Caerphilly County Borough Council has applied for £6million of funding from the Welsh Assembly Government so that it can redevelop the top of Caerphilly town centre.
The redevelopment of the top of town hit the buffers when the recession kicked in and commercial and residential property prices slumped.
The scheme, which would see more than 70,000 square feet of new shops and offices, a new public library and 200 apartments with 370 parking spaces, already has planning permission but can no longer be afforded.
The £6million funding, if approved, would be used to kick-start the development by buying properties at the southern end of Cardiff Road.
In 2006 the council promised to use its compulsory purchasing power to make the scheme, by South Caerphilly Regeneration Ltd, happen.
The area, long ear-marked for redevelopment, has been blighted in recent years because of the lack of progress with the redevelopment.
It has often criticised for its ugly appearance – such as the old CoCo mini-market and its blue tarpaulin covering.
Councillor Ron Davies, the cabinet member for regeneration and countryside, said: “We all have to face up to reality and realise that the plans drawn up before the credit crunch are not going to be realised in the current financial climate without Government help.
“That is why we have applied for a grant of £6 million from the Welsh Assembly Government’s Strategic Capital Investment Fund.
“We all expect conditions to improve over the coming years however and so this would be a sound investment by the public sector in the future of Caerphilly in both financial and regeneration terms.
“If the bid is successful then it is likely that it would be progressed as a Joint Venture between the Assembly Government, Caerphilly County Borough Council and the private sector with each of the partners contributing land, buildings or finance to achieve a viable scheme.”
Lindsay Whittle, leader of the council, said: “I strongly urge the Welsh Assembly Government to look favourably on our bid for funding for this high profile regeneration scheme.
“In strategic terms it would have a dramatic and long term impact on the regeneration of the Valleys by demonstrating that private sector investment and confidence in the Valleys can be boosted at a fraction of the cost of bailing out the banks.”
Cllr Davies though admitted that if the £6million bid was turned down then the large scale redevelopment would be written off and lost.
He said: “If the bid is unsuccessful, however, I think we have to seriously consider the way forward for Caerphilly town centre and we may have to write off the scheme and allow individual shop owners and traders to progress their more modest plans for shop improvements or minor redevelopments schemes instead.
“This would be a shame, as the plans would be a major boost for the town, but we cannot prolong the scheme indefinitely at the cost of discouraging small scale investment by others in that part of the town centre.
“Whatever the outcome of the SCIF bid, I have instructed officers to undertake a consultation process with the people of Caerphilly once the outcome is known, to discuss the next steps forward for the town centre.”
A decision by the Welsh Assembly Government is expected in the autumn.
Ground floor has two retail units and car parking provision for the majority of the apartments (i.e. 119 spaces)
Mezzanine floor has 13 apartments and a residents’ health club
First floor has 34 apartments
Second floor has 31 apartments
Third floor has 23 apartments
Ground floor has four retail units, the lower floor of the library, office and sections of car parking
Mezzanine floor has sections of car park
First floor has the majority of the library, an office and sections of car parking spaces
Second floor has a retail unit, an office and sections of car parking
Third floor has sections of car parking
Fourth floor has sections of car parking
Ground floor has seven retail units and a rear open car park area
Ground floor has seven retail units and a rear open car park area
Mezzanine has 10 apartments
First floor has a retail unit and 10 apartments
Second floor has 6 apartments