Coventry: Council decides against further Friargate development

The Friargate development was first planned in 2008 and proposals were for 25 new buildings around the city's railway station

Plans for a £700m business district in Coventry have been shelved.

The Friargate development has been in the pipeline since 2008 and envisaged 25 new buildings around the city's railway station.

Approved plans included 14 office blocks, two hotels and 400 new homes.

But, with a second office block and a new hotel almost complete, the councillor responsible for overseeing the project confirmed the original vision had been abandoned.

"I can't commit to that level of build on Friargate because that was a moment in time, a number of years ago," councillor Jim O'Boyle, cabinet member for regeneration, told BBC Radio CWR.

"I think what I'm trying to demonstrate is, we built Friargate Two. We've actually got investment in a private hotel that will make a huge difference to our economy."

A much-changed economic climate since 2008 was highlighted by the councillor as a key reason for the rethink.

Councillor Jim O'Boyle said the economic climate was much-changed since 2008

"I think it would be silly to say that a promise, or a vision, that was made 10-15 years ago, based on a different economic model, we're going to see it through regardless, would be completely crackers," Mr O'Boyle said.

"I'm not in any rush to overdevelop without having an understanding of how the business case will look going forward. We need to populate it with exactly the right sort of buildings."

After struggling to secure an anchor tenant for the first office building at the site, the council decided in 2013 to relocate some of its own operations to the building in a bid to kick-start the project.

But years of further delays followed which led the council to form a business partnership with Cannon Kirk in 2019 in a bid to reignite the project.

A new hotel has almost been completed as part of the development

However it emerged, in the council's most recent set of audited accounts, that the value of the council's share in that company had dropped by 73%.

It had fallen to £2.8m from the £10.5m the council originally invested.

The council put the drop down to "higher anticipated costs to develop the company's land and lower expected rental income."

The BBC revealed last month that the value of the council's investments in two other businesses - Coombe Abbey Hotel and Tom White Waste - had also taken substantial hits.

Coombe Abbey Hotel, bought by Coventry City Council for £9.1m in 2017, is now worth just £1.1m, according to a council report seen by the BBC.

While the refuse company, purchased by the council for £14.9m in 2020, has seen its value drop by almost a third to £10.6m.