Plans to knock down a Hertfordshire theatre and replace it with 29 homes that was branded “terribly flawed” could be scrapped.

The scheme is one of two in St Albans City and District which is in the process of being cancelled – with politicians calling for a “reality check” to prevent the council from planning “overambitious” projects in the future.

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Under plans first agreed in 2019, St Albans City and District Council had agreed to knock down Harpenden Public Halls, replacing the former performance centre with 29 new homes and commercial floorspace.

It was hoped the project would generate a return of at least £5.5million, with part of the cash going towards culture and leisure in the town.

But after spending £721,000 developing the project between 2019 and 2022, the council’s regeneration and business committee voted to begin the process of selling the site to “interested parties”.

Politicians may also throw out a plan to convert the St Albans Spicer Street public toilets into a residential development.

Herts Advertiser: £721,000 has been spent developing the project.£721,000 has been spent developing the project. (Image: MICA Architects/St Albans City and District Council)

At the committee’s meeting on Monday, January 23, chair Councillor Robert Donald (LD, Cunningham) said: “The construction industry over the last 12 months has had unprecedented inflationary costs and pressures on it that we’ve not seen for a very long time.

“Building costs have gone up over the last 12 months by a great order of magnitude.

“Borrowing rates have gone up considerably from when the forecasts on all these projects were made.

“These factors together have affected what is now the likely amount we will actually net, and we couldn’t have foreseen those when the original forecast was being made.”

But Cllr Kristian Gavan (LD, Sandridge and Wheathampstead) acknowledged economic circumstances are challenging, but added some council projects are victims of “overoptimistic specifications of what is achievable”.

Cllr Brian Ellis (Con, Harpenden South) agreed and suggested “an external party” is needed to provide a “reality check” on the council’s ambitions.

The committee voted to cease work on both the Harpenden Public Hall and Spicer Street developments for the time being.

Council staff will look at whether the council should sell off the sites to “interested parties”, but the plan would need to come back to councillors – complete with a “Red Book” official valuation for each site – before a final decision is made.

The designs for the Harpenden Public Halls development feature 19 homes for market sale and 10 homes for affordable tenants, split across two blocks.

One neighbour, who lives in Arden Court, said the scheme is “terribly flawed”.

In a letter published on the council’s website, he said: “This is a prime site in Harpenden and presents such an unbelievable opportunity to do something special.

“You cannot create another location like this as it’s simply not possible, and purchasers will pay a premium to secure the right apartments in this special location.”

Historic England said the project would cause harm because of the large scale, form and mass of two blocks.

Along with the decision to cease work on the Harpenden Public Halls and Spicer Street projects, the committee also agreed to pause work on three more “investments” – including the Fleetville Community Centre project in St Albans, with funding for the development “under review”.