Croydon Council controversial hotel and land sell off branded an ‘absolute disgrace’

By Tara O’Connor, local democracy reporter

Council plans to sell off the controversial Croydon Park Hotel and the town centre College Green site have been branded an “absolute disgrace” as the authority is unlikely to recoup the costs of the Fairfield Halls refurbishment.

The College Green site is set to be sold for at least £20 million, and the Croydon Park Hotel is listed for another £20 million.

The plans have been called a “fire sale” by the leader of Croydon Council’s Conservative opposition.

The original idea was that building more than 400 homes on the land would cover the costs of revamping the Fairfield Halls arts venue, a car park and work on the land outside.

Croydon Council decided in February not to transfer this land over to Brick by Brick, the council-owned developer, and last month it moved £69.2 million it had loaned to the company to capital expenditure – essentially wiping out the loan.

Leader of the opposition, councillor Jason Perry, said: “The sale of College Green is an absolute disgrace, it should have been funding the Fairfield Halls scheme, it would have offset those costs which have now ballooned.

“Essentially it is a £20 million fire sale and yet again Croydon taxpayers are funding Croydon Labour’s failures.”

Croydon Council approved plans in May 2020 from Brick by Brick for 421 new flats across five buildings from seven to 29 storeys tall.

The Croydon Park Hotel was bought by the council in 2018 for £29.8 million but it went into administration in June this year and is currently being used as temporary accommodation for homeless people while the council decides what to do with it.

The decision to buy the hotel was highlighted by auditors Grant Thornton in a report published in November.

It was a ‘leader decision’ by then council leader Tony Newman and not reviewed by cabinet or the overview and scrutiny commission until a month later.

A council spokesperson said: “The pandemic has affected the economy, but we are determined to get the best possible return on these sites for local taxpayers and improve the borough’s finances.

“The prices listed are only indicative at this stage, and these depend on discussions with credible bidders around how the sites could be used in future.”

The council is using estate agent Savills to market the two sites which development director for London, Andrew Cos, described as an “unparalleled opportunity in Croydon.”

He added: “Both have the potential to deliver much needed affordable and private housing to the borough or a range of other uses.

“We anticipate strong demand to come from London developers, hoteliers, student housing providers as well as the build to rent and co-living operators.”