£21m Wolverhampton Royal Hospital transformation in doubt over funding
The multi-million pound transformation of land surrounding the former Royal Hospital in Wolverhampton is at risk of stalling because of confusion over funding.
Work has already started on the first part of a wider £21 million project that will eventually see the historic hospital turned into apartments.
But the ambitious project could be about to grind to a halt before it has properly got started after a possible mix-up over funding.
Documents from funding body the Black Country Local Enterprise Partnership show there is confusion about how much cash has been agreed for the first phase on the site of the former bus depot in Cleveland Road, on land right in front of the hospital.
Interactive map shows site of the land:
It is intended to feature a new YMCA building, including retail space, a training and office area, plus a day nursery.
But the LEP board report papers say “it appeared that funding had been presumed”.
Council bosses are now scrambling to try and help secure funding and insist cash needs to be made available as soon as possible to prevent the project "failing".
The application for funding was made to the LEP by Black Country YMCA, supported by the city council.
Homes England made the development possible by buying the site and demolishing the former bus depot, while developer Jessup is lined up to build 74 apartments and 18 houses in a separate part of the development.
But there are fears about the immediate future of the project as the LEP said “future guarantees could not be made”.
The LEP report says: "The board stressed that funding was a difficult issue, with finances simply not readily available in the current climate.
"Wolverhampton Council stressed that without funding, the project would stall halfway, as the commercial and residential aspects were integrated into the same building.
"The council stated that the need to facilitate the additional phases and to see the next part of the scheme was extremely important to the authority.
"Any funding needed to be drawn down as soon as possible. Any in-house financial cover would be very short term, any longer would result in the project failing."
Wolverhampton Council spokesman Oliver Bhurrut said: "Works on this Homes England and Black Country YMCA site are progressing well.
"The council remains committed in its support of partners to ensure this important gateway scheme is completed in accordance with Homes England’s plans.”
The city's opposition leader Councillor Wendy Thompson branded the mix-up "disgraceful".
She added: "This is yet another example of things going wrong with a major project. Why are these safeguards and checks not put in before these things start?"
