Development deal in Derby at stalemate

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Pressure is being put on developers behind a £150m office, hotel and shopping complex in Derby to contribute more cash to the city council.

Derbyshire-based developer Norseman Investments wants to build the complex - which could create 2,500 jobs - on land off Traffic Street.

As part of the deal, it would have to pour money into Derby City Council coffers for improvements in the city.The council originally wanted more than £900,000 to fund road improvements and public art projects.

But because of the credit crunch, Norseman Investments said it could only afford to put up £300,000.The council's planning committee was recommended to approve the plans at its meeting last night.

But councillors refused to give the proposals their backing, saying the figure offered by the firm was too low.Councillor Frank Harwood said: "While I think the site is absolutely superb, I am not happy with the clauses that have been put in by the developer.

Fellow committee member Councillor Ray Baxter said he feared lowering the sum could set a precedent for other developers.He said: "What we have been asked to do is reduce the investment by a substantial amount and other developers could use that tactic."

The plans for the site were originally submitted in January last year, but were the subject of lengthy negotiations between the developers and the city council.

Now, those negotiations look set to continue after the committee ordered both sides to come back with a revised sum by January.If approved, the development would see the offices, hotel and shops built around a central piazza over 400,000 sq ft.

There are hopes an entire Government department could be lured north to relocate on the site if it is approved.It would be made up of six buildings, between six and nine storeys high, with underground parking and landscaped gardens.

Despite rejecting the recommendation, councillors praised the development.Councillor Baggy Shanker said: "I think it will be a significant boost for the area and a much-needed boost for Derby."

Source: This is Derbyshire