Impending collapse of developer behind Blackpool's £300m regeneration plans is a massive set back for town

Nikal Ltd is the developer delivering the much-vaunted Blackpool Central project, aimed at creating a world-class leisure destination off the Golden Mile.

Proposals have included plans for two indoor theme parks, a 1,300-space car park, a 127,000 sq ft flying theatre, 70,000 sq ft public square, new hotels, restaurants and swanky apartments.

So far, the new car park has already been completed and is now in operation but other elements are at an earlier stage.

It has now been revealed that Nikal has filed a notice of intention to appoint administrators, a move which throws doubt over the way ahead for the ambitious scheme. Blackpool Council says that, despite the latest development, it is still confident the project will be delivered for the resort.

A massive setback

But Coun Paul Galley, leader of Blackpool Council’s Conservative opposition group, described Nikal’s shock move as a “massive setback” for the town.

Coun Galley said: “"In the week that Blackpool Council's reserves are due to forecast to reach a frighteningly low £76K, this news is a massive set back to Blackpool and brings in to question the way Blackpool's Labour Council manages it's budgets and it's building contracts.

“This scheme joins the many other recent unfinished Council projects including the Sands Venue Hotel and the area around the Blackpool North Tram Stop.   

“Even if the scheme is ever completed it means it joins all the other Council schemes that were years behind schedule including the Tram extension and the Conference Centre. 

“It also will probably join the list of many projects that in the words of the Council's own Financial report resulted in "Income not meeting business cases".All of which leaves Central Drive area looking worse than ever.   

“So far we have closed down a popular market, probably reduced our car park income and seen large parts of Central Drive area closed for absolutely nothing.

“I will be writing to the Leader of the Council, Coun Lynn Williams and the Chief Executive to find out what financial agreement is in place with Nikal, what clauses are in place to exit any contract especially around the new Car Park as well as finding out what is the Plan B, if they even have one."

Project can still happen

Claire Smith, of Stay Blackpool, also raised concerns but she felt the Blackpool Central scheme would still press ahead - and bring the resort the boost it needs.

She said: “It is very worrying news - the town got very excited about this project because it delivers on everything we wanted - a year round scheme which can bring plenty of jobs.

“Thankfully some of the work has already started and the imminent demolition of the police station and the magistrates court will clear the way for the next stage of the work.

“That enabling side of things can hopefully help things through to the next stage, whether Nikal can bounce back from this and continue with its plans, or whether it is someone else.

“I’m confident it can still happen, Blackpool always bounces back.”

What council says

A Blackpool Council spokesperson, said: “We have been working on the enabling phase of Blackpool Central over the last few years. The new multi-storey car park opened earlier this summer and we are currently completing preparations to demolish the old police station and courts building early in the New Year.

“We had been negotiating with Nikal on how they would deliver the next phases of leisure and accommodation, and will speaking to them to understand how this news affects those plans.

“We still have a clear commitment to deliver Blackpool Central and will be considering our next steps to progress it.”