Economy Sinks Derry Hotel Scheme

The economic climate has scuppered a bid to construct a new hotel just across the border.

A local development company has withdrawn as the preferred developer of a £23m scheme to transform the former City Hotel site in Derry City.

Big Picture Developments Limited informed the Department for Social Development that given the current economic climate, the state of the apartment market and the speculative nature of office space in Derry, they could no longer proceed with the redevelopment.

In addition the hotel operator secured for the scheme has advised Big Picture that it no longer wishes to be involved.

Brian Doherty, Director of DSD's North West Development Office said: "Considerable time and effort has been expended by all parties in developing what has been widely acknowledged as a scheme of the highest quality.

"It is therefore disappointing that market conditions are such that delivery is not now possible."

A spokesperson for Big Picture Developments Limited added: "Despite the huge effort expended by Big Picture in developing a high quality scheme for the Foyle Street site, market conditions, in particular the cessation of construction funding for property development projects, the collapse in the residential property market and the challenging commercial property market, means that the project is not currently viable.

"Big Picture would like to thank DSD for their co-operation and valued assistance on the Foyle Street site over the past four years."

Brian Doherty concluded: "The Foyle Street site remains in the ownership of the Department and will serve as a compound for the contractor delivering the city centre Public Realm Scheme until July 2010.

"The Department then proposes to landscape the site to create a shared space linking the Scheme at Guildhall Square with the Peace Bridge.

"Departmental officials are also liaising with the Department for Regional Development, to consider the possibility of including car parking to address some of the demand for additional spaces in the city centre."


Related Irish News Stories
Click here for the latest headlines.

27 June 2012
Improvements To Terms Of Sow Welfare Scheme Announced
The Minister for Agriculture, Food and the Marine, Simon Coveney TD, today announced that a revised Sow Welfare Scheme would be opened at the beginning of next month in order to further assist the pig sector in Ireland to comply with the new EU animal welfare rules which come into effect at the beginning of next year.
24 March 2010
Ruane Criticised Over 'Actionable' Advice
The North's Minister for Education and the Stormont Department of Education have been criticised for advising schools to follow guidance on selection which may leave them open to legal challenge. The Governing Bodies Association has received legal advice on the Transfer 2010 policy. The association represents 52 voluntary grammar schools across NI.
17 September 2015
Design 4 Growth Pilot Scheme Launched By Dublin City Council
A new pilot scheme has been launched to encourage small enterprises to use strategic design to improve their businesses. The Design 4 Growth scheme is part of Irish Design 2015, a year-long initiative backed by the Department of Jobs, Enterprise and Innovation, aimed at promoting and celebrating Irish design in Ireland and internationally.
04 October 2017
More Than €20m To Be Invested In Renewing Rural Towns/Villages
More than €20 million is being invested to help renew over 280 towns and villages across rural Ireland. The 2017 Town and Village Renewal Scheme, which was launched in April this year, focuses on projects which can help to enhance and develop rural towns and villages, with a particular emphasis on stimulating economic development.
05 November 2013
€125m Fund For Ireland's SMEs
A new investment fund, worth €125m, has been unveiled. The fund is aimed at Ireland's small and medium-sized companies (SMEs) that need capital for expansion. It will be financed by a mix of both public and private sources, and will be managed by MML Growth Capital.