WARRINGTON Borough Council has today confirmed a misunderstanding over plans by the University of Chester to vacate the Time Square development.
A Warrington Borough Council spokesperson said: “It was our understanding that there was the potential for the lease to be terminated.
“However, we are very pleased that the university has confirmed its ongoing commitment and we look forward to continuing to engage positively with them.”
A report to the council’s cabinet had indicated that the income target for Time Square of £1.507 million was unrealistic in the present economic climate.
Food and beverage and the cinema and leisure industries have been significantly impacted by Brexit, Covid, the cost-of-living crisis and recent increases in employment costs.
The report by Cllr Denis Mathews, Cabinet Member for Finance, Assets, and Investments, stated that the anticipated rental income from the centre was now estimated to be around £ 780,000.
The two anchor occupiers -The Botanist restaurant and Cineworld – are both on CVA (Company Voluntary Arrangement) based rent reductions enforced on the council, reducing contracted rent by more than £200k a year.
In addition, the council had suspected from recent contact, the University of Chester, which also occupies premises in the centre, was likely to terminate their lease through a break clause in June next year, which would result in a loss of a further £244k a year.
After Warrington Worldwide published the report, the University quickly issued a response stating: “The University wishes to reassure its students, partners, staff and stakeholders of its ongoing commitment to Warrington town centre.
“We have not had a discussion with Warrington Borough Council about vacating this property. The report is based on inaccurate information from Warrington Borough Council.”
