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Cash Crisis: Sheffield £3.3 Million New Deal Loss

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http://www.thestar.co.uk/news/Cash-Crisis-Sheffield-33-million.6634579.jp

A BUILDING bought and refurbished by Burngreave New Deal for Communities at a cost of £4.5 million may have to be closed and sold - for as little as a quarter of its value.

Experts say Sorby House may only fetch a little over £1 million - and a March 31 deadline imposed when New Deal was created means the cash meant to help regenerate the area is instead likely to be clawed back by the Government.

The shocking £3.3m loss is equivalent to more than £6 for every one of Sheffield's 500,000 residents.

Sorby House, on Spital Hill, formerly drab DSS offices, was revamped to a high spec rivalling city centre offices as part of the regeneration agency's £52m programme.

The building was intended to become self-sufficient, run by a trust, with some of its floorspace used by community groups whose rents would be subsidised by letting to commercial tenants and public bodies.

Now, more than two years after opening, only 48 per cent of the building is occupied and the rental income is insufficient to fund running costs.

New Deal, to be wound up at the end of its 10-year lifespan in March, has subsidised Sorby House's bills from the £80,000 a year still received from the Government to cover administration.

The building would need to attract sufficient tenants to cover running costs by the end of March, and establish a trust to run it, otherwise it would have to be transferred to the council or close and be sold, with proceeds going to the Government.

New Deal can only keep proceeds from selling Sorby House if they are reinvested in 'capital projects' - buildings, parks or community facilities - but every penny must be spent by the end of March, which would force the agency to put the building on the market as soon as possible and abandon efforts to make it viable.

Sheffield chartered surveyor Nick Riddle told The Star: "I wouldn't expect the building will sell for more than a quarter of its £4.5 million cost."

Mr Riddle added a sale within four months would be "impossible" in current market conditions.

He said: "Relying on attracting private business to make the building viable was flawed. Most occupants are community groups. Companies would not want to move in next to tenants such as the Somali Special Needs group.

"Firms would also be put off from moving in by the high crime rate - plus, because of the mess the council has made of roads round the Wicker, it's difficult to reach by car."

Spital Hill

Total genius.

So that's a nice loss for the taxpayer.

Not quite sure what this group has blown £52m on but I bet it's not generating much of an economic return. Plenty of meetings will have been organised I bet.

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If we could imagine the cumulative government waste it, would look like a 1000lb morbidly obese man.

It gets worse. Kirklees is considering a cable car for Huddersfield laugh.gif

http://www.examiner.co.uk/news/local-west-yorkshire-news/2010/10/13/ski-resort-style-cable-car-plan-for-huddersfield-86081-27458221/

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Hehe, used to work near there. If we worked after 7pm the company used to pay for a taxi home. Not the nicest area.

Back in 2004 when we were house hunting I drove my wife around Sheff looking for potential places to stay. We drove through Burngreave and Pitsmoor. She said it was like a US ghetto and called it Pittsburgh. Mind you, we carried on to Grenoside and she said we couldn't live there because it sounded too much like Genocide.

They have had drug dealers whacked in the streets in the Spital Hill area. With so much commercial property available then there's no incentive to move to such a risky area.

I presume the bosses who have been disposing of the £52m live in Totley and Dore and points west.

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New Deal was one of New Labours successes making many a millionaire by diverting billions of tax payers pounds into the pockets of influential businessmen. Did nowt for the proles mind.

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Marge: But Main Street's still all cracked and broken...

Bart: Sorry, Mom, the mob has spoken!

All: Monorail! Monorail! Monorail! [big finish] Monorail!

http://www.youtube.com/watch?v=jF_yLodI1CQ

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I was a student in Sheffield we went looking for a curry house one night and ended up in Spital Hill, like previously mentioned we were a bit worried, it was like being in 'the wire' very dodgey area, unbelievable that our government would waste such money regenerating an area as terrible as this one!

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Back in 2004 when we were house hunting I drove my wife around Sheff looking for potential places to stay. We drove through Burngreave and Pitsmoor. She said it was like a US ghetto and called it Pittsburgh. Mind you, we carried on to Grenoside and she said we couldn't live there because it sounded too much like Genocide.

They have had drug dealers whacked in the streets in the Spital Hill area. With so much commercial property available then there's no incentive to move to such a risky area.

I presume the bosses who have been disposing of the £52m live in Totley and Dore and points west.

Sheffield has the wealthiest ward outside London and some of the poorest IIRC.

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If we could imagine the cumulative government waste it, would look like a 1000lb morbidly obese man.

You do wonder if all the waste hadn't happened whether the UK govt might have run a balanced budget.

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You are still paying for the 1991 World Student Games. What a rip-roaring success that was. :huh::huh:

"Twenty years after construction was completed the ramifications are still profound, not least because local taxpayers are still paying off the debt from Don Valley and other Games facilities, such as Ponds Forge, the Arena and Hillsborough Leisure Centre. Last year the repayment was £23.2m."

http://www.sheffieldtelegraph.co.uk/news/legacy_of_student_games_will_keep_on_running_1_1998922

What a shit hole. Sheffield ~ twinned with Islamabad.

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Sheffield has the wealthiest ward outside London .

I find that hard to believe.

Can you come up with some figures (or even a name!)

tim,

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I find that hard to believe.

Can you come up with some figures (or even a name!)

tim,

He's probably referring to places like Totley and Dore or Fulwood. You can walk into the Peak District national park from those leafy suburbs, and plenty of houses at £400k +.

It's an especially stark contrast when much of South Yorks are among the cheapest places in England.

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I was born in Sheffield and find it really sad at how the place has been governed and neglected. The council have done their best to turn it into a eastern-european commie sh1thole. Everything they touch turns to cr*p. Because of the council the city has had precious little inward private investment for the last 30 years. I remember them inviting Gerry Adams to speak at the council at the height of the Irish troubles - 'says it all really. Total financial and social incompetents driven by leftie dogma.

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I was a student in Sheffield we went looking for a curry house one night and ended up in Spital Hill, like previously mentioned we were a bit worried, it was like being in 'the wire' very dodgey area, unbelievable that our government would waste such money regenerating an area as terrible as this one!

its not a particularly nice area, but comparing it to the wire is a rather large exaggeration! In baltimore someone is murdered every 3 days - in Sheffield I think this sort of drug related murder has happened 3 times in the last 6 years or some such low number! I've been for curries in Spital Hall many times and never had any bother.....still I would not want to work there if the choice is that or somewhere else nicer.

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I was born in Sheffield and find it really sad at how the place has been governed and neglected. The council have done their best to turn it into a eastern-european commie sh1thole. Everything they touch turns to cr*p. Because of the council the city has had precious little inward private investment for the last 30 years. I remember them inviting Gerry Adams to speak at the council at the height of the Irish troubles - 'says it all really. Total financial and social incompetents driven by leftie dogma.

Sounds like most of the UK....misgoverned and in debt

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  • 141 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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