Half-empty Paddington Village development good value - councillor

The venture was a flagship project for ex-mayor Joe Anderson

A development which has cost a council £144m is good value for money, a senior councillor has insisted, despite a half-empty main building and four undeveloped plots of land.

A Liverpool City Council's cabinet report said Paddington Village suffers from "a lack of investment".

It was a flagship project of ex-mayor Joe Anderson.

And is a key part of the city's "knowledge quarter" near the University of Liverpool and the Royal Hospital.

The three projects completed so far are the distinctive Spine office development, a hotel and multi-story car park.

Councillor Nick Small, Liverpool's cabinet member for growth and economy said: "When Paddington Village was first envisaged it was pre-pandemic and the world of work has changed.

"It's important we keep under review how we operate this building."

The Spine has occupied eight of its 14 floors, since opening in May 2021 with the Royal College of Physicians as anchor tenant.

Mr Small said he believed despite the cost, the development offered value for money.

"I think we've got to look at this in financial terms. Yes there is more that we can do in terms of getting more tenants in - but we also need to take a long term perspective," he said.

Tom Crone from the Green Party warns against any more "vanity" projects

"This is about place-making in a part of the city where businesses haven't traditionally been.

"Look at what the council's done with other parts of the city like the Baltic where 10 years ago, nobody thought anyone would start a business there - we proved them wrong on that and we've got to do the same here," he added.

"I am confident when we are sitting here in 10 years' time, this will be seen as a shining success story."

Plans to revive the building's fortunes include introducing a range of flexible leasing options at The Spine and changing the tariff structures for the car park.

The report said there have been some inquiries from businesses wishing to occupy the Spine, but some have halted or not progressed.

This was either due to the complexity of the tenant having to undertake "a full fit-out" and the timescales required, or simply because they wanted smaller, more desk-ready space.

It added the council will lose just under £4m in the year to March 2024 if there is no change and the income generated from the three buildings does not increase.

A monthly Paddington working group has been set up to focus on managing the assets.

The report underlined the importance of attracting new tenants to the Spine, and maximising car park income.

Councillor Nick Small says the world has changed since the pandemic

It said increased occupancy would increase confidence and "drive plot development" which would lead to further income across the site.

Green Party leader Tom Crone said he had no objection to the council investing in developments, but said there had been a tendency in the recent past for "vanity projects".

He added: "The track record here in Liverpool has been disastrous. £144m of public money invested in this building which is currently half empty."

Mr Crone said more transparency was needed with a "rigorous approach" to ensure any future project "is properly costed, properly planned and... going to work."

A fresh cabinet report is expected later this year on a strategy for the four empty plots at Paddington Central.