11:00am Tuesday 29th July 2008
By Carl Brown
A LEADING councillor has admitted the credit crunch may slow progress on the redevelopment of the Arcade site, but insists the scheme is still viable.
The council's enterprise cabinet member Terry Wheeler said the multi-million scheme, earmarked for the site on the corner of Hoe Street and High Street, is not in danger, despite developer St Modwen PLC announcing a pre-tax loss of £20m in just six months.
Cllr Wheeler said: "There is no question about the viability of the scheme, and we will try to keep as similar as possible to the original plans, although it will be modified to meet market conditions and some of the retailers may change.
"This may slow it down a bit."
Cllr Wheeler said St Modwen is committed to the scheme and is determined to complete it as soon as possible.
He said: "There is not a definite indication of when we are going to see a planning application, but we expect it be later this year, within six months."
Following the granting of planning permission the site would be sold to St Modwen.
Some have speculated that St Modwen's finanical problems may cause them to delay putting in an application.
But Cllr Wheeler said he believes the giant firm is robust enough to cope with the loss.
He said: "I am conscious people want to see something built on the site.
"And this is an exciting project, it is about getting the right balance because we want the job to be done quickly but to a high quality."
Early plans for the proposed complex include an 18-storey tower, a two-floor Primark, a cinema and homes.
A St Modwen spokesman told the Guardian the scheme was being reviewed, but the company is still working to submit the application as soon as possible.
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