Gateshead Council Faces Scrutiny Over Delayed £350m Arena Project

Local authority leaders have been informed that “it’s time for answers” regarding a significantly delayed initiative to construct an events arena. The Sage complex, situated on Gateshead Quayside, was initially slated for completion last year; however, construction has not yet commenced, and its projected cost has increased by £90m, now exceeding £350m. Ron Beadle, who leads the Liberal Democrats within Gateshead Council, stated: “Residents are rightly dismayed by the lack of progress.” In response, a director from the council commented: “We continue to work with our development partners to finalise costings and funding.” This new development aims to supersede Newcastle’s Utilita Arena and will be located between the current Glasshouse concert hall and the Baltic Centre for Contemporary Art. According to the developers, the facility will include a 12,500-capacity arena, an international-standard conference centre equipped with 17 suites, areas for art exhibitions, bars, restaurants, and newly designed walkways and public areas. The Labour-controlled council had indicated in June its intention to provide an update on the project’s advancement “later this summer.” Furthermore, a multi-storey car park constructed in the Baltic Quarter to support the development is presently closed and secured. Beadle remarked: “[Residents] have seen £23m spent on a car park to serve the development which has subsequently closed.” He added: “It is time for the council to clarify exactly what’s going on.” A property owner in the vicinity, who supports the initiative, informed the Local Democracy Reporting Service: “The uncertainty around the ongoing works is making it difficult for Baltic Quays residents to sell their homes or, in some cases, even rent them out. “After all, who wants to move into a flat with long-term construction looming over them?” On Wednesday, the council asserted that the scheme “continues to make progress.” Anneliese Hutchinson, the authority’s strategic director for economy, innovation and growth, stated: “Ground enabling works have been successfully completed including land remediation and mine grouting, meaning the site is ready for construction works to begin.” She further commented: “Like any development of such magnitude, this takes time, and we will be able to provide further updates soon.” The project had previously secured a £20m Levelling Up grant and an additional £3.5m via the North East’s devolution deal. North East Mayor Kim McGuinness expressed that she was “absolutely supportive” of the development but was not currently prepared to commit additional funding.