to happen, I hope it is worth the wait…
I know we’re all having same rant and jibe.. however .. better than building more housing looking at more dull overcrowding into the city as it stands. This scheme at least whether it works or not, has the intention of leisure and something enjoyable in mind..
With the curboroough proposals additional 2900 homes and before that the development of another 1000 homes on the site next to it that’s another 4000 homes and possibly 6000 peoples. We need a town that can equally provide the capacity to entertain people’s well-being and leisurely pursuits to some degree.
I want the billboarding removed, surrounding landscapes improved. I want us to modernise our leisure infrastructure and what a town should now feature for the you generation families and seniors. Go to Europe, France Spain see the outdoor spaces fountains, cafes and bars. Look at our city in comparison.
Come on Lichfield council, fight the red tape get it done!
Typical we were sold on the Idea that were getting a new cinema and now we’re all left wondering when we will see it, typical Tory councillor wants to invest our taxpayers money into a venture that may fail didn’t other councils get their hands burnt on investing in wind farms ? I detest conservatives but I detest the labour MPs that could stop Doug pullen risking failing us tax payers, it’s to easy to risk other people’s money Evolve sound like their good friends with councillor Pullen
Has Doug Pullen read Jack and the beanstalk and thought it was a guide to business.
Jack swapped his cow for some magic beans.
Doug is swapping council tax payers money for a white elephant.
“ Everyman “ Cinema .. for Lichfield. No No No
The Mailbox Birmingham…….. Everyman…..£17.50 Adult Seat. ..
Hospitality Good, an experience, but evening for two could cost you close on £100
Keep chucking good,Money after bad, how much is it going to cost us all in the end
Well it sounds like a good idea to me, anything to improve the centre is welcome
After all the Pomp and Ceremony I couldn’t give a hoot to whether the Cinema materialises. But with Lichfield District Council and it’s umming and aaing for the last few years they are totally to blame. An expensive white elephant, that the Council Tax payer will never see to fruition