A final decision on the direction of the Inspiring Eden project in Penrith and the use of £7.09million Government funding will be made next month – but it is likely that plans for a proposed £4million enterprise hub will be shelved due to ‘viability challenges’.
Members of Westmorland & Furness Council’s cabinet are due to meet at Kendal Town Hall on Tuesday, June 2, to consider the matter.
The Ministry of Housing, Communities and Local Government approved funding was secured last May and the project encompasses an Enterprise Hub at 2-3 Market Square and a Creative and Community Hub based in Penrith Town Hall.
Options had originally been scheduled to be presented to Cabinet on April 21 for final decisions, taking into account the amount of extra funding the council would need to contribute for each option.
Last month, viability challenges to the Eden Enterprise Hub project emerged since last year’s funding approval with the dramatically changing financial landscape.
The council now faces difficult financial challenges as a result of the Government’s Fair Funding Review, alongside the impact of rising costs and growing demand for services.
According to the council, due to the revenue pressures associated with the Market Square building, the hub project would likely require significant ongoing subsidy and support from the council and, as a result, cabinet will need to carefully consider the sustainability challenges next month.
A spokesman said that, if the decision is taken that the Enterprise Hub will no longer go ahead, the council will explore how the money allocated for the Enterprise Hub can be protected for other Penrith Regeneration priorities.
He added: “The council would work together with stakeholders to help identify and shape alternative projects that would deliver the greatest benefit for the town.
“The council is committed to transforming Penrith Town Hall into a venue that will celebrate its history as a civic landmark and reimagine its role for the future, as a thriving creative and community space. We are also fully committed to supporting Penrith town centre and the local business community.
“In the midst of a rapidly changing and uncertain financial and economic landscape, we are carefully considering the future of the Enterprise Hub project. Whatever the outcome, we will continue to work closely with our partners and local businesses, to ensure that investment delivers positive benefits for Penrith and supports the shared vision for the town’s future.”
Meanwhile, the Penrith Town Hall project, that will transform the Grade II Listed building into a community and creative hub, would continue as before.
This will continue to be informed by engagement carried out last September which invited residents, community representatives and creative partners to help co-create a future vision for the building. It gathered views on what services, facilities and activities people would like to see hosted there.
A total of £3million was earmarked from the Government’s Levelling Up Fund, with an additional £500,000 currently allocated within the Town Investment plan through the Borderlands Place Programme to fund the transformation.
The spokesman said: “Given the significant capital investment required to deliver on community ambitions for the town hall project, if a decision is taken not to proceed with the Enterprise Hub, then consideration will need to be given about using some of that funding to support the Town Hall project by Cabinet in June.
“This additional funding could help ensure delivery of a high-quality, community-backed facility in a prominent town centre location.
“Moving the decision to June Cabinet will also allow further refinement of the town hall business case and to ensure that feedback from the community has been fully considered and appropriately reflected in the scheme proposals.”
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