A property developer has been grilled by councillors about using council money as well as private investment for the refurbishment of an office block.
Stuart Monk, Managing Director of Jomast, was answering questions from councillors at Middlesbrough Council’s place scrutiny committee meeting, when Labour Councillor Lewis Young asked him about the redevelopment of Church House, the office block in Central ward.
It was reported in 2023 that work was underway at the high-rise office block, on the corner of Bedford Street and Linthorpe Road, as part of a huge transformation project.
Cllr Young said he was pleased to see that the building was “finally” being refurbished, before listing how in 2012, there was an application for 77 apartments, and in 2016, there was an application for 87 apartments. “It’s now 85 apartments, I’m just wondering why it’s taken so long to get to a point where work can actually happen on that site.”
Mr Monk said: “It was a redundant office block, 14 stories” and added that in 2007/8 “we had the biggest financial crash in 100 years, about 80% of my competitors went out of business. I managed to survive, but from 2008, for the next 10 or so years, it was a very challenging period. So as I’ve said it’s not an easy business. The North East, Middlesbrough, is a deprived area. It isn’t as if there’s a golden road here.”
He added: “We were able to secure a grant from Middlesbrough Council, that’s only a recent development” and “that just got it over the line for us basically, that’s the economic reality of where we are in central Middlesbrough”.
Cllr Young responded saying he understood there was a financial crash in 2008, but pointed out that an application had been submitted in 2012, “so there was obviously a plan there, and with a plan, I assume there was money there as well”.
He continued to comment on the recent grant from the council of £1.4m, compared to the reported £10m that Jomast is investing, to which Mr Monk said: “it’s probably more than that”. Cllr Young concluded based on these figures that “you probably didn’t need the grant to start the work?”
Mr Monk said: “We were seeking to engage with the council” at the time of previous applications, “but we weren’t able to make progress with that back in 2012”. He added: “I don’t think it’s a difficult economic case to make that viability is an issue”.
He highlighted the work that Jomast had carried out in Gresham, buying 67 houses, without any financial support, “but we cracked on with that straight away”, compared to Church House, which is “a more complicated project in terms of the fact that it is a high rise building.”
Cllr Young clarified that he is “not against joint ventures” but that it’s “galling” that “private companies don’t get involved until council gets involved, but you’re a private company, why do you need that council money?”
Mr Monk said: “It’s about viability, isn’t it? Obviously, if the cost, if the level of investment, doesn’t produce a satisfactory return, then it’s difficult to commit that capital… why would we do that if there’s something that would be more viable elsewhere.”
He added: “We bought that building, probably over 20 years ago, but we didn’t pay a lot for it” and concluded that it was a long term investment.
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