A £1.2 million bid to redevelop the former Poundstretcher in Hamilton has collapsed after its owners said they had different plans for the building.
Funding from the Town Centre Capital Grant Fund of £176,000 had been allocated to the project but that will now be diverted to help cover the costs of restoring the Royal Oak in Lanark.
Hamilton BID and Clyde Valley Housing Association had hoped to transform the site into a mixed use residential and retail facility.
Last year, South Lanarkshire Council was allocated £2.5 million from a £50 million Scottish Government fund to create “transformational” change in the country’s town centres.
Head of planning Pauline Elliot told the council’s community and enterprise resources committee that Hamilton had’t lost out financially as two other projects were progressing well.
Ms Elliott added: “Unfortunately it has not been possible to deliver the redevelopment of the former Poundstretcher building at Brandon Street, Hamilton, as attempts to progress an acquisition of the property were not successful as the owners are pursuing alternative proposals.
“It was highlighted in the September 3, 2019, report that it may be necessary to reallocate funds in such a situation.
“The executive director was then given delegated authority by committee to vary the exact amount of funding allocated to each project to ensure delivery of the overall programme. In turn, officers gave consideration on whether to allocate to the first reserve project or to provide additional support to ensure delivery of the approved projects.”
Officers felt, given the timescale, it would not be viable to re-allocate the grant to a reserve project and instead help the viability of one of the other nine projects awarded funds in September 2019.
Funds have to be committed by March this year and spent by September otherwise the council would need to return unspent money to the Scottish Government.
Ms Elliott said: “it is anticipated that the reallocated funds will go to the Royal Oak project in Lanark.
“The condition of the existing building, combined with its listed status, liaising with Historic Environment Scotland and a constrained site, has led to additional challenges around viability.
“The benefits do, however, justify the additional expenditure and, as the first reserve project is in Lanark, there is no material detriment to the overall programme.”
East Kilbride West councillor David Watson was “a bit surprised” the Poundstretcher project had fallen through as he thought the 10 successful bids for funding were supposed to be “oven ready”.
Executive director for community and enterprise resources Michael McGlynn said the projects were “never oven ready” adding that “delivery of these projects was at risk” because of the time constraints.
Cllrs Peter Craig (Larkhall) and Margaret B Walker (Cambuslang West) thanked officers for the hard work they had put in and Cllr Catherine McClymont (Clydesdale North) welcomed the additional funds to fix the “eyesore” Royal Oak.
