South Kesteven District Council has disclosed that it spent over £1 million above the actual value to acquire the land for its St Martin's Park Redevelopment Project on the outskirts of Stamford.

At an Extraordinary Council meeting on Thursday, local representatives criticised the project as a "blunder," highlighting that the council overpaid for the 14.7-hectare site on Branack Road—valued at only £6.2 million—by purchasing it for £8 million in March 2019.

This acquisition came in response to the announced closure of the former Cumming's Factory, which threatened 500 jobs. In its place, SKDC planned to develop a mixed-use project with offices, workshops, a food shop and café, 190 homes, and a retirement village.

In its report, the council expressed concern that if the site were purchased by a private sector company, it would likely only propose residential housing developments for the site.

To date, the council has committed a total of £10.5 million to the development, breaking down the costs as £8 million for the land purchase, £1.5 million for demolition, £500,000 for master planning, and £500,000 for premises maintenance.

It is also paying a monthly standing charge of £14,000 to maintain the power supply to the site, ensuring sufficient electricity for any future development.

Demolition works started in April 2022 and concluded in December 2022. Currently, the site houses three large stockpiles of crushed materials intended for use in future development.

Before the meeting moved into a closed session to decide on the project's next steps, former leader Richard Cleaver (Independent) noted that the council purchased the land "with the best intentions."

However, he added: "In its haste to buy the site, the council paid far too much for it," and also mentioned that the new administration is still working to ensure they can break even on the project.

Councillor Phil Dilks (Independent) targeted the former Conservative administration, condemning the "chaos and failure they left behind" after being voted out in last year's local election.

He stated: "The only people who have occupied that site [so far] are a group of travellers." Cllr Dilks subsequently characterised the project as "another Conservative promise that has literally turned to dust."

In response, Councillor Graham Jeal (Conservative), the former Mayor of Grantham, explained that the land was purchased "to ensure that Stamford wasn't blighted by a failed industrial site."

After assuming the role of council leader in January, Councillor Ashley Baxter (Independent) identified the project as a key priority.

He referred to it as "one of the many legacy issues" inherited from the previous administration, noting: "It's been a disappointment for many people involved and we really need to crack that nut."