The Council's Cabinet and Full Council will next week consider proposals for the redevelopment of the former Debenhams building in Lichfield city centre.
The redevelopment is a key part of the Council's wider programme of regeneration and will transform the prominent vacant building into a new leisure destination, including an Everyman Cinema and complementary hospitality uses.
As the project has progressed, additional costs have arisen during construction, reflecting market conditions, design development and the complexity of transforming the former department store into a modern leisure destination.
Councillors are being asked to consider a proposed additional investment of £5.56 million, comprising:
· £2.84 million associated with completing the redevelopment.
· £2.72 million to enable the Council to secure full ownership of the completed development.
Around half of the proposed investment relates to completing the redevelopment, with the remaining £2.72 million enabling the Council to secure full ownership of the completed asset.
If approved, full ownership would enable the Council to retain 100 per cent of the rental income generated by the completed development, strengthen its asset base and retain greater control over the future management of this significant city centre asset. Over the long term, that income would help support the Council's financial position while ensuring the benefits generated by the development remain within the district.
The redevelopment remains well advanced, with Everyman Cinema and the other hospitality operators committed to the completed development. Construction remains on programme to complete later this year. Following completion, Everyman Cinema and the other occupiers will undertake their fit-out, with the cinema expected to open in spring 2027.
Councillor Doug Pullen, Leader of Lichfield District Council, said:
"The redevelopment of the former Debenhams building is one of the most significant regeneration projects our district has undertaken and it is now well advanced.
“As with projects of this scale and complexity, additional costs have arisen during construction. Councillors are therefore being asked to consider proposals that would enable the redevelopment to be completed and allow the Council to secure full ownership of the completed asset.
“We have always said we would be open about this project. These proposals will now be considered by councillors before a final decision is made by Full Council.”
Cabinet will consider the proposals on 13 July before making a recommendation to Full Council, which will consider the matter on 14 July.