Blackpool Council has stepped in to salvage the seaside town’s ambitious £300m Blackpool Central scheme after developer Nikal filed for administration.

The council has now confirmed it will press ahead with site clearance and appoint DSM Demolition to clear the site’s old police station and municipal courts early in the new year.

The cost for the demolition will be met from Blackpool Town Deal funding.

The Council’s executive committee has terminated the agreement with Nikal and will now start the search for new investors.

Blackpool Council had been working with Nikal on the first phase of the development completed earlier this year, with the opening of a 1,300 space multi-storey car park.

Blackpool Central multi-storey car park contractor dispute tipped developer Nikal over the edge

The appointment of administrators to Nikal came after Ballast Nedam, the contractor that built a multi-storey car park at the site, won a £4.6m claim against the developer that it could not pay.

Nikal had planned to build three indoor entertainment centres, a hotel and restaurants on the 15-acre site behind the Golden Mile.

Cllr Lynn Williams, leader of Blackpool Council, said: “We’re committed to attracting a world-class leisure development that creates jobs for our local people, extends our tourism season to be all year round and supports our local economy to grow.

“In the last five years at Blackpool Central, we’ve made more progress on this site than the 50 years before it since the Blackpool Central train station closed in the 1960s, largely paid for by the private sector without risking council tax payer’s money.

“The road to regeneration isn’t always smooth but we will not stand still. We will continue our plans to demolish the courts and the police station early in the new year, in order to create a shovel-ready site for a new leisure attraction.

“We have very high standards for the type of attraction which this site needs and any future scheme will have to match those ambitions. To deliver on that we need serious investors and we will be heavily marketing this opportunity to get that international calibre of attraction.”

The Council’s  previous agreement with Nikal ensured that the car park was built with private sector investment.

The Council received £4.5m from the land agreement with Nikal, used to help support council finances and local services. As well as the land receipt, the Council also has the option to acquire the car park for a nominal sum in the future.

Blackpool Central regeneration site

In addition to protecting the Council’s finances, this agreement means that the vast majority of the Blackpool Central land is still owned by the Council and available to develop, without risking council tax payers’ money.

In the new year, the Council will look to appoint international marketing agents to help promote the site and find investors and developers who could bring forward a new leisure attraction using private sector investment.