Delayed Leale's Yard 'will go ahead'

‘Realistically, we should be able to start demolition and site clearance within the next three to six months,’ said Jeremy Rihoy, managing director of JW Rihoy, the Co-op’s construction partner.

He and Co-op chief executive Mark Cox went public to quell rumours that the long-awaited regeneration scheme had halted.

‘We are 100% committed to the Leale’s Yard development and our arrangement with the Co-op remains in place,' Mr Rihoy told the Guernsey Press in a news item published today.

‘It is true to say that the project has thrown up some particular challenges and progress has also been slowed by the turbulent economic situation,' he added.

Working
Mr Cox said: ‘It is fair to say that the project has slipped a little bit. The important point is that we are working to the conditions of the planning approval.'

‘Clearly, the costs are rising. But, from the Co-op’s perspective, we are confident with the current position.’

Mr Cox said the next planning application – for demolition of the derelict site – should be submitted to the DPA in the second quarter of this year.

‘We are updating plans to ensure we can meet the 26 conditions imposed by the DPA, especially for the parts we are retaining ownership of – the store and the car park,’ said Mr Cox.

‘The kind of detailed work we are doing at the moment includes planning the shop layout, designing pillars and columns, which are quite important because of the flats and other retail space which will sit above the store.’

• The Guernsey Press reported that the latest proposed scheme would require at least £50m. of private sector investment during construction and result in spending of at least £150m. on local facilities management services after construction.