Tapton House developers move to reassure residents as sale of historic Chesterfield property draws closer

In December 2022, Chesterfield Borough Council’s (CBC) cabinet approved the sale of Tapton House, on a 999-year ground lease, to Stone Castle Enterprise Ltd (SCE).
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The proposals put forward by the developers will see the main house converted into residential accommodation which includes 15 apartments, three townhouses and two bungalows built in place of the annex buildings.

The sale has been opposed by the Friends of Tapton House (FoTH), which had entered its own bid to purchase the property and transform the building into a community hub.

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Martin Bruno, from the FoTH, said that the historic property was a crucial piece of Chesterfield’s heritage.

Chesterfield Borough Council placed the historic property on the market last year.Chesterfield Borough Council placed the historic property on the market last year.
Chesterfield Borough Council placed the historic property on the market last year.

Tapton House was constructed in the late 1700s by the Wilkinson family, who helped fund the construction of the Chesterfield canal. Rail pioneer George Stephenson lived there for a time in the 1800s, before it was purchased by Charles Paxton Markham, director of Staveley Coal and Iron Company, in 1871.

Martin said that Markham was a “pioneer from Chesterfield’s industrial past” – creating over 4,000 jobs and promoting the health and welfare of his workforce. Prior to his passing, Markham gifted the entire Tapton estate to the Borough Council – and Martin added that Markham expressed his hopes that it might be used for the benefit of Chesterfield residents.

There was criticism of CBC’s sale of the building – which Martin said was done without consulting residents and community groups – including the FoTH. He added that CBC could have used the multi-million pound levelling up fund, received in 2021 from the Government, to restore Tapton House.

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“Tapton House is a Grade ll* Listed building and CBC, without public consultation, placed this historic building “for sale”. There were members of the council that were against the sale, yet the leadership ploughed ahead. They refused to meet and consult with FoTH too.

Councillor Paul Holmes, who sits on the CBC cabinet, has voiced his opposition to the sale on a number of occasions.Councillor Paul Holmes, who sits on the CBC cabinet, has voiced his opposition to the sale on a number of occasions.
Councillor Paul Holmes, who sits on the CBC cabinet, has voiced his opposition to the sale on a number of occasions.

“CBC had no appetite for the House, stating there was no money to refurbish and regenerate it. Yet, they applied for £19.98m of Levelling Up monies, a fair percentage to be spent on the refurbishment of the Stephenson Memorial Hall and the rest on town centre improvements.

“Most residents fully support investing in Chesterfield’s tourism, but the refurbishment of the Memorial Hall will not do this alone. This money could have been spent on Tapton House and converted the House into a go-to visit on the Chesterfield tourist trail.”

Martin added that, “on searching Companies House, the common theme in SCE is the directors: Mark Lodge, Daniel Pattrick, and Joanne Henry. A further search revealed all of their previous company appointments and links them to the Dapatchi Group of Companies.”

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According to publicly available information on Companies House, ten of the businesses connected to the Dapatchi group of companies have either been dissolved or appointed voluntary liquidators since the start of 2022.

The FoTH had entered a bid to transform the property into a multi-use community hub.The FoTH had entered a bid to transform the property into a multi-use community hub.
The FoTH had entered a bid to transform the property into a multi-use community hub.

Daniel Pattrick either is or previously served as director of nine of these companies. Joanne Henry resigned as a director from four of the businesses listed below, and Mark Lodge was listed as a director, or served as one in the past, for five of these firms in total.

Financial records on Companies House show that these companies which either collapsed or entered administration owed millions of pounds to creditors – something that Martin said had left him “staggered” as he looked over the statements.

“Just from these 10 companies, the total deficiency amounts to £7.8 million, albeit £1.8 million of this was intergroup debt. Yet still quite staggering. Such a scenario is hardly going to assist in the Council’s well-documented long-term legacy for the house.”

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In a statement issued to the Derbyshire Times, a spokesperson for SCE highlighted the impact that the Covid-19 pandemic had on their business operations.

“We have previously commented to the Derbyshire Times and provided disclosure in this matter. During the Covid 19 pandemic, despite ensuring that all active development projects were completed, our operation was fundamentally interrupted. The business was a national developer and contractor segregated into various entities. It relied on travel, accommodation, and robust supply chains, all of which became unobtainable.

“Prior to the time of the pandemic, the business had a turnover of approximately £1.5 million per month, equating to around £20 million in active projects. We had grown year on year, it was our lives and our focus. Unfortunately, during the Covid-19 pandemic, the business, like many others, suffered from increases in costs, operational issues and financial strains which subsequently rendered the business untenable. Therefore, the directors made the difficult decision to place the company into administration.

“The business was subject to fix price and time managed contracts with cross company guarantees which became undeliverable, due to the lockdowns, restrictions and safe working practices implemented by the Government to protect lives. It was professionally and personally a difficult time, in which many tough decisions were needed to be made. We navigated with consciousness, social care, and strong ethics. We prioritised people.

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“To understand more about the business and the impacts of Covid-19, readers can access publicly available information in this matter which comments not only on the financials, but also discusses the performance of the businesses ahead of Covid 19, the impacts of the pandemic and the conduct of the directors at the time. We are certain this information will relieve any potential concerns. The pandemic has been a catalyst for profound learning within our team and we remain steadfast in our dedication to the delivery of quality projects embracing our values of social responsibility and integrity.”

SCE also addressed the financial records highlighted by the FoTH – and said a large amount of the losses reported could be attributed to the owners and directors as they looked to mitigate the impact of the pandemic.

“To address the specifics in the current report, there is substantial double counting across the entities. This is because many debts listed relate to cross company lending, guarantees and intercompany undertakings leading to inflated reported figures. Reviewing the publicly available reports from this time will confirm this and as a result a substantially lower debt amount. Additionally, a significant proportion of the reported losses was attributed to the owners and directors themselves, a sum which accounts for over £2 million.

“This is due to the owners investing personally during Covid-19 to protect projects, people, and jobs. Since the business restructure, a considerable portion of the reported loss has been repaid or managed, resulting in a net figure significantly lower than what is being disclosed. It is also important to clarify that not all entities mentioned in the report were under the control of the Stone Castle owners, making the reported loss factually incorrect.”

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The company reassured residents that, as part of their bid, they have shared comprehensive plans for the property with CBC - and shown evidence of their ability to finance the redevelopment.

“The team at SCE are award-winning developers who specialise in the restructure and delivery of listed, conservation and heritage buildings and during our careers have delivered over £100 million in projects throughout the UK. This career has contributed millions to local communities, created hundreds of new homes and provided employment to thousands of people. These actions have funded and supported many local projects and protected historically important buildings for a generation to come.

“By repurposing vacant and unused brownfield sites we have contributed to solving housing problems without encroaching on the greenbelt. Thereby, protecting historically significant buildings and the natural landscape. We are proud of our careers, our delivery, and our operation.

“In relation to Tapton House, SCE won the tender to acquire the long lease hold by providing to the council transparent background information, evidence of financial worthiness and lending support, as well as comprehensive plans for the acquisition and the development of the project. Prior to our offer being made, we invested heavily into understanding the building and the community. This enabled us to place a robust, evidenced based and financially attractive offer forward for the people of Chesterfield. We continue to collaborate with the Local Authority to establish a balanced and fully coordinated delivery plan, including contingency measures to safeguard the future of Tapton House.

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“Our plans are sympathetic to the current layouts of the building and address the housing needs within the borough. Substantial investment will be made to preserve the property and ensure its longevity. As part of our acquisition, we have proposed returning most of the gardens to the community and are actively exploring the retention of a historic study area within the building. What’s more, by bringing Tapton House back into use, it will become a profit-generating space and asset to for the local community rather than a financial burden.

“SCE have offered to engage directly with the FoTH, but regrettably we note their decision not to do so. We believe that open and direct communication can foster a productive partnership, allowing the community group to contribute their valuable insights towards achieving shared goals. We welcome the opportunity for clarity and direct communication as we believe that together, we can achieve so much more. As we progress matters, we will be available to discuss our plans in town meetings and public consultations. We remain committed to the delivery of this project.”

Councillor Amanda Serjeant, CBC’s deputy leader, said: “The council’s decision to sell Tapton House on a long leasehold basis is about safeguarding its long-term future. There is still a long way to go but we believe the foundations are in place to deliver a scheme that will do justice to this Grade II* listed Georgian mansion.

“All of the measures that the council routinely takes when entering into long leasehold arrangements for land and property are proceeding to plan and time.

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“SCE remain committed to bringing forward a sympathetic conversion of Tapton House as evidenced by their preparation of a raft of architects’ drawings and layout plans and their pre-application discussions with the council’s planning officers and Historic England.”

Councillor Serjeant added that CBC’s legal checks were still underway – and that she hoped the FOTH would engage with SCE’s proposals to create a heritage area as part of their plans for Tapton House.

“We are aware of the financial difficulties that the company experienced through the period of the Covid-19 pandemic, which is why we have sought and received additional information from lenders confirming the availability of funds to enable SCE to purchase, refurbish and convert Tapton House.

“Our legal checks are continuing, and the council is now very close to finalising the relevant legal paperwork with SCE ahead of exchange of contracts.

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“We are pleased that SCE also continue to be resolute in their commitment to minimising any impact on the adjacent parkland which will remain fully open to the public and to working with the Friends of Tapton House to create a heritage area within the building that showcases Tapton House’s rich heritage. We sincerely hope that the Friends take advantage of this opportunity.”