Coventry faces project delays, including the City Centre South and IKEA building, due to legal issues and contractor problems.
Council papers reveal these project setbacks. Councillors must approve rescheduling funds. £35 million in funding faces delays now. They planned to spend it this year, but it’s not happening.
City Centre South faces the biggest delay. Almost £15 million was for this project. Legal agreements with the developer are slowing things down. This is what officers reported.
The old IKEA building is also affected. The council wants to make it a hub. The contractor went into administration in September. No progress occurred after that. Over £6 million must be held back, they stated. Finding a new contractor also causes delays, and the construction plans are now on hold meanwhile.
Food waste recycling starts in August. This delays £300k of planned spending, as well. Road safety schemes are also taking longer. This programme costs £600k, revealed officers.
School Streets came first, while getting help for speed enforcement delayed plans. Works are planned, but take over one year. A cycleway in Coundon also faces delays. Construction now starts in early 2025 and £1.9 million needs rescheduling because of this. Woodlands School has a contract delay too.
These delays affect the “capital programme” spending. This includes grants and borrowed funds plans. It is unlike council tax money, they stated. The rescheduled amount tripled since last year now.
High inflation and rates might impact future plans. Reconsideration of projects might become necessary. Councillors will discuss it next Tuesday, February 11.