ALMOST a year after Middlesbrough’s snow centre project was dropped the Tees Valley Combined Authority has still not had any of the £250K of taxpayers’ money it gave to the project refunded.
In February 2021, a council report revealed that the project, which included a 165m ski slope, a beginner run, shops, restaurants and cafés, would not be coming to Middlehaven.
As part of the scheme, the Tees Valley Combined Authority gave £250,000 to “get it over the line” in February 2018, however, it has not seen that money since, despite the project collapsing.
Read more: People react to plans for new Lidl in Middlesbrough
A TVCA spokesperson said: “The Combined Authority has not had its loan repaid and is in the process of seeking recovery of the monies. As a result, we will not be commenting further.”
It is unclear whether the TVCA is attempting to regain all of the £250,000 as it has refused to clarify how much of that amount is a loan and how much is a grant.
In 2019, the combined authority said that the cash was entirely a loan and no grant funding was provided, but in February 2020 it said that it gave “both a loan and grant to Cool Runnings NE Ltd to support the development of an outline business case for a proposed snow centre.”
The project was first mentioned eight years ago in 2014 when former mayor Ray Mallon confirmed that he was in talks with developers about bringing a snow centre to Middlesbrough.
In July 2017, Scottish firm Ice Factor was revealed to be a potential operator, however, that fell through and their involvement ceased.
The following year, the TVCA gave £250,000 to the project and it was renamed Subzero.
Detailed plans for the site were approved in March 2020, which also included space for a bowling alley, trampolining centre and climbing attraction underneath the ski slope.
However, just five months later in October 2020, Mayor Andy Preston said that the project didn’t “stack up financially” for the owners and that the council were not prepared to take on the risk of the project.
The mayor stated that the council and “perhaps the TVCA” would need to guarantee half of the £40m costs of the project.
At the time, Middlesbrough MP Andy McDonald said that he “could not comprehend” why the council weren’t backing the project when it could bring a “guaranteed income” of £3m a year.
The director of Subzero Rachael Howson has since said that the project would have cost £32m not £40m and thought it would fall further to £28m – £30m after the tender process.
In October 2020, Subzero said that the mayor’s comments “did not reflect their understanding at all”.
By February 2021, the scheme was completely off the table and Middlesbrough Council confirmed that it was looking for alternative uses for the land.
In September last year, it was revealed that Chinese state-owned property developer BCEGI was looking at ways to develop the Middlehaven Docks area, the site of the failed snow centre.
Ideas for the area have included a concert venue, an exhibition space or a multi-sport centre.
In response to the project collapsing, a Subzero spokeswoman said the council had “simply changed their minds in October” and this was politically motivated without justification.
Read more: Fishing groups send letter of no confidence to NEIFCA
Ms Howson said that around £1.2m had been spent on the project in the seven years it was being worked on.
The developer has previously said that she is taking legal action against the council.
Last year, the council’s chief executive Tony Parkinson said that it was not a political decision and it was because the local authority was not prepared to take on the risk, which could have seen it lose millions if the project failed a few years down the line.
Mr Parkinson also suggested that the developer didn’t deliver on what it said it could.
Ms Howson declined to comment.
Keep up to date with all the latest news on our website, or follow us on Facebook, Twitter and Instagram.
You can also follow our dedicated Teesside Facebook page for all the latest in the area by clicking here.
For all the top news updates from right across the region straight to your inbox, sign up to our newsletter here.
Have you got a story for us? Contact our newsdesk on newsdesk@nne.co.uk or contact 01325 505054
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here