Gateshead Quayside conference centre construction start close being announced, council leader says

Gateshead Council chief Martin Gannon says he expects to make an announcement “very early in the spring” that construction will begin at last on what has been touted for years as a world class riverside development. 

The Labour councillor told the Local Democracy Reporting Service that investors remain committed to the vast regeneration vision and that the North East mayor is likely to put forward cash to help close the “massive” funding gap which has held the project back.

It was estimated two years ago that the price of the scheme had already spiralled from £260 million to more than £350 million, since when it is understood to have jumped even further due to inflated construction costs.

A large plot of land between the Glasshouse music centre and Baltic art gallery has already been cleared for the new development, which will be known as the Sage. Frustration has grown at the lack of construction work on the site, which had been scheduled to begin in autumn 2023 after revised plans for the scheme were granted planning permission.

Speaking to the LDRS this week, Coun Gannon said: “There is a massive [funding] gap, it needs to be filled. We are talking to the combined authority and the combined authority is likely to be able to support that, will support that. We will, hopefully, very early in the spring make an announcement that work can start on the project.”

The council leader had previously given an “absolute guarantee” that the flagship international conference centre would be delivered – though he did not give the same assurances about the proposed 12,500-seat arena, which is intended to replace the Utilita Arena in Newcastle.

Coun Gannon told the LDRS in an interview on Wednesday that the plan is to build the conference centre first, as it is considered the economic priority, and for the arena to be developed in a second phase of building.

He added: “There is detailed work taking place and discussions with the combined authority. Interest rates have gone up, construction costs have gone up. That is going to be an incredibly difficult, ambitious project to land. But everybody is still committed to it – private sector funders, private sector developers, the end users. There is competition in terms of end users.

“It is a really popular project and we are confident that we will be able to make an announcement very shortly that the financial package is in place and we will be able to crack ahead with construction. 

“That is not underplaying how complex and difficult [it is]. This is the fourth time Gateshead Council has tried to redevelop that land down there and three times it has floundered. This is the fourth – it has been incredibly difficult and, yes, it is behind our most ambitious timetables, but we have remained absolutely laser focused on delivering that project for Gateshead and the entire region.”

North East mayor Kim McGuinness has previously said she was “absolutely supportive” of the Quays development, but has refused to publicly commit to financial backing for it in the way that the North East Combined Authority has with other projects like the Crown Works film studios in Sunderland.

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A spokesperson for the combined authority said: “A convention centre in Gateshead can have a huge impact for the region in creating and supporting jobs in the creative and leisure industries, and by promoting the region on an international stage. We are working with Gateshead Council as it develops a revised business case that would move this exciting project forward.”

It is hoped that the project could generate a £70 million boost for the region’s economy and create 2,000 jobs.

Previous funding has been provided through a £20 million grant from the Levelling Up Fund, £5 million from the North East Local Enterprise Partnership, and £3.5 million from the North East devolution deal.