Figures revealed at West Oxfordshire District Council’s overview and scrutiny committee said the council had overspent by £315,585 on the precinct in Witney in 2023/24.
This was due to voids, rent free periods and service charges.
But the financial performance report said “there was cause for optimism” and predicted an increase in income of £800,000 coming through in 2024/25.
(Image: Ed Nix)
West Oxfordshire District Council, freehold owners of the 4.9 acre site, bought the buildings and assets 18 months ago for £9.16million.
It was previously let on a long lease originally to Kandahar Real Estate and more recently a subsidiary of Deutsche Bank.
Debenhams, Dorothy Perkins, Evans, Wallis, Hobbs, JoJo Maman Bébé, Crew Clothing and Whittard of Chelsea have all come and gone from its 21 letting units in recent years.
Alaric Smith, executive member for finance, said it was “a long-term investment and cannot be judged on year one”.
He said in “a challenging business environment” the centre has already seen the opening of Sports Direct, rebranding of Café Rouge into Bella Italia, which has improved trading, and new leases have been agreed with Fat Face and Trespass.
Small business pop-up The Shop has been moved into “a more sustainable location” and a new hand car wash with Intercar cleaning is operating in the multi-storey car park.
He said there have been regular and improved markets “including a spectacularly successful Christmas market” and it has been confirmed that the Witney cinema is one of the most favoured sites in the Cineworld group.
Occupancy by floor area is at 88 per cent, he said, adding that the hard and soft landscaping has been improved, art displays installed to encourage footfall and the council is hoping to provide more seating.
He said: “Because we negotiated the initial purchase price down, we are still achieving a return that is on target. All the empty units are being marketed and we have ongoing discussions with a number of interested parties.
“Overall, we think this is a sound investment. No investment is completely without risk, but this enables us to generate a positive return as well as to promote the retail offering in the town, which benefits other traders and the wider district.”
Conservative councillors disagreed.
Deputy Conservative leader Liam Walker said: “We don’t believe that buying Marriott’s Walk shopping centre was at all necessary and has ended up costing taxpayers millions.
“This is money that could have been spent improving town centres across West Oxfordshire or improving council services like tackling fly-tipping, removing the weeds from footpaths, or cutting council tax.
“Residents expect our local councils to get the basic services right and this sadly isn’t happening whilst the coalition are distracted with funding their pet projects.”
A council spokesperson said: “We are currently working to improve markets in many town centres and the council executive will be working directly with Chipping Norton residents on this at a public meeting in September.
“We are also working on improvement plans for Carterton, providing support to local businesses across the district, and we will be working closely with other towns over the coming years.”