Campaigners seek legal advice to try and save covenant protecting Dudley Hippodrome

Dudley Council's cabinet rubber-stamped a move last month to overturn a covenant on the Castle Hill site implemented by former operators, the Kennedy family.

The restrictions means the building would be prevented from being used except for leisure, retail or housing purposes. It was agreed by chiefs this would be overturned.

But now campaigners are seeing what can be done to defend the covenant as they await the outcome of a Government appeal of a refusal to have the building Grade-II listed – saving it from development.

The Dudley Hippodrome Development Trust (DHDT), in an email to Culture Secretary Nadine Dorries, claimed the authority had spent money for artist impressions, surveys, design and fly-through videos – and that money could have been used to refurbish the art-deco theatre.

They argue negotiations with the K2 Security and Castle Hill Banqueting Suite, required for completion of the plans for a university-style campus, were being conducted but may result in an expensive Compulsory Purchase Order process.

The group said: "In addition, it is widely accepted that there are limestone caverns beneath Castle Hill and the Hippodrome site and extensive piling / concrete infilling will be required, which has not been factored in within the £36m budget.

"Dudley Hippodrome Development Trust is awaiting a decision from yourself (Nadine Dorries) on an appeal of the Grade II listing rejection. Our Facebook page detailing the exact documented evidence supplied for the appeal has reached a staggering 40,219 people of interest so far, and this surely indicates that a thorough investigation of Historic England's assessment should be completed before another dismissal.

"We, at DHDT, do not oppose the much needed regeneration of Dudley. We stand by our statement that Dudley Hippodrome should form a major part of that regeneration and that there are many alternative sites which could accommodate 'Health Innovation Dudley'.

"We are in the process of seeking legal advice on what can be done to defend the restrictive covenant."

Meanwhile Dudley Council's regeneration and enterprise director Helen Martin told a meeting last month preparations were being made for the second phase of the major redevelopment.

But Ms Martin said: "We intend to appropriate the site of the Hippodrome which has various restrictions and covenants under the Housing Act and the Planning Act which will require a further report."

She also said negotiations were continuing with a number of existing businesses in relation to compulsory purchase orders.

The campus development scheme will be funded by the £25 million Towns Fund cash pot awarded to Dudley Council by the Government under a partnership between the council, Dudley College of Technology, University of Worcester, tourist attractions and other borough organisations.

The university will oversee a nursing college which is expected to be up and running by the 2024 academic year.