However, the report said: “In the intervening period the collapse of the commercial property market has had a significant effect on the viability of the Phase 2 development, resulting in an increased need for public sector intervention to make it a commercially viable proposition for the developer, Neptune.
“Consequently NWDA have now agreed to provide funding of up to £3.9m as a contribution towards a package of enabling, site preparation, infrastructure and public realm works.
“This was formally ratified at a meeting of the NWDA’s Project Review Group on September 7, 2009.”
The grant is subject to Neptune providing written confirmation of final credit approval for the £20.8m to complete the scheme.
It also means that any increase in the value of the scheme which was to be split between the council and Neptune will be repaid to the NWDA, up to £1.15m – the increase in NWDA grant.
The report also warns that should the second phase of the scheme not proceed the council will be obliged to repay a £2m grant to the NWDA.
Former cabinet member for regeneration and New Brighton councillor Pat Hackett said the increased grant showed the NWDA’s commitment to the development.
