THE PREFERRED developer of the old Narberth School site has said that the viability of the project remains marginal, councillors heard at a meeting of council on Thursday, October 20.

That was the response to a question from Cllr Jacob Williams, who asked if the developer had requested further funding to help with the project.

A loan offer has been made by the council, but the council have not yet received a formal request for further funding.

The developer has a cut-off date of December 31 to start the work, but Council Leader Jamie Adams said the contract would be withdrawn and re-marketed should work not begin by that date.

Cllr Jacob Williams asked: “Please would the Leader provide an update on the latest with regard to the proposed redevelopment of the Authority’s former Narberth school site, and his Cabinet’s decision to slash the sale price and offer a substantial loan to the developers?

“If the loan offer has been accepted, what actions are the council aware of that the developers have taken to meet any terms and conditions of the loan?”

Council Leader Jamie Adams said: “Cabinet reviewed the position r egarding the former Narberth School site at its meeting on July 4, giving consideration to the reduced viability of the scheme and an independent valuation provided by the Valuation Office Agency.

“This resulted in a number of decisions: first, to continue to work with the preferred developer with a cut-off date of the end of December if the development has not commenced.

“Second, to reduce the price in-keeping with the independent valuation from the Valuation Office Agency.

“Third, to make a loan available to the developer and fourth, to consider the demolition of the buildings to create a temporary car park.

“Following a call in of this decision, it was considered by the former Economy Overview and Scrutiny Committee on July 18 and returned to Cabinet on September 12.

“Since the Cabinet decision on September 12, negotiations have continued with the preferred developer with respect in particular to the tenant line-up and the identity of the anchor tenant, considerable work has been undertaken by officers to provide supporting information to help make the scheme, and particularly the location in Narberth, more attractive to prospective tenants.

“The developer is in detailed negotiations with prospective tenants and has agreed heads of terms issued to others. As yet, detailed discussions have not commenced regarding the terms of any loan so no loan has been agreed or implemented and Cabinet has approved that we continue to work with the preferred developer until the cut-off date of December 31.

“If the development does not materially commence by this date, the contract will be withdrawn and the opportunity will be re-marketed.”

Cllr Jacob Williams responded: “Will the Leader confirm that no further financial support has been requested from or offered by this council in any way related to this project and, if he can’t, please could he tell us about it, and will he also give a commitment that no further taxpayers money will be stumped up by this council on this project by way of a loan, gift or any other arrangement?”

Dr Stephen Jones answered: “There are ongoing discussions with the preferred developer and, in our discussions, they have indicated that the viability of the project remains marginal and is therefore exploring a range of opportunities and options in addition to the loan to bring forward the scheme.

“We haven’t had a formal request for any further funding as yet.”

Speaking after the meeting, Cllr Williams said: “I called the decision in back in July and my view was that the council, rather than agreeing to make a loan, should put the land back on the open market and invite bids and award it to the best.

“I would be appalled if they made a bigger loan or reduced the sale price further.

“It looks unlikely that this company will make a go of it and it will go back out onto the open market, which is what I suggested in July. If they had listened to what I had said, they could have started by now.”