Nurses Home Scheme to Cost £11m

The redevelopment of the former Nurses Home on Westmoreland Road has a budget of £11.03m.

Treasury Minister Dr Alex Allinson was asked about the cost of the development by Douglas North MHK John Wannenburgh.

He said that the Manx Development Corporation, which is owned by the taxpayer with the Treasury as the only shareholder, presented an original business case to the Brownfield Regeneration Steering Group (BRSG) in April 2022 and forecast a gross development cost of around £8.9m.

That figure, which includes the cost of acquiring the land and existing buildings at market value (£950,000), enabling works, design costs as well as the main refurbishment works, has since grown to £11.03m.

The scheme is being funded through a loan from Lloyds Bank with the company expected to make a return on the investment once the scheme is completed.

Dr Allinson said: ‘A further revised business case was presented by Manx Development Corporation, which advised the updated proposed budgeted gross project cost, to the BRSG in July 2023 and subsequently notified this to Treasury in August 2023 as part of the process to request approval to make a drawdown under
the commercial loan facility that is in place with Lloyds Bank.

‘Manx Development Corporation are reporting that the current expected gross project cost (inclusive of VAT) is £11.03m as notified at the BRSG in July 2023. The cost is tracking in line with budget and proceeding in line with the green loan conditions within the revolving credit facility terms.

‘The further cost increase is attributable to changes to the design and construction costs, prolongation of the enabling works, reallocation of Manx Development Corporation overheads and increased property
costs.’

The MDC said in March that the scheme remains on time to be completed early next year.

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Village

It is also behind the Westmoreland Village scheme adjacent to this site, but while planning approval has been granted, it has refused to confirm whether or not it has managed to purchase all the necessary land to complete the scheme.

Just under £2m has been spent on buying the houses and buildings which have been purchased.

While the planning committee approved the Westmoreland Village application in February, this is not reflected on the planning website which shows it as a ‘pending decision’. As per a comment on Facebook, this is apparently due to the need for a section 13 agreement to be reached before the approval is finalised. After this, objectors are able to launch an appeal.