24th August
Concerns are being raised over how Stockport Council are handling the Blackstone Fields redevelopment after it emerged that previously proposed developers — THI Riverside Ltd, with GB Building Solutions Ltd as guarantor — were financially incapable of covering the contamination remediation costs, leaving taxpayers potentially liable for £750,000.
The site, long known locally as a former tip, required significant remediation before any building could safely take place. However, company records show that THI Riverside was a tiny company with net assets of just around £5,000, while GB Building Solutions went into administration in 2015 and was later dissolved, leaving little or no financial backing.
Despite these red flags, the council had relied on them to manage remediation risks. When the clean-up costs reached three-quarters of a million pounds, it became clear that the public purse, not the developers, would cover the shortfall.
A local resident campaigning on the issue said:
“This was a completely foreseeable problem. The council should have carried out proper financial checks. These companies were never in a position to guarantee such huge costs.”
While the current developers are different and the council may have since put safeguards in place, the episode highlights what many see as a serious failure of due diligence.
The Gazette has asked Stockport Council for details on the checks carried out on THI Riverside and GB Building Solutions at the time, and what measures are now in place to ensure public funds are not exposed in similar situations.
Residents are calling for full transparency, and reassurance that lessons have been learned before any future phases of development proceed.
Councillor Shan Alexander and Councillor Wendy Meikle, who are still Executive Councillors were involved with this project.
