Controversial arena scheme for East Croydon turned down

Council hopes that a 12,500 seat arena would lead to the regeneration of the town centre have been dashed.

In a decision announced this morning communities secretary Hazel Blears has rejected the council-backed Arrowcroft arena, homes and offices scheme planned for the Gateway site at East Croydon.

The Secretary of State says that while she sees “merit” in an arena helping regeneration, she agrees with the inspector who conducted last year's public inquiry that there were severe doubts about the viability of the scheme.

Ms Blears also accepts the inspector's arguments for rejection based on grounds of traffic congestion on the surrounding roads.

Arrowcroft have a right of appeal against the ruling in the High Court.

In addition to the arena, the Arrowcroft proposals included nearly 900 flats, 60,000 sq metres of offices, a superstore plus other shops, restaurants and cafes.

In her report accepted by Hazel Blears, planning inspector Ava Wood says: “The arena-led development would provide a strong basis for regenerating the Croydon Metropolitan Centre.

“The diverse mix of uses proposed, in particular, the arena, would help re-brand Croydon as an interesting place to visit, in contrast to its current stale, tired image. The potential benefits of the developments are substantial.”

But she adds: “However with doubts about its financial soundness, I cannot be even reasonably assured that the arena would be delivered and without that component of the scheme, its transforming potentials would not be achieved.”

Mrs Wood said there were concerns about the funding gap for the arena which needed a £12m cross subsidy from the commercial and housing elements of the development plus a £25m loan from Arrowcroft.

She said: “The economic soundness of the development and its ability to support construction has not been unequivocally demonstrated.

“There are too many unknowns and variables to conclude with reasonable certainty that the arena can be delivered within the funding structure proposed.”

The news was immediately welcomed by the Warehouse Theatre, which now hopes it can go ahead with a £5m arts development on the site as part of the rival Stanhope scheme, which is now almost certain to go ahead.

Artistic director Ted Craig said: "I have worked for over 15 years to get to this stage. I am absolutely delighted.

"This is a fantastic result for the Arts in Croydon. I would like to thank everyone for supporting the Warehouse over so many very difficult years"

Brenda Kirby, chair of the board of management, added: "I am absolutely delighted. This has been a long time coming. Finally we have a secure future in a stuning building that will be an opportunity for Croydon to show its unique and interesting side"

Timothy Godfrey, secretary of the board of management, said "We have now secured that future (of the Warehouse) and it is now time to take the theatre to the next stage of its life and grow its audience, reputation and its education work. It is a truly exciting future we look to."