Multi-million-pound taxpayer bail out for Friargate developers

Council to set up joint company with Friargate developers - but it comes at a cost



Taxpayers will pay millions of pounds to the Irish government to clear the debt of the developer which owns the Friargate site in order to clear the way for the £100million scheme to progress.

Cannon Kirk, the founders of Friargate LLP, which is responsible for developing and marketing the site owes an eight-figure sum to the National Asset Management Agency (NAMA).

NAMA was created by the Irish government in late 2009 to provide loans in response to the financial crash and the bursting of the Irish property bubble.

Senior Coventry councillors have told the Telegraph that, as a result of the debt, the developers have been prevented from moving development forward in recent years - with the land acting as loan security.

Now, Coventry City Council is set to enter a 50/50 joint venture with the Irish landowners in a move that will see the council agree to clear the developer's debt with NAMA by issuing a loan of its own.

The new company will replace Friargate LLP and it is understood senior figures involved in the existing firm are to be ousted after a decade of failure to significantly progress the city's business district project.

But council officials insist the cost of the venture will pay for itself, and turn a profit, over the next 20 to 30 years - pointing towards a predicted uplift in business rates of £20million a year.

The scheme is now expected to be completed by 2027 - which should eventually see 25 new buildings, including 14 Grade A office blocks, housing and a hotel.

Asked if the reason the joint venture company was being set up was because the Irish developers had the council over a barrel, Cllr Mutton said: "No. It is because we need to see this land, which has been derelict for the last 10 years, developed."

I said at the very start the developers would go bust before it was built!

But council officials insist the cost of the venture will pay for itself, and turn a profit, over the next 20 to 30 years - pointing towards a predicted uplift in business rates of £20million a year.

If it does turn a profit, or even pay for itself, I'll be very surprised. I really think we've got some right thick muppets on our council.

I said at the very start the developers would go bust before it was built!

Yes you did even before they started.

[Melisandre]

I really think we've got some right thick muppets on our council.

Thats for certain Rebbonk not so many years ago London had to send up staff to get our council out of trouble.

Last edited by Melisandre on Thu Dec 21, 2017 12:51 pm, edited 1 time in total.

How much more money are they going to squeeze out of us for their mistakes if it was a business they would be sacked so how much more are the least well off suppose to have to pay for inadequate managing with this also this.

http://www.independent.co.uk/news/uk/ho ... html%3famp

All smoke and mirrors, but the end result is passing yet more expenditure onto those that can least afford it.

The whole tax regime in this country stinks, and there is virtually no way of holding councils to account. I once got a foot in the door at CCC to look at internal wastage. On offering my initial findings, the 'manager' said, "It'll take a braver man than me to move forward with this!" What I was talking about was elementary, entry level stuff.

I always thought you were allowed to examine the council ordit books and they were open to the public.
So he was saying in other words there would be a cover up if you challanged your findings and make your life uncomfortable if you did , per usual.

Melisandre, anyone can look at the books I believe: I got in as a 'consultant' to see some of their processes. - They were shocking and very wasteful.

I think I've said it before, but a senior politician once said to me, "You think Parliament is full of sleaze and corruption? Try looking at your local council!" He wasn't specifically referring to Coventry, but his message was clear.

Thank you Rebbink I thought they were but was nt sure if they were still open . So you are quite an intellegent man then.
Yes I ve known from a small child my mum being friends with a certain person I wish to not name on here who told her of the waste in our council and I do know other councils are the same if not worse than Coventry reading news articles all over.