£80m Grosvenor windfall for city

LIVERPOOL'S council taxpayers can look forward to an £80m windfall from Grosvenor's Paradise Street development, the Daily Post can reveal.

The money will flow into the council's coffers over the next 15-20 years at the rate of around £5m-£6m a year - equating to more than 5%% of the council's income.

It will make a major contribution to keeping down council taxes until the late 2020s.

Last night council leader Mike Storey said: "This is a fantastic bonus for Liverpool. Not only will we have a world-class shopping and leisure experience and the jobs that go with it, but we will earn a significant income."

Details of the financial formula have been outlined in a confidential report for senior council executives. The report, compiled by chief executive Sir David Henshaw and Regeneration director Charlie Parker, has been seen by the Daily Post.

Independent consultants Cushman and Wakefield, Healey & Baker, have carefully examined the impact of an agreement reached between the council and developers Grosvenor, who are planning to invest more than £800m in the Paradise Street redevelopment.

The consultants reveal that the anticipated value of the council's ground rent share, based on the latest estimated rental values and current investment earnings, adds up to a minimum of £45m. On top of that the council will be entitled to extra top- up income based on performance.

That level of potential income was based on figures compiled in 2002, and the situation has significantly improved since then. In addition, the income stream will be reviewed a number of times during its 20-year lifespan, raising the likelihood of an income topping £80m. Exclusive By Larry Neild, Daily Post

Index