Concerns raised over £1.25million public cash for redevelopment of Hartlepool's Wesley Chapel

Hartlepool’s application for £25million from the Government’s £3.6billion Towns Deal was approved in 2021, with five schemes selected to benefit.

This included supporting redevelopment plans for the former Wesley Chapel, badly damaged by fire in December 2017, which will involve the creation of a 36-bedroom boutique hotel.

The Town Deal will fund the “Conservation Deficit” element of the project at a cost of £1.25million, with owners Jomast Developments funding the remaining £2.66million.

Although the finance and policy committee approved submitting the business case for Government approval at its latest meeting, concerns were raised by Labour councillors over the lack of public return from the funding.

Cllr Rachel Creevy, speaking at the meeting, said: “It’s still taxpayers’ money which is being given to a private company.

“We all want to see that eyesore being dealt with, but it’s worrying that it’s for such little return for us as the local authority.”

She also raised concerns the development could lead to the nearby Grand Hotel becoming “another white elephant”.

Cllr Brenda Harrison, Labour group leader, echoed it was “a lot of money without any public return”.

However council leader Cllr Shane Moore said when the Town Deal Board consulted over potential projects, developing the former Wesley Chapel proved popular with residents.

He said: “The Wesley Chapel came way up on the priority list for the public and they wanted to see this project included.

“The reality of the situation is the business case doesn’t stack up without any Government assistance.”

Denise McGuckin, council managing director, said a public return of the project would be “bringing a derelict building back into use in the middle of town.”

She added: “It’s either we do it or we end up with the Wesley staying as it is, because that’s exactly what will happen, it won’t come forward because of additional costs.”

The business case highlighted benefits of the project include temporary jobs during construction, and around 55 full-time roles on completion.

The funding for the project will be released by the Department for Levelling Up, Communities and Housing, once it is happy for the projects to proceed after reviewing the business cases.

The whole process has been led by the Hartlepool Town Deal Board, chaired by local businessman Alby Pattison and comprising representatives of the local public, private and voluntary sectors.