Bedford’s mayor approved a £1.8m purchase of the former Debenhams building with no guarantee that the investment will succeed, according to a report.
And the total costs rise to £2.2m, once tax, fees and “essential” works are included.
The report said offers for the site were invited in the “region of £3,000,000 exclusive of Value Added Tax”.
Mayor Tom Wootton signed off on the decision to acquire the High Street site on December 20, 2023, but the decision notice and report (1714) were not published at the time on the grounds that they contained “commercially sensitive” information.
Read: Mayor rejects calls to sell former Debenhams building costing taxpayers £450,000 each year
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However, it has now been released to the Local Democracy Reporting Service (LDRS) following a request for access under local government transparency rules.
The council said the information is no longer sensitive.
As well as the expected £2.2m cost, the documents also show the council anticipated holding costs estimated at up to £130,000 a year, with potential to reduce costs through lettings, while longer-term redevelopment plans are prepared.
The report acknowledged the risks involved in the purchase, stating: “All commercial investments, and commercially based developments, involve risk and, at each stage of the process, the commitments made will be at risk as there can be no guarantee that a fully successful development will be achieved.”
The business case confirms the project was not classed as an “invest to save” scheme, meaning it was not expected to generate direct financial savings.
Long-term regeneration
Instead, the council said the acquisition was intended to support the long-term regeneration of Bedford town centre, including the potential redevelopment of the Mayes Yard area and improvements to nearby cultural facilities such as the Corn Exchange and library.
The report also highlights wider risks, including potential delays, changing market conditions and the possibility that the building could fall in value before redevelopment is delivered.
The report said acquiring the site would reduce the risk that fragmented ownership could undermine wider regeneration plans.
The former Debenhams building has been vacant since the retailer collapsed in 2020 and occupies a prominent site in Bedford town centre.
by John Guinn
Local Democracy Reporter
