Centre's future still undecided

The Courier, 4 January 2001

The future of the Gateway Centre, currently standing forlorn and empty, on the edge of St Andrews, is still in the melting pot over six months after the project came to grief.

As concern was expressed in the town yesterday over the continuing uncertainty, it has has been revealed that although the property has been on the market at a fraction of its £9 million cost, no decisions have yet been made about who will take up the challenge.

The news came from receivers Grant Thornton, who are confident a purchaser will be found, but are not expecting any developments in the next few weeks.

The building, at the main western entrance to the town, was to have been the home of a lavishly-equipped club for the St Andrews Golfing Society, and of a prestigious museum and first port of call for the University of St Andrews.

High praise was heaped on the project at a reception in the partly-completed building last spring, but by the time the Open Championship came along it was clear the whole scheme had collapsed.

Receivers were called in after the spectacular failure of an overseas membership drive led to a funding gap that could not be bridged. It was hoped £1.5 million of memberships would be sold, but the figure reached was just short of £49,000.

Around 60 staff, many of whom gave up good jobs elsewhere to join the venture, were laid off, high quality equipment supplied to the leisure centre was removed, and the building was placed on the market.

In spite of the international shop window provided by the Open, and the fact over 60 sets of particulars were sent out, no acceptable offers were forthcoming from any of 16 interested parties shown around.

Eventually the property was re-advertised at offers over £2.5 million - the first national advertising campaign sought “sensible offers” - but this was done in October and there has still been no movement.

It was recently revealed in a report to creditors that the situation has left Lloyds TSB Scotland as a casualty to the tune of over £5 million, and the figure is mounting as interest is added. The bank is expected to recoup some of the money when the premises are sold.

There is an even more bitter pill for unsecured creditors, who are due a total of around £3 million but will be left with nothing.

The development has been built on land owned by the university and leased to St Andrews International, and the university has always maintained that its position has been protected.

Receivers Grant Thornton told The Courier that at the moment there was nothing to report in respect of any prospective buyers.

A spokesman said that the building would be sold, but it was likely to be the beginning of February at the earliest before anything happened.

Yesterday the councillor for St Andrews Central, Jane Hunter-Blair, said it was a great pity that the situation had arisen, and she hoped the building would be put to good use soon.

“I want to see the building become a thriving centre, and it does the town no good to have it sitting as a white elephant.”

Similar views were expressed yesterday by the chairman of Fife Council’s East Area development committee, local councillor Frances Melville.

She said no-one wanted to see a “folly” standing at the western entrance to the town, and she hoped a use would soon be found for the building.

Councillor Melville said that like the other councillors in the town she had voted against the proposal, and it was now clear that doubts expressed about viability were fully justified.

She added that she would concede that the building had turned out to be attractive, but it was clear that its possible uses were very limited.