Crunch talks as Redcar businessmen behind £60m Coatham Area plans meet with council
Redcar businessmen behind the Coatham Arena plans say it won’t cost taxpayers ahead of important meetings with council presidents Thursday.
The group meets with Redcar and the Cleveland Council, which owns the site, to present the case for the £ 60 million project and convince the agency to assign the land.
They say the arena could hold its first concert as early as 2024, investments would come from the private sector and they would not “go to the council with a begging bowl”.
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If the project “shows no signs of continuation” within 12 months, they said, the land would be returned to the agency.
Destination Developments, the NE England Chamber of Commerce and the Inn Collection Group, which is behind a 42-bed hotel near the Location.
Restaurants, bars and a permanent “UK unique” visitor attraction in the arena would generate a steady flow of revenue as arena events take place two to three times a week.
Pictures of what the Coatham Arena could look like
Philip Deighton of Destination Developments said investments were being sought from pension and investment groups, local authorities as well as individuals.
He said: “We don’t expect the council to fund it, we have never seen it as a burden on taxpayers.
“You will have great convenience – and it will not cost you anything.
“The ball is yours.
“There are a lot of devices that don’t encourage them to sell the family silver.
“The Birmingham and Solihull Councils built the NEC, which is very successful.
“That was financed with shares, the municipalities have benefited from the profits and it has increased their interest funds considerably.
“We want to do something very similar.
“We don’t go to council with a begging bowl.
“It is operationally feasible – we know that.
“But we are very anxious to dispel the thought that it will be a white elephant – and it will cost the taxpayer a day and a day – because it is not.”
The venue, he says, will be a big magnet for future investment and will be backed by “a lot of big acts and the events industry,” local political support and the community.
The group is aware that the plans are presented to the council “late in the day”, he added, as the renewal of the area gets underway.
“A lot of plans have not materialized in the past,” he said, “but we really believe we have a good plan.
“We could be enjoying a concert here within three years.”
The Old Coatham Bowl site is currently in disrepair
(Image: Teessidelive)
Mott MacDonald says the project can work in conjunction with the city council’s current plan for the site and the Tees Valley Combined Authority’s broader goals for the area.
Mott MacDonald has worked on sports and event projects since the 1960s, from Goodison Park to Leeds Arena.
Current projects include the Gateshead Arena, the Swansea Arena and the procurement of a 15,000-seat arena for Cardiff.
Rob Sayce, head of sport and events at Mott MacDonald, said some persuasion was needed to encourage the council that the development would “bring greater benefits than they may realize.”
“If you look at this page it’s easy to say it feels right, but the point is to make the case something that is viable.
“Nobody wants to be associated with something that fails – but there is definitely a reason for an arena profitability rating on this site.
“The history of the site and the links to promoters and artists that the group has really help move this forward.”
“We have to go out there and prove that when we build it, people will come.
“That shift already makes a huge difference.”
Social outcomes and how projects “make a positive difference to people and their communities” are a massive focus, he added.
“People want experiences now.
“Shopping malls and shopping malls no longer bring people into the city centers.
“With Covid it has gotten a lot worse.
“We were heavily involved in the city funding and worked with 11 local authorities.
“There’s a tremendous opportunity to help places like Coatham drive traffic, cities regenerate, stay, and tourism.”
Martin Poulter of Redcars Poulter Property Services Ltd said the plans would “certainly be a little thought-provoking” in the council.
“It’s a massive renewal program for the entire area, not just for Redcar,” he said, “the council’s current plans can be changed, we want to work with them.”
Frankie Wales, executive director of the Redcar Development Trust, said an arena would be a great job for the city.
“There will be a massive ripple effect,” he added.
“We do SKA events and when we’ve sold them out, we sell the hotels – and that’s only 500 people.
“Imagine what 5,000 would be like.
“The people here don’t want a handout, they want a hand up.
“This will create new companies, young entrepreneurial children who think ‘why don’t we open a café or a bar’.
“It’s a fantastic opportunity that we need to seize with both hands.
“For me, this is the time with what happened to the steel mills and East Cleveland.
“It goes beyond politics.
“This is about our city, which is a fantastic place to live.
“We’re just six passionate people who care about the area.”
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