A landmark York building has no roof and is open to the elements following a series of construction problems.
And these have contributed to a city developer calling in the administrators owing more than £1.2m.
The building concerned is 4-6 Parliament Street and 13A High Ousegate.
The ground floor was home to New Look and then The Vintage Store before being bought by North Star (York) Ltd in August 2021.
It planned to redevelop and refurbish the building to create basement and ground floor retail space along with holiday flats on the upper levels.
North Star (York) Ltd called in the administrators in October. They have now published a report which details what’s happened to the Parliament Street project.
North Star appointed aparthotel operator Mansley Serviced Apartments Limited to manage the holiday flats when they were completed.
In December 2022 an associated company of Mansley’s, Flemprat Limited, bought the property from North Star (York) Ltd, with North Star still owning a 250-year lease on the basement and ground floor.
North Star “would effectively manage the redevelopment of the upper floor conversion to the aparthotel, which once completed Flemprat would own and Mansley would manage,” the administrators’ report states.
But then a series of problems arose, including:
- structural problems in the basement which led to expensive extra work
- the discovery that the building needed an entire new roof
- the need for more robust steelwork to support that roof
- asbestos was discovered in the building, which needed specialist removal.
A site visit by a chartered surveyor “confirmed that substantial works are still required, the building has no steel work to support a new roof, the steel remains unordered, the site presently has no roof and is ‘open to the elements’ and certainly not water-tight, with pumps installed to remove rainwater”.
North Star (York) Ltd’s sole remaining director Steve Davis estimated that a budget of £2.4 million was required to bring the development agreement to practical completion.
The costs of hired equipment to maintain the site in working order is about £13,500 per week.
There isn’t enough money left to complete the work, which led to North Star (York) Ltd calling in the adminstrators Cowgills.
A Starbucks franchise had been secured to operate in the ground floor space. But “the proposed tenant could walk away if delays in having the retail space ready for occupancy passed one year, to December 2024.
“We now know there is no chance of the retail space being suitable for occupancy in December 2024.”
Flemprat Ltd say their loss on the project is around £4.3 million.
North Star (York) Ltd owed 15 creditors a total of £1.2m according to a statement of affairs published earlier this month.
Taking assets into account that left North Star (York) Ltd with a deficit of £889,000.
North Star (York) Ltd was set up in May 2021. Steve Davis of Middlethorpe Manor, Middlethorpe, York, is the one remaining director.
Paul Ellis, of Middlethorpe Manor, Middlethorpe, York, resigned as a director in May 2023.
James Irwin, of Main Street, Bugthorpe, York, resigned in July this year.