Downturn delays Chester project

Work is not expected to start until 2012

Plans to redevelop part of Chester city centre have been put on hold with those behind the project blaming the "current economic uncertainty".

Chester City Council and investor ING plan to build a new House of Fraser store, market hall and 60 shops between Town Hall Square and Northgate street.

The £460m scheme will also see a new three-auditorium theatre, improved library, new homes and secure parking.

In a statement the partners said work was not expected to start until 2012.

It said it hoped to choose a preferred developer by the end of this year.

'Credit crunch'

The statement said: "ING Real Estate and Chester City Council confirmed this week that the £460m Northgate Development will be put on hold to ensure it does not suffer as a result of continued economic uncertainty but have reaffirmed their commitment to delivering the regeneration project."

It added: "The largest development project in Chester, work on Northgate Development is now expected to start in 2012."

It said in the interim, the council would be working in partnership with Chester Renaissance and other agencies to explore ways to continue to improve the city centre and invest in the existing site.

Councillor Stuart Parker, executive member for development at Chester City Council, said: "The credit crunch continues to affect schemes across the UK and it makes sense to postpone the development until the market begins to recover.

"The scheme remains very much alive and both the city council and ING Real Estate are dedicated to delivering a new and vibrant quarter for Chester through the Northgate Development."