£1.9m loan plan for theatre project approved

A £25m project to build a college on the former theatre's site has been delayed by wrangling over land purchase

A council has been forced to approve borrowing of nearly £2m after delays put a major construction project under threat.

Plans for a new college on the site of the former Hippodrome in Dudley are being held up by wrangling over the purchase of land.

Cabinet members have approved taking a loan worth £1.87m, at a cost of £140,000 per year over 25 years.

The cabinet heard that, if delays in completing the land purchase continued for too long, the scheme would be at risk and the government would want its money back.

'Best option'

The plan, for a health and life sciences education centre on Castle Hill, has been funded with £25m from the government.

Construction of the new centre, which is a partnership between Dudley College and the University of Worcester, was originally planned to start in February.

However, the council is still in negotiations to buy all of the land.

Council officers expect to complete the purchase of the outstanding land in December 2024 and start construction a month later.

The deadline to spend the government cash is March 2026, although councillors were told the local authority could negotiate for an extension.

“If we don’t go through with this there is potential we will be losing the £25m, the government will claw back £3.7m, and we will have a loss of reputation," said Paul Bradley, Dudley's deputy council leader, who chaired the cabinet meeting.

“This is the best option.”

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.

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