Following careful consideration of the latest estimated costs of constructing a new purpose-built learning theatre on the former Assembly Rooms site, Derby City Council, Derby Theatre and the University of Derby have made the collective decision not to proceed with these proposals.
Given recent economic challenges of high inflation and interest rates, this has led to significant increases in both construction and borrowing costs which have made the project unviable in its proposed form. We’re not alone in facing these challenges, which we share with cities across the country in today’s uncertain economy.
Whilst this is disappointing for all three partners and for Derby’s citizens, we remain optimistic about the opportunities available to strengthen Derby’s cultural heart and have been working collaboratively to explore alternative proposals.
We are pleased that the Department of Levelling Up, Housing and Communities has accepted our proposal to equally divide the £20m awarded through the Levelling Up Fund to support the redevelopment of both the Guildhall Theatre and the Derby Theatre sites.
Councillor Baggy Shanker, Leader of Derby City Council, said:
This is a very positive outcome for the city. With the scheme we inherited for the former Assembly Rooms proving unviable, we could have faced the situation where we had to give £20 million of funding back to the Government.
The financial landscape for local government means that we can no longer take on the risk of proceeding with schemes of this scale, which could put us in the same difficult situation affecting some other local authorities who have had to declare effective bankruptcy. I’m delighted that we can keep this investment in our city.
We will now work to find an alternative solution for the Assembly Rooms, which in my view and many others’, needs demolishing as soon as possible to enable a fresh start.”
Councillor Nadine Peatfield, Derby City Council Cabinet Member for City Centre, Regeneration, Culture and Tourism, said:
We will now look to use the Levelling Up funding to refurbish the Guildhall Theatre and bring a much-loved heritage building back into use. This versatile performance venue is a vital part of Derby’s cultural offering.
Meanwhile the Council continues to progress the procurement of a strategic development partner to take forward the regeneration of several key sites in the city centre, with the former Assembly Rooms being the priority. We have received a number of tenders from interested developers which we will now take forward.
Professor Kathryn Mitchell CBE DL, Vice-Chancellor, University of Derby said:
The University of Derby is delighted by the news that the city partnership has been successful in securing Levelling Up Funds of £20 million to support cultural regeneration in the city. Derby Theatre, excited by this funding success, will now commence planning to use these funds to develop the Theatre spaces within the city and enhance audience experiences.