Ambitious plans to build a huge new hotel in Burnley have ground to a halt over a legal dispute.
Crow Wood Leisure has revealed that work has stopped, just months before completion, on a 77 bedroom hotel, which was set to accompany the popular centre’s award-winning Woodland Spa.
Owner Andrew Brown announed that parent company Andrew Brown Leisure Ltd had come to a “natural pause in development” where no further contracts have been awarded.
The Burnley Express understands that the dispute is between the leisure company and a previous landowner, and that work would re-start immediately should an agreement between the parties be reached and signed.
If the parties are unable to reach a mutually acceptable figure it will ultimately be decided in court.
The hotel would potentially create up to 70 new jobs.
Managing director Andrew Brown said: “It is a shame that we are unable to reach agreement with the previous landowners.
“The delay has come as a disappointment to various contractors whom are ready to start work on sites, but they understand it is not solely within our gift to deliver the project at this time.
“I am sure it will be a disappointment to many others too, including our existing clients, current booking enquiries and the wider public.
“The good news is that nobody has lost out financially and all current works are paid in full. It is our intention to deliver the project at some point in the future, as we believe it will be another asset to the town.
“In the meantime, we remain focused on developing our existing business, which continues to grow organically thanks to the hard work of all of our staff.”
Andrew Brown Leisure is the main contractor for the project and has known the bank’s attitude for some months, which is why no further contracts have been awarded.
The consultants and sub-contractors were made aware of this impasse last week, and Mr Brown said they were unanimously sympathetic to the situation and ready to recommence work on the project whenever that may be.
The existing building structure will stand in all weather and not deteriorate, meaning the project can be picked up in the future, should an agreement be reached.
The Burnley Express contacted Mr Colin Coates, one of the original landowners, who said the situation was a legal matter which hadn’t yet been resolved.