Peterborough's Hilton hotel could cost £10m more while TK Maxx offer is ‘days away’: Council updates on bigger projects

Peterborough City Council (PCC) councillors discussed some of its bigger projects at a series of council meetings this week, delivering updates on the planned Hilton Hotel and the former TK Maxx building.

The Hilton, on Station Road, is largely built but not entirely finished, although councillors said they remain confident in its delivery.

The future of the former TK Maxx building on Bridge Street, meanwhile, remains unknown, but the council says finalising an offer for redevelopment is imminent.

Below are the latest updates on these major projects.

Hilton Hotel: Council keeping £10m ‘placeholder fund’ for delivery

Despite repeated delays and its developer being taken into administration, councillors say they remain confident in the delivery of the Hilton Garden Inn at Fletton Quays.

Deputy leader Cllr John Howard (Peterborough First, Hargate and Hampsted) said this week that the council has recently had a “very positive meeting with the Hilton” and that the global brand is still interested in running the hotel once open.

PCC agreed a £15m loan to developers to build the hotel in 2017, which it insists is secure.

But financial documents reveal that PCC could spend £10m more on the project: this is a “placeholder figure” for the council to provide funding to ensure the hotel is completed, council executive Cecilie Booth said at a PCC meeting this week.

“The funding will be subject to further approval once the strategy has been developed but having funds available enables the council to react to future opportunities,” the documents add.

Cllr Howard said that the council has considered developing the hotel itself, but currently believes that its investment is secure.

“The best outcome for the city is to finish the job,” he said.

The councillor added that £6.5m – the figure administrators have said they place on the value of the unfinished hotel – isn’t the value the council places on it as it’ll be worth more when it’s finished and its “regeneration benefits” realised.

PCC expects professional value advice on the hotel next month, he added.

TK Maxx: Council “days away” from final offer

An exciting development opportunity or a “white elephant”?

The former TK Maxx building on Bridge Street was once destined to become a new city centre culture hub, dubbed The Vine, but now sits empty.

The building was bought by the council in 2020 for £4m while the Conservative administration was “recklessly chasing Towns Fund money being offered by central government”, Cllr Chris Wiggin (Liberal Democrats, Hampton Vale) said, with the hopes of setting up The Vine.

But it has instead become a “white elephant in our high street”, he added.

Others in the council, though, remain optimistic about its future.

Executive Adrian Chapman said PCC is “hopefully days away now from having a final offer on the table for its development” but “if that doesn’t come to fruition we have a plan B and a plan C ready to go with some firm offers in principle”.

An investment prospectus published by the council shows what they believe the building that replaces the current TK Maxx site could look like: 15 storeys tall with a glass exterior.

Council leader Cllr Mohammed Farooq (Peterborough First, Hargate and Hempsted) has previously said it could become flats, or a commercial property and/or have a rooftop restaurant.

Cllr Howard said that an independent redbook valuation of the property will be undertaken prior to any sale and that there will be no loss to the council or to the Towns Fund grant which can be redistributed to other projects.

He added that proposals for The Vine – now expected to be delivered over two sites including Central Library – are due to be completed by 2026.