Multi-million pound Caistor project could 'unravel' after last-minute loan hitch

Caistor councillors had agreed to apply for £750,000 from the Public Works Loan Board (PWLB) to support the 2-4 Market Place scheme being undertaken by the Caistor and District Community Trust.

Repayments on the loan would be paid by the Trust, but concerns have now been raised that the town’s residents are not fully aware of the consequences should the project fail.

At an extraordinary meeting of Caistor Town Council last Thursday, called to get an update on the project and to discuss the loan implications, town clerk Michelle Moss said the original application was “significantly flawed”.

She said: “What the council hasn’t done is look at any provision for ring-fencing any reserves in the event of a default on that loan and that is the reality of the position the council is in.”

In this case, the cost of the loan would be added to the council precept charged to residents.

Speaking after the meeting, council chairman Jon Wright said: “Caistor Town Council has a duty of care to make sure the financial conditions for the PWL and thebuilding are transparent to our residents.

“In essence, councillors and our community wish to see 2-4 Market Place transformed into a thriving business model, but we must hold a proper public consultation and clarify certain legal aspects.”

The complex of buildings has been empty since the Co-op moved to hits new home on the town’s High Street, on the site of the former Talbot Inn.

Since 2016, Caistor and District Community Trust has been working on plans to breathe new life in to the buildings and earlier this year announced funding for the £2.4 project had been achieved.

The £750,000 loan is part of that funding, together with £90,000 from the Caistor community through a share option.

With rising costs, the project is now at £3.1 million and Trust chairman Neil Castle is confident this gap can be filled, but says the project is now at a “critical phase”.

Speaking at last week’s meeting, he said: “The buildings have been empty for 12, getting on for 13 years now. The water ingress has really started quite badly over this summer and is impacting on the buildings.

“The Trust now owns the property, so the Trust is in control of what happens now.”

He continued: “We really do need to get the building started this year.

"Some of the funders awarded us their funding in the middle of last year and if we don’t actually start using those funds, we lose those funds, then the funding stops and the project begins to unravel.”

The project would see the buildings become a mixture of holiday lets, retail and community space, and councillors have agreed they want to see the project go ahead, but there are concerns.

Coun Angela Clark said: “I hope the project goes through, but my problem is, it is a lot of money and if you [the Trust] defaults on the loan, that comes back to council.”

“We are representing the public of Caistor and I don’t think they have been consulted; they might not agree with it.”

Coun Michael Galligan went one step further, saying: “If we don’t push ahead with this it will be the death knell of the town.”

Speaking after the meeting, Mr Castle said the Trust would ensure the council had all the reports, surveys and other paperwork needed to complete their processes.

He added: “It was clear from the meeting, The Town Council still has to deal with some administrative matters regarding the Public Works Loan Board.

"It was encouraging to see the chair of the Council was keen to make sure everything required was completed as quickly as possible so other funders deadlines could be met and so avoid putting the project in jeopardy.

"Caistor and District Community Trust will make sure the Town Council has access to any reports, surveys, etc that it may need for them to complete their processes.

"The Trust looks forward to giving the green light to start construction once formalities are completed."