Buchanan Galleries Expansion Plans Pay Too High A Price

Plans for more retail units and additional car parking within the "Buchanan Quarter" will bring significant financial risks to the public purse and have a 

Cllr Martha Wardrop (Hillhead)

negative impact on thequality of the environment in Glasgow's city centre.

Councillors on the Executive Committee for Glasgow City Council are being asked to approve a business case for a Tax Increment Finance (TIF) Initiative which aims to fund major expansion of Buchanan Galleries, build a new 1500 car park and undertake public realm works.

The Business Case identifies a private funding gap of £56m. These millions are to be paid upfront by Council borrowing. This debt is expected to be paid back over 25 years by projected new Non-Domestic Rates generated from the project. This is a high risk strategy in uncertain economic circumstances for retailers, while the Council is under pressure to make savings across its public services.

Cllr Martha Wardrop, Green Councillor on the Council's Executive Committee stated, "I am strongly opposed to this initiative.  I believe that the proposed demolition of the popular Royal Concert Hall steps is unnecessary. The steps are an important meeting place for shoppers and visitors to the city. Improvements in accessibility to the Royal Concert Hall and better maintenance of the steps are desirable but I don't accept the idea that the removal of the open, communal space of the steps and their replacement with another commercial facade is required."

Cllr Wardrop added, "The expansion of retail space within Buchanan Galleries will attract traders from other premises within the city and the overall proposal is likely to have a
damaging impact on trading activity in surrounding shopping streets. The business case estimates that 30% of new retail units will be let to existing businesses operating in Glasgow. The outcome will be retail outlets in neighbouring streets such as Sauchiehall Street and Argyll Street will become harder to let and the independent high street shop-keepers will experience further competition from another large shopping mall development".

Patrick Harvie MSP said "Glasgow City Council should not be considering taking out a huge commercial loan to bankroll a private development.  Securing new unnecessary debt on Glasgow's hard-pressed tax payers is deeply irresponsible, especially while people are being asked to accept cuts to vital local services.  It's time Glasgow City Council started putting people ahead of private interest."


Link to Executive Committee paper at:

http://www.glasgow.gov.uk/councillorsandcommittees/submissiondocuments.asp?submissionid=47581

Latest news from Association of Convenience Stores at:

http://www.acs.org.uk/en/Press_Office/details/index.cfm/obj_id/12395059-C5F2-4B5D-8A68ECA2BA97EA37