Gateway dismisses financial rumours

The Courier, 7 June 2000

THE CHIEF executive of the company behind the new £8 million Gateway development in St Andrews yesterday dismissed speculation about the future of the project.

The comment from the man at the helm, Geoff Lang, came after doubts were cast on the financial viability of the scheme during a meeting of St Andrews Community Council.

The project is already running a month behind schedule, and it has been made clear to The Courier that there has been discussion about funding issues.

Yesterday Mr Lang acknowledged that sales of memberships of the five star St Andrews Golfing Society, which will occupy the top part of the building, had fallen behind initial targets.

He added, however, that sales were still growing steadily, and that as the opening approached, the situation was improving on a daily basis.

The suggestion, apparently made in public that that the company was bankrupt, said Mr Lang, was "alarming".

"There is no denying the fact that the project is running about a month behind schedule. There are all the typical problems involved in getting a building of this complexity up and running.

"We are still proceeding, and while we are going to be a bit late, that’s life. The site is busy, the main contractors and sub-contractors are on site and working as we speak, and every single day the building is coming closer to completion."

Doubts about the future of the project were raised by Dr Frank Riddell, vice-chairman of the community council, who said at a meeting in St Andrews Burgh Chambers that he believed it was facing financial difficulties.

However, Dr Riddell said yesterday he had since spoken to Mr Lang and was "very happy" to hear that it was going ahead as planned.

St Andrews University is to play a key role in the new development. The land is still owned by the university, but is leased to the developers on a long-term basis. The university has always made clear that it secured the facilities in the development at no cost and, in addition, will receive an annual ground rental from the company, which in the first five years will cover the set-up costs of the museum displays.

The Gateway is owned and operated by St Andrews International Limited-SAIL.

A spokesman for the university said yesterday, "The university secured an agreement with St Andrews International Limited which completely protects its own financial position.

"It does, however, obviously wish that everything can proceed in accordance with that agreement since it attaches great importance to the development of the facilities which it hopes to provide to its students, staff and the general public."

Plans for the complex were given the green light by Fife councillors last year, despite strong local opposition. The company was forced to come up with a revised blueprint to relocate the four-storey building further back on the site and reduce its height, effectively losing a single storey.

The aim of the centre is to bring the world of St Andrews-both past and present-to life through interpretation of its three main elements, golf, academia and heritage.