Derbyshire council struggling to find developer to convert dilapidated market hall into cinema and cafe

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A Derbyshire council is struggling to find a developer to convert a dilapidated market hall into a cinema and cafe.

Derbyshire Dales District Council is trying to find a developer to convert Matlock Market Hall into a two-screen cinema with an adjoining cafe.

Other parts of an overall improvement scheme for the area could include a shop and some sort of community facility and an improvement of the public areas around the current market hall.

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However, the council has gone out to tender twice – in November and February – and both times it has not found a developer which can get the job done for the budget the authority has available, even with significant Government grant funding.

What the proposed cinema and cafe plans could look like. Image from Lathams Architects.What the proposed cinema and cafe plans could look like. Image from Lathams Architects.
What the proposed cinema and cafe plans could look like. Image from Lathams Architects.

The second tender recently concluded with two bids, one for £1.47 million and one for £2 million.

When the council started the process it agreed a budget of £1.3 million to carry out the works.

It has set further money aside to help bring the project along, but not for the primary building of the units, with some of this funding reserved for fitting out the actual cinema, sharing costs with the proposed operator.

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Overall, the current cost for the cinema, cafe and other elements has now reached more than £2 million (£1.23 million for the market hall itself), with £868,737 in funding coming from Government grants.

What the proposed cinema and cafe plans could look like. Image from Lathams Architects.What the proposed cinema and cafe plans could look like. Image from Lathams Architects.
What the proposed cinema and cafe plans could look like. Image from Lathams Architects.

Grant funding has a deadline to be spent, placing the council under further pressure to deliver, now listing the project as a risk to the authority requiring intervention.

A council report aiming to find options to take the project forward says: “Following evaluation, unfortunately an acceptable/affordable tender has again not been received and the second tender exercise has concluded without a contractor appointment, illustrating the significant challenge of delivering the proposed scheme within the current volatile construction market, impacted by high-cost inflation.

“Whilst highly disappointing for all parties concerned, the proposed cinema operator remains committed to working together with the council to pursue a scheme for Matlock.”

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The council has drawn up a list of potential options for the project and is looking to spend £8,000 on consultants to help it select which is the best and most viable to take forward.

The initial longlist was:

  1. Do nothing and scrap the scheme

  2. Re-tender the current scheme for a third time

  3. Reduce to the cinema and cafe and reduced public area improvements

  4. Reduce to just the cinema

  5. Reduce to cinema but scale back cafe design and full public area improvements

  6. Reduce to cinema but scale back cafe design and reduced public area improvements

  7. Reduce to just the public area improvements

This has been reduced to four options, which are choices one, two, four and five above:

  • Do nothing and scrap the scheme

  • Re-tender the current scheme for a third time

  • Reduce to just the cinema

  • Reduce to cinema but scale back cafe design and full public area improvements

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