Home   News   Article

Newark and Sherwood District Council's Labour group raise concerns over council's investment into the Robin Hood Hotel project


By Advertiser Reporter


Newark and Sherwood District Council's Labour group has spoken out against today's announcement that the council is to invest millions of pounds into Newark's Robin Hood Hotel project.

The council is to put £3.3m into the scheme in a joint venture with M F Strawson Ltd to convert the building into a hotel and retail units. It will get two-thirds of its investment back when the Travelodge element is sold to investors.

The leader of the council's Labour group, Mr Paul Peacock has raised concerns over the investment.

Robin Hood Hotel, Newark.. (4615001)
Robin Hood Hotel, Newark.. (4615001)

He said: "Last year the council's policy and finance committee was presented with a report that indicated that Strawsons had provided a range of proposals to work with the council which would solve the problem of financing the building of a hotel.

"It is my opinion that those proposals were not properly investigated by the council, instead it put forward the proposals that have been made public today.

"The proposal today, for the council to invest £3.3m in the project, in my opinion, exposes the council to a greater financial risk than any of the proposals originally brought to the council by Strawsons.

"The council are committing £3.3m to the project in its build stage.

"There is a commitment that £2.3m will be returned to the council when the hotel is sold.

"Therefore, the council will spend at least £1m of council tax payers money without any return.

"The council will have an option to purchase the three retail units at a further cost of £900,000 as part of the proposals.

"If this option is taken, the bottom line will be that the council has spent £1.9m on three retail units.

"I think that this represents a massive risk when I see so many empty retail units already in the town. I certainly don’t think this is good value for money for our council tax payers."



COMMENTS
()


Iliffe Media does not moderate comments. Please click here for our house rules.

People who post abusive comments about other users or those featured in articles will be banned.

Thank you. Your comment has been received and will appear on the site shortly.

 

Terms of Comments

We do not actively moderate, monitor or edit contributions to the reader comments but we may intervene and take such action as we think necessary, please click here for our house rules.

If you have any concerns over the contents on our site, please either register those concerns using the report abuse button, contact us here.

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies - Learn More