AMBITIOUS plans to build a cinema complex and leisure hub on a former leisure centre site in Kidderminster are “no longer financially viable”.

Wyre Forest District Council is set to explore new uses for the site where the Glades Leisure Centre once stood, now known as Lionfields.

Plans for a feasibility study into what could be built on the site are being discussed at a meeting of the cabinet on Thursday, June 30.

A conditional agreement was signed with a developer in October 2019, but due to the Covid pandemic, negotiations between the developer and the cinema operator did not restart until this year.

The council said “market conditions have changed, and construction costs have increased considerably” meaning the latest financial proposals put forward by the developer were not financially viable.

The developer had not submitted a planning application by the deadline in late April, which had been extended, added Wyre Forest District Council.

The council said they do not believe that a further extension to the deadline would “achieve the desired outcomes and the agreement is being terminated”.

Councillor Helen Dyke, leader of Wyre Forest District Council and cabinet member for economic regeneration, planning and localism said: “So much has changed over the last two years or more. 

“What looked achievable, and deliverable is no longer commercially feasible despite our best efforts to bring it forward.

“We are now looking at exploring alternative development opportunities for the former Glades site that meet the needs of future residents and businesses.

“They also need to be affordable and deliverable in these tough market conditions.

“All the options need to be looked at to see if we can address the significant financial and commercial challenges, but unfortunately a cinema development at this site is clearly not going to be deliverable.”

Cllr Dyke said the council hopes to have proposals to share with the community by the end of the financial year.