Castleford ‘held to ransom’ over £1m price tag for derelict Poundstretcher store

The sale of the town’s old Poundstretcher store to Wakefield Council has collapsed after the local authority was asked to pay almost £1m for the property.

The market value of the building is understood to be £100,000.

The council desperately needs to buy it as part of a £24m scheme to transform the town centre.

The council has already made a series of “strategic acquisitions” as a deadline to complete the ambitious project looms.

The Local Democracy Reporting Service understands the council agreed to buy it for £300,000, three times the market value.

But the deal fell through earlier this month after the owner backed out of the sale at the last minute.

It is understood that the asking price has now more than tripled to almost £1m.

When contacted, the council said it could not comment on specific details of the deal, but added: “It is not fair to use the public purse as a cash cow.”

Castleford MP Yvette Cooper and Michael Graham, the council’s cabinet member regeneration, have issued statements saying taxpayers are being “held to ransom”.

The council was awarded £24m of government Town Deal funding for Castleford in 2019.

It is hoped Castleford’s revamp will involve creating two of Yorkshire’s ‘premier public spaces’.

But there is a strict deadline of 2026 for completing the work.

Negotiations with land and property owners in Castleford have been ongoing for almost three years.

Coun Graham said: “Local residents made it very clear that they want to see this building demolished.

“And we know the people of Castleford will be very disappointed that we can’t move forward with this important part of their town’s regeneration until this is resolved.

“Sadly, it feels like we are being held to ransom. And it’s too high a price to pay with public money.”

Plans for the demolished site include building a new skills hub and training centre to be run by the Castleford Tigers Foundation, the charitable arm of the town’s professional rugby league club.

Ms Cooper said: “This is a complete disgrace.

“The Poundstretcher building has been left to go to rack and ruin and the owners have badly let Castleford down.

“Wakefield Council had a great plan to buy it, demolish it and replace it with a new skills centre involving Cas Tigers and we were told it was all agreed.

“So for the deal to fall apart in this way at the last minute is shameful.

“The owners need to know that they cannot hold the council and the community to ransom.

“They should get back round the table fast, agree the deal and do right by our town”

Mark Lynam, the council’s corporate director for regeneration and economic growth, said: “Whenever the council acquires land or property from private ownership, we accept it is a business transaction.

“We understand that people want to be compensated.

“Which is why, where possible, we are sometimes prepared to offer purchase prices above market value.

“However, we are spending public money so these must be reasonable and justifiable.

“It is not fair to use the public purse as a cash cow.

“We wouldn’t go into the details of a specific commercial transaction, but we are incredibly frustrated that the agreed sale of the Poundstretcher building has fallen through.”