COUNCILLORS are being asked to approve an additional £5.56million as part of a new cinema development in Lichfield.
The local authority said the money would see £2.84million used to complete the redevelopment, while £2.72million would allow it to take full ownership of the finished building.
The council said the increased costs reflected "market conditions, design development and the complexity of transforming the former department store into a modern leisure destination".
Cllr Doug Pullen, leader of Lichfield District Council, added:
"The redevelopment of the former Debenhams building is one of the most significant regeneration projects our district has undertaken and it is now well advanced.
"As with projects of this scale and complexity, additional costs have arisen during construction. Councillors are therefore being asked to consider proposals that would enable the redevelopment to be completed and allow the council to secure full ownership of the completed asset.
"We have always said we would be open about this project. These proposals will now be considered by councillors before a final decision is made by full council."
The council said taking on full ownership of the building would allow it to "retain 100% of the future rental income" and secure long-term control of the "important city centre asset".
But Labour opposition group leader Cllr Russ Bragger said:
"Residents were promised a cinema and restaurant, opening in spring 2026. It’s now well into the summer and there’s no cinema, no restaurant and the only feature on the screen is a potential doubling of the cost, a delay of at least a year, and a cliffhanger of Top Gun proportions on how this project has been managed.
"The people of Lichfield deserve to know why costs have increased massively, who authorised changes, what contractual protections are in place and what impact it’ll have on other council projects and services.
"We deserve better leadership from Lichfield District Council, not a cinema project turning into The NeverEnding Story.”
