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King Alfred jinx strikes again – This time it’s Brexit!

Besi Besemar January 24, 2019

A £400m development deal for Brighton & Hove is put on ice due to ‘Brexit uncertainty’ as developers indicate national Brexit deal deadlock “does not provide the basis for major investment decisions”.

A MAJOR leisure centre development project between Brighton and Hove City Council and developers Crest Nicholson has stalled due to ‘Brexit uncertainty’.

A letter from the developers citing Brexit as a major issue to the project’s feasibility was handed to Councillors just hours before a vote on the final development deal.

Referring to the impact of a possible no-deal Brexit, the letter cites ‘certain scenarios’ that could ‘[…]yet undermine the project’s feasibility,’ and further states that ‘[…]the current deadlock is most unhelpful…and does not provide the basis for major investment decisions in the interim.’

Councillors of all parties had been preparing to vote on a deal with Crest Nicholson to replace the council-run King Alfred Leisure Centre with new, improved sports facilities and affordable housing.

Last year the Government awarded £15.2m of Housing Infrastructure Funding to plug the financial ‘viability gap’ of the project.

For the last 30 years successive schemes on the King Alfred site have been a continued source of controversy, with concerns that developers would not follow through with plans for affordable housing on the site in a bid to retain a suitable profit margin.

Frank Gehry's 2009 design for King Alfred site
Frank Gehry’s 2009 design for King Alfred site

International architect Frank Gehry’s plans to build one of his ‘icon’ building on the site in 2009 were thwarted by local Conservatives after the project had received planning permission from the previous Labour administration.

Asked at the time his views on those who opposed ‘icon’ buildings Gehry said: “They’re part of the reason that things are ugly, but they don’t realise it.

“Through history, public buildings are iconic and if we want less we have no self-esteem. We might as well go back to the caves. If you add up how many iconic buildings have been built recently, how many are there? 50? 100? It’s nothing. So people can fuck off.”

Cllr Phélim Mac Cafferty
Cllr Phélim Mac Cafferty

Green Councillor Phélim Mac Cafferty, spokesperson for the Greens on the Council’s Policy, Resources and Growth Committee, said: “Greens have repeatedly pushed for answers on the impact of Brexit on Brighton and Hove. We have demanded impact assessments – to no avail – and called for recognition of the likely negative impact a ‘no deal’ would have on our council, communities and budgets. Now we’re beginning to see the real effect of Brexit on our city, and already it means developers are slamming the brakes on major development, critical housing projects are being put on ice, and new jobs and opportunities are being put on hold.

“On top of the very real effects of Brexit on our communities, we now have a situation where fears about market stability and ‘profit’ have driven developers to backtrack on agreements, leaving councils, yet again, in the lurch.

“We are a city with a housing crisis – we need to be able to attract new developments and jobs. It is unacceptable that Brexit has become the means by which developers can now bow out of council agreements. The UK’s exit from the European Union has been on the cards for months. There is still no clarity from Government – and the ‘uncertainty’ described by Crest is unlikely to end without a People’s Vote.”

Cllr Ollie Sykes
Cllr Ollie Sykes

Councillor Ollie Sykes, Green finance lead, added: “Fantasy-land Brexiteers are quick to label every mooted negative impact of Brexit as ‘Project Fear,’ but these ‘fears’ are becoming a reality. Worse still, while developers seek to protect themselves and their profit from risk, it is local councils who have been left to pick up the pieces of the Brexit mess.

“There is huge anger about this – both with the developers, who after years of negotiation have let us down; and with the Government, who have systematically ignored the devastating impact Brexit will have on local councils, major projects and regeneration.”

Developers Crest Nicholson indicate in the letter that in principle they remain willing to proceed with the development and enter into an agreement depending on a successful and orderly Brexit deal being agreed in January, with a view to the UK leaving the EU on March 29.

Frank Gehry was not available for comment on the council’s present difficulties.

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