Losing developer takes fight to Council

One of the developers that lost out on the contract to redevelop Rochdale town centre has started legal proceedings against Rochdale Council.

Sultan Properties, owners of the Wheatsheaf shopping centre, is seeking an injuction to prevent the council from signing a £250m contract with winning developer Wilson Bowden.

A spokesman for Sultan Properties said that the company had launched legal proceedings because they believed that the search for the winning developer did not comply with EU rules requiring a fair, open and transparent competition.

Sultan wants the council to undertake a full re-submission of the final proposals for development.

Andy Zuntz, Executive Director at Rochdale Council, said: "Ask/Sultan made a sufficiently good submission to be short-listed as one of the three prospective developers for the town centre redevelopment scheme. However, Wilson Bowden Developments were the unanimous choice of both the Council and English Partnerships. We are very disappointed that Sultan Properties are seemingly taking this action and suggesting that our selection processes did not comply with EU procurement rules. We strongly contest any such suggestion."

Diane Goodwin, Senior Regeneration Manager at English Partnerships said: "English Partnerships has been involved and supported the Council throughout this rigorous and detailed process to select a preferred developer and we are very surprised that Sultan Properties has decided to pursue legal action after the Ask/Sultan joint submission was not selected by Rochdale Council."

Reporter: Jan Harwood

Date article online: 10/04/2008