Leicester City Council has failed to find a contractor for its major £22 million redevelopment of Leicester Railway Station. The authority sought a firm for the project in December, but only had one company bid for the job.
No agreement was signed, with Sir Peter Soulsby telling LeicestershireLive the council would be putting the contract back out to tender in the next “few weeks”. The city mayor added the result was “very disappointing”, but said he felt it was “a reflection of where the construction industry is at the moment”. He added there are a lot of projects out there, but not enough companies to do them.
Now, work on dividing the project into phases so a “wider range” of contractors are able to bid on it is being looked at according to Sir Peter. He said: “I have no doubt whatsoever that ultimately we will get somebody to do it.
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“This is not an unprecedented situation. Over the years, I can think of quite a number of occasions when the market just hasn’t been right and we’ve had to go out [to tender] again. It obviously is frustrating that there’s a delay, but what matters is that we get the job done, get it done well, and get it done at the best possible price.”
LeicestershireLive asked the city mayor why the contract had not been awarded to the firm which expressed an interest in it. He told us it was “important” to make sure the council got “good value” through having “competitive tenders” rather than “just taking the first one that comes along”.
He added: “It’s a very, very big contract and putting out a big contract just on the basis of one contractor putting in a price doesn’t necessarily give the council and indeed the public best value.”
The project is being funded jointly by the council, which is putting in around £5 million, and through Government grant funding. However, the Government portion of the money comes with a time limit for spending it – originally March this year.
However, Sir Peter said he was not concerned they might lose the money. He said: “We’ve been keeping the government department well informed of what we’re up to and I think they understand that we’re not the only ones who at the moment are finding it more difficult to get a good range of contractors in. We’re not the only ones in that situation, by any means.”
Leicester City Mayor, Sir Peter Soulsby
(Image: Leicester Mercury)
The plans for the railway station has come under criticism from some on the council in recent years. Among the most vocal opponents is Castle ward councillor Patrick Kitterick, who previously branded the council’s £5 million investment into the project “an eye-watering amount at any time”, but more so at a time when the council faces the threat of bankruptcy.
He raised further doubts that the scheme would stay on budget and feared the council would have to increase its contributuion when the scheme was being debated at a planning meeting in October. He believed the city had “other priorities” to spend the money on, including tackling Leicester’s homeless figures. He had also lamented the loss of the neighbouring Parcel Yard pub, which was demolished last year as part of early works on the station.
Responding to the contractor announcement, he told LeicestershireLive: “It is clear from the lack of interest in the contract that it is either not possible or will require a massive increase in budget to complete this project. The council was warned, not just by me, that going ahead without certainty was a risk, the council ignored that warning.
“Now we have lost a fine building to be replaced by another potential long term boarded up site to join Marks and Spencers and Jewry Wall museum to showcase the failure of the City Mayor.”
Leicester’s Conservative group, which forms the main opposition on the council, said it believes the council needs to shift its focus to projects which provide “immediate, tangible benefits to local communities”.
Group leader Hemant Rae Bhatia said: “We need to invest in Leicester’s future, but we must do so in a way that supports all of its residents, especially given the difficult financial position the council is in, not just through high-profile projects but by focusing on local community needs. It’s time for the city council to adopt a more balanced approach that supports growth across the city, creating jobs, enhancing local spaces, and ensuring every part of Leicester benefits from progress.”
The porte-cochere will be transformed into a food and retail space
(Image: Leicester City Council)
In response, Sir Peter said that it would be “daft” not to proceed with the station plans at this point as the authority would lose the promised Government funding for it. He said: “It would be absolutely daft to to say ‘because there’s a bit of frustration now, we [should] throw away the very specific funding for this project […] It is a very good thing for Leicester and a very good thing for us to do, particularly because it’s investment in public transport related infrastructure.”
The redevelopment plans will see the station’s entrance moved around the corner to Station Street, which would in turn be closed to traffic. A new pedestrianised public area, with a ramp leading into the station, would be created on the space which was previously home to the Parcel Yard pub. Pick-up and drop-off points, including for taxis, would shift from inside the station to a parking area behind it, off Fox Street, close to the new entrance, and the existing rear entrance would be upgraded.
The glass-roofed porte-cochère, currently used by taxis, would be completely overhauled to create a new food hall, with space for street food venues, cafés, bars and a convenience store. Full plans for the porte-cochère, including the types of business which could move in, will be subject to a further application in due course.