The sad saga of Liverpool's former Scandinavian hotel
Today we report the latest chapter in the sad saga of the former Scandinavian Hotel in Liverpool's Chinatown.
It looks like the building will remain derelict for some time to come after the council and developers Downing are set to abandon plans to create a new hotel in the derelict landmark which was supposed to be reopen for the city's 2008 Capital of Culture celebrations..
This is a major blow, but there appears to be little option.
The site was compulsory purchased by the council and given to Downing in a back to back agreement that saw them get it at cost.
But the cost is the crucial issue here. Former owners Frenson and Chinese businessman Jimmy Wong never accepted that it was only worth the £600,000 they were paid for it. Frenson believe it is worth £3.2m.
The row over the value has dragged on and on and is due to go to the Land Tribunal.
The "value" if you like is what the property was worth in 2007 when the CPO was enacted. That's the peak of the property market.
Downing have previously said the row with previous owners Frenson and Mr Wong created uncertainty around the scheme.
In the intervening period the credit crunch hit and more than a dozen hotels have opened diluting the market.
It is hard not to feel sympathy with Downing and the council. Downing have a reputation for delivery and no doubt this is a bitter blow to the company.
And the council acted in what it thought was the best interests of the building, which is a landmark and had been empty since the 1980s.
This strikes me as one of those incredibly frustrating situations where there are no simple solutions.
The council's ruling executive board looks set to agree on Friday to tear up the development agreement with Downing (my understanding this is by mutual consent and that Downing have agreed to this).
Officials will also be given authority to negotiate a settlement on the value.
The property will then be re-marketed once property conditions have improved.
Click HERE to read a previous piece that I wrote on this that goes into most of the issues.
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David Bartlett - City editor of the Liverpool Daily Post and Echo covering politics, regeneration, and urban affairs. He was previously chief reporter of the Daily Post and here he gives his insight into the workings of regional politics.
It is a shame that your pragmatic view of the situation is not reflected in today's Daily Post editorial, which is completely hysterical and over the top (even by Daily Post standards).